Business Process Management (BPM) and Business Process Outsourcing (BPO)

Two dominant business management models, Business Process Outsourcing (BPO) and Business Process Management (BPM) are influencing companies operating globally as well as locally/centrally. Business decision makers when faced with the challenge of streamlining and improving a given process must decide on one of the following:

     A. Analyze, Improve and Manage the process within the company physical boundaries
     B. Outsource the process to a partner and monitor and interface with the outcome

How you decide is as critical as what you decide. Without the proper software based measurement tools and methodology you may be risking making a decision based on wrong data. Although organizations make the decision based on the type of business process by making the distinction between core processes and non-core processes may be a first step, further analysis is required to include additional factors that could impact the final choice.

Before deciding on which choice to make, it is important to define the difference between the two approaches by defining the objective of each management model.

What is Business Process Management (BPM)?

Business Process Management (BPM) is the methodology and discipline used to carefully analyze, plan, automate and manage business processes targeted for improvement and optimization. Many organizations take a pure technology based approach to increasing efficiency for a given processes without quantifying the inputs and outputs used to addressing the main issue. BPM with the right software tools offers organization the necessary utilities to clearly measure performance of core business processes while retaining oversight over the process.

What is Business Process Outsourcing (BPO)?

Business process outsourcing (BPO) is the delegation of a specific business task, such as employee benefits management, to a third-party service provider. Traditionally, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace. BPO is often divided into two categories: back office outsourcing which includes internal business functions such as billing or purchasing, and front office outsourcing which includes customer-related services such as marketing or tech support. Additionally, BPO is significantly different from traditional outsourcing because it address not only cost reduction but also an enhancement to the outsourced process without disruption to the organization. Therefore, BPO vendors who do not employ a strong BPM platform place their customers at risk on reduced efficiency and loss of control and integration.

Santeon’s Unique Approach

Santeon is in unique position to offer solutions for both management models. Our software technology offers a full-lifecycle BPM suite of products to help you analyze, design, automate and manage your business processes, combined with out off-shore capabilities to manage your non-core business processes while giving you full access, connectivity ad transparency into the process. We have served dozens of organization deploy and use our technology to manage their processes as well as partnering with us for outsourced solutions.


Explore our Business Process Management Suite of Products
(http://www.santeon.com/software/XIP.html)

Explore our Business Process Management Service Offerings
(http://www.santeon.com/services/businessprocessoutsourcingservices.html)