Top 5 Key difference between BPM and BPO?

In this dynamic word of business operation, terms like BPO (Business Process Outsourcing) and Business Process Management (BPM) are frequently used but also misunderstood. While both have common aim to achieve efficiency and optimization. In this blog we will explain difference between BPO and BPM. Also its contributions to organizational success.

1. Definition of BPO and BPM:

· BPO (Business Process Outsourcing): BPO involves outsourcing specific business functions or processes to a third-party service provider, so you focus on what you do best – your core business.

· Example – Imagine you run a bakery, and instead of making deliveries yourself, you hire a delivery service. That is BPO!

· BPM (Business Processes Management): BPM is an approach to optimizing and managing end-end business processes, by use of set of methodologies, technologies and tools, implement, monitor, and analyse business processes.

2. Focus and Scope:

· BPO: BPO is like hiring superhero for specific task. You get someone else to handle things like customer support, data entry, payroll processing, keeping your cost down and efficiency up.

· BPM: BPM looks at the entire business process. It involves continuous evaluation, improvements, strategies and automation pf processes to increase efficiency, reduce costs and increase overall development of company.

3. Ownership and Control:

· BPO: BPO is outsourcing company responsible for executing the outsourcing tasks lies with the external service provider. Client Company retains control over the core business processes. Example: Deliver service of Cupcake by BPO Company should be in control and Responsible for Deliver in time.

· BPM: BPM places a strong role in internal; control and ownership. Organizations implementing BPM have a centralized approach to managing and optimizing their processes.

4. Flexibility and Adaptability:

· BPO: While BPO provides flexibility resource allocation and cost savings, changes to processes may require to negotiation with the service provider, and it makes less agile in responding to dynamic business needs.

· BPM: BPM provides continuous improvement mind-set, adaptability and offers greater flexibility compared to BPO. Outsourcing Company quickly adjust their internal processes in response to market changes.

5. Technology Integration:

· BPO: BPO service provider utilizes technology to deliver the agreed-upon services efficiently for particular task only.

· BPM: BPM service provider utilizes technology across the entire business process. Automation, analytics and workflow management systems play a crucial role in optimizing and monitoring processes.

Conclusion:

BPO is a strategic choice for outsourcing specific task, providing cost savings and operational efficiency. On the other hand, BPM is a comprehensive approach to managing and optimizing end to end processes and Continuous improvement within organization.