PurposeThe purpose of this paper is to identify competency requirements that discriminate between Knowledge process outsourcing (KPO) and IT‐enabled business process outsourcing (ITES‐BPO) industries.Design/methodology/approachThere are 25 firms operating in Sri Lanka that fall into the category of ITES‐BPO/KPO. HR managers of the 25 firms and a random sample of 117 employees from those 25 firms responded to the survey. In addition to descriptive statistics, independent sample t‐test and logistic regression were used in the data analysis.FindingsThere are differences in competency requirements for KPO and BPO services. Further, demographic variables, namely, age, the level of education, and total years of industry experience shape competency requirements.Originality/valueDespite greater volume of theoretical foundations and empirical evidence for people management in BPO/KPO services, specific literature investigating and comparing competency requirements, recruitment, selection and training of ITES‐BPO and KPO employees is scarce. Therefore, a research addressing those in a South Asian country that is considered as active and promising destination for ITES‐BPO/KPO services could provide practitioners with key information that could enable them to make informed managerial decisions.