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.[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]
References
- ↑ Defining Business Services Provider Webopedia
- ↑ What is Business Services Provider? Techopedia