KPO vs. BPO Call Centers: Which Is Best For Your Call Center?

November 5, 2022by admin0


Basic or secondary business operations are increasingly being outsourced. It entails entering into a contract with a third-party service provider regarding the duties and operations of business processes. Nearly all multinational corporations today have outsourced some or all of their business operations. Business Process Outsourcing (BPO), which offers services in marketing, human resources, customer assistance, technical support, etc., has grown significantly in prominence over time.

A subset of BPO is Knowledge Process Outsourcing or KPO. Core functions are outsourced as part of KPO, which may or may not result in cost savings for the parent firm but undoubtedly adds value. When compared to BPOs, the processes that are outsourced to KPOs are typically more specialized and knowledge-based. The typical activities that are outsourced to KPOs include R & D, services for the capital and insurance markets, legal services, biotechnology, animation, and design, among others. LPO, or legal process outsourcing, is a unique KPO type that focuses on providing legal services.


  • Both the front end and the back-end functions of an entity can be handled by a BPO. BPO provides a range of services, such as:
  • Care for customers, such as call centers, support desks, etc.
  • Human resources, including hiring and firing, training and job placement, processing payroll, etc.
  • Technical assistance
  • Services in accounting and finance.
  • Services for websites, such as web hosting, etc.
  • Transcription

KPO Offers A Variety Of Services, Including:

  1. Services for investment research
  2. Services in market research
  3. Analytics of data
  4. Research services for businesses
  5. Other examples include outsourcing of media, financial, and legal processes.

The Major Differences…

The following points discuss the key distinctions between BPO and KPO:

  1. · Business process outsourcing is referred to as BPO, whilst knowledge process outsourcing is referred to as KPO.
  2. · BPO is the practice of outsourcing ancillary business operations to a third-party company to reduce costs and boost productivity. KPO is defined as the process of outsourcing knowledge and information-related tasks to outside service providers.
  3. · While KPO is based on judgment, BPO is based on regulations.
  4. · BPO is less complex than KPO in terms of complexity.
  5. · While KPO involves competence in knowledge, BPO requires expertise in the process.
  6. · Cost arbitrage is essential to BPO. KPO, on the other hand, depends on knowledge arbitrage.
  7. · BPO is focused on volume. KPO, on the other hand, is insights-based.
  8. · In contrast to KPO, there is little collaboration and coordination in BPO.
  9. · Employees working in BPO must have a basic understanding of computers and decent communication abilities. Unlike KPO, where only highly skilled individuals with professional qualifications are needed.
  10. BPO concentrates on low-level processes, whereas in KPO high-level processes are the focus.

There are many similarities between BPO and KPO in terms of their advantages despite all the significant distinctions described in the previous section. Among the most widespread advantages are:


The processes used by third-party service providers are typically reliable. They go above and beyond to further enhance their processes through the application of cutting-edge technologies and process re-engineering. In this approach, outsourced solutions lower the client company’s administrative, staffing, training, and other expenditures.

Focus On Key Business Processes

Both BPO and KPO give the client organization the option to refocus its human resources from non-core to core business processes. The client company can increase productivity and profit margins in this way.

Enhance Non-core Functions

Employees from BPO and KPO have specialized skills in their fields of employment, making them more equipped to manage all non-core tasks. Their goal is to provide the client firm with excellent services.

Then Theres Benefits…

1. Conserve Cash

Cost reduction is attainable with outsourced solutions since the partnering company attempts to meet through process improvements, reengineering, and the use of cutting-edge technologies that lower and control administrative and other costs. Additionally, companies might cut costs on hiring and training.

2. Concentrate On Essential Business Operations

Businesses can increase team productivity by concentrating on their core operations and customer service. In the end, the business can benefit from more profitability and enhanced customer satisfaction.

3. Improved Outcomes In Non-core Areas

Professional BPO/KPO companies are specialists in their fields and highly skilled at managing all non-core tasks like data entry, billing, data analytics, or accounting. They seek to provide clients with innovative solutions.


Boost Operational Effectiveness

Specialists will handle all the processes and tasks by outsourcing them, which will speed up the process, increase accuracy, and boost productivity. The storage and entry of manual data will also be replaced.


Low-cost, Innovative Technology

The expense and danger of investing in new technologies are relatively high. Organizations may keep up with the latest technologies and solutions by using outsourcing businesses that upgrade their technical solutions.

Any business considering outsourcing can benefit greatly from both BPOs and KPOs. Your decision will depend on the kind of business you run and the exact tasks you want to outsource. You will probably choose a BPO or KPO based on the level of expertise and training necessary for your objectives.

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