Question

Differentiate between BPO and KPO​

Answer 1

BPO

BPO refers as outsourcing of non-primary activities to the third-party service provider for service to decrease the cost of the company and increase productivity and efficiency of the company .

KPO

KPO refers as outsourcing of high skilled personnel for transfer or assign of knowledge plus process related to process

1. BPO stands for Business process outsourcing. It can be defined as the outsourcing of non-primary activities to a third-party service provider for service to decrease the cost of the company and increase the productivity and efficiency of the company. BPO is the outsourcing of mainly process and function.

BPO are of three types they are as follows:-

• On-shore BPO – When the outsourcing of services is done by a company to another company within the same country
• Nearshore BPO – When the outsourcing of services is done by a company to another company located in a nearby country.
• Offshore BPO – When the outsourcing of services is done by the company to another company is located overseas.

2. KPO stands for knowledge process outsourcing. It refers to the outsourcing of highly skilled personnel for transfer or assign of knowledge plus process related to the process to another company. Company hires other outsourcing company which can fulfill the requirement of a company it can be in the same country or overseas main intention behind this to minimize the cost of the company. It performs a task where high skill is required with depth knowledge, expertise and interpretation power.