Difference between BPO and KPO in tabular form?
Basis of Difference | Knowledge Process Outsourcing (KPO) |
Business Process Outsourcing (BPO) |
Definition | Refers to the process of outsourcing information or knowledge based activities that are integral to the working of a business | Refers to the process of outsourcing peripheral tasks that are more process oriented and does not require professional expertise |
Cost effectiveness | May or may not, since they aim at value addition in terms of knowledge | Surely leads to cost minimisation, since BPOs enjoy the expertise of carrying out the same task at a much lower costs (compared to the parent industry) |
Task outsourced | Task outsourced is more of technical nature and requires specialisation | Task outsourced is more of front office (such as at reception or desktop support operations) or back office operations (like customer care operations) |
Nature of task outsourced | Task outsourced forms a core business operation of the parent company | Task outsourced is basically peripheral or of sub-prime importance to the parent company |
Specialisation | KPOs require more specialised and academically sound personnel. These personnel should have a major degree in the concerned field in which the KPO is operating. | BPOs require basic qualification, say high school degree or graduation. These personnel can be regarded as ‘jack of all trade’ |
Examples |
List of task outsourced to KPOs:
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List of task outsourced to BPOs:
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