Due to the advent of technologies like cloud computing and artificial intelligence (AI), businesses have moved beyond traditional business structures to new methods of growth like cloud service models, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).
With higher macroeconomic uncertainty causing businesses to cut back on staffing and investments, business process outsourcing (BPO) has also grown in demand, placing specific processes into the hands of third-party companies that specialize in workflow automation rather than operating them in-house.
The business process as a service (BPaaS) model is a more recent addition to cloud services that seeks to streamline business processes. Keep reading to learn more about BPaaS – from benefits to successful implementation and future trends.
Empower business teams without adding to the IT backlog with the Definitive Guide to Business Process Automation
Business process as a service (BPaaS) definition
According to Gartner, business process as a service is the “delivery of BPO services that are sourced from the cloud and constructed for multitenancy” like cloud service models such as IaaS, PaaS, and SaaS. As a result, there’s no need to maintain hardware or purchase software.
It’s fully configurable, so it can provide organizations with the resources they need to operate as a pay-per-use service, or on consumption- or subscription-based terms.
BPaaS reduces the total cost of ownership (TCO) for business infrastructure by offering resources on an as-needed basis rather than requiring them to purchase a suite of applications.
Companies that implement BPaaS can easily increase their service levels during peak usage periods, which allows them to bring their products and services to market faster.
In addition, BPaaS keeps organizations current on the latest technology and best practices without requiring them to maintain in-house expertise or management.
BPO vs. BPaaS
BPO and BPaaS are both business process services, but they differ significantly in the specific services they provide. BPO services help with the day-to-day management and operation of HR or IT processes, while BPaaS offers cloud-based services that automate business processes for multiple clients.
SaaS vs. BPaaS
BPaaS and SaaS solutions appear similar at first glance, but they’re different.
SaaS is an application that provides software solutions over the internet (think: Gmail, Google Docs, or Slack), whereas BPaaS provides software and business process solutions through a cloud hosting service (think: NetSuite Workflow Engine, or Salesforce).
A company looking for automated workflows would likely be better off with BPaaS, which has a far wider scope than SaaS. You can use BPaaS to outsource any type of business process -not just software.
BPaaS would also be a better choice for obtaining social media management services. While these services do require specialized software, they also require staff with the right social media skills and knowledge to operate a successful campaign.
Businesses routinely use BPaaS to manage campaigns for regulatory compliance, customer service, and marketing when they lack the in-house technical expertise needed to perform these functions.
BPaaS also differs from SaaS in that it automates the entire business process rather than just providing software applications that are part of that process. As a result, BPaaS allows users to create a workflow diagram for a process and associate it with data sources like customer account information and purchase history.
The user can then provide these diagrams to other team members who begin using them immediately, without the need for programming expertise. This feature makes BPaaS ideal for developing custom solutions while still retaining responsibility for the project.
BPaaS is often thought of as an extension of SaaS, typically used alongside business process automation (BPA) platforms. BPaaS provides businesses with cutting-edge software just as SaaS does, but it also offers access to specialists who can implement those solutions into existing business processes.
As a result, BPaaS can improve these processes from start to finish with less effort on the part of the client than SaaS requires.
BPaaS example
HR functions like onboarding, recruiting, or benefits management are great candidates for BPaaS implementation, as is payroll management.
By streamlining these processes, companies can save time and money spent on training or hiring staff to maintain these processes internally. They can also scale at a faster rate with technology that automates typically manual and time-consuming tasks, such data processing or entry.
Benefits of BPaaS
BPaaS offers a flexible approach toward implementing modern business processes that can also streamline operations by minimizing manual tasks. This improves efficiency and cuts costs, especially for smaller teams that lack the resources to perform all process functions themselves. BPaaS assists with issues without the need for a large upfront investment.
Cost savings
Cost reduction is a major advantage of BPaaS has over other types of services, both for the initial set up and maintenance. Organizations that adopt these solutions don’t need to buy or maintain infrastructure, including hardware or software.
This setup is particularly attractive for companies that lack in-house IT or process expertise, since they don’t have to build that infrastructure from scratch. It’s also easier to get started with BPaaS because they don’t need resources beyond a computer with internet connectivity.
Companies that already outsource some of their work will enjoy the cost savings of BPaaS over building processes themselves. It’s important not to rely too heavily on outsourcing, however. It can seem to be an inexpensive option at the outset due to low labor costs, but savings can quickly erode by the need to manage employees in different locations.
BPaaS can address these challenges by ensuring outsourced employees are in one place, which is particularly useful for overcoming language and cultural differences.
Reduced infrastructure requirements
The reduced infrastructure requirements of BPaaS are a benefit that organizations often overlook, but it’s particularly important for those that don’t have the resources to scale their operations in response to an increased workload.
BPaaS solutions can generally handle large amounts of traffic with minimal latency, which becomes a more critical consideration as traffic increases. They also provide experts who maintain streamlined operations while remaining within the client’s budget.
Less disruption
BPaaS minimizes disruptions to operations due to issues with scalability and security, which is most beneficial for organizations that are currently or planning to expand rapidly.
