Back office system integration: Key market research findings
- Increased need for automation drives the market
- The BFSI sector is the dominant shareholder in the market
- Key vendors—CGI, Consilia Technology, MuleSoft, NetSuite, and SAP SE
Technavio’s market research analysts estimate the global back office system integration market to grow at a CAGR of around 6% between 2016 and 2020. An increasing demand for automation in back office operations is the primary driving force behind growth in the market. Back office system integration solutions can automate and orchestrate back office operations in industry verticals such as banking, finance services, and insurance (BFSI) where these operations are complex. The implementation of digital solutions in the banking sector transforms its IT infrastructure and makes it possible to provide enhanced consumer experience. Currently, the Americas dominate the global back office system integration market with almost a 41% share of the overall market. Factors such as the digitalization of back office IT infrastructure in the BFSI, telecom, healthcare, and other industry sectors are likely to reflect positively on the growth of the market in this region by 2020.
The new market research report from Technavio presents a breakdown and analysis of the back office system integration software segments by end-user.
“An increase in the adoption of cloud-based integration solutions is an ongoing trend in the market. The adoption of cloud-based office management software enables the modernization of the IT infrastructure through cost-effective and flexible solutions. It also helps organizations move their supply chain management (SCM) systems from on-premise to a cloud computing model to integrate with other back office systems. Cloud-based integration services make it possible for enterprises to exchange data within or outside enterprises for commercial applications,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
During 2015, the BFSI segment accounted for around 20% of the overall market share to dominate the back office system integration market globally. Back-office operations in the banking sector are multifaceted due to an increased number of banking processes such as know-your-customer (KYC) details, loan management, invoice management, and legal processes. This sector is often faced with challenges such as uncertain economic conditions, increase in non-performing assets, stringent regulatory norms, and tightening monetary policies that differ with countries. System integration helps BFSI firms align front office software such as customer relationship management (CRM) with back-office software such as electronic payment systems to modernize and simplify the conventional process.
The key vendors in the global back office system integration market include CGI, Consilia Technology, MuleSoft, NetSuite, and SAP SE. The increase in the number of vendors offering back office management system solutions has led to the market being highly competitive. To differentiate their product from the competitors’, vendors will constantly invest in R&D and since clients select IT solutions that meet anticipated levels of SLAs, the level of competition is likely to intensify during the forecast period.
A more detailed analysis is available in the Technavio report, Global Back Office System Integration Market.
We can customize reports by other regions and specific segments upon request.
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