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Glossary

What Is BPO?

Business process outsourcing (BPO) is hiring an outside company to run a defined business function, such as customer support, billing or data entry, so that the provider manages the people and the process.

Business process outsourcing

Instead of building and managing a team yourself, you agree the work, the quality targets and the reporting with a BPO provider. The provider recruits, trains, supervises and equips the staff, and you review the results.

BPO is usually split into back-office work (finance, data entry, HR administration) and front-office work (customer support, sales support). Many providers work from lower-cost countries, which is why BPO and offshoring are often mentioned together.

  • The provider owns day-to-day management and quality.
  • Work is measured against agreed service levels.
  • It suits repeatable, process-driven work with clear quality measures.

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