What is BPO?
Business Process Outsourcing or BPO is outsourcing of some of the business
functions to a third party in order to save money. It usually consists of the
back office or front office operations. While front office services are related
to client interaction and customer support, back office services are related to
finance and HR. If outsourcing is done to a company situated outside the parent
company's country, it is known as offshore outsourcing.
What is KPO?
Knowledge Process Outsourcing or KPO is a subset of BPO. KPO involves
outsourcing of core functions which may or may not give cost benefit to the
parent company but surely helps in value addition. The processes which are outsourced
to KPOs are usually more specialized and knowledge based as compared to BPOs.
Services included in KPO are related to R&D, Capital and insurance market
services, legal services, biotechnology, animation and design, etc. are the
usual activities that are outsourced to KPOs. LPO or Legal Process Outsourcing
is special type of KPO dealing with legal services.
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