Business process outsourcing (BPO) refers to the practice of outsourcing certain corporate tasks or processes to external service providers. It entails delegating the responsibility for non-core or support functions to specialized firms, allowing the organization to concentrate on its core skills and strategic ambitions. BPO might include a variety of operations, including customer service, human resources, finance and accounting, IT support, and more.
Example
Business Process Outsourcing is a manufacturing business that chooses to outsource payroll processing and employee benefits administration. Instead of doing these HR activities in-house, the firm works with an outside HR outsourcing provider. The service provider handles all payroll processing operations, such as salary computation, tax deductions, and pay stub issuance. They also handle employee perks including health insurance enrollment and retirement programs.
