UNITED STATES ~~SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934~~

~~Date~~SECURITIES ~~of Report~~AND ~~(Date~~EXCHANGE ~~of earliest event reported): October 10, 2007~~COMMISSION

~~BPO MANAGEMENT SERVICES~~Washington, ~~INC. (Exact name of registrant as specified in its charter)~~ DC 20549

Delaware	000-28560	22-2356861
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

__________________

~~1290 N. Hancock Street, Anaheim, California 92807 (Address of principal executive offices) (Zip Code)~~FORM 8-K

~~Registrant’s~~CURRENT ~~telephone number, including area code: (714) 974-2670~~REPORT

~~Not~~Pursuant to ~~Applicable~~Section ~~(Former~~13 ~~name~~ or ~~former~~15(d) ~~address,~~of ~~if changed since last report)~~the

~~Check~~Securities ~~the appropriate~~Exchange ~~box~~Act ~~below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation~~ of ~~the registrant under any of the following provisions:~~1934

oDate ~~Written~~of Report ~~communications~~(Date ~~pursuant~~of toearliest ~~Rule~~event ~~425 under the Securities Act (17 CFR 230.425~~reported): September 30, 2008

oBPO ~~Soliciting~~MANAGEMENT ~~material~~SERVICES, ~~pursuant~~INC. to(Exact ~~Rule~~Name ~~14a-12~~of ~~under~~Registrant ~~the~~as ~~Exchange~~Specified ~~Act~~in ~~(17~~its ~~CFR 240.14a-12~~Charter)

oDelaware ~~Pre-commencement communications pursuant to Rule 14d-2~~(b)State ~~under~~or ~~the~~Other ~~Exchange~~Jurisdiction ~~Act~~of ~~(17 CFR 240.14d-2(b~~Incorporation))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

0-28560		22-2356861
(Commission File Number)		(I.R.S. Employer Identification No.)

SECTION 1 – REGISTRANT’S BUSINESS AND OPERATIONS

1290 N. Hancock, Ste 200, Anaheim, CA		92807
(Address of Principal Executive Offices)		(Zip Code)

~~ITEM~~Registrant’s ~~1.01 Entry~~telephone ~~into~~number, aincluding ~~Material~~area ~~Definitive~~code (714) ~~Agreement.~~974-2670

~~Through a Stock~~Not ~~Purchase~~applicable Agreement, entered into as of October 10, 2007, we purchased the issued and outstanding capital stock of Blue Hill Data Services, Inc., a privately-held data center outsourcing services company, based in Pearl River, New York (~~“Blue~~Former ~~Hill”). At~~name or about the closing date, we transferred approximately $11 million of value, as follows: (i) cash payments to the current selling stockholders of approximately $6.6 million; (ii) our 15-month promissory note in the initial principal amount of $1 million, subject to offset in our favor with respect to any claims for indemnity by us under the terms of the Stock Purchase Agreement; (iii) cash payment through Blue Hill in the amount of approximately $1.4 million to its former ~~stockholder; and (iv) 2~~address,~~666,666~~ ~~shares~~if ofchanged ~~our~~since ~~restricted~~last common stock valued at approximately $1.8 million (based upon the volume-weighted average closing bid price of our common stock during the ten consecutive trading days immediately preceding the closingreport). The promissory note bears interest from and after January 1, 2009, at the rate of 9% per annum and is “secured” by a document to be held in escrow, styled as a confession of judgment. The principal of the note, less any offsets, is, at the selling stockholders’ option, convertible into restricted shares of our common stock, the number of which is to be calculated in the same manner as the shares issued at closing were calculated.

~~Included in~~Check the appropriate ~~Share~~box ~~Purchase~~below ~~Agreement~~if ~~were~~the ~~three~~Form 8-~~year~~K ~~covenants~~filing byis ~~the~~intended ~~selling shareholders not~~ to ~~compete~~simultaneously satisfy ~~with~~the ~~Blue~~filing ~~Hill~~obligation ~~Data Services' business as conducted as~~ of the ~~closing~~registrant ~~and~~under ~~not to solicit business from~~ any of ~~Blue~~the ~~Hill Data~~following ~~Services~~provisions ~~customers~~(see orGeneral ~~prospective~~Instruction ~~customers~~A. ~~The Share Purchase Agreement also contained customary representations, warranties, and indemnities by the selling shareholders in our favor~~2. below):

