The business-process-as-a-service market was valued at USD 7.24 billion in 2019, and it is expected to reach USD 24.85 billion by 2025?at a CAGR of 22.91% during the forecast period (2020-?– 2025). The increasing integration of robotic process automation (RPA) and the Internet of Things (IoT), with BPaaS, is a trend that aids in the growth of the market.
- Business-process-as-a-service (BPaaS) has primarily risen as a cost-effective alternative for businesses, basically to optimize their services and focus on their core competencies, while outsourcing other functions like finance and accounting, supply chain management, and other commodity services.
- The demand for business process management is increasing at a robust rate across the world, due to the emergence of advanced technologies, such as artificial intelligence, machine learning, and other intelligence solutions.
- BPaaS delivery model presents significantly greater utility through the vertical integration of technology infrastructure, proprietary software applications, and people for the business-process services delivery.
- Businesses can eliminate the need for multiple vendor relationships to work for the company, which reduces the switching costs across the delivery life cycle and helps in realizing the value drivers of economies of scale and scope.
Scope of the Report
Business-process-as-a-service (BPaaS) is a term defined for a specific type of web-delivered or cloud hosting solutions that benefits an enterprise by assisting with business operations. BPaaS basically means that the business process is being automated through a remote delivery model.
Key Market Trends
Reduction of Operational Costs and Productivity Improvement to Drive the Market
- Business-process-as-a-service (BPaaS) provides executable business processes to the clients over the internet, because of which it is increasingly being adopted by companies across the globe.
- BPaaS presents the opportunity to use cloud software on a pay-per-use model to an enterprise, instead of having to invest in costly hardware and incur maintenance cost, which decreases the overall operational costs significantly when compared to the conventional methods.
- Companies have also deployed BPaaS solution because of its increased mobility, as a company can access the solution from any geographical location.
- This solution provides enterprises with the opportunity to grow and expand at a much faster rate without incurring considerable infrastructural costs while improving the productivity of the enterprise.
- With the rapidly growing market for business process management and also the companies around the globe constantly improving their IT infrastructures, it is expected that these factors will boost the demand for BPaaS market.
North America Occupies the Largest Market Share
- The North American region is expected to occupy the largest market share in the forecast period, as several end-user organizations (both small and large-scale) are skewing towards the usage of technology to optimize business processes.
- Moreover, there is an effort to build a cost-effective infrastructure and also increase the flexibility of the systems to comply with the modern business environment. This coupled with the increased adoption of BPaaS solutions in industries, such as healthcare, telecom, BFSI, transportation and logistics, retail, and utilities, are driving the market growth in the region.
- Small businesses are considered to be the backbone of the US economy, as they have created around two-thirds of new jobs over recent times. Owing to the stronger sales growth, improved profitability, and positive hiring trends, the SMEs are expected to increase during the forecast period, thereby, directly pushing the BPaaS market forward.
The business-process-as-a-service market is highly competitive with the presence of many small and large players. The market appears to be mildly concentrated and the key strategies adopted by the major players are product innovation and mergers and acquisition to expand their reach and stay ahead of the competition. Some of the major players are SAP SE, IBM Corporation, Oracle Corporation among others.
- March 2018 - IBM carried out innovations in its product portfolio, by adding a cloud private data, which is designed to help organizations utilize the data science and machine learning techniques, to generate valuable insights from data.
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