In the corporate global scenario, the term “outsourcing” often refers to a particular type of outsourcing where the work is being done by the third person and not by the organization themselves to save time, cost and improving efficiency. BPO occurs when an organization turns over the management of a particular business process (such as accounting or payroll) to a third party that specializes in that process. The underlying theory is that the BPO firm can complete the process more efficiently, leaving the original firm free to concentrate on its core business area.