BPO + BPM = Operational Excellence

On July 5, 2013, in Outsourcing, by Business Development Group

BPM allows BPO vendors to easily create and even re-utilize custom process applications for their clients and better fit with their process needs.

Companies choose a business process outsourcing partner to gain more advantage in services and IT as well as to reduce cost production while pursuing operations excellence. Companies nowadays choose a BPO partner with much diligence and putting high standards to make sure they get the best results. BPOs, on the other hand, are becoming more strategic and deliberate to make sure they are fit to be outsourced by companies.

Rahul Kochhar, an experienced adviser and analyst in enterprise content management (ECM), business process management (BPM), and document output customer communication (DOCCM) domains wrote in one of his articles that companies made a shift in choosing a BPO vendor. They now consider and look more in to the following:

Quick process rollout – speed of process automation delivery of BPO vendors and its technology configuration to incorporate company’s core application

Manage change quickly – ability to adapt with changes most especially in processes brought by business, market, and different geographical setting

Real time visibility– providing real time visibility to key processes, this is about transparent operations and easy monitoring

Cost reduction – reducing company costs without compromising service and work excellence

Flexible pricing options–able to provide many pricing options to company which best fits its needs

Related Article:

Why BPM & BPO Together Deliver Operation Excellence for Changing Business Demands

Research shows that some BPOs are making move to creating custom applications to fit with their clients’ process needs. Some of BPOs are acquiring software companies to better support them in process management and to achieve their goals and be more flexible.

In this context, business process management (BPM) software comes in. BPM allows BPO vendors to easily create and even re-utilize custom process applications for their clients and better fit with their process needs.

According to Kochhar, here are the operational benefits that a BPO can get by using BPM application:

Operational benefits:

  • Shorter process rollout time, leading to faster benefit realization with low risk and cost for the BPO.
  • Ability to rollout and work on same process with minimum cost for multiple geographies and languages. BPM providing multitenant and multilingual support.
  • Leverage processes created for geography to other geographies or for one client to other clients, further reducing the client’s time to market, cost and risks
  • Ability to make process improvements, by extending real time visibility of the client process to the client and bringing in collaborative monitoring and control.
  • Flexible pricing options, per seat or FTE based, per instance based, fixed cost, concurrent request based; giving flexibility to the client to pick one for his needs.
  • Ability to extend critical and confidential  steps of the process to the client to process like exception handling, approvals etc. without incurring development cost while separating it from the total cost of process work.
  • Capacity tracking, ability to track the capacity and take in time cost effective decision.
  • Easily upgradeable platform without impacting any client process or major downtime.

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