As a small business owner you may be asking yourself “What’s the difference between BPO and KPO?”. The important thing to remember in any outsourcing situation is not what you call it, but what you are getting.
BPO is a great place for small and medium sized businesses just getting started in outsourcing. Tasks that have yet to be automated by engineering or internet research to provide leads to your sales team are good examples of BPO. Classic BPO is usually customer support or helpdesk related. Here are some others:
1. Business Process Outsourcing (BPO): All Business Domains & Functions
- Document processing
- Data entry, Data analytics – Data/market/IP research
- Customer Service, Customer Support, Helpdesk
- Billing, verifications
- Transcriptions
- Outbound/Inbound Calling, Market /Competitor research
KPO tends to be more technical in nature. This may be something you find too expensive to do in-house or just do not have the expertise to manage properly. Here are some typically successful, technical processes that can be outsourced:
2. Knowledge Process Outsourcing (KPO) Services:
- Engineering Designing, Drafting and Rendering – Mechanical, Structural, Architectural and Civil
- Legal Process Outsourcing (LPO)
- Technical Writing & Communications
- Remote IT infrastructure Management – Helpdesk, OS, Applications, Database Administration, Maintenance & support etc.
- Animation, 2D, 3D modeling etc.
Lastly, I should mention RPO which is basically outsourced human resources. Although you will still need an in-house HR person to run the department, some administrative duties can be outsourced. For example:
3. Recruitment Process Outsourcing (RPO): Human Resources
- Worldwide Contractor staffing – Offshore/Remotely working resources/Onsite resources
- Online/Remote/onsite Training & Development -Technology & non Technology training
- e-learning courses development & Administration, Monitoring & Managing Training needs etc.
- Payroll Processing, Employees records, Employees Compensation & Benefits
- Performance Appraisals processing, Administration & Management.










Well said - I’m totally with you on this topic. KPO is essentially an offshoot of BPO. It is the high-end activity of the BPO industry and is estimated to have a magnificent growth in the next few years. It is estimated that the low-end work of BPOs’ will shift to destinations like Bangladesh and Philippines, while India moves over to KPO; which implies moving over from standardized routine processes and data entry kind of work in a BPO, to processes that demand advanced knowledge, analytical interpretation and technical skills. Understandably, the average KPO employee is expected to have better qualifications, skills and knowledge as compared to his/her BPO counterpart.
Julienne