What is Business Process as a Service?
Business Process Services or Business Process as a Service (BPaaS) is an outsourcing model that involves outsourcing specific business processes to a third party. BPaaS allows organizations to focus on their core competencies and outsource non-core activities to specialized providers.
What is the core difference between BPO and BPaaS?
Business Process Outsourcing (BPO) is the process of hiring a service provider to perform specific operations and responsibilities related to a business process. On the other hand, BPaaS involves outsourcing these same business processes online, using cloud-based software. With BPaaS, technology automates and accelerates processes, allowing immediate access and control through the cloud.
What advantages does BPaaS offer over BPO?
BPaaS offers several advantages over BPO and the 7 main ones are:
1. Greater savings on expenses
When organizations outsource processes, it means that the service provider must increase its staff and costs, which are then passed on to the contracting organization. BPaaS is more likely to deliver economies of scale by utilizing technology to reduce staff costs.
2. Greater efficiency
When designing a process using BPaaS, the adoption of technology is taken into account to make each part of the process more efficient, reducing manual obstacles that can arise with the intervention of people, emails and communications. This ultimately reduces the time required to complete processes and ensures higher quality, ensuring more consistent results for the organization.
3. Access to more specialized skills
BPaaS providers typically have highly specialized professionals on their team, backed by technology. This can lead to new innovations within the process. In contrast, BPO tends to use personnel with more generic skills, which implies the need for long and expensive training to reach the same level of specialization that BPaaS offers.
4. Better risk management
BPO providers often rely on manual processes that involve people and are prone to errors, interruptions and redundancies. BPaaS automates every part of the process, reducing manual intervention and therefore reducing negative impacts on organizations’ operations.
5. Better customer experience
BPaaS providers can offer customer service that better understands the particular needs of the organization, due to their level of specialization in the process. Over time, this translates into greater satisfaction and loyalty from the organization.
6. Access to new technologies
BPaaS providers often have other technological solutions in their arsenal, which can complement and innovate the operation of a specific business process. This undoubtedly gives organizations a competitive advantage that allows them to stand out in their sector.
7. Greater agility
By outsourcing business processes with BPaaS, you can achieve greater agility in the process and easily change its direction in changing circumstances.
At Suplos, we provide BPaaS services for large corporations in Latin America, taking advantage of our cloud system, which allows us to automate and streamline the Supply Chain process. All of this has allowed us to eliminate inefficient and manual processes, improving control and access to processes, resulting in savings of up to 40% for our clients in 12 different industries.
• Source: Own elaboration and Bill Lewis from IQ BackOffice (Dec2022).
• Category: BPaaS
