Question

Explain the points of differences between BPO and KPO.

Answer 1

Business Process Outsourcing:
BPO refers to the outsourcing of non-primary activities of the organization to an external organization to minimize cost and increase efficiency It provides services related to marketing, human resources, customer support, and technical support, etc.

Knowledge Process Outsourcing:
KPO is another kind of outsourcing whereby, functions related to knowledge and information are outsourced to third-party service providers It is a process that involves knowledge-related work handed over to the outside party. The fine line difference between BPO and KPO is explained in the following table.

Basis For Comparison	BPO	KPO
Based on	Rules	Judgment
Degree of complexity	Less complex	High complex
Requirement	Process Expertise	Knowledge Expertise
Relies on	Cost arbitrage	Knowledge arbitrage
Driving force	Volume driven	Insights driven
Collaboration and Coordination	Low	Comparatively high
Talent required in employees	Good communication skills	Professionally qualified workers are required
Focus on	Low-level process	High-level process