There are a few branches of outsourcing available out there, and it’s helpful to know the difference. BPO and KPO outsourcing are among the most common, but what’s the difference between them?

At a glance, a KPO (Knowledge Process Outsourcing) generally outsources and handles the knowledge, information, and data of a business. A BPO (Business Process Outsourcing) company manages actual business processes such as customer service, call centre services, webchat etc. 

Let’s dive into the details for a deeper look at each and what makes them different.

What is BPO outsourcing?

Business Process Outsourcing, or BPO, is the process of outsourcing certain business functions to a third party. This third-party company, the outsourcer, takes over full control of that business activity and works closely with you to ensure your needs are met.

Common services to outsource to a BPO provider are

• Call centre services
• Accounting & billing
• Webchat & mail support
• Customer support
• Customer acquisition
• & other routine work

BPO outsourcing is a cost-effective solution for business activities and services that require high resources and the latest technology. As a business owner, you’ll find it’s much cheaper to outsource a service that requires high tech, instead of upgrading and purchasing the equipment and technology required yourself. Not only would you need the resources, but your team also requires training for it too. 

BPOs in South Africa have skilled employees and all the technological requirements to offer these services at a competitive rate.

What is KPO Outsourcing?

Knowledge Process Outsourcing, or KPO, on the other hand, focuses on business information, knowledge and analytical data. It’s not uncommon for a KPO to be a sub-division of a BPO.

KPO contractors are experts in information-related data and analytical data skills. Knowledge process outsourcing is a specialized knowledge service for business information.

Types of outsourced KPO services are

• Data entry
• Data analytics and insights
• Business research
• Market research
• Reporting
• Data management
• Accounts and utilities
• Medical and healthcare
• & more

Companies usually turn to KPO providers for these services as they are highly skilled and educated in understanding the information. These professionals have a top-notch comprehension and knowledge of the data; therefore, there’s no need to train in-house employees or employ additional people for this role.

For businesses who don’t have the time to do these tasks in-house, it’s a cost-effective solution to stay ahead of your competitors. It’s very useful to have an expert who knows exactly what they’re talking about to explain the data and information to you in a way that makes sense.

What’s the difference between BPO outsourcing and KPO outsourcing?

The main difference between a BPO and a KPO is that BPO providers are a third-party team hired to manage day-to-day business services. KPO providers are third-party experts who are hired to research and manage knowledge and data information. 

Knowledge Process Outsourcing is the handling of business information, market research, and data. Business process outsourcing is the management of business functions such as customer service, email support, call centre services, etc.  

To Summarize

BPO and KPO are both outsourcing services that are available off-shore, on-shore or near-shore. As we briefly mentioned earlier, it’s not uncommon for a KPO to be a sub-division of a BPO. For example, all customer service and call centre sessions managed by BPOs can later be analyzed and data captured by the KPO. 

If your business is looking for someone with high-level knowledge to handle data and information for your business, then KPO is the way to go.

If you’re looking for a team of third-party experts to help manage daily business functions, then BPO is what you need. At Mango5, our team are skilled individuals in the BPO sector.

Pop your details in our contact form and Mango5 will contact you to discuss your requirements.