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Meaning & Definition

Business Process Outsourcing (BPO)

It is a method of subcontracting various business-related operations to third-party vendors. Although BPO originally was limited solely to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains, BPO now applies to the outsourcing of services, as well. One point to note here is that, only non-core activities are usually outsourced. The companies do not part with their core competencies, they maintain all their focus on these like manufacturing, marketing etc.

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