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Business Service Provider (BSP)

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A Business Service Provider (BSP) is an application service provider that focuses on providing and hosting applications related exclusively to business functions.[1]


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.[2]

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