Business Process Outsourcing (BPO) is a practice where companies hire external organizations to handle specific business tasks or processes. This can include functions like customer service, accounting, or human resources. By outsourcing these tasks, businesses can focus on their core activities while potentially reducing costs and improving efficiency. BPO can be categorized into two main types: back-office outsourcing, which involves internal business functions such as payroll and data management, and front-office outsourcing, which includes customer-related services like call centers. Companies often choose BPO to access specialized skills and technologies that may not be available in-house.