There are a number of notable differences between KPO and BPO.

The six elements that

separate these two processes are focus, process, specialization, driving force, activities,
and client contacts.

BPO has a process which is much more simple than KPO. While BPO places an
emphasis on low level processes, KPO places an emphasis on high level processes such
as patent filing, investment research, and legal issues. When it comes to focus, KPO
focuses on the application of knowledge rather than processes. The differences in
specialization between are primary connected to their domains.

Most BPO workers do not need to have a large amount of knowledge in any specific
areas. The primary requirements for BPO workers are a high command of the English
language and simple computer skills.

In contrast, KPO workers are expected to specialize in specific fields. Some examples of
fields where KPO workers are expected to have specialized knowledge are financial
analysis. These professionals are expected to be qualified as a CA or MBA. When it
comes to driving force, again, KPO companies place an greater important on knowledge
rather than business processes. This is the exact opposite of BPO companies. The
activities of KPOs are different from BPOs as well. Any activity that requires specialized
knowledge will be connected to KPO, while BPO will use a rigid structure for handling
business procedures.

KPO workers can expect to deal with international clients on a regular basis. They will be
responsible for communication issues, and direct communication will be essential in
situations where complicated tasks must be performed.

A number of people have said that there are few differences between KPOs and BPOs. In
reality, KPOs are simply one end of the spectrum. The KPO is an extension of the BPO,
and allows businesses and organizations to carry out a large number of processes. There
are a number of powerful advantages that can be gained from Knowledge Process
Outsourcing.

When work is outsourced to other countries, companies in the developed nations can save
large amounts of money on the cost of manufacture. A number of studies have indicated
that these savings are as much as 40% to 70%. In addition to this, the profits that are
created by the use of KPOs are double the revenues that are obtained from BPOs.

While BPOs have statistically brought in about $11 per hour, KPOs have been shown to
bring in as much as $24 per hour. Perhaps one of the most powerful advantages of
Knowledge Process Outsourcing are the advantages it brings to developing countries. By
generating revenues from this industry, a country can become more prosperous.
Difference between KPOs and BPOs: We can say that KPOs emerged from BPOs.

BPO KPO

• It provides services like customer • KPO provides in-depth knowledge,

care, technical support through expertise and analysis on complex
voice processes, tele-marketing, areas like Legal Services, Business &
sales, etc. Market Research, etc.

• Low end services • High end services

• Process expertise • Knowledge expertise
• Pre-defined processes • Requires application, understanding
of business and analytical bent of
• It employees not- so- qualified mind
workers as it focuses on • It involves skill and expertise of
communication skills knowledge workers with excellent
educational background.

BPO (Business Process Outsourcing) v's KPO (Knowledge Process Outsourcing) :

BPO (def): BPO is commonly defined as the leveraging of technology or specialist

process vendors to provide and manage an organization's critical and/or non-critical
enterprise processes and applications. Some of the common tasks in BPO include payroll,
call centers and accounting. The main goal of BPO was to let firms concentrate on their
"core business" meaning that with these so-called mundane tasks out of their hair, they
can focus more on the things that they do best.

KPO(def): KPO involves "high-end" tasks being outsourced. These tasks are defined as
high-end ones because it requires in-depth analysis and perspective. Some of these tasks
include legal work, research and development, web content, design, and many others.

points worth to note :

1. KPO industry unlike BPO provides domain based processes and business expertise.

2. KPO is more like a challenge as it demands advanced and expertise skills on part of its
employees.

3. BPO on the other hand is more or less like a commodity business which stretches more
on information technology and its various sectors.

4. The BPO market is long term in nature as compared to the KPO market. With every
passing day the BPO market base is expanding and so is the various processes outsourced
through it.

5. BPO undertakes

a. Data processing
b. Basic data entry
c. Setting up of a bank account
d. Department Outsourcing
e. Provides technical support
f. Provides email support to its customers

6. KPO undertakes:

a. More granular market and customer segmentation (e.g., the ability to do make retention
or acquisition campaigns work at a micro-market level)
b. More predictive response modeling and propensity/cross-sell/up sell modeling
c. Precision marketing, churn prediction and management, customized products and
services in finance, insurance, telecom services
d. For retailers, store and shelf space management at neighborhood market level and store
level
e. Promotional efficiency tracking at micro-market level
f. Category/brand performance measurement, tracking and control at micro-market level
g. Market mix modeling at lower granularity levels of product, geography and time
dimensions
h. Precision and dynamic pricing, promotion and product portfolio design and
optimization
i. Primary, secondary and web-based market research
j. Monetization, predictive analysis and portfolio management of intellectual property and
patents
k. Analytics and optimization algorithm R&D for ISVs in enterprise application areas
such as, SCM, SRM, ERP, CRM, MR, BI, BPM

7. BPO will continue to derive higher revenues as compared to the KPO industry. The
BPO exports will be as higher as $20 billion by the end of 2010. By a recent study done
by experts the BPO industry is expected to grow globally at a CAGR of over 26 percent
by 2010.

