BPO/KPO – Brandmark Impex

What is BPO & KPO

Business Process Outsourcing

What It Is and Why It Is a Growing Business Strategy Business process outsourcing (BPO) lets organizations delegate their processes to an external provider. This is a strategic move for companies wanting to scale or reduce costs. As a result, most C-level executives consider outsourcing a viable business solution. Many, however, fail to anticipate the benefits and risks they will encounter during the engagement. If you are wondering how outsourcing works and why it is a popular business strategy, keep reading to find out.

Knowledge Process Outsourcing

KPO stands for Knowledge Process Outsourcing. It is a form of outsourcing where knowledge and information related work of a company is carried out by a different company within the same organization or different organization to save costs and resources. It is a subset of Business Process Outsourcing (BPO). KPO is more specialized and knowledge based as compared to BPO.

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.

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.

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:

Benefits of KPO

Easy access to experienced professionals

KPOs offer a convenient solution to access experience and talent without going through the hassle of recruiting and training new employees

Asset investment is lowered

Due to KPOs, there is a complete reduction of per head desk space and resource requirements, thereby reducing investment in real estate and technology. It also reduces operational expense.

Increase in competitiveness

With the freed internal resources and access to new talent and ideas, competitiveness of the organization in the market is increased.

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