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This chapter delves into the ins and outs of Business Process Outsourcing (BPO), a common practice of contracting operational tasks to a third-party provider. Highlighting the significant benefits such as cost efficiency, access to expertise, and focus on core business activities, it also underscores potential challenges including data security and loss of control. The text further guides on identifying suitable IT functions for outsourcing, factors to consider while making this decision, and best practices for managing BPO relationships and performance effectively.