Difference Between BPO and KPO Which Option is Best

Difference Between BPO and KPO Which Option Is Best

Ever Since the inception of Call Center Industry in India and according to the rate by which unemployment is increasing, call center or BPO industry is like a PANACEA for the unemployed people. Outsourcing of e-commerce, telecom, and other business are in vogue in India which is being handled by the BPO industry. Similar to business functions, now knowledge outsourcing is also on the boom in India. Hence to provide services in this segment KPOs ( a subsegment of BPO ) are in existence.

Difference Between BPO and KPO
Difference Between BPO and KPO 
Difference Between BPO and KPO Which option Is Best is the subject for today, but before diving deep into the subject lest first understand the basic Difference between BPO and KPO in layman language 

BPOis an acronym for Business Process Outsourcing.BPO is commonly known as Call

Difference Between BPO and KPO
Center. Although there is a slight difference in BPO and Call Center, the latter one handles only telephonic call support, while BPO provides support by telephonic call, live chat, email, and back office. But BPO and Call Center terms can be used interchangeably.

Over the time, the BPO industry has emerged as the backbone of customer service for e-commerce and telecom companies and this is the reason why this industry has gained significant importance by offering not only customer service but also services related to Sale, Lead generation, technical support, Back office, etc.

KPO: is an acronym for Knowledge Process Outsourcing and deals to outsource the 

Difference Between BPO and KPO
Difference Between BPO and KPO
process based on knowledge, information-related business activities.

KPO can be defined as the subdomain of BPO wherein the work function for both the segment remains the same however the difference is of services offered to a third party and customers. KPO industry is also going to become the global hub for information based outsourcing in a shorter span and the reason for the same is the availability of experts of different sectors in India.

Difference between BPO and KPO

Let’s understand the difference between BPO and KPO  in detail 


  • BPO is the abbreviation for Business process Outsourcing
  • KPO is the abbreviation for Knowledge Process Outsourcing

2.Core Process:
  • BPO handles the process mainly for Ecommerce, Telecom, Travel, Foods Logistic, and BFSI( Banking Financial Services and Insurance ) .
  •  KPO handles the process mainly for Legal, Market Research, Business Analytics, and Research 
3. Services Offered:
  • BPO offers services for customer service, Tech Support, Sales, Lead Generation 
  • KPO offers service for Information, Knowledge, Research-based 
4.SOP(Standard Operation Procedure)
  • BPO as a customer service industry has to work on the limited scope and according to rules 
  • KPO as an information-based segment needs to be judgmental while assisting clients
5.Hiring Criteria :
  • BPO requires graduate people which can be trained further on the process, means for BPO you do not require any specialization in any subject
  • KPO requires knowledge experts who are specialized in a domain
6.Complexity Level:
  • BPO  works on customer quantity by handling a large number of volumes hence less complex.
  • KPO works on an in-depth understanding of customer requirement to deliver the objectives hence highly complex
7.Career Growth
  • BPO in comparison to KPO provided better career growth opportunities reason for the same is the number function or department to support a single project
  • KPOUnlike BPO, works on a small team and fewer people for a single project, hence Less Career Growth Opportunities

8.Salary Comparison
  • BPOas mentioned above, does not require any specialization and expertise while hiring hence the salary as a comparison to KPO is low 
  • KPOunlike BPO, requires expertise in the domain while hiring for a project hence salary package is high as compared to BPO

Which Option is Best BPO or KPO? 

As per your skills, goals, and requirement, you must have understood from the above pointers of "Difference between BPO and KPO" and Which Option is best BPO or KPO

Nevertheless, if you are still puzzled let me tell you as per the projection of  NASSCOM( National Association of Software and Service Companies) India will obtain a 60%-70% share of the world in the KPO Industry in near future. If these data are to be relied upon, then it would not be wrong to say that the future in the KPO sector is indeed bright.

You can read my latest blog on the "Future of Call Center after COVID". Link is mentioned below


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