Outsourcing is commonly referred to as Business Process Outsourcing (BPO). This includes the contracting authority and responsibilities of company-specific functions of a third-party service provider. Contract with a company with access to human resources outside the country have been invited to offshore outsourcing.
One of the significant benefits of BPO is the way it helps companies to increase flexibility as well to reduce operating cost. Most BPO services provided by suppliers are on a pay-for-service basis. This helps a company become more agile, mobile, and flexible, by lowering fixed costs. BPO helps companies that take advantage of this business opportunity so that they can focus on their core business operations and gain market share, operate more efficiently and introduce new products without the demands and costs of staffing for peaks and troughs in business cycles.