Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain.BPO is typically categorized into back office outsourcing, which includes internal business functions such as human resources or finance and accounting, and front office outsourcing, which includes customer-related services such as contact centre services.BPO that is contracted outside a company's country is called offshore outsourcing.
Client-facing functions are important and are used to understand the client's needs or to solve problems a computer would have too much difficulty doing. We will automate or outsource this function if it can save expenses.
Globalization is often blamed for the loss of employment in developed nations, as corporations ship manufacturing facilities and jobs overseas in order to save costs; critics say it weakens national sovereignty as well. It primarily refers to the economic integration of global markets
Third party would be the escrow company in a real estate transaction that acts as a neutral agent collecting the documents and money that the buyer and seller exchange when completing the transaction.Third parties may be used by other companies for mitigating risk.
A service provider (SP) provides organizations with consulting, legal, real estate, communications, storage, processing. Although a service provider can be an organizational sub-unit, it is usually a third party or outsourced supplier, including telecommunications service providers (TSPs), application service providers (ASPs), storage service providers (SSPs), and internet service providers (ISPs). A more traditional term is service bureau.