In any business, achieving good productivity and eliminating problems that slow down the process are always important. In the modern world, where everything is rapidly progressing, the idea of identifying efficiencies that make a process more effective is as important as ever. This is where Business Process Management (BPM) comes into play.
Business Process Management is not just an acronym for a new buzzword but a solid methodology for aligning your business for greater efficiency by defining, evaluating, and eventually automating business processes.
But what if you could go a step further? Imagine partnering with external teams to handle those processes while you focus on growth. This is where outsourcing comes into the picture, offering a powerful combination with BPM to streamline your operations, cut costs, and boost productivity.
In this blog, you will learn about what BPM really is, how it can help change your organization, and why process outsourcing can be a winning strategy for every company that wants to become more efficient.
What Is Business Process Management (BPM)?
BPM is a structured approach to improving business processes. Think of it as the framework that helps your organization run more efficiently by evaluating current workflows, identifying inefficiencies, and then optimizing or automating tasks. The goal of BPM is to align processes with your business’s objectives while ensuring you deliver the best possible value to your customers.
There are three key stages in BPM:
- Process Discovery and Design: This step involves mapping out the existing processes in your organization. You’ll look at how things are done now, pinpointing areas that are slowing down your workflow or causing bottlenecks.
- Process Implementation: After identifying inefficiencies, you create a plan to optimize these processes. This might mean adopting new technologies, automating manual tasks, or reworking how different departments interact.
- Process Monitoring and Optimization: Once changes are in place, BPM doesn’t stop. Continuous monitoring allows for ongoing adjustments, ensuring that processes remain as efficient and cost-effective as possible.
BPM is not a one-size-fits-all solution. It’s highly adaptable, meaning it can be tailored to fit the specific needs of various departments within your business—whether that’s customer service, accounting, or supply chain management.
How BPM Improves Business Efficiency
BPM can dramatically improve the way a company operates by addressing several key areas:
- Increased Efficiency: Within the BPM context, repetitive or redundant tasks are identified, and since they waste time, BPM helps eliminate those time-wasting processes, freeing up employees for more valuable work.
- Better Quality Control: Standards of processes keep down the risk of human error. This results in high-quality output (products, services, customer interactions, etc.).
- Cost Reduction: For optimized workflows, you need fewer resources—financial and human. Automation can help you save on labor costs and free up people to concentrate on more important business matters.
- Faster Decision-Making: Data provided by BPM is real-time data on the performance of your process, so you can make faster, data-driven decisions. This way, leaders can see what’s working and what’s not, and adjust rapidly if necessary.
- Improved Customer Satisfaction: Generally, better customer experiences come hand in hand with faster and more efficient processes. BPM helps your business provide faster delivery times or more responsive customer service to meet and exceed customer expectations.
The Role of Outsourcing in BPM
While BPM offers incredible benefits, outsourcing can take it to the next level. Outsourcing certain processes allows companies to tap into external expertise, lower operational costs, and free up internal resources for more strategic tasks.
When combined with BPM, outsourcing enables businesses to hand off non-core processes—like data entry, payroll management, or customer support—to specialists. This not only streamlines operations but also ensures that these tasks are managed by experts who can continuously optimize them.
Here are a few ways outsourcing complements BPM:
- Access to Specialized Expertise: Outsourcing firms often have deep expertise in specific processes or industries. By outsourcing, you can leverage their skills without needing to build those capabilities in-house.
- Scalability: As your business grows, so do your process needs. Outsourcing partners can scale their services up or down quickly to meet your changing demands, ensuring you’re never over- or under-staffed.
- Cost-Effective Solutions: One of the biggest reasons companies outsource is to cut costs. With outsourcing, you can reduce overhead, lower labor expenses, and eliminate the need for expensive infrastructure investments.
- Focus on Core Business: Outsourcing allows you to focus on what really matters—growing your business. When non-core processes are managed externally, your team has more time and energy to focus on strategy, innovation, and customer relationships.
Common Processes to Outsource in BPM
Not all processes are created equal, and some are more suited for outsourcing than others. Below are a few examples of processes that businesses frequently outsource to complement their BPM efforts:
- Customer Support: Whether it’s answering customer queries, resolving issues, or providing technical support, many companies outsource customer service to specialized call centers. This allows for 24/7 support without burdening internal teams.
