Any process or service performed by a third-party vendor that would otherwise have to be performed in-house. BPO arrangements typically transfer some or all performance risk from the company to the vendor, as measured by defined performance metrics and/or fees at risk. Virtually any internal service can be outsourced. Staffing, MSP, payrolling, etc., can all be considered examples of BPO depending on the level of ongoing client involvement and/or the degree of performance risk assigned to the vendors.
