Thought Leadership

BPO vs KPO: What’s the Difference?

Improving services and overcoming business-stalling obstacles is the name of the game when it comes to outsourcing. You’ve likely heard of BPO before, but what do you know about KPO? And is there a difference?

Although they have different functions, BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing) share some similarities. These two approaches to outsourcing aim to sharpen services and improve business processes through expert analysis and strategy.

If your company is seeking outsourcing services, but you aren’t sure which path is best for your needs, here’s what you need to know.

For starters, KPO is a subset of BPO, so while they both relate to outsourcing, they each serve a specific purpose. When looking at what these two have in common, you’ll notice that both BPO and KPO thrive on offering clients the opportunity to enhance services and expand efficiently.

What’s the Difference?

BPO will take over your back-office processes, often freeing up more time to focus on what you do best as well as allowing you to overcome obstacles that your company may encounter. Additionally, an efficient BPO strategy and partner can help you cut costs. On the other hand, KPO requires advanced analytical and technical skills, as well as training. KPO services can fill the gaps when organizations experience a shortage of skilled professionals and have more complex tasks to take on.

Over the years, KPO has become more and more relevant to meet the growing demand for services requiring high research and analysis skills. According to a 2017 report by Grand View Research, Inc, the global KPO market size is expected to reach USD 124.29 billion by 2025. 

Which outsourcing function is best for your needs? Here’s a look at a few common services for each. 

BPO services cover items such as:
KPO services may include:

Still unsure which path is right for your organization’s needs? Essentially, BPO gives companies the peace of mind that they can cut costs and shift their focus to their core duties while KPO digs a little deeper and provides a higher skill and value of work for specialized tasks. Finding an established BPO partner that offers KPO services will be essential to success.

DATAMARK Can Help With Outsourcing Services

Whether your organization is after BPO, KPO, or even a mix of the two outsourcing services, you’ll want to enlist the guidance of an experienced partner. DATAMARK has provided business process outsourcing solutions for organizations and businesses across various industries since 1989.

When taking over a process for our clients, DATAMARK does not simply “lift and shift” the work, rather our Business Engineering teams look to identify all opportunities for improvement. By mapping out workflow, removing invaluable steps, and leveraging our team’s experience, we are able to improve processes and reduce errors giving clients a competitive mix of BPO and KPO solutions. Re-think, re-design, and completely transform the way you do business with BPO and KPO solutions from DATAMARK.

Learn more about our business process outsourcing services or contact our Business Development Managers

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