Business process automation vs business process outsourcing

Business Outsourcing

Which is right for your business, business process outsourcing or business process automation, we compare

Business process outsourcing (BPO) and business process automation (BPA) are two different options that companies have when it comes to streamlining their processes. Both options have their own unique benefits, but which one is the best choice for your company? In this blog post, we will compare BPO and BPA and help you decide which option is right for you.

 

What is business process automation:

Business process automation is the use of technology, increasingly artificial intelligence (AI), to automate internal business functions. It is increasingly popular as companies look for ways to cut costs and improve productivity. BPA offers a variety of benefits, including:

  • Reduce labor costs by eliminating the need for manual processing by employees
  • Improve accuracy and reduce errors due to human error
  • Increase speed and efficiency of processes like payroll or accounts payable

What is business process outsourcing:

Business process outsourcing is different to automation in that it is the contracting out a business process to a third-party organization. It’s an easy way for companies to save money on labor costs while still being able to get their work done efficiently and effectively. BPO offers a variety of benefits, including:

  • Reduce costs by eliminating the need for internal staff
  • Flexibility and scalability to respond to changing needs within your organization in real time
  • Access to specialized skills and resources that you may not have in-house

Businesses can outsource a range of processes, including:

  • Payroll processing
  • Billing and collections
  • Claims management
  • Help desk support or call center management
  • Engineering design and maintenance
  • Legal services
  • Human resources
  • Recruitment
  • Public relations management

Sales and/or Marketing activities

So, which option is right for your company?

Business process outsourcing or business process automation? The answer depends on your specific needs and what you are looking to achieve.

Limitations of automation:

If you are looking for a way to reduce costs and improve processing times, then BPA is a good choice. However, it has limitations, such as:

  • It only works if your processes are clearly defined and do not change much over time. Businesses that have a high degree of variability in their business processes will find it difficult to automate these processes efficiently or effectively.

It requires significant upfront investment in technology, which may be out of reach for some organizations or may not be the best use of funds.

How this stacks up against outsourcing:

On the other hand, businesses that are looking for a way to reduce labor costs and access specialized skills and resources should consider BPO. It is a good choice for businesses with variable or undefined processes, as there are still real people in the loop. Many BPO providers utilize BPA where possible for its efficiency and accuracy. However, unlike pure BPA providers, outsourcing organizations still include humans in the loop, someone who can intervene and respond when an unexpected exception to the usual process occurs.

Business process outsourcing is the superior choice for many organizations. It offers the benefits of automation while also having the robustness that can only come from including people in your business process. BPO is often called Business Process as a Service or BPaaS and is a popular way for companies to reduce costs while improving accuracy and efficiency.

It is time you outsourced your business processes

If you want to take advantage of the benefits of automation and still have a process that can handle complex or poorly defined tasks, business process outsourcing is your best bet. AmeeraTel has years of experience handling even the most complicated processes, so contact us today to get started on streamlining your business operations. Don’t wait any longer; business process outsourcing can deliver all of the benefits you need to stay ahead of the competition.

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