Business Process as a Service (BPaaS) is it a good idea?

Posted by Thomas Davon on

Gartner defines business process as a service (BPaaS) as the Following:

The “delivery of business process outsourcing (BPO) services that are sourced from the cloud and constructed for multitenancy. Services are often automated, and where human process actors are required, there is no overtly dedicated labor pool per client. The pricing models are consumption-based or subscription-based commercial terms. As a cloud service, the BPaaS model is accessed via Internet-based technologies.”

So when it comes to the infrastructure that supports your business is this something you should consider? The answer is yes however; keep in mind your core business offerings.

Businesses like hospitals could benefit from the reduced labor costs, technology costs and reduced risk due to not owning the infrastructure running the business process. If your core business isn’t technology based, it’s in your best interest to reduce costs and risks in the technology area. According to www.payscale.com the average network engineer will set you back over seventy thousand dollars a year. Odds are if you have any significant IT requirements you’ll need more than just one plus Technicians, Administrators It Security professional (in high demand) and the list go one. Your labor costs just for IT can quickly get out of hand.

HIPAA HITECH can be expensive for HealthCare organizations to comply with. BPaaS can go a long way to dramatically reducing the cost of adherence, due to the shared nature of the infrastructure the cost is spread out among many customers. This means your company can maintain compliance while actually reducing your over cost and increasing profits.

If you’re a software development company in example you may want to avoid moving portions if not all your IT to a BPaaS provider. This is due to the decreased flexibility when it comes to control of your IT equipment. If you need a new server farm up and running immediately without the bureaucracy of renegotiating your agreement with a BPaaS provider, when it’s possible the that the extra equipment may not be needed due to the software development project being canceled, owning the equipment and employing the staff may be worth the significantly higher cost.

All that being said, it’s cost versus flexibility. If your business benefits from higher costs and more control over staff and equipment, Software Developers, Semiconductor Manufactures, Data Centers etc. , make the investment to keep your business processes internal. If technology is not your core business, Hospitals, Clinics Banks etc. reducing your costs and increasing your profits should be a no brainer.

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