We've mentioned before how websites such as Monster, CareerBuilder and Dice were among the first to embrace web-based technology solutions to address HR business needs in the 1990s. Similarly, HR-centric software companies such as PeopleSoft and Ultimate Software established trends in hosted solutions eventually adopted by finance and sales organizations.
The old way of outsourcing focused on specific areas on a business' functional needs. You have a need to outsource payroll. You have a need to outsource benefits. You have a need to outsource accounting. Traditionally, businesses would need to reach out to separate, specialized vendors to outsource each of these functional areas. Each of those separate vendors would bring in their own systems, their own methods and their own unique models of delivering services.
With the onset of true multitenancy software architecture, in which a single piece of software serves multiple tenants, services are no longer based on functional areas, they're based on the system delivering services to those areas. So, instead of having five different vendors outsourcing in five different areas, you're running one core technology solution delivering all of your outsourcing needs on a single platform or application.
Traditional outsourcing is based on business needs. The new way of outsourcing is based on the entire system running a business need's underlying processes. This allows customers to employ one vendor or service provider. Having a single vendor such as OneSource Virtual manage or administer your finance, payroll, benefits and IT and delivering these services within the Workday application through the Business Process as a Service (BPaaS) delivery model provides a single outsourcing solution aligned with a unified multitenancy SaaS solution.
Another question to ask when exploring options for a more holistic outsourcing solution to your outsourcing needs is, "What is the impact to the entire organization, not just an individual department?" Try not to focus on one area. Look at the end result. Look at how things interconnect. One of the many benefits of BPaaS technology is that it allows you to analyze relationships between departments, not just how they perform independently of one another.
A great example of this relationship is accounts payable and expense management. Field and executive management teams may spend hours every week coding invoices because there's no automated code mapping involved in their invoice entry process. People are manually entering those invoices into their accounts payable system without the benefit of a robotic coding process. The workflow that occurs within the system and goes to AP takes time. From AP's perspective there's no viable cost savings or benefit to investing in an automated AP system that scans and codes their invoices. By the time they receive the invoices, they've already been scanned and coded. The actual benefit comes from outside of AP, within that same functional area, when invoice data is captured and coded via Robotic Process Automation (RPA). Adopting an automated BPaaS solution to map the invoices and code transactions to the general ledger while not look any different on the AP side. But on the invoice entry side, processes are made more efficient, time is saved and cost is reduced.
When you stop looking at outsourcing as a solution for a single service and broaden the focus to encompass that systems entire capability, you're able to meet a greater number of businesses objectives and target inefficiencies and pain points that may not be directly related to an individual business area. When all back office outsourcing needs are delivered by one vendor, you're consolidating efforts and resources. You're not just outsourcing the management or administration of a task, but all the service, support and maintenance needed by the entire company, not just one business area. The new way of delivering outsourcing through a BPaaS model provides companies a more efficient and scalable solution.