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Leaders Must Know About Business Process Management and Outsourcing

In a highly saturated market, companies struggle to keep up with their competitors. Your products and services are not the only things that make a company successful.

It also depends on your business efficiency, innovative processes, and skilled management.

Your business can reach new heights with the help of process management techniques. If done correctly and with a qualified provider, outsourcing business process management can bring about such a shift.

This article covers everything executives need to know regarding business process outsourcing.

It includes information about BPM, what it is, how BPM services work, and the benefits that BPM outsourcing can bring your company.

Difference between BPM and BPO

Since long ago, outsourcing processes and parts of products has been a common practice. The approach to outsourcing is not back-office outsourcing, which was the original, but having a wider range available for companies. Outsourcing can take many forms today, including BPM (business process management) and business processes outsourcing (BPO).

Are you curious about the differences between BPM (Business Process Management) and BPO (Business Process Outsourcing)? Continue reading to learn more about the differences between BPM and BPO. This will allow you to make the right decision for your company and maximize the benefits of outsourcing.


BPO is a subcategory within outsourcing in which companies employ external service providers to handle non-primary tasks. This is called offshore outsourcing.

BPO services are customer-facing and back end. BPO services include outsourcing bookkeeping and call center services. Information technology (IT) is also included. Data entry is possible. BPO services can be combined with back-office and front-office services so that they work together.

Businesses of all sizes, from startups to Fortune 500 companies outsource certain processes. Companies see the potential to outsource certain processes as they become more innovative and competitive.

Your service provider will provide a list of qualified candidates for your business’s needs when you outsource a business process. The service provider will then select the employees you wish to train and onboard. The BPO provider is responsible for finding the best-qualified replacement for the employee who leaves. This role is defined in the service level agreement (SLA), that you signed with them.

Business Process Management Outsourcing

BPM is an organizational discipline that allows companies to examine each process individually and collectively, and then assess the company’s current situation and identify areas for improvement.

Want To Outsources Your Project? Talk To Our Business Manager

BPM outsourcing is the process of hiring an outsider to handle high-value tasks and expert work. BPM outsourcing services include credit collection and litigation support.

BPM can be compared to BPO in many ways. BPM is a form of BPO. However, the primary difference between the two is that the former assumes full responsibility for all aspects of the business process including recruiting, training, and onboarding employees. The BPM provider replaces and motivates employees. They also teach them how to manage the entire operation.

This fundamental difference is what separates BPO from BPM.

Outsourcing Business Process Management

Based on their purpose, the two main types of BPM outsourcing differ:

  • System-centric Business Process Management: Overseeing functions like human resource management (HRM), customer relationship management (CRM) and enterprise resource planning(ERP) without any human intervention. It uses broad integrations and access to the application programming interface (API), which allows for rapid and efficient business processes. Online banking is one example of system-centric BPM. It uses multiple software systems.
  • Promoting human interaction over automated BPM: This type is primarily concerned with tasks that humans perform, and therefore requires sign-offs from individuals. This includes employee onboarding, customer complaint management, and eCommerce. Offshore IT support is also included.

The Benefits of Business Process Management Outsourcing

BPM is in high demand. Global News Wired predicts that the BPM market would grow at a 12% annual rate by 2028. BPM’s many benefits are responsible for this increase in demand.

BPM can help companies reach higher organizational goals and move towards complete digital transformation. Here are four benefits of working with a BPM provider:

1. Enhancing Organizational Agility

Companies that spend less money are more flexible. They are better able to react to market fluctuations and take advantage of opportunities that may arise.

A company’s most valuable asset is its team of experienced financial, HR, security, and IT professionals.

Businesses can hire full-time staff if they have a growing need for skilled personnel. Leaders can also contract with contractors to meet short-term and project-based organizational needs.

2. Reduce costs and generate more revenue

BPM eliminates operational bottlenecks. This results in shorter lead times for product sales and more customers having access to goods or services. This ultimately results in more sales and greater revenue.

BPM also allows you to track and allocate resources to reduce waste. This can help you cut down on expenses and increase profit.

3. Visibility Improvement

BPM service providers provide real-time monitoring of key performance indicators (KPIs) and track them. This transparency can lead to better management. It allows you to monitor the results and make changes to processes or structures that are not beneficial for your company.

4. Improving Compliance, Safety, and Security

Reliable BPM service providers ensure that your company adheres to industry standards and is up-to-date on new regulations. A reliable BPM service provider can improve safety and security by documenting every procedure and facilitating compliance.

BPM Outsourcing: Making Management Easier

Intuit, an international technology platform, discovered that 65% of business owners believe they can be more focused on long-term growth by taking a step back and looking at the larger picture. These business owners are also responsible for other aspects of the company such as customer service, accounting, and marketing.

It is not surprising that low-value activities distract from the ability of leadership teams to concentrate on core business functions. Business owners are spending most of their time doing non-core activities, instead of creating lasting customer impact and innovative offerings and strategies.

Outsourcing allows leaders to concentrate on their business and not be distracted by individual departments. Companies of all sizes can outsource BPM to get accurate insights, impartial feedback, and strategic decisions.

Outsourcing business process management allows CEOs and leaders to access the expertise of other professionals, without having to hire them. This helps reduce costs and improves business agility. Outsourcing reduces stress and lowers executive burnout.

The Bottom Line

Outsourcing business process management is more than a way to save money. Companies that want to remain competitive in hyper-competitive markets will need business process outsourcing.

Outsourcing allows you to be globally competitive by increasing productivity, reducing costs, and having access to affordable professionals. It also helps you scale faster.

Want To Outsources Your Project? Talk To Our Business Manager

Unity Communications is a trusted business process outsourcing provider that can manage certain functions. This reduces risk. You can also tap into experts who can deliver quality solutions. Outsourcing is not an all-inclusive solution. Unity Communications provides unique and customized consulting solutions to support your business processes at every stage.