What is B P O.

BPO - Business Process Outsourcing

Definition of BPO - Business Process Outsourcing

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Definition and explanation of BPO - Business Process Outsourcing:

Business Process Outsourcing (BPO) is the outsourcing of business processes to external service providers. The aim of outsourcing is to relieve non-business-critical processes and the associated concentration on the core tasks of a company. A common example is payroll, which is done by third parties in many companies.

Business process outsourcing in comparison

There are a variety of BPO solutions on the market. A distinction is made between the outsourcing of primary (production / service creation, research and development, marketing and sales) and secondary processes (accounting, human resources (HR), customer care, etc.). When introducing BPO, a company should be prepared for adjustment measures in advance. This can be due, for example, to differences in the security standards or the software of the cooperating companies.

Examples of the use of business process outsourcing

The most commonly outsourced processes include:

  • Finance and accounting / bookkeeping
  • Payroll
  • company pension scheme (bAV)
  • Recruiting
  • IT

Other areas:

  • procurement
  • logistics
  • Banks (processing of payment transactions, credit and securities transactions)
  • Technical documentation (creation of external documentation and translations)

The advantages of business process outsourcing

  • Access to specialist knowledge
  • Concentration on the core business
  • Capacity adjustment
  • Efficiency increase
  • External innovation impulses
  • Transfer of operational risks to the BPO service provider

= Increase in sales

Potential disadvantages of business process outsourcing

  • Problems with adjustment processes between the company and the BPO service provider
  • Selection of the processes to be outsourced
  • Lack of flexibility
  • Conflicts in the protection of trade secrets
  • Need for coordination with BPO service provider

A selection for BPO service providers can be found in our software selection with information about the company sector.


BPO provider


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