1. KPO industry, unlike BPO, provides domain-based processes and business expertise.
2. KPO is more like a challenge as it demands advanced and expertise skills on part of its employees.
3. BPO, on the other hand, is more or less like a commodity business which stretches more on information technology and its various sectors.
4. The BPO market is long term in nature as compared to the KPO market. With every passing day the BPO market base is expanding and so is the various processes outsourced through it.
5. BPO undertakes
a. Data processing
b. Basic data entry
c. Setting up a bank account
d. Department Outsourcing
e. Provides technical support
f. Provides email support to its customers
6. KPO undertakes
a. More granular market and customer segmentation (e.g., the ability to do make retention or acquisition campaigns work at a micro-market level)
b. More predictive response modelling and propensity/cross-sell/up-sell modelling.
c. Precision marketing, churn prediction and management, customized products and services in finance, insurance, telecom services.
d. For retailers, store and shelf space management at the neighborhood market level and store level.
e. Promotional efficiency tracking at the micro-market level.
f. Category/brand performance measurement, tracking and control at micro-market level.
g. Market mix modelling at lower granularity levels of product, geography and time dimensions.
h. Precision and dynamic pricing, promotion and product portfolio design and optimization.
i. Primary, secondary and web-based market research.
j. Monetization, predictive analysis and portfolio management of intellectual property and patents.
k. Analytics and optimization algorithm R&D for ISVs in enterprise application areas such as SCM, SRM, ERP, CRM, MR, BI, BPM.
7. BPO will continue to derive higher revenues as compared to the KPO industry.
8. KPO, unlike BPO, is not just restricted to information technology. It specializes in various other challenging sectors namely business research, Clinical research, Intellectual property research etc.