What is BPO & KPO
Business Process Outsourcing
Knowledge Process Outsourcing
What is BPO?
Businesses are expecting more from their IT providers, and IT providers are responding by offering services that go beyond traditional delivery models.
The term BPO in the IT industry typically refers to the outsourcing of non-core business processes such as human resources, finance and accounting, customer relationship management (CRM), and supply chain management.
By outsourcing these processes, businesses can focus on their core competencies while still benefiting from the efficiency and cost savings that come from working with an external service provider.
What Are the Challenges of BPO?
The primary challenge for BPOs is high attrition rate. The high attrition rate in the BPO industry is attributed to factors such as lack of career growth potential and the monotonous nature of the job. Additionally, there has been recent opposition against outsourcing from UK labor unions and US politicians in order to retain jobs within their country. This is a pressing concern from the BPO industry.
How is BPO used in the IT industry?
Unlike the manufacturing industry, where BPO first grew in popularity, the IT industry has been slower to adopt this model of working. This is likely because, until recently, most businesses saw IT as a cost center and not a revenue generator.
However, with the rise of digital transformation and the need for businesses to move online, the role of IT has shifted. No longer is it expected to just deliver technology services, but now IT is expected to be a strategic partner that can help businesses drive revenue and growth.
This has led to the rise of IT-BPO or the outsourcing of business processes within the IT industry. By partnering with an external service provider, businesses can focus on their core competencies while still benefiting from the efficiency and cost savings that come with working with an expert team.
This includes managing an organization’s IT infrastructure, which can include both on-premises and cloud-based systems.
This covers the development, testing, and deployment of new applications, as well as the maintenance and support of existing ones..
This helps businesses plan for and recover from disruptions, whether they are caused by natural disasters or system failures.
This encompasses all of the activities that are necessary to promote and sell products or services online. This can include everything from website design and development to search engine optimization (SEO) and social media marketing.
This is the most basic level of support and typically includes tasks such as password reset, account creation, and troubleshooting.
What is the KPO business model?
he KPO business model revolves around value-added services related to the core business activities of a company.
These activities require high-level subject-matter expertise and are more demanding than routine back-office tasks that companies typically outsource to a business process outsourcing (BPO) firm.
For example, as a data analytics KPO firm, you may need to leverage a client’s internal data and perform additional research to dig out valuable insight into their operations. Such business insights may help the company: