Business Process as a Service (BPaaS)

Exploring the differences: Business process as a service (BPaaS) vs software as a service (SaaS)

In today's digital age, businesses are constantly on the lookout for ways to optimise workflows, enhance efficiency and gain a competitive edge. Cloud-based solutions have emerged as a powerful tool in this pursuit, with software as a service (SaaS) and business process as a service (BPaaS) being two prominent players. While both leverage the convenience and scalability of the cloud, they cater to distinct needs within an organisation. Understanding the intricacies of SaaS vs BPaaS can empower businesses to make informed decisions and unlock their full potential.

Understanding software as a service (SaaS)

SaaS is a well-established software delivery model that offers solutions that are easily accessible via a web browser, eliminating the need for local installations and complex maintenance. Businesses can subscribe to SaaS services anywhere anytime, and gain access to constantly updated software applications like customer relationship management (CRM), human resource management (HRM) or project management. Some popular examples of SaaS services are Salesforce (CRM), Dropbox (file storage) and Zoom (video conferencing).

SaaS offers businesses a unique set of benefits, some of which include:

• Cost-effectiveness: SaaS eliminates upfront licensing fees and simplifies IT infrastructure needs.
• Scalability: It adapts to growing business demands with ease by allowing businesses to add or remove users as needed.
• Accessibility: It enables remote workforces and fosters collaboration between departments and teams.
• Automatic updates: SaaS ensures users always have access to the most advanced features and security patches.

However, at the same time, it is important to acknowledge that SaaS services focus on only delivering software solutions. In order to integrate these applications into the existing workflows and processes, businesses might require additional effort and expertise.

Understanding business process as a service (BPaaS)

BPaaS takes the concept of cloud-based services a step further. It offers a comprehensive solution that encompasses not just software applications but also the underlying business processes, such as payroll, human resources, finance and accounting.

BPaaS providers handle the design, implementation and ongoing management of these processes all by themselves, often employing a combination of workflow automation tools, artificial intelligence, performance analytics and human expertise. A BPaaS provider providing payroll management services, for instance, will not only handle the software but also the entire payroll process, including compliance and reporting.

Just like SaaS, BPaaS also comes with a distinct set of benefits, such as:

• Process automation: BPaaS services streamline workflows and reduce manual tasks, freeing employees to focus on more strategic endeavours.
• End-to-end management: It integrates multiple services into a single comprehensive solution, providing a holistic approach to business processes.
• Flexibility: It allows for more customisation and hence adapts to changing business needs easily.
• Reduced costs: It streamlines operations and eliminates the need for in-house infrastructure.

Choosing the right fit: BPaaS vs SaaS

The optimal choice between SaaS and BPaaS hinges on a company's specific needs and priorities. Here are some key considerations to undertake:

• Purpose: If the primary need of the business is to access specific software applications, SaaS services might be sufficient. However, if the business is looking to revamp entire workflows and improve operational efficiency through automation, BPaaS is likely a better fit.
• Customisation requirements: Standard SaaS solutions offer limited customisation options, whereas BPaaS services can be tailored to accommodate specific business processes.
• Internal expertise: Businesses with a robust IT department might be comfortable managing and integrating SaaS solutions. However, those lacking in-house expertise can benefit from the comprehensive process management offered by BPaaS.
• Budget: While both models offer cost-effective solutions, BPaaS may have a higher upfront cost compared to some SaaS options. However, at the same time, with BPaaS services, one needs to pay only when they are using the process, whereas, with SaaS services, they usually need to take a subscription, paying for the services even when they are not using the software.

What does the future hold?

As technology evolves, the lines between SaaS and BPaaS are likely to blur further. Businesses may witness the emergence of hybrid solutions that combine the strengths of both models. Innovations in artificial intelligence (AI) and machine learning (ML) are also likely to play a significant role within BPaaS services by enhancing process automation and optimisation.

In conclusion, SaaS and BPaaS are powerful tools that can empower businesses to streamline operations, enhance efficiency and gain a competitive edge. By carefully evaluating their specific requirements, businesses can leverage the most suitable solution to unlock their full potential in this ever-evolving digital landscape.

How can Infosys BPM help?

Infosys BPM’s BPaaS services harness AI-first digital transformation across various domains to provide agile and outcome-based business solutions. From supply chain optimisation to carbon footprint analytics, we provide solutions that not only optimise costs but also streamline processes to deliver enhanced operational efficiencies as well as immersive client experiences.