The outsourcing of business processes has become a vital tool for business in this age of fast-paced technological developments and fierce competition. Companies both small and large-scale agree that outsourcing has become practically the only way to gain leverage with competitors; especially the aggressive ones who have larger investment capabilities.
There are numerous outstanding benefits to outsourcing which have made it an essential tool for business worldwide. The major advantage outsourcing brings is of course its incredible cost-efficiency, which companies wouldn’t typically get from running all operations in-house. But other factors play an equally important role in business as well, such as having access to a wider pool of staff and specialists through the outsource provider and creating time efficiency & higher productivity in company operations as a result of outsourcing at least a portion of the operations.
When looking to outsource some of your business processes, you would inevitably come across the term Knowledge Process Outsourcing too. So, what is the difference between Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO)?
Business Process Outsourcing is the general term used to describe any business process a company chooses to outsource, whether in its front-end or back-end operations. BPO provides services such as customer care, technical support, telemarketing, sales, human resources, website services, services related to finance & accounting, and transcription. These services are defined as low end services, since they simply require good communication skills and basic computer knowledge in the outsourced staff. BPO is also more volume-driven in purpose.
Knowledge Process Outsourcing on the other hand, falls under the umbrella of BPO, but is more specialized in its services. KPO provides in-depth knowledge, expertise and analysis on complex areas of business, such as legal services or business and market research. Other services in the KPO spectrum include investment research services, data analytics, finance, and media process outsourcing. KPO’s services are high-end in nature, and are insights-driven in purpose.
Today, almost all transnational companies outsource their non-core activities in order to be able to pay greater attention to their primary business functions. Outsource service providers should generally provide both KPO and BPO to client businesses.
In terms of outsource destinations, companies widely prefer the Philippines for numerous reasons. Hailed as the BPO capital of the world, the Philippines is now emerging as a top KPO destination as well. Known for having advanced, high-quality infrastructure, a highly educated and technically skilled workforce, low labor costs, and strong government support for its BPO industry, the Philippines continues to produce outstanding growth rates for companies who choose to outsource in the country.
To learn more about Business Process Outsourcing in the Philippines, get in touch with us at Ezy Outsourcing Hub. For years, we’ve been providing end to end outsource solutions to clients who wish to outsource in the Philippines. Ask us for a free consultation, to assess your personal business needs. Contact Ezy Outsourcing Hub today.