What is the Difference Between a BPO and a KPO

Getting an outsourced call center can help streamline your business’s operations. However, there are two types of call centers you need to choose from BPO and KPO. BPO call centers are tasked to manage processes on behalf of a client. On the other hand, KPO call centers handle information, data, and knowledge on behalf of a client company. Seeing as KPO needs to stay on top of the ins and outs of a company, they often handle a high level of specialized expertise. This begs the question: which is right for your business? If you’re considering an outsourced call center for your business, it’s best to know the difference between BPO and KPO before making a call.

What Is BPO?

Business Process Outsourcing (BPO) is a branch of outsourcing that involves contracting out any process to a third-party service provider and is often classified into back office or front office outsourcing. Back office outsourcing covers business functionalities like accounting, human resources, and finances. Meanwhile, front office outsourcing covers customer-related services like call center services and customer support. Since it is an outsourced job, the agent must ensure that all procedures are executed and consistent, even when they are located remotely. For this reason, it’s best to outsource employees from reliable BPO companies in the Philippines to ensure that you’re hiring highly trained individuals for the task.

Types of BPOs

  • Call Center Outsourcing: This type of BPO receives inbound customer calls, makes outbound marketing calls, and acts as a technical help desk center.
  • Data Entry Processing: This type of BPO provides online and offline data entry, such as updating website data, databases, and catalogs, spreadsheets, and more.
  • Financial BPO Outsourcing: This type of BPO provides accounting, bookkeeping, financial reports, and analysis services.
  • Engineering BPO: This provides a range of services related to civil, mechanical, and structural fields.
  • Healthcare BPO: This BPO creates medical transcripts, billing, and medical coding.

Why Should I Get BPO? There are many reasons you should get BPO for your business. First, you get higher profit margins since there is a huge availability of human capital at low wages, allowing you to reduce costs in operations. Second, since you can streamline your workflow, management will have a better core business concentration, enabling you to focus on core operational areas to improve overall business performance. And finally, you get access to the latest technology, especially when small and medium-sized businesses cannot afford to invest in the latest software. When you work with an outsourcing company, your business can benefit from the latest technology without cashing out loads from your business. What Are the Limitations of BPO? The biggest challenge of BPO is the high attrition rate. There is a high attrition rate in the BPO industry due to several factors like the monotonous nature of the task and the lack of career growth. Besides that, some countries are starting to be against outsourcing since they want to retain jobs within their country, which could be a serious concern for those in the BPO industry.

What Is KPO?

Knowledge Process Outsourcing or KPO is best for business- and information-related activities and is considered to be an extension of business process outsourcing. Although this requires low-level decisions, it requires a technological approach and an advanced system to support the process. KPOs can be separated from a company or division, allowing employees to work either locally or remotely to help minimize the cost. Since this type of call center outsourcing requires specialized skills, employees must have in-depth knowledge on the subject matters in their field, allowing them to provide solutions and make decisions during an interaction.

Types of KPOs

Below are some of the services KPOs provide to companies:

  • Business Research
  • Data Analysis
  • Legal Process
  • Outsourcing
  • Market Research
  • Educational and Learning Solutions
  • Corporate Training Services
  • Creative Design
  • Writing and Content Development

Why Should I Get a KPO? Depending on your company, you can benefit greatly from getting KPO. First, you get access to experienced professionals without going through the trouble of recruiting, onboarding, and training new employees. Besides that, your company’s asset investment is lowered since you’ve reduced a “per head” desk space and you have limited resource requirements, ultimately lowering your operational expenses. Finally, you get to compete with a larger market now that you have freed internal resources and access to better and highly skilled talent, making your market value increase. What Are the Limitations of KPO? Unlike BPO, where a high attrition rate is a serious concern, KPO’s biggest challenge is finding the right professionals in the fields of management, law, engineering, business, finance, and medicine. Additionally, other countries are also entering outsourcing, making KPOs invest more in the latest technology and infrastructure to continue to lead the pack in their field.

The Biggest Differences of BPO and KPO

Below is a quick rundown of the distinct differences between BPO and KPO to help you choose which best fits your company’s needs:

  • BPO operates through a set of rules and fixed processes, while KPO is based on knowledge, judgment, and expertise;
  • BPO is more straightforward and volume-driven, while KPO focuses on niche subjects, insights, and experience;
  • BPOs hire employees with basic education, robust communication skills, and computer knowledge, while KPOs need to be professionally qualified;
  • BPO focuses on low-level processes and business operations, while KPO focuses on high-level processes and information;
  • BPO employees have a streamlined routine and set targets, while KPO employees provide insights, forecast, and can report to the client;

The Bottom Line: Which Is Best for My Company?

If you’re considering outsourcing a team, BPO and KPO can provide numerous benefits for your company. All you need to do is to weigh in the options and see which type best suits your business. With that, consider the skill level and training your need and the purpose for outsourcing. Thankfully, there are call center outsourcing companies that can help you curate an effective team that can help streamline your operations, no matter the industry you’re in. This way, you can guarantee that you’re working with individuals who are highly skilled, trained, and experienced, making onboarding and training more seamless and efficient.

How Can Crew Bloom Help You?

There’s no denying that outsourcing employees for your team can be quite daunting, especially with the distance and communication barriers involved. Thankfully, CrewBloom provides a platform for companies to connect with top-tier professionals who have an exceptional experience with remote sales and support roles. CrewBloom is one of the leading outsourcing companies in the Philippines. So if you’re looking to build your sales and support team and develop your business operations, check out our list of highly qualified professionals and build your team today!

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