A subset of outsourcing, BPO (Business Process Outsourcing), is the practice of subcontracting business-related operations to an external service provider. The third-party vendor manages secondary business functions for its clients, like accounting, data recording, customer support, and social media management.

They can provide back-office functions such as payroll processing and purchasing or front-office functions like customer support and marketing. And depending on the vendor location, businesses can go for on-shore, offshore, or nearshore BPOs.