Small Business Glossary and Definitions

Business Process Outsourcing (BPO), also often referred to as Information Technology Enabled Services (ITES), refers to contracting out non-primary business tasks and functions to an outside company. Such services usually consist of call center/customer relations, tech support, accounting, human resources and payroll.

The practice used to be associated primarily with large manufacturers, who would outsource significant parts of their supply chains. It enhances process efficiency and speed, allows employees to spend more time on core business functions, and increases organizational growth by saving money. Potential risks include overdependence upon outside service providers, data security breaches and underestimated operating costs.