Explain the points of differences between BPO and KPO.
Answer»
BPQ:
BPO means getting contractual services of external companies or group of companies to complete special work or process of a company.
For example call centres, data entry etc. This reduces the expenditure by using cheap labour available in developing countries like India, China, etc.
To focus on key function.
Benefit of specialization / efficiency.
Cost cutting.
KPO:
KPO refer to outsourcing of Knowledge based Process! It means obtaining high end knowledge work from outside the organization in order to run the business successfully and in cost effective manner.
In short KPO firms get knowledge related, information related, work done from outside firm and it involves high value work carried highly skilled staff.