Business process outsourcing

Business Process Outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain.^[1]

BPO is typically categorized into back office outsourcing, which includes internal business functions such as human resources or finance and accounting, and front office outsourcing, which includes customer-related services such as contact centre (customer care) services.^[2]

BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighbouring (or nearby) country is called nearshore outsourcing.

Often the business processes are information technology-based, and are referred to as ITES-BPO, where ITES stands for Information Technology Enabled Service.^[3] Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry.

^ Tas, J. & Sunder, S. 2004, Financial Services Business Process Outsourcing, Communications of the ACM, Vol 47, No. 5
^ "Getting A Piece Of Business Process Outsourcing". Forbes.
^ J. G. Nellis; David Parker (2006). Principles of Business Economics. Financial Times Prentice Hall. p. 213. ISBN 978-0-273-69306-2.

[1] Tas, J. & Sunder, S. 2004, Financial Services Business Process Outsourcing, Communications of the ACM, Vol 47, No. 5

[2] "Getting A Piece Of Business Process Outsourcing". Forbes.

[NellisParker2006-3] J. G. Nellis; David Parker (2006). Principles of Business Economics. Financial Times Prentice Hall. p. 213. ISBN 978-0-273-69306-2.

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