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Go4customer Blog

What Makes BPaaS A Resourceful Alternative To Traditional Outsourcing Model

Posted by Sanjay Poddar

Market forces along with BPO progression have converged to redefine the way of delivering services. The focus is now less on one-size-fits-all horizontal offerings and more on meeting the specific business objectives of SMBs, individual players at a lower price point. Buyers prefer flexible offerings tailored to serve their needs in a pay-as-you-go model.

The business process as a service abbreviated to BPaaS is proving to be a game-changer and is known to be the next wave of BPO delivery. The pillars supporting legacy outsourcing are under extreme pressure. Businesses seek innovation, flexibility and responsiveness from the outsourcing services provider. BPaaS includes Iaas, PaaS, SaaS along the traditional benefits of outsourcing like process expertise and labor arbitrage. It also includes cost, sales and the delivery model to reach the mid-size enterprise market.

Advantages of BPaaS over traditional outsourcing

The main objective of traditional BPO is reducing labor costs. BPaaS focuses on the lessening of human resources through increased automation. Hence the cost is reduced automatically. It sticks to cloud computing’s monthly pricing schedule.

The Pay-as-you-go model is followed so that no extra cost is borne by users. It suits businesses and makes it a popular choice. The client pays only a monthly charge based on the usage, be it core HR functions like payroll, finance & accounting, marketing, advertising or industry operation processes.

The time to market is cut short. Time spent in acquiring and deploying processes and new assets is reduced.

Businesses get immediate access to out-class technology, talents and processes. BPaaS is based on a 'one-to-many' delivery model. It leverages a shared set of tools different enterprises can tap into.

You get ownership of processes through automation at a significantly reduced cost. There is little to no maintenance cost and no upfront cost incurred during the engagement.

With more and more companies finding it difficult to secure the capital required for IT initiatives, it is obvious that clients look forward to focusing on their core competencies. The advantages of a variable pricing model coupled with technology and a successful business process alleviate large capital demands. Clients choose to adopt strategies for their businesses, which are more on-demand, flexible and beneficial for the long-term.

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