So, how does KPO differ from BPO?
KPO stands for Knowledge Process Outsourcing and it literally means outsourcing any process that requires processing of knowledge in any form. Supposing you have business processes that cannot be automated easily, then you would rather have people think for you and be proactive on your behalf instead of you yourself following a checklist of activities. In such a case, you would require a sophisticated firm to aid you; a firm that has a highly skilled set of professionals who are willing to act upon and process all kinds of information in order to bring success to you – their client. Such a firm is known as a Knowledge Process Outsourcing unit.
KPO requires the outsourcing of high-end knowledge business processes, which in turn require expertise that delivers great values to companies through the provision of business specializations. A few examples of KPO include online teaching, investment research, legal & insurance claims, patent filing, value research, and supply of media content.
BPO on the other hand stands for Business Process Outsourcing and it means getting a certain business process implemented using outsourcing as a channel. Imagine you are running a business and it requires the implementation of a number of different processes so as to accomplish tasks that are crucial to your business model. Once your business begins to expand, more and more processes will be introduced, and implementing these new processes means increasing your manpower, administration and HR activities, resources, etc. This can add to the burden and increase your costs. A good alternative is outsourcing a large part of your work to a third party firm who is well-equipped to provide you with solutions. This is Business Process Outsourcing.
BPO is basically a pre-defined manner in which one can handle a number of business processes, in which the agents or employees have to undergo training. BPO services include selling of insurance policies, transaction processes, technical support systems, setting up of bank accounts, and email as well as voice based support.
Now that you know what each of these sectors stands for, you should know the real reason as to why they differ from each other? In reality, KPO is nothing but a more advanced form of BPO.
KPO services help companies to manage their serious processes in a more competent manner, offer research on markets, services, products and competition, reduce design-to-market lead times, and boost the company to competence. KPO’s consist of all that is needed to aid in dealing with fast growing business processes. Research and Development in the Pharmaceutical and Biotechnology sectors are two areas that are considered to be immense growth prospects.
Today, more and more Indian companies have joined the KPO sector and sooner or later when you take into consideration the number of job opportunities and revenue generation opportunities that are provided by KPO, you will realize just how important this industry is to us. It has been predicted that the number of individuals engaged in the outsourcing industry are estimated to grow, as more and more companies have decided to get involved with BPO’s and KPO’s.
Whatever may be the future, I am sure that India is all set to gain recognition as a country having strong economy in the world.
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