Business process outsourcing (BPO) is the practice of hiring an external company to handle specific business tasks or processes. This can include functions like customer service, accounting, or human resources. By outsourcing these tasks, companies 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, and front-office outsourcing, which deals with customer-facing services. Many businesses choose to outsource to specialized firms that have the expertise and resources to perform these tasks effectively.