Curious About BPO vs. KPO and HR's Role? Plus, Understanding Company Types!

Hi all,

Here I have one question on my mind regarding the difference between BPO and KPO and how HR differs in these industries. Can anyone please enlighten me on the distinctions between Private Ltd, Private India Ltd, and Limited companies?

Regards, Sandeep

Hi Sandeep,

Let me try answering your doubts.

1. BPO and KPO

Business Processing Outsourcing and Knowledge Processing Outsourcing.

The basic difference between these two is something like this: you require high skills to work for KPO when compared to BPO. For example, any graduate can work for BPO, where the area of work might be order processing, web development, document processing for insurance companies, and so on.

When it comes to KPO, you require high and professional qualifications. For example, a pharmaceutical company may need R&D work for its new drug, or a law firm may hand over its case study to KPO for legal cases. In these cases, you need to be highly qualified, such as having a PHD in Pharmacy or Chemistry, M.Pharm, etc. For the second example, one has to be a LAB graduate with experience. You may have heard about a professional from Bangalore who drafted a speech for a top British politician. This is called Knowledge Outsourcing (KPO also falls under BPO). KPO can be lucrative.

In the above fields, HR activities, though they don't vary much, have some differences. They could be:

1. For KPO, you will have to recruit professionally qualified or highly skilled people.
2. Interacting with such people for a junior HR wouldn't be that easy.
3. Sometimes the HR Department will have to act according to their beck and call.
4. Retaining them can also be another headache.
5. Since the quality of work that the parent company expects has to be fulfilled, you have to hire the right candidates.

When it comes to BPO, the HR Department is at the center of all activities, and you could say HR will be ruling with an iron fist, in fact, the HR should not :)

I hope your doubts are clarified.

Regards,
Naveen

Hi Sandeep,

There are a few spelling mistakes. It should be LLB, not LAb, and PHD, not PHT. Additionally, the word should be KPO.

Sorry for the typographical mistakes.

Regards,
Naveen

Hi,

It's my pleasure to share knowledge with you. I forgot to inform you about Ltd. companies:

1. Ltd. companies are those that have raised capital from the public (shares and shareholders) and will be listed on the stock exchange (BSE or NIFTY). Therefore, their activities must be transparent, and sensitive information such as balance sheets, P&L accounts, etc., should be disclosed.

2. India Ltd. - These are foreign companies that have invested in India and raised capital through the public. These companies will also be listed on the stock exchange (BSE or NIFTY).

3. India Pvt. Ltd. - These are foreign companies that directly invest in India without raising capital from the Indian public. They do not disclose their balance sheet (as it's a proprietorship-based company) and are not listed on any exchange.

4. Pvt. Ltd. companies - These are Indian companies that have invested their own money without raising capital. There are multiple investors, and the company is not listed on the stock exchange. They do not disclose profits and often try to avoid taxes. Profits are shared only among investors, unlike Ltd. companies, which also share profits with shareholders.

It is always advisable to work for Ltd. or India Ltd. companies.

Take care.

With regards,
Naveen

Just a little clarification.

A private limited company does not necessarily have only one investor. The maximum number of investors is as prescribed by the current Company law (Companies' Act) regulations. I think currently it is 5 or 7. Once the number of investors crosses this limit, the company becomes a public limited company and not a private limited company, with all the openness and regulations that are necessary.