Business process management provides a methodology for defining the process requirements of the global enterprise as it tries to solve the Sourcing Dilemma. Once all business processes have been enumerated and mapped according to sequences and conditional events, they can be allocated to internal or external service providers under a plan to ensure ongoing integration and flexibility of all processes, regardless who performs the service.
Business Process Management as Outsourcing Model
Every BPO service provider offers a variation of business process management. In decisionmaking, the defining moment occurs when the service provider offers a service that fits within the enterprise customer’s matrix of business processes under conditions more favorable to the customer than insourcing.
Risk of BPM Model
As a service delivery model, BPM could fall apart if the service provider fails to truly understand the customer’s business and regulatory environment. This deep business understanding forms the basis for trust and interdependency. If there is miscommunication as to scope of work or the requirements for performing the scope of work, the BPM model fails. In short, the service provider needs to know (or learn) about the customer’s risks and needs at all levels and provide process management to support the customer’s needs for accountability, efficiency and cost management.
