The Difference between BPM and BPO 11 Jun 2024

bpm and bpo

In the fast-paced business world of today, businesses work to simplify their operations. BPM and BPO are hence quite well-liked. Despite appearing to be similar, they have very different vocations and personalities.

The essay explains the key distinctions between BPM and BPO and their respective advantages. The term “business process outsourcing” (BPO) is used. For office work, outside assistance is hired. Assign someone to manage customer service, money, HR, and finances. Using BPO allows businesses to focus on their core competencies, reduce expenses, and enhance customer service. Continue reading to discover other distinctions between BPM and BPO.

Different BPO Types

Here are the different types of BPO:

  • Moving services overseas to generate revenue is part of offshore business process outsourcing.
  • Sending to neighbouring nations with comparable time zones is referred to as “nearshore BPO.”
  • Known as “onshore BPO,” domestic outsourcing

The advantages of BPO

These are some advantages of BPO. The distinction between BPO and BPM will be examined next.

Business customers that use BPO services make up about 69% of the total cost. Cost savings are the primary advantage of BPO. Outsourcing non-core tasks can result in lower labour, equipment, and management costs.

  • Concentrate on Core Activities: By allowing businesses to concentrate on their expertise, BPO increases productivity and efficiency.
  • Access to Expertise: Outsourcing businesses offer cutting-edge and professional services across a variety of industries.
  • Growth potential: BPO services place a strong emphasis on organizational agility and development.

Business Process Management (BPM): Why is it necessary?

Corporate operations get better with “business process management” (BPM). To achieve objectives, organizations design, build, maintain, and enhance processes. Known also as business process management, or BPM, While BPO engages outside resources, BPM improves business processes.

Principles of BPM.

Several important BPM elements are as follows:

  • Modeling for Practice: By showing how business processes work, you can understand and learn them more fully.
  • Process analysis is the use of this approach to find process faults and possible fixes.
  • Process design: More speed and efficiency can be attained by changing the present workflow. So-called process planning.
  • Process Implementation: Process implementation is the act of putting new processes into effect.
  • Process monitoring: Process monitoring is the ongoing evaluation of the efficiency of a process.
  • Process optimization: Ongoing process improvement through modification is referred to as process optimization.

BPM is beneficial, why?

Several advantages of BPM are as follows:

  • BPM simplifies procedures, which lowers waste and boosts productivity.
  • More Agility: BPM helps businesses respond quickly to shifts in the business environment.
  • Superior Quality: When production procedures are efficient and well-organized, the products and services are of better quality.
  • Organizations can follow the rules and regulations in their particular sectors thanks to business process management (BPM).

Products for BPM

The following is a list of BPM tools:

Automation of workflow refers to the automation of regular operations and procedures.

Software for process modelling allows one to produce visual process models. Performance tracking tools: Check in with a process to gauge its progress.

Main Difference Between BPO and BPM

With that knowledge, let’s look at the distinctions between BPO and BPM.


BPO: Businesses can save money and time by contracting out non-core activities.
BPM: The main goal is to speed up and increase the efficiency of internal procedures.


BPO: It looks at particular business processes or functions that are contracted out to other companies.
BPM: Try to improve every internal system of a company to improve its overall performance.


BPO: The tasks are managed by the service provider.
BPM: The company tracks and looks for ways to make its procedures better all the time.


Often, the objective of BPO is to lower running costs.
Business process management (BPM) can help you save money over the long run by investing in technology and process optimization tools.


BPO: This is a well-considered approach to outsourcing non-core business operations.

A strategic approach, BPM seeks to raise organizational efficiency and enhance processes over time.

These were some of the ways BPM and BPO were not the same.

Combining techniques of BPM and BPO

Having distinguished between BPM and BPO, we will research the two further. Though they are not the same, BPO and BPM can work together. These two tactics, taken together, might really be quite advantageous to your company. Businesses can improve their internal operations and contract out non-essential jobs to outside help (BPM and BPO). Employing this combined strategy, businesses can maximize the benefits of both strategies. It will raise production, reduce expenses, and enhance performance generally.

Examples of how integration functions are as follows:

To handle its customer service, a business could contract with a specialized service provider (BPO). It might make its order processing and supply management systems more effective in the interim by utilizing BPM. The business therefore guarantees that its processes are effective and that the BPO provider handles client demands effectively.

In conclusion, if you want your business to be more profitable and effective, you must be aware of BPM and BPO. In order to reduce costs and enhance service, BPM makes internal processes more effective and adaptable, whereas BPO outsources work to other businesses. Combining the two strategies may make businesses more competitive and perform better.


In summary, the objectives, scope, control, expenses, techniques, and implementation strategies of BPO and BPM are significantly different from one another.

The whole purpose of BPO is to reduce costs and free up resources for critical work. In contrast, business process management (BPM) focuses on continuously enhancing internal business processes. They provide a comprehensive strategy for managing a profitable business when they work together.


Jack Manu

Outsourcing Consultant

About the Author:

Jack Manu, an outsourcing consultant at Velan, has more than a decade of experience in assisting real estate companies and real estate agents to improve the operational efficiency. He has been helping real estate agents including many REMAX agents to focus on their core business by offering transaction & listing coordinator services, accounting service and social media marketing assistance.Jack can be reached at


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