Business Process Outsourcing (BPO) is a subset of Outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain.

BPO is typically categorised into back office outsourcing, which includes internal business functions such as Human Resources or Finance and Accounting, and front office Outsourcing, which includes customer-related services such as contact centre services.

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Recruitment Process Outsourcing (RPO) is a form of Business Process Outsourcing (BPO) where an Employer outsources or transfers all or part of its Recruitment activities to an external Service Provider.

The Recruitment Process Outsourcing Association defines RPO as follows: “when a provider acts as a company’s internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the onboarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company’s time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance.”
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