Business Process-as-a-Service (BPaaS) Market Overview:
Business process-as-a service (BPaaS) is a complete solution package offered by cloud service providers, such as Genpact, IBM Corporation, Fujitsu Limited, and Capgemini, to enable business process outsourcing (BPO) over a cloud computing service model. The objective of customary BPO services is to reduce labor expenses, which can be attained by using BPaaS industry solutions. The pricing model for BPaaS industry solutions is either consumption based or subscription based.
The global BPaas market is driven by increase in cloud adoption among enterprises and extensive need to optimize business processes in North America, Europe, and Asia-Pacific. LAMEA is expected to hold the least market share as compared to other regions. Middle East and Africa are expected to gain traction in the near future, however, the growth is expected to be stable during the forecast period.
Global BPaaS Market Segmentation
The global BPaaS market is segmented based on application, deployment model, industry vertical, and geography. The applications areas covered in the study include HR service, finance & accounting service, analytics, supply chain management, digital asset management, and others. On the basis of deployment model, the market is categorized into private, public, and hybrid. By industry vertical, it is classified into banking, financial service, & insurance (BFSI), healthcare, government, manufacturing, retail, IT & telecom, and others (business service providers, media & entertainment, and hospitality). Geographically, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global BPaaS market was valued at $3,916 million in 2016, and is estimated to account for $15,144 million by 2023, growing at a CAGR of 21.8% from 2017 to 2023. This is attributed to rise in ICT expenditure by governments in multiple developed & the developing regions, including North America, Europe, and Asia-Pacific.
Asia-Pacific is expected to register highest CAGR in the near future, and countries such as China and Japan are emerging region for the vendors in the BPaaS market. The current trend of scheduling, executing, and automation of task has enhanced the deployment of BPaaS industry solution among industry users such as BFSI, government, retail, healthcare, and many others.
The key players profiled in the report include Accenture, IBM Corporation, Cognizant technology Solutions Corporation, Tech Mahindra Capgemini, Fujitsu Limited, Genpact, Oracle Corporation, SAP SE, and Wipro Limited. The report discusses the key strategies adopted by these companies in addition to the current trends, upcoming opportunities, and restraints of the BPaaS market, with detailed information about their impacts.
Top Impacting Factors
Need for Low Cost it Infrastructure and Data Accessibility
Enterprises globally are focused on creating a mobile workforce, where employees can access data from distant places through internet services, hence need of virtual sets of IT applications such as servers, storage, networks, and others is expected to fuel the BPaaS market growth.
Increase in the need for business process analytics
Multiple industry verticals such as BFSI, retail, healthcare, manufacturing, telecommunication & IT, media & entertainment, and others are adopting BPaaS solutions to enhance their business process cycle and automation processes.
Rise in cloud adoption across several industry verticals
Several industry verticals, such as BFSI, retail, healthcare, manufacturing, telecommunication & IT, media & entertainment, and others, are adopting cloud services at a rapid pace. In addition, the banking sector is keen to adopt BPaaS due to benefits, such as cost savings, data protection, and disaster recovery services, which is expected to augment the BPaaS market growth.
Lack of IT skills and knowledge in underdeveloped nations
Several countries from Asia-Pacific, Latin America, the Middle East, and Africa are yet to transform to technologically advanced hubs with rich IT infrastructure and digital content. This factor is expected to hinder the BPaaS market growth in the future.
Rise in preference of cloud technology
Cloud computing is witnessing increased adoption among SMEs, owing to advantages such as enhanced uptime, reliability, enriched IT service, increased flexibility of data access, and operational speed, which in turn is anticipated to create potential space for cloud computing, globally.
- In-depth analysis of the global BPaaS market and its dynamics is provided to understand the market scenario.
- Quantitative analysis of the current trends and future estimations from 2017 to 2023 is provided to assist strategists and stakeholders to capitalize on the prevailing opportunities.
- Porter’s Five Forces analysis examines the competitive structure of the BPaaS market and provides a clear understanding of the factors that influence the market entry and expansion.
- A detailed analysis of the geographical segments enables identification of profitable segments for market players.
- Comprehensive analysis of the trends, sub segments, and key revenue pockets is provided.
Business Process-as-a-Service (BPaaS) Market Key Segments:
- HR Service
- Finance & Accounting Service
- Supply Chain Management
- Digital Asset Management
- Others (OMaaS and Managed Marketing Service)
By Deployment Model
By Industry Vertical
- Banking, Financial Services, and Insurance (BFSI)
- IT & Telecom
- Others (Business Service Providers, Media & Entertainment, and Hospitality)
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Market Players
- Wipro Limited
- Tech Mahindra
- Cognizant Technology Solutions Corporation
- IBM Corporation
- Oracle Corporation
- SAP SE
- Fujitsu Limited