What is business process outsourcing? Business process outsourcing otherwise know as BPO is the process of leveraging technology vendors in various third world or developing nations for doing a job which was once the responsibility of the enterprise. Or simply put, it is the process of shifting an internal job process to an outside/external company which might have a completely different geographical location.

Generally the processes being outsourcing as part of BPO are backend jobs like call/help centers, medical transcription, billing, payroll processing, data entry and the like. Most of these jobs are outsourcing by first world nations like USA and UK to third world nations like India, Philippines, China, Malaysia and some eastern European countries.

These nations have a good pool of English speaking youth who receive accent and job related training before they are inducted at a salary which is much lesser than what their counterparts in first world nations would demand. This allows first world organizations to get higher profits and provide better services by lowering the prices and by recruiting more labor than they could possibly do otherwise. In addition to benefiting the first world nations, business process outsourcing has also benefited third world nations by generating much needed jobs.

To get more information on what is business process outsourcing, check out the following articles:

What is Outsourcing and which are the services that are being outsourced?
What impact will Job Outsourcing have on the world economy?
Which are the Offshore outsourcing destinations that first world nations outsource to?
The Business process outsourcing Boom in India
What are the negative Effects of Outsourcing?