Unit of Competency (UOC)

Describe Back Office, BPO & KPO

Nominal Hours-18

Learning Objective:
1. Understanding BPO
2. Understanding KPO

Learning Objective 01: Understanding BPO

1. Definition of BPO & KPO
2. Types of BPO
3. Services of BPO
4. Uses of BPO
5. Pros & Cons of BPO

6. BPO Pillars
7. Top BPO

Learning Objective 02: Understanding KPO

1. Definition of KPO
2. Types of KPO
3. Services of KPO
4. Uses of KPO
5. Pros & Cons of KPO

6. Top KPO Firms

Business Process Outsourcing
(BPO)
WHAT IS BPO
BPO is the delegation of one or more business processes to an external provider who in turn
provides services for the selected process based on certain defined and measurable performance
criteria specified by particular organization. BPO allows companies to focus on core business
process. BPO is implemented as cost saving measure for the task that the company requires
TYPES OF BPO
• BACK OFFICE: Includes internal function like billing and purchasing.

• FRONT OFFICE: Includes customer related services like marketing and tech support.
1. OFFSHORE
2. ONSHORE
3. NEARSHORE

OFFSHORE BPO
Outsourcing the operations of the company to other companies that are located in a foreign
country and mostly have a different culture.
Offshore outsourcing offers benefits like higher cost savings and access to highly skilled labor
ONSHORE BPO
Outsourcing operations of the company to another company located in the home country or
region.
Companies can reduce labor costs somewhat and benefit from highly skilled labor with little or no
language or cultural barrier, but the cost of such operations is high compared to offshore or near
shore locations

NEARSHORE BPO
Outsourcing the operations of the company to an adjacent or nearby country having similar
culture and language skills.
Near shore outsourcing offers some cost savings over onshore and has the added benefit of
proximity for more frequent site visits, while retaining a highly skilled labor pool.
BPO SERVICES
• CUSTOMER SERVICE
• TECHNICAL SUPPORT SERVICER
• TELEMARKETING SERVICE
• EMPLOYEE IT HELP
• INSURANCE PROCESSSING
• DATA ENTRY SERVICE
• BOOKKEEPING & ACCOUNTING SERVICES
• INTERNET ONLINE / WEB SEARCH
BPO USES
• BANKS
• INSURANCE
• ASSET MANAGEMENT
• MANUFACTURING
• HEALTH CARE
• IT
• TELECOMMUNICATION
• TRAVEL AIRLINES
• GOVERMENT
ADVANTAGES
 COST REDUCTION
 FOCUS ON CORE AREAS
 AVOID CAPITAL EXPENDITURE
 REVENUE INCREASE
 HIGHER LEVEL OF SERVICE WITH LOWER COST
DISADVANTAGES
 POOR QUALITY CONTROL
 LACK OF LOYAL EMPLOYEES
 RISK OF EXPOSING CONFIDENTIAL DATA
 HIDDEN COST

BPO Pillars
• People-Focus on strengthening core capabilities for associates, team leaders and managers
irrespective of service lines.
• Process-Focus on strengthening BPO Process and service delivery capabilities.
• Operations-Focus on developing organizational and operational maturity.
• Regulations-Focus on developing maturity industry specific domain knowledge, capabilities
and compliance.
TOP BPO FIRMS
 IBM
 TATA
 INFOSYS
 WIPRO
Knowledge Process Outsourcing
(KPO)
WHAT IS KPO
• Knowledge Process Outsourcing (KPO) is a form of Outsourcing, which is knowledge-
related and information-related work is carried out by workers in a different company or
by a subsidiary of the same organization, which may be in the same country or in an
offshore location to save cost
• KPO is merely a continuation of BPO, though with rather more business complexity.

KPO SERVICES
• Business research services
• Data Analytics
• Market research services
• Valuation and fairness opinions
• Legal process outsourcing
• Patent research services
• Business operations support, analytics & management
• Editorial process outsourcing

USES OF KPO
 BUSINESS and Technical Analysis
 E- Learning SOLUTIONS
 Cartoon Animation Design
 Legal Services or Legal Process Outsourcing
 Media Outsourcing
 Intellectual property
 Network Management
ADVANTAGES
o Trained Professionals at Work
o Increase in Profits
o Standard Operational Efficiency
o Option to Recruit Large Workforce without Raising Cost

DISADVANATGES
 Quality of Personnel and Work Cannot Be Guaranteed
 Shortage of Skilled Employees
 Reduction in Communication due to Language barrier
 Inability to protect company's intellect property

TOP KPO FIRMS

• BUXTON
• INFOSYS
• CONVERGYS
• INTELNET
• MARKET EQUATIONS
• WIPRO