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Difference between BPO & KPO – What’s best for you?

Musnad E Ahmed

Musnad E Ahmed

Last modified on October 8, 2022

Difference between BPO & KPO – What’s best for you?

Outsourcing, as we know, has introduced itself as one of the best viable options for businesses and industries to strive and grow, especially during these trying times of the Coronavirus pandemic, which has caused companies to switch their operations to a more sustainable solution.

However, a few facets of outsourcing may confuse the general public, which we will clarify in detail. What is KPO, and what does it have to do with BPO? Let us break this down in simpler terms.

Understanding Outsourcing

The term “outsourcing” is well known globally, and it has also been the backbone that supported the growth of countless industries worldwide. The essential roles it covers can never be downplayed in any way, mainly due to its ability to help organizations of all sizes.

So far, it has allowed countless businesses to thrive even through this deadly pandemic that has put them at risk of closure. Outsourcing your services to overseas agents has its benefits, but we are more interested in exploring its essential facets in this article.

Defining BPO

As we all know and understand, business process outsourcing defines the contracting of business processes to other agencies. That is a simple idea of how BPO is defined, but there’s much more to know than this.

BPO is usually used as the umbrella term for anything related to outsourcing. However, this is not the case since BPO has its specified boundaries and defined roles.

Business process outsourcing aims to tackle most front office tasks that require little to no experience. These tasks are dictated through readily formulated approaches that are devised to make the best impact.


BPO operates through staff that doesn’t require high-intensity training or specialization, and their main goal is to focus on the volume of work completed. As a result, BPO organizations can hire scores of people and have them start working instantly.

BPO Roles

The roles covered by BPO are considered to be front office tasks. These tasks are involved with directly interacting with customers and making transactions. With the least amount of preparation, teams’ scores can be assembled by outsourcing agencies to meet clients’ needs quickly.

Telemarketers are one of the most prominent roles of BPO along with Customer Care and Technical Support teams. These teams directly communicate with customers and drive the profits of businesses.

Defining KPO

KPO, on the other hand, is still outsourced expertise that deserves attention and recognition. KPO, or Knowledge Process Outsourcing, defines a set of jobs that require extensive knowledge and qualifications to complete.

However, it covers tasks that have complex prerequisites. These tasks make up the gears that drive entire organizations to function. When outsourcing agencies focus on KPO, they make sure to recruit qualified prospects with years of experience and academic qualifications that make them fit for the job.

In accordance with their prerequisites, KPO also demands much higher pay, but their work is critical for the survival of the entire infrastructure of the business organization. Finding reliable staff for KPO recruitment is not easy, and outsourcing agents have to search far and wide to find candidates who meet the high requirements.

KPO is also a favorite of most international clients who seek to hire specialized staff but are unsure about the candidates who sign up for it. With outsourcing agencies focusing on KPO, offshore clients rely on their expertise and lower costs.

KPO Roles

Knowledge Process Outsourcing covers jobs that require the constant implementation of knowledge and complex thinking.

These jobs can’t be simply taught to recruits and takes individuals years of experience to excel in it genuinely. These roles of expertise also require formal education and an academic certificate that states their eligibility to carry out the assigned tasks properly.

These tasks include managerial positions such as Human Resources and financial bookkeepers such as accountants and consultants. These jobs also include creative content developers such as graphic designers and writers.


KPO covers pretty much every role there is, which requires complex thinking and expertise. While their skills might not be widely available, the cost reduction they provide for clients is massive when paired with the value they bring to the team with their years of expertise.

Understanding What You Need

Hiring outsourcing agencies to handle your processes has not only become a norm. Still, it is now an effective alternative to hiring in-house staff as It has its list of benefits that it brings to your business organization.

The real question is which is more effective to outsource as KPO and BPO have their standing that offers their clients much-needed savings and flexibility. If your business needs a robust infrastructure managed and led by teams of qualified experts, KPO is the right way to go.

However, this doesn’t rule out BPO as it has its benefits when hiring a large team that has been adequately trained and is managed by the outsourcing agencies.


BPO and KPO are both essential facets of outsourcing that can help offshore businesses operate and grow efficiently. They can work in unison to strengthen the infrastructure while equipping them with well-trained front office staff who effectively drive sales while being managed expertly by supervisors also provided by the agency.

Outsource your jobs today and find out for yourself the possibilities that lay ahead for you and your business.

Sales organization and business process outsourcing specialist with over 15 years experience in building and running highly efficient sales and customer support organizations, and in providing board and project level consulting to the sales and service organizations of leading companies all over the globe. Developed and implemented staffing strategies and programs that improved operational outcomes and maximized the available staff resources. Specializes in client experience, business process re-engineering, business requirements development, contact center optimization, customer relationship Management, staff training and motivation, and organizational analysis. Has led multiple teams in the successful development and implementation of new business models in BPO industries.

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