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Cloud Computing: From Business Process Outsourcing to BpaaS

Cloud BPM In BPO Transformation

Business Process Outsourcing
Over the last decade, Business Process Outsourcing has become an enterprise standard way of delegating the non-core processes to third-party service providers, which resulted in cost controls and business efficiency. This BPO industry has further matured by providing innovation to the outsourcing enterprise because specialized BPO providers with subject matter expertise on clients' business vertical and business processes have ultimately enabled the enterprises to achieve their business goals beyond cost-cutting.

The following are some of the typical areas in which highly successful BPO implementations have been done:

  • Finance and Accounting
  • Procurement
  • Insurance
  • Utility Services

Cloud Business Process Management
Cloud-based BPM is the provision of Business Process Management tools as a SaaS/PaaS over the network. These services provide the ability to orchestrate many low levels of business services (again available as SaaS Services or by other On premise applications) coupled with human processes into a realization of complete Business Process As A Service (BpaaS).

BPO providers are best positioned to adopt Cloud BPM Services to build their BPO offerings in the form of BpaaS.

Advantages for BPO Providers
The following are the advantages for BPO Providers in using cloud based BPM solutions over their traditional methods of delivery. In other words the advantages of converting BPO into a BpaaS are below.

  • Self-Service: Cloud BPM tools have in built framework to provide human interface, and which leads to self-service in terms of work flow initiation and monitoring, this will help the out sourcing enterprises to have self service capabilities and make an agile enterprise
  • Transparency: Cloud BPM tools provide many out of the box tools for monitoring the work flow initiated and hence the employees and others who use the BPO Services will get the visibility to the desired level .
  • Time-to-Market for BPO Providers: As Cloud BPM tools enable orchestration of other SaaS based services, BPO providers can get the services from other specialized SaaS providers and yet provide a complete packaged service to their clients.
  • Dynamic Scalability: With the Cloud BPO tools have options for both machine processes and human processes , dynamic allocation of resources across service requestors is possible. In a typical BPO process involvement of human players is mandatory and cannot be avoided to a larger extent, and hence proper routing of human processes in Cloud BPM solution will enable dynamic allocation of human resources.
  • Innovation for Enterprises: As typical of multi-tenant SaaS applications, Cloud BPM which is a super set brings in with it all the innovation of the multi-tenant SaaS model. Enterprises immediately get benefits of common compliance needs and other advancements made in the industry.
  • Common Collaboration Platform: If we look into most BPO processes currently implemented, for example, Insurance Healthcare BPO Services, they involve multiple parties like, patients, health care providers, insurance companies and other government agencies and hence a common platform in which all these parties can be securely authenticated would be the most efficient way to do the business.

The following diagram provides view of a BPO service enabled through a Cloud BPM tool.

Cloud BPM Providers
The following are the some of the Cloud BPM providers that BPO providers can think of building their solutions; however; building custom solutions on an IaaS platform is also an option. The following is not a complete list; write to me for any other players in this area.

  • Pega Cloud BPM: Pega Cloud for BPM will provide options for design and deploy BPM applications on Cloud. With Pega Cloud for BPM, you can begin automating your business processes today by building and deploying your strategic applications in the cloud. It also provides out of the box integration features with your existing custom BPO automated solutions, so that existing investments can be leveraged. For further information about Pega Cloud BPM solutions visit their product site.
  • Cordys BPM Suite on Cloud: Cordys can be consumed in a Platform-as-a-Service model and provides all of the facilities required to support the complete life cycle of building and delivering Cloud applications and services. Further information about the product can be found in their product site.

Summary
As the BPO industry is transforming itself, Cloud comes as a perfect mechanism to enable more efficient processes for the BPO industry. BpaaS is seen as the next transformation of BPO where by much of the manual human based processes will be abstracted under automated services available over the internet. Cloud BPM solutions will provide the much needed starting point for BPO providers to make their services as BpaaS.

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