Business Process Outsourcing (BPO)
Business processing outsourcing (BPO) is the process of contracting specific business functions to a third party service provider.
For many businesses, the main advantage of BPO is increased flexibility. This is achieved by transforming fixed cost structures into variable cost structures. A variable cost structure allows a business to respond quickly to changes in activity and maintain effective resource management.
This incredible flexibility also allows a business to focus on its core competencies without being burdened by the demands of bureaucratic constraints.
Key employees are released from time consuming (but essential) administration or processing tasks to invest more time and energy on building the business.