Business Process as a Service Market Trends

Business Process as a Service Market Synopsis

The business process as a service market size is expected to register a robust CAGR of 16% during the forecast period and is projected to reach a market value of USD 121.1 Billion by 2030.Business process as a service (or BPaaS) is a type of horizontal or vertical business process based on the delivery of business services over the cloud platform. The Platform as a Service (PaaS), Software as a Service (SaaS), and Infrastructure as a Service (IaaS) provides a base to those business services, including payroll, printing, and e-commerce, using cloud technology. The above-mentioned services are accessible from anywhere with web-enabled devices such as personal computers (PCs) andsmart devices. Since BPaaS is connected to other cloud-native services, which makes it completely configurable. Additionally, BPaaS enables end-user organizations to demand and pay only for what they use. 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

However, organizations can utilize people, processes, and technology as per their requirement and paying capabilities, making BPaaS a process-oriented and cost-efficient model owing to the reduction in the total cost of ownership instead of highly investing in the purchase of the whole service package. Further more, BPaaS ensures it is aligned to the industry best practices as well asongoing technological advancements. Moreover, with BPaaS,organizations can seamlesslyexpand their service levels when and where required,during peak demands and vice versa.

Traditionally, organizations used to depend on the in-house capabilities that shrank their profit margins andend-use client dissatisfaction,which would result inproject failures and cause financial losses. However,BPaaS helps outsource any business process,including customer service, industry operation process, sales, and HRM, which usually requires expertise to work on specific functions, and end-use organizations cannot spend on hiring experts from each business function listed above. Additionally, some other benefits offered by BPaaS includethe reduced cost incurred by IT infrastructure, efficient performance across outsourced functions, enabling organizations to focus over more productive core business activities, scalable cloud environment, time zone benefits for maximum uptime & unhindered business activities, and risk mitigation.

Some of the factors that drive the business process as a service market includethe increasing adoption of cloud-based services, the need for business process optimization, and access to skilled professionals. In contrast, the rising concerns over data privacy and security are expected to hamper themarket growth. However, the rapid advancements in technology, which enable organizations to enhance process transparency and security and manage compliance issues, are expected to present lucrative growth opportunities for the players operating in the global market.

COVID-19 Analysis

The outbreak of novel coronavirus initially in China’s Wuhan province, which later spread across the globe,created an unprecedented situation for government bodies to control the spread of the deadly virus. This prompted authorities to impose stringent policies such as lockdowns, movement restrictions, and shutting down of industrial & other non-commercial facilitiesto prevent the viral spread. However, this enforcement of ‘stay at home’policies made the rapid shift from traditional business activities to digital platforms for the purpose of business continuity and customer support services during such an unprecedented situation.

This enabled BPaaS providers to flourish and scale their operations to cater to the rising demand for outsourcing. Furthermore, this rapid adoption of the digital environment has helped several organizations reducethe expenditure incurred over business travels without hampering business activities, including human resource management, finance & accounting, sales & marketing, data & analytics, customer service & support, procurement & supply chain management, and operations management.

This growth trend is expected to continue even after the pandemic situation relaxesdue to the increasing digital transformation, dependenceon the digital ecosystem, upsurge in IT expenditure budgets among SMEs and large enterprises, significant savings on employee turnover, increased productivity, and increasing availability of Internet connectivity at remote places.

Market Dynamics

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  DRIVERS

  
  

Increasing adoption of cloud-based services

The adoption of advanced technologies such as cloud-based deployment has benefitted organizations in reducing the overall costincurred to carry out business processes, mitigate risk, and achieve scalability for maximum efficiency. Cloud technology offers a subscription-basedlicensing model that helps business organizations pay only as per their usage, decrease in development and maintenance cost incurred, minimize the workload over the IT staff, and outsource required infrastructure and expertise, to name a few.Furthermore, the time required to adopt the desired software applications is the least. Hence, it helps organizations prevent losses incurred in case they need to wait for weeks or even months to use the software system and increase cost and loss of productivity in their operations.

