Bpo Kpo

1
Business Process Outsourcing

(BPO)
&
Knowledge Process Outsourcing
(KPO)
Group 5 :
1. Kanishka Jain
2. Advika Daga
3. Aayushi Maniar
4. Ruchita Mehta
5. Parth Sheth
2
Introduction - BPO
What is BPO?
• Process of hiring a company to handle business

activities for you.
• It is implemented as a cost saving measure to allow

focus on core business processes.
• This was originally associated with manufacturing

firms.
• BPO is also referred to as ITES

3
Functions Of BPO
BPO is typically categorized into:-
• Back office outsourcing - which includes internal

business functions
• Front office outsourcing- which includes

customer related services
4
Evolution of BPO in India

• Evolved to present higher end services that require
judgment based analysis and domain expertise.
• A variety of services are offered under one roof

which makes it convenient.
• At the same time certain industries such as health

care and insurance have specific vendors to cater to
their needs.
5
6
Benefits of BPO
• Concentrate on core business
• Skilled manpower at lower rates
• Advance technology at lower rates
• Increase productivity
• Beat competition
7
Limitations of BPO
• Loss of control
• Rising labour costs
• Employer’s lack of interest
• Data security
• Financial instability of vendor
• Loss of expertise
8
Introduction - KPO
• Knowledge Process Outsourcing (KPO) is a form of
Outsourcing.
• It involves High – Value work.
• A fully developed service enables KPO by treating all

functions as services.
• It is at the high end of Business Processing

Outsourcing (BPO).
9
Evolution of KPO
• The evolution of the Indian BPO sector has given

birth to KPO or Knowledge Process Outsourcing
• The success in outsourcing business has encouraged

many firms to start high end outsourcing through
KPO
• Intellectual Potential – the key factor in India

10
Major Factors In
Evolution Of KPO
• Developed Economies facing a shortage of highly
trained professionals
• High Quality specialized vendors emerged as role

models and created awareness for the growth of
KPO
11
Popular KPO areas

• Law • Technology research
• Pharmaceuticals • Computer aided

simulation
• Bio technology
• Engineering design
• Data analysis
• Other professional
• Management services
services
• Financial services
12
Benefits of KPO
• Valuable cost savings that can be utilized elsewhere.
• Trained professionals at work.
• Standard operational efficiency.
• Increase in profits.
• Savings in time and management energy for maintaining in

house services.
• Option to recruit a larger work force without raising costs.

13
Challenges of KPO
INTERNAL CUSTOMER
• Recruiting and retaining the right
• Data security and
talent.
confidentiality
• Incorrect perception of the KPO
profession as low grade • Corporate governance
• Successful players attract better
people • Better quality
• High attrition rates
• Lack of domain expertise
• High competition for access to a

limited superior - quality pool
14
COMPETITOR INDUSTRY
• Other Countries and Global • Creating value for clients

KPOs Operating.
• Low cost low quality image
• High entry fee for Internet
Service providers (ISP) who • Branding and infratructure
provide Virtual
• Private Network services

(VPN)
• India’s high international

bandwidth prices
• Competition from Global KPO

Units Operating in India
15
Types of KPO services provided by CA’s

• Business and Technical Analysis
• Preparations and filing various
forms with legal authorities
• Assets record keeping and verification
• Financial Consultancy and Services
• Data Search and Data Analyst
• Business Analyst
• Training and consultancy.
16
Other KPO services

Legal Services
Engineering
services
Education and
Animation e-learning
Outsourcing Solutions
Medical content Journalism and

Outsourcing Content Development
17
Difference between BPO and KPO

• The activities undertaken by each & the process
• Focus
• Specialisation
• Driving force
• Communicating with the clients
• Degree of Complexity
• Scale up based on Skills or Infrastructure

KPO – Next
Global Collaborative
Business Environment
• Fundamental Shifts in
Consumer behavior &
Business eco-systems
Resource & efficiency focus • High-value strategic
•Process Reengineering partnerships
Value/Entry Barrier 

•Judgment Driven
•Domain Expertise Needed
Cost Focus •More Strategic processes
•Labor Intensive •Low Risk, Good Returns
•Low-end Activity •Existing traditional players
•Low Risks •Moving-up the value chain
•Low Investments
•Highly Competitive
1990 - 2000 2001 - 2005 2006 - 2010

Business Attractiveness/Timeline of evolution 
Traditional BPO – Cost focus Knowledge Process Business Transformational
Generic Services Outsourcing (KPO) Outsourcing (BTO) Services
•Customer Care •Business Analytics •Global Sourcing
•A/C & Fin •SCM Integration •Global Delivery
•HR & Benefit Admin •Remote Education & •Global Biz Eco-system
•Transaction Processing Publishing
•Data Entry/Conversion/Composition •Animation & Simulation
•Miscellaneous •Engineering & Design
19
THANKYOU

Bpo Kpo

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1

Business Process Outsourcing

• Process of hiring a company to handle business

• It is implemented as a cost saving measure to allow

• This was originally associated with manufacturing

• BPO is also referred to as ITES

BPO is typically categorized into:-

• Back office outsourcing - which includes internal

• Front office outsourcing- which includes

Evolution of BPO in India

• A variety of services are offered under one roof

• At the same time certain industries such as health

• Skilled manpower at lower rates

• Advance technology at lower rates

• Rising labour costs

• Employer’s lack of interest

• Financial instability of vendor

• It involves High – Value work.

• A fully developed service enables KPO by treating all

• It is at the high end of Business Processing

• The evolution of the Indian BPO sector has given

• The success in outsourcing business has encouraged

• Intellectual Potential – the key factor in India

• High Quality specialized vendors emerged as role

Popular KPO areas

• Pharmaceuticals • Computer aided

• Trained professionals at work.

• Standard operational efficiency.

• Savings in time and management energy for maintaining in

• Option to recruit a larger work force without raising costs.

• High attrition rates

• Lack of domain expertise

• High competition for access to a

• Other Countries and Global • Creating value for clients

• Private Network services

• India’s high international

• Competition from Global KPO

Types of KPO services provided by CA’s

Other KPO services

Medical content Journalism and

Difference between BPO and KPO

• Communicating with the clients

• Scale up based on Skills or Infrastructure

Value/Entry Barrier 

1990 - 2000 2001 - 2005 2006 - 2010

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