BPO VS KPO

If you are going to outsource a call center, confusion is always present in your mind that whether a BPO or KPO call center is the best choice for your company. Especially when it comes to calling center operations, the companies always have two types of outsourcing options BPO and KPO. While BPO call centers are handling all ongoing processes on behalf of their clients, KPO call centers are handling data, knowledge and other processes on behalf of a client organization. Organizations always preferred KPO call centers whenever they need a high level of specialized expertise.

BPO & KPO Facts and Figures

BPO is a branch of outsourcing that involves a process to a third-party service provider and contracting out any segment or function. Whether it is a matter of front office or back office, BPO can be classified broadly. Several business functionalities such as finance, human resources and accounting all are included in back-office outsourcing. On the other side customer-related services like call center/contact services are handled through Front office outsourcing. Just like its name, it’s a proven predetermined operational process. No matter, where the company is located all the procedures should be executed efficiently and with consistency. According to a research almost 78% of organizations in the world maintain a relationship with their connected BPO very positive companies. 80% of Organizations are craving for more structural opportunities in their work with their BPO partners. 57% of organizations are turning to business process outsourcing while focusing on the operations, functions and core matters. To make the connections with customers, about 54% of organizations are using at least one third-party support team.

KPO is the outsourcing of activities that are related to very important business and information. It helps to extend the business process outsourcing that is also able to take decisions on a low level but needs a more complex system to support it. KPO always helps to minimize the cost either the organization is located outside the country or locally. The KPO sector is grown brilliantly during the year 2020. As per the Market Insights reports analysis, KPO market is going to attain the phenomenal growth by 2025. Several specialized and advanced skills are the basic needs of KPO. In KPO sector, highly judgmental experts with depth knowledge are always ready to take accurate decisions on specific issues and solve them confidently. According to the (NASSCOM) India, the market size of KPO sector was about $1.5 billion in the year 2006. The (IBPAP) Philippines showed in its report that Philippine outsourcing sector revenues reached about $25 billion by 2016.

Benefits of BPO & KPO
The primary benefits of BPO are:
• Great Profit Margins: The great advantage of outsourcing through BPO call centers gives more opportunities to get human capital at low wages that is beneficial for cost reductions.

• Core Business Concentration: The management team of BPO can confidently focus on the core operational areas of the company by applying several processes out of the way.

• Establishment of latest technology: BPO sector is always trying to work through the latest licensed versions of software to attain the best results without any technical hurdle which is usually not affordable for many small and medium-sized businesses easily.

The primary benefits of KPO are:
• Easy access to talented professionals: KPO sector makes it accessible for the organizations to find the talented and experienced employees by saving their precious time which usually wastes in recruiting and training.

• Asset investment is reduced: KPO is quite helpful to reduce the operational expenses. With the help of KPO sector resource needs and per head desk space reduction is quite possible that is also a good way of reducing real estate and technology investment.

• Competitiveness increment: With the help of new talent and freed internal resources, the chances of increasing the organization’s competitiveness can be noticed in the market.

By considering the outsourcing needs of an organization, both BPOs and KPOs are beneficial in several ways. In fact, KPO is an extended version of BPO that always provides the chances to the organizations to get success with the help of the latest technology and unlimited talent. The need of the hour is to understand the required skills & training level for your organization. As a successful BPO services provider, we are highly committed to our customer’s success by introducing several innovative technological solutions in the spirit of a strong partnership. As a successful BPO service provider, we also believe that success and innovation can be achieved with the help of consistent focus on learning, strong partnership and result orientation qualities.