BPaaS: Key market research findings
- Growing focus on cost-effective business operation
- Rise in business process automation
- Leading vendors include Accenture, Cognizant Technology Solutions, International Business Machines, Infosys, and Tata Consultancy Services
Technavio has released a new report on the global BPaaS market, which is expected to grow at a CAGR of around 12% between 2016 and 2020. Business process-as-a-service (BPaaS) or cloud-based BPO services refer to the delivery of BPO services from the cloud. The BPO solutions are hosted on a remote infrastructure and are managed by the cloud providers. BPaaS reduces the labor count because of it automated nature and cuts costs in the process. Some of the key solutions delivered through BPaaS include specialized HR solutions, contact centers, payroll, and F&A. The Americas is the largest revenue-generating region in the market and will likely occupy around 49% of the total market revenue. Much of this region’s growth can be attributed to the increased adoption of BPaaS solutions, the conscious effort to build a cost-effective infrastructure, and the rising need to increase the flexibility of the system to comply with changing business environments.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“One of the latest trends being witnessed in this market is the drift towards automated BPO operatios which allow service providers to improve their sustainability in the market. There is growing emphasis on developing reusable service delivery platforms, scalability, and automation by leveraging new technological tools for automatic reconciliation, which will take less time in integrating data from any internal or external source. The automation of business process also helps enterprises to operate and control additional application software through the existing application’s user interface,” says
The HR segment dominated the market in 2015 and accounted for about 30% of the total market share. The surged focus on core business activities and the subsequent requirement to reduce operational costs are compelling enterprises to outsource back-office operations as it is cost-effective and helps in redirecting resources to core business activities. These factors will continue to fuel the demand for business process outsourcing during the forecast period.
Due to the presence of many large and small business process outsourcing companies, the global BPaaS market is highly fragmented. Therefore, to enhance customer experience and to differentiate themselves from the competitors, players are focusing on providing sophisticated products and services using business analytics, process automation software, and social media platforms. Due to this market’s high growth potential, a huge number of new players are likely to foray into the market and this will intensify the level of vendor competition in the next four years.
A more detailed analysis is available in the Technavio report, Global BPaaS Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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