~~As of~~[X] ~~the closing,~~Written ~~Everett~~communications ~~Huntoon,~~pursuant ~~the~~to ~~former~~Rule ~~President~~425 ~~and~~under ~~CEO,~~the ~~entered~~Securities ~~into~~Act a(17 ~~3-month Consulting~~CFR ~~Agreement~~230.425) ~~with~~[ ~~us,~~] ~~whereby~~Soliciting hematerial ~~agreed~~pursuant to ~~assist~~Rule us14a-12 inunder anthe ~~orderly transition~~Exchange ofAct ~~management~~(17 ofCFR ~~Blue Hill Data Services~~240. ~~We agreed to compensate him $10,000 per month. Mr. Howard Andrews, the former Executive Vice~~14a-~~President,~~12) ~~has~~[ ~~entered~~] ~~into a 15~~Pre-~~month~~commencement ~~Consulting~~communications ~~Agreement with us,~~pursuant ~~whereby he agreed~~ to ~~assist~~Rule us14d-2(b) inunder anthe ~~orderly~~Exchange ~~transition~~Act of(17 ~~management~~CFR ~~of Blue~~240.14d-2(b)) ~~Hill~~[ ~~Data~~] ~~Services,~~Pre-commencement ~~and~~communications ~~also~~pursuant to ~~perform~~Rule ~~certain day~~13e-~~to-day~~4(c) ~~duties~~under ~~for Blue Hill~~the ~~support~~Exchange ~~activities. We~~Act ~~agreed~~(17 toCFR ~~compensate him $12,500 per month~~240.13e-4(c))

~~Blue~~FORM ~~Hill, founded in 1994, is a full~~8-service data center outsourcing provider with customers located throughout the country representing a wide range of industries. This company has been recognized by industry analysts as a quality provider of data center outsourcing services for middle-market enterprises. Core services include enterprise-scale mainframe/server hosting, wide-area network management and dedicated business recovery solutions provided under long-term, recurring-revenue-based contracts. Services are delivered from its Class A, SAS70 Type II audited data center facility encompassing important support and high-availability features such as redundant feeds to utility power and telecom grids, virtually unlimited fiber-based telecom bandwidth, stand-alone back-up power generation and state of the art security and environmental controls. The facility and 24*7 data center operation are with supporting its customers' Sarbanes-Oxley and HIPAA requirements.K

~~BPOMS intends~~Item to consolidate the operations of its existing Information Technology Outsourcing (ITO) business unit with the operations of the proposed acquisition to create additional capability for both new and existing customers and generate additional economic efficiencies8.01 ~~Additionally,~~Other the SAS70 Type II data center facility will allow BPOMS to expand its IT outsourcing footprint with existing customers as well as enable it to target new and larger enterprises, yielding important future growth opportunities with significantly larger contract values.Events

~~SECTION~~On 9September 30, 2008 Healthaxis, Inc. issued a press release which contained statements made by Patrick Dolan, the Chairman of the Board and Chief Executive Officer of BPO Management Services, Inc., pertaining to, among other matters, the proposed merger of BPO Management Services, Inc. into a wholly-owned ~~FINANCIAL~~subsidiary ~~STATEMENTS~~of ~~AND~~Healthaxis, ~~EXHIBITS~~Inc.

Item 9.01 Financial Statements and Exhibits.

~~(a) Financial Statements~~Exhibit 99.1 Press release dated September 30, 2008 pertaining the Healthaxis, Inc. signing of ~~businesses~~a ~~acquired~~multi-year IT outsourcing contract through BPO Management Services, Inc.

~~The financial statements required by this item will be filed by amendment not later than 75 calendar days after the date of the earliest event reported hereunder.~~SIGNATURE

~~(b) Pro~~Pursuant ~~forma~~to ~~financial~~the ~~information~~requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

~~The pro forma~~BPO ~~financial~~Management ~~information~~Services, ~~required~~Inc. ~~pursuant to Article 11 of Regulation S-X~~ (~~17 CFR 210~~Registrant) ~~will~~Date: beSeptember ~~filed~~30, by2008 ~~amendment~~By: ~~not~~/s/ ~~later~~Donald ~~than~~Rutherford 75Donald ~~calendar~~Rutherford, ~~days~~Chief ~~after the~~Financial ~~date of the earliest event reported hereunder.~~Officer

(d) Exhibits.

	Exhibit No.		Description of Exhibit
	10.49*		Stock Purchase Agreement entered into as of October 10, 2007, by and among BPO Management Services, Inc., Everett Huntoon and Howard Andrews dated October 10, 2007
	10.50*		Consulting Agreement made as of October 10, 2007, between Blue Hill Data Services, Inc., and Everett Huntoon
	10.51*		Consulting Agreement made as of October 10, 2007, between Blue Hill Data Services, Inc., and Howard Andrews
	10.52*		Escrow Agreement dated as of October 10, 2007, by and among BPO Management Services, Inc., Everett Huntoon, Howard Andrews and U.S. Bank National Association

_____________

* filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 10, 2007	BPO MANAGEMENT SERVICES, INC.
	By:	/s/ Don Rutherford
		Don Rutherford
		Principal Accounting Officer

Exhibit Index

	Exhibit No.		Description of Exhibit
	10.49		Stock Purchase Agreement entered into as of October 10, 2007, by and among BPO Management Services, Inc., Everett Huntoon and Howard Andrews dated October 10, 2007
	10.50		Consulting Agreement made as of October 10, 2007, between Blue Hill Data Services, Inc., and Everett Huntoon
	10.51		Consulting Agreement made as of October 10, 2007, between Blue Hill Data Services, Inc., and Howard Andrews
	10.52		Escrow Agreement dated as of October 10, 2007, by and among BPO Management Services, Inc., Everett Huntoon, Howard Andrews and U.S. Bank National Association

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