| BPO | KPO |
| 1. Meaning | BPO implies the outsourcing of non-primary peripheral activities of the organisation to an external organisation to decrease cost and increase efficiency of parent organisation. | KPO is a form of outsourcing in which knowledge related and information related work are outsourced to third party service providers to help in value addition and to get cost benefits. |
| 2. Degree of complexity | BPO is comparatively less complex. | KPO is relatively more complex. |
| 3. Requirement | BPO requires process expertise. | KPO requires knowledge expertise. |
| 4. Talent required in employees | BPO requires personnel having good communication skills. | KPO requires professional qualified personnel. |
| 5. Focus on | BPO focus on low level process. | KPO focus on high level process. |
