Business Process Outsourcing, or BPO, is a practice where companies hire external organizations to handle specific business tasks. This can include functions like customer service, accounting, and human resources. By outsourcing these processes, companies can focus on their core activities while reducing costs and improving efficiency. BPO can be categorized into two main types: back-office and front-office services. Back-office services involve internal business functions, such as data entry and payroll, while front-office services include customer-facing tasks like support and sales. This approach allows businesses to leverage specialized expertise and technology from BPO providers.