Business Process Outsourcing (BPO) refers to the practice of contracting specific business tasks or processes to third-party service providers. Companies often outsource functions such as customer service, accounting, and human resources to improve efficiency and reduce costs. This allows businesses to focus on their core activities while leveraging the expertise of specialized firms. BPO can be categorized into two main types: back-office outsourcing, which includes internal business functions like payroll and data management, and front-office outsourcing, which involves customer-facing services such as call centers and technical support. By utilizing BPO, organizations can enhance productivity and access skilled labor without the overhead of maintaining these functions in-house.