June 2007: ValueNotes made a presentation titled Comparing KPO and BPO – an analyst’s viewpoint at KPO Asia 2007 in Singapore.
The number of industries and professions to which knowledge process outsourcing can be successfully applied is vast. The presentation discussed the advantages that KPOs have over BPOs. Higher billing rates, innumerable opportunities, talent availability, globalization, intense competition and reduced time to market are driving the shift to Knowledge Process Outsourcing.
The presentation goes on to list the differences between BPOs and KPOs in terms of the nature of business, employment, drivers, contract size, measurability, client vendor relationship and evolution. Two broad KPO strategies are discussed – viz. diversified and niche focus – and the advantages and challenges of these business models.
