Role of BPM in BPO

BPM Oct 06, 2009

With ever-increasing pressure of competition coupled by the recent global economic slump, Outsourcing and Automating of Business Processes has become a kind of necessity for enterprise owners. Although Outsourcing of business process results in cost saving, quality of process outcome remains questionable many a time. The Quality of Business Process outcome is directly related to how the process is being understood, optimized, and executed by its stakeholders. This is exactly where the usability of Business Process Management (BPM) comes in and can help both – Organizations and Business Process Outsourcing (BPO) – units.

In our earlier blog, ‘BPM as a Business Enabler’, we have already discussed about People, Process, System and Technology framework for BPM. Here we shall elucidate on how BPM and BPO can work in unison.

Effective communication and collaboration among BPO process owners and their counterparts is the initial step in understanding how the process work. BPM can accomplish this task efficiently through its Process Modeler functionality. Krawler jSonic BPM offers a unique Process Modeler, which is a web-based process designing and modeling tool that uses standard Business Process Modeling Notifications (BPMN). Furthermore, it eliminates the need of technical coding enabling the stakeholders to easily understand the process working mechanism.

Through BPM, an organization that wants to outsource their business process can be benefited in innumerable ways. BPM enables process owners to define (diagrammatically) and optimize the business process operating in the organization. Once that is done, they are assured about quality in process outcome. The outsourcing of such modeled process can yield in cost saving. Furthermore, with BPM in place, changes in the process can easily be accomplished through Business Rules Engine. In addition, when the contract with BPO agency expires, the process can again be easily implemented in organization’s BPM environment or can be re-outsourced.

From the perspective of BPO industry, BPM reduces the time period to understand the client’s process. It further enables stakeholders in BPO to clearly analyze an individual task in the concerned process, and formulate their strategy (in accordance with industry best practices) to achieve the process objective. This results in saving of time, resource, and cost while carrying out the process.

To conclude, BPM enables BPO owners to demonstrate that they have clear understanding of client’s process and client can be assured of both ‘cost saving and quality’ related to the process outsourced.

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