What is a BPO?

"Companies turn to Business Process Outsourcing firms to handle non-essential day-to day business tasks such as human resources, document management and even customer relationship management. That way, they can focus on their core businesses... Big companies such as Xerox and IBM already offer BPO services. Hewlett-Packard is rumored to be also exploring a push into the BPO sector."

- Forbes Inc.

Business process outsourcing (BPO) encompasses the transmission of processes along with the associated operational activities and responsibilities, to a third party with at least a guaranteed equal service level and where the client contains a firm grip over the activities of the vendor for mutual long-term success. BPO is positively related to the search for more efficient organizational designs: cost reduction, productivity growth and innovative capabilities; hence, a strategic advantage.

The business process outsourcing (BPO) market is the single fastest growing area of the IT services sector. More than ever, organizations of all kinds need to reduce their back office support costs and improve overall operating efficiencies to retain their competitive edge. As a result, internal administrative departments, such as human resources, finance and accounts, procurement, call center and customer contact, are being outsourced to third parties which will manage these processes, enabling their clients to focus on their core business.