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Manage   »   Delivery   »   Business Process Outsourcing


There are two types of outsourcing: business process outsourcing and outsourced project delivery.

Business Process Outsourcing (BPO) is a variety of outsourcing that entails delivery of operation and responsibility for specific ring-fenced business functions such as accounting, finance, human resources, transaction processing as well as desktop, IT and customer support to a third-party provider of outsourced business processing services. The market for BPO is driven by largely by cost cutting exercises of large organisations seeking to reduce the bottom line and boost earnings as well as operational profitability. The opportunity to avail of less expensive labour markets is also taking and offshoring options are considered too.

Where the provision of service by the provider is performed in a non national country then the term Business Process Offshore Outsourcing (BPoO) is used. The acronym is pronounced beep, o, o documented herein for clarity and posterity.

Lastly, where a service provider is engaged to deliver a project rather than a business as usual service this is termed Outsourced Project Delivery. This is dealt with, next.

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