Business Process Outsourcing (BPO)

BPO (Business Process Outsourcing) can be defined as a contractual service to completely manage, deliver, and operate one or more (typically IT-intensive) business processes or functions.  

BPO related processes and functions could include insurance claims processing to contact center operations to payroll processing etc.  One way to think of BPO is to compare it to the functions most organizations include in the General and Administrative (G&A) category, specifically backoffice and administrative functions.  

Key business processes and functions that are outsourced and form a large part of the BPO market include: 

  • Administrative

  • Finance and accounting

  • Human resources

  • Payment services

  • Manufacturing services

  • Distribution logistics

  • Sales/marketing

  • Customer care

Notable areas to be outsourced offshore: customer care, accounting, or insurance claims processing

BPO Segments

Human Resources

  • Payroll/Benefits processing
  • Training and development
  • Hiring/Staffing
  • Employee Benefits
  • Management
  • 401K

Payment Services

  • Loan administration
  • Credit/Debit Card Services
  • Check Processing


  • Inventory and warehousing
  • Industry management
  • Order fulfillment/procurement
  • Transportation and distribution

Sales, marketing, and customer care (CRM)

  • Customer services
  • Customer analysis
  • Call centers
  • Consumer information services

Finance and administration

  • Document management
  • Billings
  • Claims processing
  • Accounts receivable
  • Accounts payable
  • General ledger
  • Accounting services
  • Shareholder services