What is meant by business process outsourcing?

Answer 1

Companies conduct business using processes of all sorts (production processes, maintenance processes, accounting processes, etc.). They can hire individuals to perform the processes. Alternatively, they can hire a Business Process Outsourcing (BPO) company to perform those processes.

Call centers are an area frequently outsourced to companies that have built call center capabilities and offer them to other companies so that those companies do not have to go to the expense of building those capabilities themselves. Many companies outsource product assembly processes, thus avoiding the need to build their own factories and manage large numbers of people.