Difference between BPO and BPM

Key Difference: BPO, short for Business Processing Outsourcing, is the business that focuses on tasks, ranging from manufacturing products to providing customer care. On the other hand, BPM short for Business Process Management, is the process of dealing with or controlling things or people more effectively and efficiently to an over-changing environment.

There is not a lot of information to differentiate between BPO and BPM, but BPO is more focused on outsourcing, whereas, BPM is more focused on management related tasks.

BPO, short for Business Processing Outsourcing, is the business that focuses on tasks, ranging from manufacturing products to providing customer care. It usually consists of the back office or front office operations. It is a process where number of people work for a specific business. It is originally associated with the firms of production of goods for use or sale using labor and machines, tools, chemical and biological processing, or formulation such as Coca Cola that outsourced large sections of its supply chain.

The trend started in the late eighties in the foreign countries. It is helpful for those who are under-graduate or graduate and are not able to be employed in any company. If one has skill, he will definitely be employed in a BPO. Nowadays, it has become a fashion or trend for youngsters to work in BPO just for time pass. Data entry and call centers are some examples of BPO operations.

BPM, short for Business Process Management, is the process of dealing with or controlling things or people more effectively and efficiently to an over-changing environment. Basically, it is a subset of infrastructure management, where maintaining and optimizing an organization’s equipment are to be managed. The goal of BPM is to reduce the errors which are made by humans and focus on stakeholders.

BPM have six basic strategies:

  • Simulate a change to the process
  • Process modeling and design
  • Visualize and define functions and the process improvement
  • Do up the process in an improved way for better results
  • Business rules engine
  • Workflow engine

The developments of business process are mainly focused on technology and reuse the work. It comprises of planning, organization, controlling or directing a group of people for the purpose of accomplishing goals. Though in all businesses, management is the act of coordinating the efforts of people to accomplish desired goals, but in BPM, they are only focused on the tasks which are related to management and, its tasks and activities.

The industry is looking for a PR boost with a quick name change, so many of the BPO companies are now converted to BPM. In short, BPM refers to a management process, while BPO refers to the “state of the mind” of an organization, or more exactly of the employees.

Image Courtesy: mindsharptechnologies.com, djworx.com

Most Searched Non-Alcoholic Drinks Most Searched in Society and Culture
Most Searched in Cars and Transportation Most Searched in Arts and Humanities
Douchebag vs Scumbag
Verification vs Validation
PHP vs PHP5
Soy vs Soya

Comments

Such a great explanation. It really gives me a better understanding and more knowledge about outsourcing.

Add new comment

Plain text

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.