Glossary   >  Business Process Outsourcing

Business Process Outsourcing

What is Business Process Outsourcing?

Business Process Outsourcing, also known as BPO means to allow a part of the business’s operations to the external service providers on a contract basis. It is essential to be aware that only the non-core activities of the businesses are outsourced. It is done with the motive of saving time, resources, and money for the management as well as driving the strategic objectives of the company.

Frequently Asked Questions about Business Process Outsourcing

What are the different types of business process outsourcing?

There are three types;

  • Local outsourcing
  • Off-shore outsourcing
  • Near-shore outsourcing

What is the difference between outsourcing and business process outsourcing?

Business process outsourcing is one kind of outsourcing, the company contracts a third party to perform the non-primary business activities of the company.

What are the merits and demerits of business process outsourcing?

The merits and demerits are mentioned below;


  • Flexibility
  • Cost-effective
  • Speed
  • Skilled workforce


  • Communication issues
  • Time zones can differ
  • Loss of control

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