Business process outsourcing (or BPO) will, without doubt, be one of the major themes talked about in business during 2004. BPO is driven by fundamental changes in the international business environment in the last decade; most European companies, albeit in many cases reluctantly, now realise that they must embrace it if they are to move forward.

Take IT companies. According to research analysts Ovum Holway, the general IT market--including consultancy, supply, implementation and development--declined 6.6 per cent in 2003 with further decline predicted for 2004 before a market pick-up in 2005. By contrast, double-digit IT BPO/outsourcing growth is forecast through to 2007. If you're in the IT sector, it's sensible to have at least one foot in BPO.

BPO works because outsourcing 'basic' and 'repetitive' business functions to companies that either have specialist expertise or that enjoy economies of scale, if not both, makes perfect economic sense--especially at a time when international companies are chasing the bottom line like never before.

With the basic premise of BPO both accepted and established, the question companies must now ask is, "What functions can I successfully outsource?"