ITPEC FE Morning October 2021 Question 63
ITPEC FE Morning October 2021 — Question 63 of 80
BPO means outsourcing an entire business process (e.g., administration, call center, payroll) along with its system operations to an external specialized vendor. The key distinction is that it's not just software or infrastructure — it's a complete business function handed off to a third party.
Why not others:
- (a) Describes hosting — renting server processing/storage capacity from a service provider
- (b) Describes SaaS (Software as a Service) — using vendor-provided software over a network without owning it
- (d) Describes staffing outsourcing — hiring cheaper external personnel to reduce development costs, not outsourcing a whole business process
Key rule: BPO = outsourcing an entire business process (not just software, servers, or staff) to a specialized external vendor.
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