Wednesday, October 21, 2009

Outsourcing to India - BPO vs. KPO

In a declining economy, outsourcing to India has become a fad. So, if you’re a Business looking to outsource,  think about your service, what elements within your enterprise you would like to outsource, & how much of an investment you have to set it up.

In general, outsourcing to India has two basic models for you to choose between:

BPO (Business Process Outsourcing) is the corporate term used for hiring a 3rd party with a specialty in a work area to perform routine duties within their specific niche. In most cases, businesses choose to outsource tasks that are outside the core focus of their primary service. Examples of BPO services are: Accounting, Formatting, Archiving, IT Maintenance, Software Development (to automate internal processes) & Maintenance, Floor plan Constructions, Data Conversions, etc.



In the BPO Model, the contractor rarely speaks to the client, as you, the Primary Service manages the client's needs.

KPO (Knowledge Process Outsourcing) is the term used for hiring a 3rd party to grow your Business idea. It is a relatively new model, but has accrued quite some interest over the last decade as businesses in declining economies are looking to cut costs. KPO models usually comprise of a Business entity working in conjunction with an International Facility to manage end-to-end internal service needs, by training members in a variety of specialty areas to manage domains within their enterprise. The KPO model’s foundation is reliant on a long-term partnership, where both the contractor and the buyer work closely together to deliver a primary service to the client.



In the KPO Model, the Contractor & the Primary Service maintain a codependent relationship in servicing a client.

A younger generation of BPO & KPO Consultants offer US Businesses unique expertise which includes a thorough comprehension of the American Consumer, more than ever before in the history of outsourcing. At the same time, these 1st- 2nd Generation US citizens have constant contact with their Indian counterparts, understand their language & culture, & demand the vigorous consumer expectations needed by Corporate America.

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