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  OPPORTUNITIES

  
  

Rapid advancements in technology

The integrated BPaaS solutions with advanced technologies such as high-performance cloud (HPC) computing, AI, IoT, and blockchain have enabled BPaaS providers to serve and enhance their clients’ needs while cutting down on cost, easy & seamless deployments, align to the business processes, and so on.Additionally,integration of other software solutions, such as productivity, business analytics, robotic process automation (RPA), social media platforms, and process automation, haspositively impacted the BPaaS market growth.

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  RESTRAINTS

  
  

Rising concerns over data privacy and security

The sensitive information shared over the BPaaS platform among the operating teams is proneto cyber threats and data breaches. The number of unethical cyber activities has increased with time in the past and is expected to surge with a rise in the adoption of digital platforms among enterprises. Additionally, as the organizations can customize their outsourcing needs to any level with traditional BPO, with the adoption of BPaaS, the working style drastically changes to the new methodology, which faces several oppositions from their staffs.

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  CHALLENGES

  
  

Lack of efficient transition and transformation initiatives

BPaaS offers organizations to overcome numerous hurdles they face in their day-to-day business operations. However, shifting from a conventional working environment to cloud-native operations is time-consuming and can create new troubles that must be handled efficiently. Moreover, the direct jump to the new platform without efficient planning may lead to severe business losses and project delays.

Segmentation

The globalbusiness process as a service market has been segmented based on process type, organization size, vertical, and region.

By process type, the globalbusiness process as a service markethas been divided into human resource management, finance & accounting, sales & marketing, data & analytics, customer service & support, procurement & supply chain management, operations, and others.

Based on the organization size, the business process as a service market is bifurcated into large enterprise and small & medium enterprise.

Based onvertical, the global business process as a service market has been segmented into BFSI, IT & telecommunications, manufacturing, healthcare, retail, media & entertainment, government, and others.

Theglobalbusiness process as a service market has beenanalyzed for five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

Regional Analysis

The global business process as a service market is estimated to register arobust CAGR of approximately 17.1% over the forecast period. The geographic analysis of the business process as a service market has been conductedfor North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

North Americais expected to register the largest market share owing to the risein demand for BPaaS plat forms across end-use industry verticals in this region. The US is expected to be the leading the country-level market in North America owing to the factors such as rising demand for BPaaS for various business operations, including human resource management, finance & accounting, sales & marketing, data & analytics, customer service & support, procurement & supply chain management, operations, and others. Additionally, the presence of major players such asCognizant (US), IBM Corporation (US), Entercoms (US), Conduent, Inc. (US), DXC Technology Company (US), and Celegence LLC (US). Adding more, these key players are investing heavily in the research & development of BPaaS technology as per the clients’ needs to provide peace of mind and enriched customer experience.

Meanwhile, Europe is expected to be the second-largest market during the review period due to the higher adoption of cloud-native solutions, including BPaaS,mainly from the industry verticals such as BFSI, IT & telecommunications, manufacturing, healthcare, retail, media & entertainment, government, and others. Additionally, the benefits offered by BPaaS such as agility, efficiency, and cost saving, among others. Asia-Pacific is anticipated to be the fastest-growing market in the global business process as a service market during the forecast period mainly due to the digital transformation, rising adoption of cloud-based services, increased demand for insourcing of various business processes, and others.

The markets in the Middle East & Africa and South America are expected to register steady growth during the forecast period with the growing demand for digital solutions, automation, and rapid digital transformation.

Competitive Analysis

The global business process as a service market is witnessing high growth mainly due to the rising use of cloud-based solutions, shift from conventional systems to cloud platforms, increasing adoption of cloud-based services, need for business process optimization, and access to skilled professionals. Major players have opted for partnerships,acquisitions, and product developments as their key organic growth strategies to enhance their positions in the market and cater to the demands of organizations across end-useverticals.

Additionally, the industry players are working towards advancing their product offerings to cater to the changingneeds of end-use organizations and sustain the clients for longer relationships.For instance, Swiss Post Solutions Limited (Switzerland) offers Fully Automated BPaaS, Hybrid BPaaS, and BPaaS with Manual Case Handling in their BPaaS specific product offerings that enable client organizations toshift their focus to more productive tasks and offerenhanced user experience, continued client support, and flexibility.

