Business Process Outsourcing (BPO)

Business Process Outsourcing (BPO) is a type of outsourcing where specific functions or business processes that are closely related to the activities performed inside the company are delegated to an external company, e.g. by connecting IT systems.

Initially, BPO was adopted principally by production companies. For example, Coca-Cola delegated some of its supply chain activities to external companies.

Currently, the term BPO is used mainly to describe outsourcing of services. BPO is divided into services pertaining to administrative background, such as for example HR and payroll services, financial, accounting services, as well as services related to the direct contact with the ordering party’s client, such as for instance telephone customer service office services.