Global Business-Process-as-a-Service Market - Segmented by Process (Finance and Accounting, Sales and Marketing, HR Management), Organization Size (Small and Medium Enterprise, Large Enterprise), End-User, and Region - Growth, Trends, and Forecast (2018 - 2023)
The global Business Process as a Service Market is valued at USD 4.8 billion in 2017 and is expected to reach USD 16.47 billion by 2023 and is expected to witness a growth of 22.81% during the forecast period (2018 - 2023).
The BPaaS solution is a form of business process outsourcing that utilizes cloud computing service model to provide more feasibility and reduce overall operational costs. BPaaS provides executable business processes to clients over the internet, because of which it is increasingly being adopted by companies across the globe. On the other hand, adequate integration of IT services in companies might act as a challenge to the growth of the market. However, this scenario is expected to change during the forecast period, with companies developing improved IT infrastructures.
The market has tremendous expansion opportunities during the forecast period owing to favorable support from government’s worldwide and increased adoption of cloud-based business process outsourcing (BPO) model, especially by small and medium-sized enterprise (SMEs). Growing adoption of cloud-based services by SMEs has increased the demand for customized standard applications, used to meet specific business needs. Enterprises are moving their business process to the cloud to gain a competitive advantage across all major verticals in the emerging market. Cloud integration also ensures compliance with regulatory standards.
Rising Need for the Reduction of Operational Costs and Improvement of Productivity
BPaaS provides companies the opportunity to use cloud software on a pay-per-use model, instead of having to invest on hardware and maintenance, which decreases the operational costs significantly when compared to conventional methods. Companies have also been identified to deploy BPaaS because of its increased mobility, as a company can access the solution from any geographical location. This approach provides enterprises the opportunity to grow and expand at a much faster rate without considerable infrastructural costs, while improving the productivity of an enterprise. Across the world, various organizations have initiated the deployment of BPaaS solutions, to increase productivity, decrease cost, and improve scalability, while offering reliable security. The BPaaS solutions allowed some organizations to save up to USD 40 million of TCO each, by harnessing synergies from productization of services and eliminating waste, thereby, prompting other key players to follow suite. The above-mentioned factors are expected to boost the market’s growth.
BFSI Sector to Record Steady Growth during the Forecast Period
Companies across the insurance and banking sectors have been identified to deploy BPaaS solutions to gain productivity and efficiency in the fastest and safest way possible. BPaaS model is considered to be much faster than traditional on-premise BPO models, making it more effective in the banking sector. Moreover, the BPaaS model offers BPO providers the flexibility to extend the level of services that are provided to clients. The agility of cloud-based software in BPaaS enables the BPO providers to cater to a wider range of consumer base, thereby, making it an efficient choice in the BFSI sector and promoting its growth.
North America Poised to Dominate BPaaS Market
There is a conscious effort to build a cost-effective infrastructure and increase the flexibility of the system to comply with the changing business environments. This coupled with increased adoption of BPaaS solutions in sectors, such as healthcare, telecom, BFSI, transportation and logistics, retail, and utilities, are driving the market growth. BPaaS helps SMEs avoid expensive recruitment processes, which have resulted in the deployment of this solution by several SMEs, for increased efficiency. Small businesses are considered to be the backbone of the US economy, as they have created around two-thirds of all new jobs over the recent times. Owing to stronger sales growth, improved profitability, and positive hiring trends, this trend of SMEs is expected to increase during the forecast period, thereby, proportionately pushing the BPaaS market forward.
Key Developments in the Market