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Non-core company functions may be outsourced to a third-party service provider via Business Process Outsourcing (BPO). Outsourcing BPO to countries other than your own is known as offshore outsourcing. For the most part, it focuses on the back- or front-office operations. When a customer reaches out to a BPO provider, they are given a list of sample profiles to choose from. It’s at this point that the corporate client’s operations team recruits and trains new employees. The service provider is only obligated to locate a replacement in the event of attrition under a standard BPO service level agreement.

BPM, on the other hand, is a relatively recent subset of outsourcing that focuses on engaging a service provider to do highly skilled and expert operations such as litigation assistance and credit and collection services. Except for one major difference: a business process manager (BPM) is responsible for providing the whole business process, as well as training and retaining staff employees. BPM is comparable to BPO in many respects. That is to say, in addition to providing BPM, the service provider teaches and inspires employees and oversees the whole business. Business process outsourcing (BPO) and business process management (BPM) have fundamentally different business models, and this distinction makes other distinctions clear.

1.    Disparities Between Team Leadership Styles

Replaces BPO personnel when they depart for another job or change of career paths. Even so, the SMB is responsible for overseeing the BPO employees. Managing and motivating remote workers is tough for SMBs, but the absence of a brand identity also offers a problem in retaining crucial top performers.

It becomes increasingly quantitative as the BPM team continues to manage the group and is backed by RACI graphs and individual scorecards in the management of critical resources. Using a set of KPIs, each client’s previous and current performance may be shown.

2.    The Varying Levels of Automation

Using automation, customers may do more with less amount of time and money. When it comes to outsourcing essential processes, BPM can assist small and medium-sized businesses (SMBs) avoid employee burnout and deterioration in motivation, which are directly linked to customer success. Only by automating essential BPM activities, such as compliance management (for sectors that need it), can repeated workflows be made as successful as feasible.

3.    There Is A Distinction In Process Effectiveness

Traditional BPO places an undue strain on small and medium-sized businesses (SMBs) to handle the minutiae of day-to-day operations without the necessary skills. SMBs don’t need to be engaged in the nitty-gritty of BPM operations. All they need to do is engage with the BPM provider to develop standard operating procedures (SOPs) for process efficiency, enhanced productivity, and decreased turnaround time (TAT).

4.    A Different Approach To Cost Optimization

Training is also critical. However, a corporation may have difficulty replacing competent and experienced workers if it decides to insource. As opposed to BPO, BPM provides clients access to qualified and experienced experts. As a result, COOs and CTOs will be more likely to focus on their main business and get rid of the additional infrastructure and training expenditures that will assist lower the cost of conducting these operations.”


Many BPO firms have recently rebranded as BPM firms to strengthen their public relations. To put it another way, BPM relates to an organization’s management process, while BPO refers to its workers’ mental condition, or more specifically, their mindset.

Are you wondering about hiring the best BPO services for your company? Contact us right now. When it is about BPO services, EuroCom CX is the #1 choice of the world’s leading companies.