Business Services Provider (BSP)
Definition - What does Business Services Provider (BSP) mean?
A business services provider (BSP) is a type of service provider that rents third-party software applications to businesses. BSPs offer an affordable way to acquire applications by means of networks. They tailor software packages to fulfill the requirements of their customers and provide back-office solutions by outsourcing nearly all of their business operations. This includes mail delivery, payroll, finance, building security, administration, bookkeeping, human resources, and so on. Business service providers are otherwise known as application service providers or business process outsourcers.
Techopedia explains Business Services Provider (BSP)
- 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.
- 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.