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2022

Business Process-as-a-Service (BPaaS) Market

Business Process-as-a-Service (BPaaS) Market Size, Share, Competitive Landscape and Trend Analysis Report by Application, by Deployment Mode, by Enterprise Size, by Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2020-2030

IC : Software and Services

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Author's: Md Shadaab Khan| Beesetty Yogendra| Pramod Borasi | Onkar Sumant
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Business Process-as-a-Service (BPaaS) Market Statistics: 2030

The global business process-as-a-service (bpaas) market was valued at $46.1 billion in 2020, and is projected to reach $128.9 billion by 2030, growing at a CAGR of 11% from 2021 to 2030. Need for low-cost IT infrastructure &data accessibility and increase in the for business process analytics among BFSI sector drive the global business process as a service market growth. Moreover, increase in cloud adoption across several industry verticals is boosting the BPaaS market size. However, lack of IT skills and knowledge in underdeveloped nations restrict the growth of the business process as a service market. On the contrary, rise in inclination toward cloud technology is expected to offer remunerative opportunities for expansion of the business process as a service market during the forecast period.

Business Process as a Service Market, Business Process as a Service Industry, BPaaS Industry, BPaaS Market Size, Business Process as a Service Market Share, Business Process as a Service Market Trends, Business Process as a Service Market Growth, Business Process as a Service Market Forecast, Business Process as a Service Market Analysis

Business process services is a full solution package offered by cloud service providers such as Genpact, IBM Corporation, Fujitsu Limited, and Capgemini to enable business process outsourcing (BPO) via a cloud computing service paradigm. Furthermore, traditional business process services aim to lower labor costs, but BPaaS aims to reduce employee count through increasing automation. BPaaS has two pricing models: consumption-based and subscription-based.

The business process as a service market is segmented on the basis of deployment mode, enterprise size, application, industry vertical, and region. On the basis of deployment mode, the market is categorized into private, public, and hybrid. On the basis of enterprise size, the market is bifurcated into large enterprise and SMEs. The applications areas covered in the study include finance and accounting service, HR services, sales and marketing, customer service and support, procurement and supply chain, operations, and others. By industry vertical, it is classified into BFSI, IT and telecom, manufacturing, retail and ecommerce, healthcare, government, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players that operate in the business process as a service market analysis are Accenture, Capgemini, Cognizant, FUJITSU, Genpact, IBM Corporation, Oracle Corporation, Tech Mahindra Limited, SAP SE, and Wipro Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the business process as a service industry.

Business Process-as-a-Service (BPaaS) Market by Application

In terms of application, the finance & accounting service segment holds the largest business process as a service market share as, it provides credit management, billing & invoice, risk management, auditing, and financial consulting. Ensuring regulatory compliance and mitigating risks through stringent budgeting & planning has become mandatory for CFOs. However, the customer service segment is expected to grow at the highest rate during the forecast period owing to, high level of cost savings on the total cost of ownership, increased delivery speed and quality, growing standardized & configurable services, and emerging standardized transactional processes globally are the major factors that influence services outsourcing in the BPaaS market.

Business Process-as-a-Service (BPaaS) Market by Region

Region wise, the business process as a service market share was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to the presence of major players that offer advanced solutions and invest heavily in solutions such as payroll administration, managed marketing services, and analytics offers lucrative opportunity for the market. However, Asia-Pacific is expected to witness significant growth during the forecast period. Growth in awareness regarding importance of strengthening the overall BPO over cloud services to ensure low cost networking, servers, virtual data centers, storage solution, and easy accessibility of virtual computing from any device and location contribute to the growth of the business process as a service market.

COVID-19 Impact Analysis

The BPaaS industry has grown significantly in recent years. Moreover, due to the outbreak of the COVID-19 pandemic, the market experienced a boost in 2020. This is due to sudden change in the organization operating models as after years of focusing on efficiency and automation, operations teams worldwide had to deal with the impact of lockdown rules and quickly-rising transaction volumes in agitated markets. Moreover, it allows organizations to focus on what is essential to their core business model, while dedicated service providers handle the rest. For example, in the last decade, BFSI sector witnessed the most rapid change in consumer behavior ever, especially in terms of the channels they prefer to use to interact with banks, such as web & mobile banking or even social messaging. This means that financial institutions and wealth managers must focus increasingly on channel development and improving user experiences.This is where BPaaS services can come in handy, taking on the non-core activities. A service provider will not only operate these processes, however also ensure adaptation to new regulations and oversee the implementation of new innovations, like robotic process automation and artificial intelligence, in order to constantly increase reliability and efficiency.

Top Impacting Factors

Increase in demand for business process analytics

Several BPaaS industry verticals such as BFSI, retail, healthcare, manufacturing, telecommunication & IT, media & entertainment, and others are adopting business process analytics as it increases time-to-value for product applications. It also lowers time in operational cycles for workflows, such as employee onboarding and customer or patient in-take processes. Moreover, as organizations move to more remote work and greater adoption of digital devices, a common misalignment exists in security and device usage. The analysis can identify a path for faster IT approval processes and uniformity in security policy enforcement. Furthermore, increasing demand for the automation of business processes to discover, analyze, measure, optimize, model/remodel, and improve productivity and minimize operational costs in various organizations substantiates the market size.

Rise in cloud adoption across several industry verticals

Cloud platform is gaining popularity as it not only provides flexibility, scalability, and multi-cloud space however also provides security assurance. Furthermore, the step toward cloud makes the integrity of data and services a major priority for organizations hence; it is critical to find combination of on-premise and numerous as-a-service offerings, to ensure data is constantly available and coordinated across multiple platforms.

