Business Process Outsourcing - BPO

What is '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).

RELATED TERMS
  1. Knowledge Process Outsourcing - ...

    A form of outsourcing in which knowledge- and information-related ...
  2. Insourcing

    Assigning a project to a person or department within the company ...
  3. Capacity Cost

    A fixed expense incurred by a company or organization in order ...
  4. Currency Overlay

    The outsourcing of currency risk management to a specialist firm, ...
  5. Brokered Certificate Of Deposit

    A certificate of deposit (CD) that is purchased through a brokerage ...
  6. Goods In Process

    An inventory account that is usually identified on the balance ...
Related Articles
  1. Entrepreneurship

    Times When Outsourcing Is A Good Fit For Your Company

    More and more companies are choosing to outsource. Here's a look at the costs and when it may be appropriate.
  2. Economics

    4 Ways Outsourcing Damages Industry

    While outsourcing has preserved capital for many companies, it could be damaging to American industry.
  3. Stock Analysis

    India's Outsourcers Losing Steam

    Reduced business volumes and falling prices spell tough times for India's IT outsourcing companies.
  4. Stock Analysis

    Hewitt Associates Sees Future Benefits

    Hewitt Associates is a recognized industry leader that will benefit as customers outsource human resources.
  5. Stock Analysis

    India's Outsourcing Star Still Shines

    The tech spending rebound is helping Infoysys boost its outlook.
  6. Personal Finance

    10 Jobs to Avoid Right Now

    These jobs may never recover to pre-recession highs, can easily be outsourced overseas or may disappear altogether as technology intervenes.
  7. Stock Analysis

    Healthier IT Markets Helping Accenture

    Accenture's bookings numbers support the idea that overall market conditions are still pretty healthy.
  8. Economics

    Globalization: Progress Or Profiteering?

    Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ...
  9. Personal Finance

    4 New Business Models That Are Here To Stay

    When it comes to thriving in business, it's out with the old and in with the new.
  10. Stock Analysis

    No Respite For Stanley And The Furniture Industry

    Stanley Furniture reported a loss and lowered guidance in its latest quarter. Learn how the move to outsourcing has backfired for the industry.
RELATED FAQS
  1. Is there a benefit to outsourcing internationally over outsourcing within the country?

    Understand the benefits of outsourcing internationally and locally for business. Learn why many businesses choose to outsource ... Read Answer >>
  2. When is outsourcing preferable to vertical integration?

    Deciding between outsourcing and vertical integration can be challenging. Understand the benefits of each to make the most ... Read Answer >>
  3. Are there any downsides to globalization?

    Understand the commonly cited detriments of the globalization process and its impact on the work force, environment and costs ... Read Answer >>
  4. What's the difference between outsourcing and insourcing?

    Discover that costs, resources, control and location are some of the major differences for an organization when deciding ... Read Answer >>
  5. What factors in a business most affect its core competencies?

    Learn about the different factors that affect a business's core competencies, and how businesses can use these competencies ... Read Answer >>
  6. What are "fabless" chip makers and why are they important in the semiconductor market?

    Learn about fabless chip makers and why some of the biggest names in the semiconductor industry have adopted the fabless ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center