Business Process Outsourcing (BPO) and Off Shoring
BPO involves the migration of services to an external provider.Outsourcing encompasses manufacturing, IT, and back-office services. Business process outsourcing includes call centers, finance and accounting, human resources, and transaction processing.
Off Shoring refers to taking advantage of lower-cost labor in another country. While outsourced processes are handed off to third-party vendors, offshored processes can be handed off to third-party vendors or remain in-house. The definition of offshoring includes organizations that build dedicated captive centers of their own in remote, lower-cost locations.
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