- IT Services: Managing IT infrastructure, handling technical support, or ensuring cybersecurity can be outsourced to experts who are better equipped to manage these tasks.
- Accounting and Payroll: From bookkeeping to tax preparation, outsourcing financial processes can save time and reduce the risk of costly errors.
- Human Resources: Many companies outsource recruitment, onboarding, and employee management to specialized firms, allowing them to focus on internal culture and development.
- Data Entry and Management: Outsourcing data-heavy tasks, like data entry or customer relationship management (CRM) updates, allows businesses to maintain accuracy without taking up valuable internal resources.
How to Implement BPM and Outsourcing Together
Combining BPM and outsourcing is a powerful strategy, but it needs to be done thoughtfully. Here’s a step-by-step guide to implementing BPM alongside outsourcing:
- Identify Core and Non-Core Processes: Start by identifying which processes are essential to your business’s success and which ones can be outsourced. Core processes should be optimized in-house, while non-core processes can be managed by outsourcing partners.
- Select the Right Outsourcing Partner: Not all outsourcing companies are created equal. Look for partners who understand your industry and have a track record of success in managing similar processes. The more aligned they are with your business goals, the better the results.
- Use BPM to Monitor Outsourced Processes: Just because a process is outsourced doesn’t mean it’s out of your control. Use BPM tools to monitor the performance of your outsourcing partners, ensuring they meet the agreed-upon service levels and deliver consistent quality.
- Continuous Improvement: Remember that both BPM and outsourcing are ongoing efforts. Regularly review and optimize your outsourced processes to ensure they’re delivering the best possible results.
Real-Life Example of BPM and Outsourcing Success
To illustrate how BPM and outsourcing work together, consider the case of a large retail company that struggled with managing its supply chain. They had multiple vendors, warehouses, and shipping partners, all operating on different systems, leading to delays and high costs.
By implementing BPM, the company streamlined its supply chain process, identifying inefficiencies in vendor communication and inventory management. Next, they outsourced the logistics portion to a specialized firm that managed warehousing, shipping, and vendor coordination.
The result? A 25% reduction in operational costs, faster delivery times, and improved customer satisfaction. By combining BPM with outsourcing, the company was able to optimize its supply chain without sacrificing quality.
The Future of BPM and Outsourcing
As businesses continue to evolve, the combination of BPM and outsourcing will become even more critical. With advancements in automation, artificial intelligence, and data analytics, businesses will have more tools at their disposal to improve processes and reduce costs.
Outsourcing will also continue to expand into new areas, with more specialized services emerging to meet the growing demands of businesses. Whether it’s managing complex IT systems, providing data analytics support, or handling customer service, the future of outsourcing looks bright.
Why Choose VirtualStaff.ph for Outsourcing BPM?
When it comes to combining Business Process Management (BPM) with outsourcing, VirtualStaff.ph offers a complete solution tailored to help your business streamline processes while reducing operational costs. By leveraging our platform, companies can access top talent in the Philippines and experience seamless management and scaling capabilities.
Build Your Full-Time Team in the Philippines with End-to-End Support
VirtualStaff.ph enables you to effortlessly hire and manage full-time virtual staff, taking care of every essential task from HR to payroll and compliance. Our end-to-end management ensures your outsourced team remains compliant and aligned with your operational goals, so you can focus on core processes.
Access Top Talent at Unmatched Value
With a network of over 1 million professionals, you can easily find skilled staff suited to roles ranging from customer support to data entry and finance. This extensive pool of talent means that your business gets to work with dedicated, high-performing individuals at significantly lower rates than traditional hiring options, helping you maximize ROI on your BPM strategy.
Integrated Platform for Long-Term Team Success
VirtualStaff.ph is a one-stop platform where you can manage hiring, team communication, and performance tracking all in one place. The platform’s tools simplify team management, allowing you to focus on strategic business objectives rather than handling administrative tasks. With time tracking, automatic screenshots, and productivity insights, you can keep a close eye on outsourced processes to ensure they align with BPM goals.
Compliance, Payroll, and HR Services in One
Forget about juggling multiple third-party services. VirtualStaff.ph manages payroll, HR, and compliance so your team gets paid accurately and on time, while you remain compliant with local laws. This level of support minimizes your risk and allows your BPM strategy to focus on efficiency without extra admin burdens.
Ready to see the difference? Sign up now on VirtualStaff.ph and explore how easy and effective outsourcing BPM can be.
