Business Process Outsourcing
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The business process outsourcing (BPO) model involves delegation of one or more IT-intensive business processes to an external provider, which owns, administers, and manages the selected processes based on defined and measurable performance metrics.
Such services are typically contracted with another business after an organization has identified a process that, although necessary for its operations, is not part of its core value proposition.
The roots of BPO can be found in the manufacturing industry.
After determining that third-party vendors could deliver more skills, efficiency and speed than an in-house team, manufacturers hired third-party suppliers to handle parts of their supply chains.