Business Process as a Service (BPaaS) vs Business Process Outsourcing (BPO)

This blog explains the difference between BPaaS and BPO in a comprehensive manner. It’s building upon the BPaaS definition blog.

Definition BPO: is a subset of outsourcing that involves contracting the operations and responsibilities for a particular business process to a third-party service provider.

Definition BPaaS: is the delivery of business process outsourcing (BPO) services that are sourced from the cloud and constructed for multitenancy.

Difference: BPaaS takes the BPO model to the next level. The delivery model over the internet as cloud makes it more scalable and favors “unit-economics”

What are the advantages of BPaaS over BPO?

• the delivery option for BPO is a third-party. BPaaS is completely designed to deliver the business process over the internet with cloud-enabled software.
• BPO services often exist outside your organization while BPaaS can be deployed withinin your current IT landscape. This means a more cost-effective deployment.
• BPO is usually managed off-premise. With BPaaS you have immediate access and control through the cloud.
• BPO just lift-and-shifts manual processes. BPaaS reduces risk…