Business Process Solutions - Busines Process Outsourcing vs. Business Process Solutions

Many people have a bad taste in their mouth regarding the traditional business process outsourcing (BPO) model. This model is where a third party provides services on your behalf, typically off-site, on-shore, or off-shore. The value proposition is typically the same – we can cut your costs by over 50%. Sometimes the costs savings is all that clients look for in ways to survive. This model, over time, has led to many companies bringing back the very process they had originally outsourced. Why? There are several reasons below why organizations have reversed their outsourcing decision, including, but not limited to:

• Costs to manage the outsource company outweighed the savings
• Scalability of outsource partner was limited, savings made little impact or took too long to achieve 
• The standard overpromising and under-delivering the actual skill sets promoted 
• Process outsourced was a key client function, client satisfaction decreased 
• Corporate philosophy and vision of the two companies were not aligned

While many organizations are familiar with the traditional BPO model, many may not be aware there is a move towards business process solutions (BPS). You might ask – what is the difference? The chart below explains just a few of the differences:

 

BPO	BPS
Removes entire function(s) and/or processes completely from the organization.	Looks to integrate with the clients existing staff, becoming an extension of your existing business operations.
Removes Subject Matter Experts (SMEs).	SMEs are kept on-site, while lowering cost of transaction related, non-client activity off-site
No skill sets are retained for existing business unit.	Skill sets of existing staff are upgraded to more client focused activities.
Cost to manage is high due to entire process outsourced.  You spend a lot of time managing the vendor vs. reaping the savings.	Cost is proportion to the amount of work you assign. Workflow fluctuates with your business. You assign only what you need to.

While you may think BPO and BPS are the same, talk to any client of Telamon’s that has used our BPS services and you will find a scalable, true cost savings model that is sustainable. Many of our clients often tell us our model is refreshing because our focus is not solely on exchanging labor. At Telamon, we first look to automate any existing manual processes then provide the necessary resources, if required. Our “extension of your business office” approach allows our clients when to decide to outsource based on their schedule and provides instant scalability. They retain the SMEs and our people simply fill in the gaps. Call us today to find out how we can bring a refreshing outsourcing model to your organization.

-John Owen
VP of Sales 
Telamon Business Process Solutions
317-818-6697 
john.owen@telamon.com