Quiz Answer

3. Contracting specific business tasks to a service provider

Answer: Business process outsourcing

Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace. A call center might outsource the call center if it is seen as a distraction from the company's core business, or if the call center requires special skills and complex technology that are separate from the company's other endeavors.
BPO is often divided into two categories: back office outsourcing which includes internal business functions such as billing or purchasing, and front office outsourcing which includes customer-related services such as marketing or tech support...
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This was first published in October 2006

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