Business Process Outsourcing - BPO

DEFINITION of 'Business Process Outsourcing - BPO'

A method of subcontracting various business-related operations to a third party. When business process outsourcing began, it applied chiefly to manufacturing entities, such as soft drink manufacturers. However, it is now applicable to the outsourcing of services.

BREAKING DOWN 'Business Process Outsourcing - BPO'

Business process outsourcing is known as offshore outsourcing if the outsourcing is sent to another country. It is known as nearshore outsourcing if it is done with a neighboring country. Another form of BPO is known as information-technology-enabled service (ITES).

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