KPO vs BPO

Knowledge Process Outsourcing (KPO) is a subsegment of BPO, wherein those processes which involve knowledge related work are handed over to outside party.

BPO

Business Process Outsourcing or BPO is the outsourcing of any segment/ process/ function of the business organization to an outside organization. The major cause behind the outsourcing of business process is to reduce costs and maximize efficiency. The focus is made on the process, i.e. the process is predetermined, and the provider has to bring consistency and productivity in the assigned processes.

KPO

Knowledge Process Outsourcing or KPO refers to the assignment or transfer of knowledge plus information related process to another organization. The organization may be a different entity or the subsidiary of the main organization that can be located in the same country or overseas to minimize cost.

KPO firms perform high-level tasks for which highly skilled personnel are required by the firms. It is an extended version of BPO. Low-level decisions can also be taken by these firms. It requires in-depth knowledge, domain expertise, judgment and interpretation power of the workers, who are capable of applying their knowledge because the work entails decision making on specific issues.