Furthermore, according to a survey, IT leaders spend 56% of the time on maintenance and operational issues and 24% spend on technological advancements. Moreover, they spend 20% of the time working with business leaders on digital transformation initiatives, which is very time and cost consuming hence driving the preference of organizations toward the hybrid cloud. In addition, with surge in complexity of enterprise IT challenges and growth in data, cloud has become a perfect choice for organizations. For instance, according to a recent study by Intel, the adoption of hybrid cloud increased three times from 19% of organizations in 2015 to 57% at the end of 2016. The study also estimates that within 15 months, by mid-2018, 80% of all IT budgets are estimated to be committed to cloud applications and solutions. This is projected to be opportunistic for the market.

Key Benefits for Stakeholders

  • The study provides an in-depth analysis of the global business process as a service market forecast along with current & future trends to explain the imminent investment pockets.
  • Information about key drivers, restraints, & opportunities and their impact analysis on global business process as a service market trends is provided in the report.
  • The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
  • The business process as a service market analysis from 2021 to 2030 is provided to determine the market potential.

 

Business Process-as-a-Service (BPaaS) Market Report Highlights

Aspects Details
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By Deployment Mode
  • Public Cloud
  • Private Cloud
  • Hybrid
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By Enterprise Size
  • Large Enterprises
  • SMEs
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By Application
  • Finance and Accounting Service
  • HR Services
  • Sales and Marketing
  • Customer Service and Support
  • Procurement and Supply Chain
  • Operations
  • Others
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By Industry Vertical
  • BFSI
  • IT and Telecom
  • Manufacturing
  • Retail and E Commerce
  • Healthcare
  • Government
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (U.K., Germany, France, Netherlands, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Tech Mahindra Limited, ACCENTURE, INC., Genpact, Oracle Corporation, Capgemini, Cognizant, FUJITSU, Wipro Limited, SAP SE, IBM Corporation

Analyst Review

According to insights of the CXOs of leading companies, hybrid cloud is expected to dominate the market share for effective digitization of business processes with the security of private cloud. In addition, North America exhibits high growth potential owing to changing landscape in BFSI sector with changes in customer demand and growth in digitization across the North American countries. Furthermore, increased cloud enabled activities and growth in cloud marketplace trends in North America are expected to drive the growth of the market.

Key providers of the business process-as-a-service (BPaaS) market such as Genpact, IBM Corporation, and Oracle Corporation account for a significant share in the market. With growth in requirement for business process-as-a-service (BPaaS), various companies have established alliance to increase their capabilities. For instance, in January 2022, Accenture and Celonis formed a strategic alliance to help organizations gain the insights they need to continuously update and optimize their business processes. Accenture has embedded Celonis’ data-driven execution management capabilities into its tools and platforms, including my Concerto and SynOps, to provide new levels of transparency and insights to inform decision-making. The strategic collaboration brings together Accenture’s vast functional capabilities, with its lifecycle management and automation experience to extend the market-leading process mining and execution management capabilities of Celonis. Together, Accenture and Celonis are uniquely positioned to uncover more process inefficiencies for clients, turning insights into instant, data-driven, and automated action.

In addition, with further growth in investment across the world, the rise in demand for business process-as-a-service (BPaaS) systems, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in March 2022, Cognizant announced collaboration with Microsoft to deliver a new digital health solution to enhance remote patient monitoring for improved medical care. Cognizant's new solution combine remote patient monitoring and virtual health, utilizing products such as smart watches, blood pressure monitors, and glucose meters to collect and communicate patient health data to providers. Built-in analytics allow providers to cross-reference historical health information to gain patient insights and potentially identify early warning signs of chronic conditions so preventative measures can be taken. In addition, the solution's remote capabilities enable telehealth visits, which continue to be a valuable option to mitigate barriers of care for patients with accessibility constraints, as well as implement time-sensitive interventions and improve personalized care.

Moreover, with increase in competition, major market players have started acquiring companies to expand their market penetration and reach. For instance, December 2021, Capgemini acquired VariQ, the provider of software development, cybersecurity, and cloud services for federal government departments and agencies across the U.S. In addition, it is expected to be integrated into Capgemini Government Solutions LLC, Capgemini’s independent operating division working with U.S. government agencies. This acquisition is projected to strengthen the company’s position in the Federal market and build momentum for continued growth. The acquisition of VariQ marks an important moment for Capgemini Government Solutions. The integration of its multi-disciplinary highly skilled team and expanded best in class contract vehicles are projected reinforce the ability to deliver on transformative digital initiatives for their customers.

Author Name(s) : Md Shadaab Khan| Beesetty Yogendra| Pramod Borasi | Onkar Sumant
Frequently Asked Questions?

Need for low-cost IT infrastructure, data accessibility, and increase in business process analytics among BFSI sector drive the global business process as a service (BPaaS) market.

North America is the largest regional market for Business Process-as-a-Service (BPaaS)

The global business process as a service market was valued at $46.13 billion in 2020, and is projected to reach $128.87 billion by 2030, registering a CAGR of 11.0% from 2021 to 2030.

The key players that operate in the BPaaS industry are Accenture, Capgemini, Cognizant, FUJITSU, Genpact, IBM Corporation, Oracle Corporation, Tech Mahindra Limited, SAP SE, and Wipro Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

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Business Process-as-a-Service (BPaaS) Market

Global Opportunity Analysis and Industry Forecast, 2020-2030