In-house Cloud Deployment Vs. BPaaS: What’s the Difference?

January 27, 2022 Mimi Torrignton

Typing on a computer in a bpaas while holding phone

Business Process as a Service is the newest way to bring efficiency to in-house accounting teams. For many, combining the cloud and outsourcing sounds like an ultimate solution but what if you’re just interested in self-deployment of cloud-based solutions? Find out everything there is to know about an In-House Cloud Deployment vs BPaaS. We will go over why BPaaS jumps leaps and bounds over an in-house cloud-based ERP any day in this blog post courtesy of Everest Group & Personiv’s white paper, F&A BPaaS: A Gamechanger for Mid-Market Companies.

The Difficulty With In-House Cloud Deployment vs BPaaS

paper clip bent to form a cloud vs bpaas

Many enterprises choose to deploy cloud-based solutions in-house. Unfortunately, this helps address only a part of the problem for them and comes with its own set of challenges. The biggest of these is finding people to learn and run the new technology. And once trained, they become highly desirable to the outside market.

The Talent Problem

top talent working remotely

Talent management is a multi-layered problem that includes hiring the right talent, training them, and managing attrition. SMB and mid-market buyers, with their small team sizes, are never able to excel in all three of these parameters. This leads to process inefficiencies, inconsistency in delivery, and added costs.

The concern that an in-house deployment does not address is providing finance talent. Again, the same multi-layered problem, it has been the primary reason for below-par service quality. Furthermore, these enterprises are still faced with the inability to scale the function without significant cost implication. Most SMB and mid-market companies have kept business processes in-house for a long time. This leads to significant cost ownership and dilution of focus for these rising enterprises. Unlike their larger counterparts, they have not been successful in reaping the cost benefits achieved through outsourcing.

Why Use a BPO Provider

All these challenges make using a third-party BPO provider to deliver an entire BPaaS offering a very attractive value proposition. A BPaaS service provider has the necessary resources to manage business functions and is responsible for hiring, training, and attrition management. A third-party BPO provider gives the buyer flexibility to focus on core service offering and not worry about the finance function. Additionally, they bring in years of domain expertise and industry best practices. By leveraging economies of scale through multi-tenant cloud models and labor arbitrage, they can also help deliver significant cost savings.

Another advantage of BPaaS is the end-to-end bundled services that the service providers can offer. They club installation, maintenance, and services into a single service offering that allows buyers to focus more on their core business activities and not be bothered about managing several service providers. This also enables service providers to draw synergies from dependent processes and maintain high-quality standards.

In-House Cloud Deployment vs BpaaS White Paper


Interested in learning more about In-House Cloud Deployment vs BpaaS? Download the full white paper here.

Previous Article
The Art of Making the Right Decision
The Art of Making the Right Decision

As a leader, you’re faced with all kinds of decisions, many of them far-reaching choices that could change ...

Next Article
Data Security While Outsourcing: How to Ensure That Your (and Your Clients’) Data is Safe
Data Security While Outsourcing: How to Ensure That Your (and Your Clients’) Data is Safe

Outsourcing? Take charge of your data security! Explore key considerations and essential steps to minimize ...