Business Process Outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business-related functions, IT related, to a third party service provider. 

Such process usually involves multi-year, lucrative contracts between the client firm and service provider firm. Types of services carries out by BPOs include call support, administration, finance and accounting, human resources, payment services, logistics and distribution, etc.

BPO finds applications in many verticals such as telecommunications, technology, banking, manufacturing, insurance and finance services, retail and healthcare among others.

Human labor is required in most business processes for productive delivery. Restoring to BPO which provides human labor at a lower cost helps companies maximize their ROI in such situations. Growing competition also demands continuous innovation. By outsourcing some tasks, companies can focus more on their core activities to bring about innovation in their products as well as services. Furthermore, development in IT and telecommunications infrastructure have enabled companies to transfer data to any place in the world.