Key Players

The key players in the business process as a service market are identified based on their country of origin, presence across different regions, recent key developments, product diversification, and industry expertise. These include, 

• IBM Corporation (US)


• Wipro Limited (India)


• NTT DATA, Inc. (Japan)


• Swiss Post Solutions Limited (Switzerland)


• Entercoms (US)


• Avaloq (Switzerland)


• Conduent, Inc. (US)


• DXC Technology Company (US)


• Tech Mahindra Limited (India)


• Celegence LLC (US)


• Flatworld Solutions Pvt. Ltd. (India)


• Tata Consultancy Services Limited (India)


• Business Connexion (Pty) Ltd. (South Africa)

The key strategies adopted by most of the players are partnerships, acquisitions, agreements, and collaborations.

Impact of COVID-19

The global business process as a service market has reported high adoption of different cloud-based solutions for business continuity during the pandemic raised due to the outbreak of novel coronavirus. It shifted from conventional working environments to the new normal of remotely working scenarios to break the chain of spreading the disease infections. The adoption of digital platforms surged during the outbreak and is expected to continue until the time of vaccination of each individual sitting in remote places. On the other hand, businesses are investing in expanding their IT budgets to adapt and cater to customer needs to ensure business continuity. Additionally, end-use verticals such as BFSI, IT & telecommunications, healthcare, media & entertainment, government, and othersare projected to expand further with their digital infrastructure spending.

Key Developments

August 2022 - Accenture acquired cloud data provider Tenbu, an expert on analytics, big data, and machine learning-based solutions for intelligent decision-making and planning. The Data & AI team within Accenture Cloud First will now be supported by over 150 certifications with 170 data experts from Tenbu.

August 2022 – Cognizant announced that AXA United Kingdom & Ireland had chosen it as a technology partner to consolidate, modernize, and manage some of its IT operations. AXA United Kingdom & Ireland is transforming its technology ecosystem to create a more digitally-enabled, modern, agile IT environment that can deliver lower total cost of ownership.

May 2022 - Capgemini opened a new office in Malaga, Spain, which features a dedicated Cyber Defense Center (CDC) and Cloud Services Center. Besides strengthening the Group’s international network of Cyber Defense Centers through AI-powered cybersecurity services, ERP Security, and Incident Response, Capgemini will also provide specialized cloud technology services in Malaga to national or international companies who want to leverage the cloud in their journey toward becoming smart industries.

In November 2022, Poland-based Infosys Business Process Management (BPM) has launched an advanced Artificial Intelligence (AI) and Automation center in partnership with IBM. The partnership between IBM and Infosys BPM aims at enabling the customers to achieve their goals by creating new ways of automating business processes and finding solutions for clients to innovate within hybrid cloud environments. Customers will access numerous digital solution offerings across data space using AI tools and hyper-automation such as IBM Watson Discovery, Watson Assistant, SaferPayments by IBM Blockchain Technologies, Cognitive Supply Chain Solution from Sterling Commerce, Risk Analytics Tools from IBM Algo Suite or Ajilitee’s Sustainability Performance Management Software for green initiatives just to mention but a few.

May 2022: Oracle has integrated threat management into its comprehensive range of cloud security capabilities. Threat management has been integrated into Oracle’s extensive cloud security capabilities. For customers to secure their own applications and data, these recently introduced features expand the area of coverage across Oracle Cloud Infrastructure (OCI) as well as the Oracle applications stack.

March 2022: New services and capabilities from Oracle Cloud Infrastructure give customers more flexibility. Eleven additional computing, networking, and storage services and features are being added in addition to the existing ones by Oracle Cloud Infrastructure (OCI), which can help clients achieve better performance with less expenditure. Previously, clients could only get flexible core infrastructure services that adjust resources automatically according to application requirements, thus significantly reducing costs.

Intended Audience

• Value-Added Resellers (VARs)


• Banking & Financial Institutions


• Network Operators


• Technology Consultants


• Investors and Venture Capitalists


• Chief Financial Officers