Over the last decade, a new type of business within service sector has become popular in the world. It is called Business Process Outsourcing (B.P.O) B.P.O refers to getting a business task accomplished through an outside agency. Initially only few companies in united states adopted the practice of outsourcing by assigning the routine jobs to outside agencies so that company can concentrate on critical issues without waiting time on routine work. Later on it became popular in other countries also. Earlier companies used to hire outside agencies to perform tasks which used to come up occasionally. Slide 1-5.
There is a large variety of outsourced services, due to the extensive use of outsourcing, but the following just provides a broad classification describing the most commonly used and major types of outsourcing contracts.