BPO
Business process outsourcing is delegating an entire business function, such as customer support or accounts payable, to an external provider.
The provider runs the process to agreed service levels, using its own staff and often its own tooling. Unlike staff augmentation, you buy an outcome and a service level rather than people. The main lever is labor arbitrage, though automation has taken over part of what BPO used to cover.
When it fits
When it does not
What it costs
Priced per transaction, per seat, or per FTE. Compare it honestly against automating the same process, which often costs less within a year.
Automate stable, rule-based work; outsource work that needs judgment at volume. Many companies now do both, automating the core and outsourcing the exceptions.
It depends entirely on training and access to product knowledge. Poorly briefed outsourced support is worse than none, well-briefed support is indistinguishable.
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