BPaaS Surges Forward, But What Is It and Where Does It Sit in Your Tech Stack?

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In the world of cloud computing, the acronyms ‘SaaS,’ ‘PaaS,’ and ‘IaaS’ are familiar terms for many people. But what is ‘BPaaS’ and why should you care?

Well, for one, the Business Process-as-a-Service (BPaaS) market was valued at $53.63 billion in 2021. Based on a new report published by Research and Markets, the BPaaS market will reach $101.95 billion by 2027 at a CAGR of 10.5% during the forecast period. These numbers indicate a continuous demand for the service, with major players such as Accenture plc, Cognizant, Fujitsu Limited, SAP SE, and Tata Consultancy Services Limited, just to name a few.

The demand will mainly be fueled by the need to automate business processes through remote delivery methods. Operational efficiency of enterprises, cost-effectiveness, and fast, quality service are other key factors convincing many medium and large-sized enterprises to adopt BPaaS.

Where Does BPaaS Belong in Your Tech Stack?

BPaaS is a type of Business Process Outsourcing (BPO) that combines SaaS, PaaS, and IaaS to automate processes within an organization. It’s delivered based on a cloud subscription model and sits at the very top of the cloud computing framework. BPaaS provides businesses with the skilled people, processes, and technology they need to facilitate the delivery of their products or services.

To illustrate, IaaS is at the very bottom of the tech stack as it pertains to storage, networks, virtualization, etc. PaaS sits above IaaS and is the platform for developers where they build apps. SaaS sits on top of PaaS and provides software products that can be accessed by individual users or teams in a company.

Why Use BPaaS?

Getting the services of a BPaaS provider can benefit businesses in many aspects such as operations, service delivery, business performance, and growth. This is because BPaaS provides businesses with the skilled people, processes, and technology they need to facilitate the delivery of their products or services. Examples of processes that can be automated and handled by BPaaS vendors include payroll, accounting, credit card payments, AI-enabled annotation services, and fraud analytics. eBay, for instance, uses BPaaS to deliver its e-auction service. Payment service, PayPal, uses BPaaS for online payment processing while Google uses it for internet and website searches.

Since BPaaS is highly configurable and can be easily implemented, businesses can work with their provider on practically any business process they need to streamline or automate. The results are increased efficiency, agility, higher productivity, faster time to market, and lower cost of ownership.

With a BPaaS service in place, businesses don’t need to worry about keeping up with technology advancements and making sure their on-premise software and hardware are maintained and updated. The tech people and expertise of a BPaaS allow organizations to meet their industry best practices, regulations, and standards. Banks and financial institutions, for example, rely on BPaaS for their digital database requirements.

Meanwhile, government agencies commonly turn to BPaaS for various government initiatives like statistics and data analytics, and data security. Airline companies benefit from BPaaS as it can handle a variety of their business processes, including online booking. Airlines don’t need to have their on-premise platforms for passengers to book flights, nor do they need to manage the software themselves. All the middle and back-office work is handled by BPaaS.

All these benefits and use cases prove that BPaaS is not just another acronym in the cloud computing world. It can actually be a crucial tech investment for an organization looking to expand its capabilities without breaking the bank and in the most practical way possible.