BPaaS is defined as the delivery of business process outsourcing services that are sourced from the cloud and constructed for multitenancy, with pricing models that are consumption-based or subscription-based. The BPaaS model provides automated business processes that can be accessed via the internet, without a dedicated labor pool per client. It allows the service provider to manage applications, infrastructure, and business processes through standardized workflows in the cloud.
2. BPAAS
Gartner defines business process as a service (BPaaS) as the delivery of business process outsourcing
(BPO) services that are sourced from the cloud and constructed for multitenancy. Services are often
automated, and where human process actors are required, there is no overtly dedicated labor pool per
client. The pricing models are consumption-based or subscription-based commercial terms. As a cloud
service, the BPaaS model is accessed via Internet-based technologies.
3. Client Owned
Application
Client
Infrastructure
Service Product
Client App
Managed by
Service Provider
Service provider
processes and
tools, wrappers
Client
Infrastructure
Managed Services
Service provider
Infrastructure
(hosted/cloud)
Service provider
Applications, tools,
wrappers
Best in Class
processes by
Service Provider
BPaaS
Processes Specific
to a Client
Client Owned
Application
Client
Infrastructure
Traditional BPO
Service Provider
Client
SERVICE PRODUCTS FOUNDATION FOR MPS AND BPAAS
3
Service provider
processes and
tools, wrappers
4. 4
Application
management
Service provider owns and manages
applications and entire IT stack for a
business process
Service provider manages business
processes through workflows
Client owns applications and
infrastructure
Service provider provides best in class
processes tools and WRAPPER to
harmonize multiple IT platforms
Client owns applications and
infrastructure
Pricing
Outcome based pricing
Transaction based pricing
Pay per use pricing
FTE based pricing
Transaction based pricing
FTE based pricing
End-to-end
management of
business
processes
Service provider brings industry
expertise to provide :
Best in class processes and
benchmarked Service Levels
Technology roadmap
Regulatory and industry compliance
Lower cost of operations for Client
Service provider provides process
consulting
Manage ongoing process continuous
improvements
Service provider team works in tandem
with client to manage technology and
provide process improvements
Service provider team works on processes
specified by client
Infrastructure
Applications are hosted on Service
provider/Client cloud
Service provider decides strategies
around hosting and infrastructure
management
All applications are hosted on clients
infrastructure
All applications are hosted on clients
infrastructure
Ownership and Responsibility Shifts to Service provider
Traditional BPO Managed Services BPaaS
CONTINUUM OF OPERATING MODELS