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Business Process Outsourcing BPO

BPO – What is it All About?


You may have heard the term BPO and wondered what exactly it means. BPO stands for Business Process Outsourcing and it occurs when one company hires another company to perform some function of their business. One business will contract the operations and responsibilities of a specific business functions processes to a third-party. For instance if you run a stained glass company and your staff is overwhelmed with phone orders you may consider finding a third party to answer the phone and take the sales orders for you. So you have just outsourced one business process, the taking of the phone order.


BPO has different names depending on what type of function is being outsourced. Back office BPO would include functions like accounting, record keeping, trade settlements. Front office BPO includes the services more related to the companies face to its customer. Contact center or call center services are an example of a front office BPO.


BPO was first used in manufacturing but has quickly spread to be a vastly popular and growing part of the U.S. Economy. Companies have found that when are able to outsource a business function it leaves them to focus on the parts of their business that they are most likely to be good at. Some business outsourcing has now moved to counties outside of the United States. This is known as offshore outsourcing. India and the Philippines are popular destinations for BPO since both of these offshore nations have huge populations of English speaking citizens and generally have a lower cost of living than that in the United States.

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