Difference between BPO and KPO in tabular form?

Basis of Difference Knowledge Process Outsourcing
Business Process Outsourcing
Definition Refers to the process of outsourcing information or knowledge based activities that are integral to the working of a business Refers to the process of outsourcing peripheral tasks that are more process oriented and does not require professional expertise
Cost effectiveness May or may not, since they aim at value addition in terms of knowledge Surely leads to cost minimisation, since BPOs enjoy the expertise of carrying out the same task at a much lower costs (compared to the parent industry)
Task outsourced Task outsourced is more of technical nature and requires specialisation Task outsourced is more of front office (such as at reception or desktop support operations) or back office operations (like customer care operations)
Nature of task outsourced Task outsourced forms a core business operation of the parent company Task outsourced is basically peripheral or of sub-prime importance to the parent company
Specialisation KPOs require more specialised and academically sound personnel. These personnel should have a major degree in the concerned field in which the KPO is operating. BPOs require basic qualification, say high school degree or graduation. These personnel can be regarded as ‘jack of all trade’
List of task outsourced to KPOs:
  • Analytics
  • Marketing services
  • Business research, etc.
List of task outsourced to BPOs:
  • Customer support services
  • IT desktop support services
  • Insurance, etc.

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