Business Process Outsourcing - AscentBPO's blog
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Business Process Outsourcing

BPO stands for Business Process Outsourcing, it is the practice of outsourcing specific business functions to an external service provider. BPO aims to reduce costs, improve efficiency, and increase profitability by transferring business processes to a third-party provider who specializes in that process. Common examples of processes outsourced include customer service, human resources, accounting, and IT support.

BPO is widely used by companies across different industries, allowing them to focus on core business activities while outsourcing non-core functions to specialist providers. 

There are two main types of BPO process outsourcing:

  1. Back Office BPO: This type of outsourcing involves non-customer-facing functions such as data entry, accounting, payroll, and HR. These processes are considered administrative and are performed behind the scenes.

  2. Front Office BPO: This type of outsourcing involves customer-facing functions such as customer service, technical support, and sales. These processes directly interact with the customers of a company.

Additionally, BPO services can be further divided into two categories:

  1. Infrastructure BPO: This type of outsourcing involves the management of an organization's IT infrastructure, including hardware, software, and networks.

  2. Knowledge Process Outsourcing (KPO): This type of outsourcing involves the transfer of high-level and specialized business processes, such as market research, financial analysis, and legal research, to a third-party provider.


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