what is bpo in simple words

BPO stands for Business Process Outsourcing, which refers to the practice of hiring another company to perform a process that your own business needs to operate. In other words, you’re using a third party to handle non-primary business activities for your company. BPO is often used by companies of all sizes and at all stages of their journey. For example, a startup might not have the budget to hire an entire in-house department, or an established company may want to reduce complexity and improve flexibility. BPO can be divided into different types based on the service providers location, such as offshore outsourcing, onshore outsourcing, and nearshore outsourcing. BPO can lower a company's costs, increase efficiency, and provide greater operational flexibility.