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BPO is separate from information technology (IT) outsourcing, which focuses on hiring a third-party company or service source toward do IT-related activities, such as submission management as well as application development, data center operations, or testing as well as superiority declaration. In the early days, BPO more often than not consisted of outsourcing processes such as payroll. Then it grow toward include employee reimbursement management. At the present it encompasses a number of functions so as to be considered "non-core" to the primary business strategy. At the present it is common for organization toward outsource financial in addition to administration (F&A) processes, human resources (HR) functions, call center as well as customer service activities in addition to accounting and payroll.

These outsourcing deals regularly involve multi-year contracts so as to be able to run into hundreds of millions of dollars. Often, the people performing arts the work on the inside for the client firm is transferred in addition toward become employees for the service provider. Dominant outsourcing service providers in the BPO fields (some of which as well dominate the IT outsourcing business) include US companies IBM, Accentor, in addition to Hewitt Associates, as well as European and Asian companies Cap Gemini, Enact, TCS, Wipro and Infosys. Lots of these BPO efforts involve off shoring -- hiring a company based in an additional country -- to do the work. India is a popular location for BPO activities. Frequently, BPO is also referred toward as ITES -- information technology-enabled services. Since most business processes comprise some form of automation, IT "enables" these services toward be performed.

A consequence of BPO is KPO -- knowledge procedure outsourcing. Considered by some to be a subset of BPO, KPO include personâ€™s activities so as to necessitate greater skill, information, education as well as expertise toward handle. For example, whereas an indemnity corporation might outsource information entry of its claims forms as part of a BPO proposal, it might as well choose toward use a KPO service provider toward evaluate new insurance applications based on a set of criteria or business rules; this work would necessitate the efforts of a more knowledgeable set of workers than the data entry would. The present definition of KPO encompasses R&D, product development as well as legal e-discovery, as well as a number of other business functions.

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