8. KPO unlike BPO is not just restricted to information technology. It specializes in

various other challenging sectors namely business research, Clinical research, Intellectual
property research etc.

9. The KPO exports are estimated to be around $12 billion at the end of 2010. The future
of KPO appears to be bright and is expected to achieve a high end of BPO at the end of
2010. The KPO regime looks all set and poised to accept the new challenges of high
training cost and a much higher attrition rates.
10. The shorter term contracts will demand high quality work and skills on part of its
workers.

11. KPO industry has accepted all these challenges and is all set to leave a mark just like
the BPO brigade.

Note: Firms that are considering outsourcing should therefore be clear on what kind of
outsourcing they really want. If they want to focus on their core business tasks, they
should opt for BPO. If they want to have added help on their business then they should
consider KPO.

After BPO it is KPO.

KPO or Knowledge Process Outsourcing is the new buzzword.
KPO promises to be the next big thing in the outsourcing sector. It's an estimate according to a
report by (Global Sourcing) KPO or Knowledge Process Outsourcing business is supposed to
touch $17 billion by 2010 of which at least 70 per cent or $12 billion is to be outsourced to India.
More then 300,000 new jobs are required from the current 25,000. Many companies are planning
to develop KPO segment due to this. The impact of quality manpower and work helps India to
receive this much of work. According to a report, for every one job created for a foreign language
professional, two new jobs will be created for Indian English-speaking professionals.

What is a basic Difference between KPO and BPO?

The basic difference between KPO and BPO is that BPO mainly deals with technical support,
transaction processing, customer care, telemarketing etc. and KPO is offshoring of knowledge
intensive business processes that require specialized domain expertise. For such tasks KPO
requires people with a good educational background and experts in a particular field. KPO
employee is expected to have better qualifications, skills and knowledge as compared to his/her
BPO counterpart.

What KPO is all about?

KPO (Knowledge Process Outsourcing) job is all about good money, better working hours and an
opportunity to do research and technical consultancy. As more and more companies worldwide
make the transition from BPO to KPO, India is fast becoming a hot destination due to cost.
Knowledge workers plays a vital role in it as in most cases client's has the data but not the
manpower and India has the talent pool to process the data at a cheaper cost. KPO potential has
been seen in data integration, management services, financial services, web research,
technology research, biotech, data mining, database creation, web support, SEO, professional
writing, website/graphic designing etc. It also includes professional services, like business
research, legal services, accounts services, financial analysis and management consulting.
Most probably KPO operations are likely to emerge in countries with highest educational
standards along with highly qualified professionals (Engineers, PhDs, MBAs, Lawyers, etc.) such
as India, China and Russia. The biggest challenge for Indian firm is the fact that clients in KPO
will not look at dollars figures but they mainly concerned on quality of services. Indian industry
needs to tone up itself as other countries are also focusing on KPO. Among other countries that
are behind India are Russia, China, the Czech Republic, Ireland and Israel. Russia, with a huge
army of engineers and doctors in the world, could capture the European KPO market. India,
replicating the BPO sector could dominate the US market.

Do you want someone to complete your knowledge work on an as needed basis? Hire a
Freelancers or a KPO company.
Due to fact that knowledge process outsourcing business is not necessarily scale driven hence
concepts like freelancers and work at home also gain popularity. Due to minimum entry barriers
and low setup cost it encourage all professionals to start a small KPO center. Many companies
are outsourcing their projects using sites like Getafreelancer, Scriptlance, Elance, Offshorexperts
etc. Freelancers provide services such as general administration services, database and website
development, presentation preparation, graphic design, desktop publishing, internet research,
writing, bookkeeping, editing, proof reading, transcription, and many more services to businesses
and individuals. Work is delivered via email, fax, telephone, or postal service.
Knowledge process offshoring includes services such as basic data research, web research,
technology research, biotech, data mining, web support, SEO, professional writing,
website/graphic designing, market research, equity research, medical content and services,
pharmaceuticals, biotechnology, legal support, etc. If you are considering offshoring your
processes, or would just like to know more about the various KPO services that can be
outsourced to us in India, kindly contact us and our customer service representatives will get back
to you soon.