Business Process Outsourcing

In business process outsourcing, the outsourcing company turns over the management of a particular or all business processes (example accounting or payroll) to a third party that specializes in that process. That third party could be located anywhere in the world. For this to happen, the business process must such, that it can be outsourced to a developing nation, like China, India and Pakistan.

The main advantage of BPO is that the third party can complete the business processes more efficiently, because it has experience in that field, while the main company can focus on running their business.

The cost savings advantages occurs when high paying jobs are outsourced to countries like China and India, where pay is low and productivity is generally high.