BPO (Business Process Outsourcing) refers to contracting some of its tasks and other workflows to third-party entities as part of business process outsourcing allowing it to focus on its core business function (among other things as reasons why a company would outsource).

Customer service, data processing, technical support, and other routine jobs fall under this category. Because the job workflow can be taught during training, most BPO positions only require low-level skills.

Knowledge Process Outsourcing, on the other hand, provides services that are directly tied to the parent company’s main business function and require more advanced skills and knowledge.