There are a number of notable differences between KPO and BPO. The six elements that separate these two processes are focus, process, specialization, driving force, activities, and client contacts.

BPO has a process which is much more simple than KPO. While BPO places an emphasis on low level processes, KPO places an emphasis on high level processes such as patent filing, investment research, and legal issues. When it comes to focus, KPO focuses on the application of knowledge rather than processes. The differences in specialization between are primary connected to their domains.

Most BPO workers do not need to have a large amount of knowledge in any specific areas. The primary requirements for BPO workers are a high command of the English language and simple computer skills.

In contrast, KPO workers are expected to specialize in specific fields. Some examples of fields where KPO workers are expected to have specialized knowledge are financial analysis. These professionals are expected to be qualified as a CA or MBA. When it comes to driving force, again, KPO companies place an greater important on knowledge rather than business processes. This is the exact opposite of BPO companies. The activities of KPOs are different from BPOs as well. Any activity that requires specialized knowledge will be connected to KPO, while BPO will use a rigid structure for handling business procedures.

KPO workers can expect to deal with international clients on a regular basis. They will be responsible for communication issues, and direct communication will be essential in situations where complicated tasks must be performed.

A number of people have said that there are few differences between KPOs and BPOs. In reality, KPOs are simply one end of the spectrum. The KPO is an extension of the BPO, and allows businesses and organizations to carry out a large number of processes. There are a number of powerful advantages that can be gained from Knowledge Process Outsourcing.

When work is outsourced to other countries, companies in the developed nations can save large amounts of money on the cost of manufacture. A number of studies have indicated that these savings are as much as 40% to 70%. In addition to this, the profits that are created by the use of KPOs are double the revenues that are obtained from BPOs.

While BPOs have statistically brought in about $11 per hour, KPOs have been shown to bring in as much as $24 per hour. Perhaps one of the most powerful advantages of Knowledge Process Outsourcing are the advantages it brings to developing countries. By generating revenues from this industry, a country can become more prosperous.

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