The managed service model also helps prevent clients from getting distracted by IT tasks that aren’t core to their business objectives. They can focus on their primary business operations and grow profitably without worrying about downtime, which is the primary cause of lost revenue for many businesses.
This problem can be especially noticeable in the realm of customer service when agents put customers on hold due to a system failure.
BPaaS solutions also reduce disruptions from internal causes by hosting operations off-site. In these cases, internal service disruptions should only occur if the Internet Service Provider (ISP) is unreliable.
Time to market
BPaaS also reduces the time needed to bring a product to market. It allows the company to determine whether or not an idea will work without building and testing a prototype, saving both time and money.
This approach can significantly reduce the time needed to develop new applications compared to traditional development methods. This is because most of the functionality in a BPaaS solution is already built in, often eliminating the need for custom coding. Recent advances by cloud providers also make these systems easier to use than ever.
Security
BPaaS providers have a strong track record of ensuring the security of their platforms for clients. They generally implement security policies protecting their client’s data, including procedures for responding to potential breaches.
Reputable providers require their vendors to comply with strict standards regarding data security during storage, transmission, and disposal.
Look for BPaaS providers with security certifications such as:
- ISO/IEC 27001:2013,
- SOC 1/2/3,
- PCI DSS Level 1/2,
- HIPAA BAA Level 1/2, and
- FISMA.
5 key features of BPaaS
A strong BPaaS platform should have the following five attributes: scalability, easy configuration, APIs, intelligent process automation, and the ability to leverage emerging technologies. Keep reading to learn more about each of these features.
- Scalability: BPaaS platforms should be able to quickly scale up to thousands of customers when needed, deploy in many environments, and include support for multiple languages.
- Easy configuration: A good BPaaS solution will be highly configurable to accommodate the unique process requirements for each business. No-code platforms make it easy for everyone — including those without technical coding knowledge — to create and modify processes.
- APIs: An API serves as the line of communication between two applications and allows them to communicate with one another. BPaaS solutions should include all APIs needed to connect to required services.
- Intelligent process automation (IPA): IPA technology is a must-have for a BPaaS platform; this includes the tools IT teams need to deliver IPA initiatives.
- Agility to leverage emerging technologies: A BPaaS platform needs a high level of agility in order to navigate sudden changes in business needs and process optimization, and improve business performance over time.
BPaaS implementation
The BPaaS implementation process consists of the following four phases:
- Assess organizational needs
- Select a provider
- Migration
- Integration
1. Assess organizational needs
An organization must gain a complete understanding of its processes before it can implement BPA technology into its workflows.
It must also understand the capabilities of its infrastructure as it affects those processes. Otherwise, BPA can actually reduce efficiency and productivity.
This assessment should include a breakdown of every business process, culminating in a process improvement plan.
2. Select a provider
Leadership and stakeholders will next take what they have learned and conduct research into which BPA providers best suit their process requirements. Organizations that are new to BPaaS should implement one technology at a time to ensure they work as intended.
However, they’ll eventually use many technologies to automate processes at scale. These technologies may include:
- AI,
- Intelligent document processing (IDP),
- Machine Learning (ML), and
- Robotic Process Automation (RPA).
3. Migration
In addition to setting up and customizing their BPaaS solution, stakeholders must also complete tasks like creating a list of required functionality, centralizing data sources, granting access to users, and training.
BPaaS solutions should undergo extensive testing during this period to ensure they’ll reach the organization’s goals. This is a particularly important step. If continual issues arise — such as the chosen system’s failure to provide the services required, repeated software malfunctions, or difficulty communicating with the BPaaS provider — the option is open to try another BPaaS.
4. Integration
The integration phase of implementation integrates the BPaaS solution into the new technologies and existing processes. It typically uses data and APIs from a variety of sources, which can significantly increase the complexity of integration.
An intelligent business process management suite (iBPMS) can expedite this process.
Future process management trends and innovations
In 2020, Allied Market Research reported that the global BPaaS market was worth $46.1 billion and estimated it would reach $128.9 billion by 2030.
Following the pandemic, aftereffects accelerated the growth of this market as operational teams saw growing transaction volumes, a great challenge for already understaffed departments impacted by additional losses due to layoffs.
The sudden shift to remote work brought process challenges to the surface, with many no longer able to keep up with the inefficiencies of manual and time-consuming processes that require a high degree of automation to effectively manage.
As processes mature and available technology evolve, technologies like BPaaS will also become more important for analyzing market trends, improving business agility, and gaining competitive advantages.
Improve business efficiency with process automation
Businesses must choose their BPaaS providers carefully when attempting to automate their business processes. Pipefy offers a BPA solution that allows you to build, automate and optimize processes and workflows, all from a single, intuitive no-code interface.
With automation capabilities and workflow optimization features like forms, documental portals, databases, and seamless integration with legacy systems and tech stacks, Pipefy’s BPA solution provides end-to-end efficiency gains for greater operational excellence.
