Business Service Provider (BSP)
A Business Service Provider (BSP) is an application service provider that focuses on providing and hosting applications related exclusively to business functions.
BSPs offer business processes as services, delivering partial as well as full-term outsourcing of business processes. They are mainly divided into two categories:
- Front-Office BSPs: These BSPs are responsible for customer-related services like contact center services.
- Back-Office BSPs: These BSPs mainly handle internal business functions, such as finance and accounting or human resources.
Business service providers offer business process outsourcing, which improves an organization's flexibility in a number of ways:
- Most BPO services from BSPs are delivered on a fee-for-service structure. This gives an organization more flexibility.
- BSPs help businesses concentrate on their key expertise, without getting weighed down by the needs of bureaucratic constraints.
- They boost the pace of business processes by effectively using supply chain partners together with business process outsourcing.
- BSPs let organizations retain their entrepreneurial agility and speed. Small and mid-sized firms often find BSPs ideal for their requirements as BSPs usually demand low monthly fees and minimal start-up costs.