There have been many technology advancements over the last two decades that have provided various levels of automation, giving HR executives access to vast amounts of data. In the 1990s it was common practice for organizations to license software to manage their businesses. However, these licenses required costly efforts to customize the software to accommodate the individual business needs as well as the expense of huge amounts of infrastructure and human capital required to operate it.
During the early 2000s service providers entered the picture, enabling organizations to outsource portions of (or in some cases all) the administration that inherently came with this huge infrastructure. Many companies began seeing the benefits of outsourcing and the trend continued.
Today, cloud computing, and its offshoots such as Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) have seen many companies transitioning to this type of model, putting their days of licensing software and managing huge amounts of infrastructure behind them. They are also gaining in terms of simplification of business processes, the reduction of staff and infrastructure and substantial cost savings.
While that may seem to be a great thing, many organizations are struggling with the significant amount of change that comes along with it. This is particularly relevant to multi-process human resources outsourcing models where organizations are trying to balance the need for standardization, their company's ability to consume the change associated with this type of transformation, and the benefits gained through their existing HR BPO arrangements.
As this evolution occurred, we are also witnessing the coupling of traditional BPO and SaaS into a new service delivery offering allowing companies to exploit the benefits and the best of both worlds. Business-Process-as-a-Service (BPaaS) is a delivery model that allows for standardized, yet highly configurable HR processes that can be quickly deployed and consumed. The promise of BPaaS is relatively straight forward: it combines the best of IaaS, PaaS and SaaS into a business model that takes advantage of standardized processes and delivers BPO in a more efficient way to consumers.
A service provider with a history of delivering global HR services, coupled with a BPaaS approach, can deliver a pre-configured, flexible and extensible HR solution. It can utilize industry best practices and processes delivered within the SaaS platforms, and combine that with its case management system for a complete BPaaS solution.
Such a solution offers clients the flexibility to standardize the HR processes that make sense, while allowing the service provider's service center to offset any remaining administrative activities involved with processes that it cannot standardize for a variety of reasons. As a result, clients benefit from simplified processes, the enriched functionality inherent within the SaaS platform and a consumption-based pricing model.