Business Process Outsourcing (BPO) refers to utilizing third-party services instead of creating internal resources to carry out different business operations of an organization. They can be services like billing, purchasing, marketing, regulatory compliance, data entry skills, tech support, and others in the back office and front office. A company can look for BPO services to manage a few selected operations or entire business processes like accounts receivable or human resources.
On the other hand, Software as a Service (SaaS) is software based on a delivery model. The software is centralized on the cloud and is managed by the host. It is called web-hosted software. End users get this licensed software on a subscription basis. The end-user has the authority and responsibility to use the purchased software service.
Benefits of using a BPO vs. SaaS
BPO service providers take responsibility for the outsourced processes, unlike SaaS. BPO solutions are the preference of most companies due to the following benefits:
1. Access to world-class capabilities
A BPO service provider can assist you in accessing world-class capabilities by providing a team of highly skilled and experienced professionals. They have access to expertise and the latest technologies from across the globe. With your outsourced team’s expertise, you can successfully carry out key operations efficiently. Although SaaS applications facilitate the user with customization bandwidth, it is still limited due to the constrained features and functionalities. It may not cover all your business needs like a business process outsourcing company does.
2. Focus on core competencies and increased productivity
Companies can focus on the core competencies of their staff, as they have more room for the profitable activities of their qualified specialists. They can free up their internal resources from repetitive tasks to utilize in more strategic processes. For example, you can automate data entry for maximum accuracy and fast processing. BPO companies are experienced in specific fields like accounts payable. They also adopt best practices along with the latest technology for high-quality performance. It naturally results in greater productivity.
3. Avoid hiring and training costs for cost reduction
A BPO service provider can mirror your existing business workflow on the cloud. Or, if required, it can customize the workflow and take the responsibility of training. Since the hired team is an expert in its field, it will handle all assigned business tasks with great competency. On the other hand, when the host implements new functionalities to SaaS applications, they are rolled out to all users, due to which companies need to provide extra time and resources for training.
4. Your risk partner
When you need a partner to share process risks with, you can opt for BPO services. A BPO service provider takes responsibility for successful business processes. In the case of the SaaS solution, you are the only one responsible for your success or failure in workflows.
5. Increased Competitiveness
BPO solutions facilitate increased competitiveness as increased quality and productivity helps to impress and retain customers.
6. The solution to data security concerns
Security breaches are always high in SaaS solutions. Therefore, businesses hand over their invaluable data and sensitive information to an outsourcing service provider. They employ a series of security protocols to keep the data safe, like VPNs, SSLS, encryption protocols, and GDPR compliances.
ARDEM - A Great Outsourcing Partner
We at ARDEM are consistently providing tangible value to the clients through –
- Cost Reduction,
- Continuous Process Improvement,
- White glove customer service
by adopting the latest technologies for advanced automation.
ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs. For more information please reach out to us at pricing@ardem.com or call us at 908-359-2600.
