Q.4 (4) BPO and KPO
Best answer
Answer:
| Points | BPO | KPO |
|---|---|---|
| 1. Meaning | Business Process Outsourcing means contracting out routine business processes to an outside service provider. | Knowledge Process Outsourcing means contracting out knowledge-based and analytical work to specialised experts. |
| 2. Nature of work | It is rule-based, routine and process-oriented work. | It is judgement-based, research and analytical work. |
| 3. Examples | Call centres, customer care, data entry, billing, payroll. | Research and development, legal and financial analysis, market research, medical and engineering design. |
| 4. Skills required | Good communication and basic computer skills are enough. | High qualification, expertise and domain knowledge (e.g. MBA, CA, doctors, lawyers) are needed. |
| 5. Complexity | Low complexity. | High complexity. |
| 6. Remuneration | Salaries are comparatively lower. | Salaries are comparatively higher. |
| 7. Orientation | It aims at cost reduction and efficiency. | It aims at knowledge, insight and value addition. |
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