Business process management services (BPMS) is changing -- and for the better. A convergence of company demands and new pricing models is driving innovation in the nature of BPMS and how it is delivered. In short, we are seeing a marked rise in popularity of cloud-based business process management or "Business Process as a Service" (BPaaS).
What is driving this increased interest in BPaaS? To start, companies are evolving their demand from transactional support to transformational support. So rather than looking for simple replication of existing processes at a lower cost, companies are asking providers for transformational support through standardized best-in-class processes.
Many companies are also looking for technological support in addition to services. Most process innovations require supporting technology solutions. For instance, within accounts receivable, automated collections routing and processing, along with an increased ability to accommodate new payment methods, are becoming commonplace. Companies using BPMS are increasingly asking providers for these solutions rather than making capital investments to build these capabilities themselves.
In addition, we have seen an emergence of innovative pricing models that makes BPMS attractive to companies of all sizes. In the past, high transition costs have made the use of external service providers prohibitive for everyone but the large enterprise. Transitions have become much shorter and more cost effective, while pay-as-you-go pricing models with zero or low upfront infrastructure costs are opening doors for small and large companies alike.