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A02051 | Pages: 275 | Charts: 68 | Tables: 186 |
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 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.
[APPLICATIONGRAPH]
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.
[REGIONGRAPH]
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.
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.
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.
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.
Key Market Segments
Key Market Players