Business process outsourcing involves contracting third party service providers to handle specific business functions like accounting, finance, or customer service. Outsourcing provides benefits to companies like increased flexibility, cost efficiency, and the ability to focus on core competencies. The document discusses a vision to introduce outsourcing mechanisms into Indian colleges to provide employability skills and quality education to students. The current target is introducing this facility in MBA colleges in Kerala, with areas of focus including finance, accounting, customer service, human resources, and sales and marketing.