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July 14, 2023
5 Minutes
BPO (Business Process Outsourcing) and BPM (Business Process Management) are two distinct concepts in business. Business Process Outsourcing (BPO) refers to outsourcing business processes or tasks to an outside third-party service provider for efficiency and efficiency gains. On the other hand, Business Process Management (BPM) refers to managing an organization’s business from the beginning.
The basic difference between BPO and BPM is that Business Process Outsourcing (BPO) aims to turn business processes into external providers to take advantage of their knowledge and resources, while Business Process Management (BPM) optimizes and manages all aspects of business processes within an organization to enhance efficiency and effectiveness by aligning processes with organizational goals.
What is Quality in BPO Business Process Outsourcing?
Here's a table showing the basic difference between BPO and BPM. These differences are shared considering various factors like scope, ownership and control, focus area, and relationship with service providers.
Below are some key differences between Business Process Outsourcing and BPM. The differences are based on the team management style, customer executives team, and cost optimization pattern.
The provider will recruit a replacement for a Business Process Outsourcing employee who decides to leave the company. A BPM (Business Process Management specialist) supplier will provide a roadmap for the transition and finding, managing and training the replacement.
Unlike Business Process Outsourcing, BPM (Business Process Management) guarantees clients access to experienced and qualified workers. By eliminating additional infrastructure and requirements for training, COOs, CTOs, and other key business executives can focus more on their core operations, which will lower the operation's costs.
In BPO collection process strategies for collecting debts and owed payments from clients are included. A BPM collection is done according to the contract signed, usually at the beginning of the tasks required to be completed as per the contract.
Some Common Business Outsourcing Mistakes
BPO stands for Business Process Outsourcing. Many organizations use BPO to outsource tasks that are not core to their business to improve efficiency and concentrate on core competencies. Here are some more important points to help you understand BPO (Business Process Outsourcing).
BPM stands for Business Process Management. BPM is a method for optimizing business processes to achieve operational excellence, improve efficiency, and increase performance. BPM includes the design, implementation, and monitoring of business processes and their study. Its goals include
Types of BPM Companies are shared below:
BPM has many advantages:
Business Process Outsourcing and BPM are two concepts that have different scopes and focus. Businesses need to understand the differences between BPO (Business Process Outsourcing) and BPM to make informed business decisions, such as whether to outsource certain tasks. Each technique offers unique advantages and considerations. Organizations should evaluate their needs and objectives to determine if the technique suits them.
Also, Check If BPO and call center are the same, what's the difference between the two?
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In simple words BPO refers to a specific set of activities within an organization to achieve a goal, while BPM refers to the broader discipline of managing and improving multiple processes within an organization.
BPO is a specific process within an organization, while BPM is the discipline that is managed and improved within the organization
BPO service may include various activities such as customer satisfaction, technical support, telemarketing, account management, human resources and IT services.
Thee main activities in BPM include aligning business processes with strategic objectives and improving customer satisfaction, reducing process costs, increasing productivity and adapting business to changing needs.
The goal is to achieve a specific objective effectively and efficiently, i.e., to successfully complete a specific set of business process activities to achieve the desired results.
