Business Process Outsourcing is the strategic use of outside resources to perform activities traditionally handled by internal staff and resources, none of which are core to the functioning of the company. It is a strategy by which an organization contracts routine functions to service providers who specialize in such functions. Thus the service provider is not only responsible for the execution of a business process but also for improving it.

A growing market underscores recognition of BPO's value. Providers of BPO services report healthy demand and rapid market growth, while almost all leading companies are either using or considering BPO to achieve both tactical and strategic objectives. Much of this growth has been achieved through internationalization - with outsourcing services being provided at remote locations virtually anywhere on the globe.

BPO offerings are becoming more comprehensive. BPO providers have traditionally specialized in managing repetitive, transactional chores like Payroll and Accounts Receivable. Today, many BPO firms are enhancing their service portfolios by also handling knowledge-based activities like Budgeting or Resource Planning, giving customers access to a complete menu of end-to-end processes in functional areas such as HR, Finance and Customer Care.

Companies are using BPO to reach a wide range of goals. BPO was once viewed primarily as a way of reducing expenses. Today, enterprises are leveraging BPO services to achieve productivity gains, shorten innovation cycles, enhance customer intimacy and enter new markets.