The document discusses business process outsourcing (BPO) and knowledge process outsourcing (KPO). It defines BPO as outsourcing business functions like customer service, human resources, and accounting to third parties. BPO can be offshore or nearshore. KPO involves outsourcing high-skilled analytical work requiring expertise to third parties. While BPO focuses on IT and long-term tasks, KPO specializes in sectors like research and is short-term. BPO tasks include data entry and support, while KPO undertakes intellectual property research, consulting, and R&D.