INTRODUCTION TO BUSINESS ORGANIZATION

1. Bpo and kpo
Course: BBA I
Subject : Introduction to Business Organization
Unit: 5

2. Outsourcing
• In business, outsourcing is the contracting out
of a business process to a third-party.
• It is any task, operation, job or process that
could be performed by employees within an
organization,
but is instead contracted to a third party for a
significant period of time.

3. BPO
• BPO stands for business process outsourcing.
• BPO is categorized into:
– Front office outsourcing: includes outsourcing of
customer-related services such as contact center services
– Back office outsourcing: includes outsourcing of internal
business functions such as human resources or finance
and accounting.
• Some of the common tasks in BPO include payroll, call
centers and accounting.
• BPO that is contracted outside a company's country is
called offshore outsourcing. BPO that is contracted to a
company's neighboring (or nearby) country is called
nearshore outsourcing.

4. KPO
• KPO stands for Knowledge process outsourcing
• In this knowledge-related and information-
related work is carried out by workers in a
different company or by a subsidiary of the same
organization.
• This typically involves high-value work carried out
by highly skilled staff.
• It requires advanced analytical and technical skills
as well as a high degree of specialist expertise.
• Services:
– It provides all kinds of research and information
gathering services.

5. Difference b/w KPO & BPO
BPO
• BPO is restricted to
information technology.
• It is long term in nature
• It is a part of Outsourcing
• Basic education may be
enough for you to get a
BPO.
• Less challenging.
KPO
• It specializes in various
other challenging sectors
namely business research,
Clinical research,
Intellectual property
research etc.
• It is short term in nature.
• It is a part of BPO.
• KPO job requires expertise
knowledge in a particular
field
• More challenging.

6. Difference b/w KPO & BPO
BPO
• BPO undertakes:
a. Data processing
b. Basic data entry
c. Setting up of a bank
account
d. Department Outsourcing
e. Provides technical
support
f. Provides email support to
its customers
KPO
• KPO undertakes:
a. intellectual
property research for patent
applications
a. equity research
b. business and market
research
c. legal and medical services
training & consultancy
d. web content
e. research and
development in fields such as
pharmaceuticals & biotechnol
ogy
f. animation and design.

7. References
1. Fundamentals of Business Organization and
Management by Y.K.Bhushan- Sultan Chand
publications
2. Principles & Practices Of Management by L M
Prasad – Himalaya Publishing House

8. Thank you!!