Global Business-Process-as-a-Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Business-Process-as-a-Service Market is Segmented by Size of Organization (Small and Medium Organizations, Large Enterprises), by Process (Human Resource Management, Accounting and Finance, Sales and Marketing, Supply Chain Management), by End-user Industry (Government and Defense, Banking Financial Services, and Insurance(BFSI), IT and Telecommunication, Healthcare, Retail, Manufacturing) and by Geography.

Market Snapshot

Business-Process-as-a-Service Market Overview
Study Period: 2019- 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 11.21 %

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Market Overview

The business-process-as-a-service market is expected to register a CAGR of 11.21% during the forecast period from 2021 to 2026. 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. With the onset of Coronavirus (COVID-19), the vulnerability of supply chains has been exposed. For most organizations, a fragile ecosystem included providers of critical Business Process Outsourcing services. In addition, work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the speed, security, quality, and overall efficacy of services provided.

  • 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. Most of the everyday utilities have some backend BPaaS solution powering it. For instance, Paypal uses BPaaS for its internet payment system, business services for loans and accounts. Also, Microsoft Skype VoIP uses BpaaS for its connection platform while making calls.
  • Over the years, there's been a shift in the customer preference shaped by the new age digital companies transforming the economy, leading to an increase in demand for a seamless experience. Such preference has also translated the business-to-business (B2B) sector, with companies starting to demand the same level of service with consumer brands. Thereby has enabled the business to constantly improve its operational efficiency and effectiveness by adopting solutions such as BPaaS.
  • The demand for business process management is increasing at a robust rate across the world, owing to the emergence of advanced technologies, such as artificial intelligence, machine learning, and other intelligence solutions that assist in the development of new, advanced BPM platforms and technologies.
  • The rise in the volume of data generated represents an opportunity for companies across industries to capitalize. Yet businesses often failing to exploit these opportunities owing to the complexity. However, driven by technological advancements, BPaaS represents an emerging model for companies to manage the day flow efficiently at a lower cost.
  • Concerns about data security and compliance have emerged as a challenge in the market for business process as a service. The risk of data loss and security risks have caused businesses to take a cautious approach to the BPaaS market, reducing its effectiveness.

Scope of the Report

The Business-Process-as-a-Service Market is Segmented by Size of Organization (Small and Medium Organizations, Large Enterprises), by Process (Human Resource Management, Accounting and Finance, Sales and Marketing, Supply Chain Management), by End-user Industry (Government and Defense, Banking Financial Services, and Insurance(BFSI), IT and Telecommunication, Healthcare, Retail, Manufacturing) and by Geography.

Business-process-as-a-service (BPaaS) is a term for a specific type of web-delivered or cloud hosting solution that benefits an enterprise by assisting with business operations. BPaaS basically means that the business process is being automated through a remote delivery model.

By Size of Organization
Small and Medium Organizations
Large Enterprises
By Process
Human Resource Management
Accounting and Finance
Sales and Marketing
Supply Chain Management
Other Processes
By End-user Industry
Government and Defense
Banking, Financial Services and Insurance (BFSI)
IT and Telecommunication
Healthcare
Retail
Manufacturing
Other End-user Industries
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia-Pacific
China
India
Japan
Rest of Asia-Pacific
Latin America
Middle East & Africa

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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 clients over the internet, because of which companies are increasingly adopting it across the world.
  • One of the major drivers for the adoption of BPaas is its ability to move businesses away from the capital expenditure (CAPEX) to operational expenditure (OPEX) to help companies expand amidst the dynamic environment. It allows firms to substitute the hefty outlay for more flexible operational expenses, thereby decreasing the overall operational costs significantly compared to the conventional methods.
  • Companies also deployed the BPaaS solution because of increased mobility, as a company can access the solution from any geographical location. This solution provides enterprises with the opportunity to expand at a much faster rate without incurring considerable infrastructural costs while improving the enterprise's productivity.
  • Further, with BpaaS, companies would be able to leverage the maximum of their resources for completing the core activities of the business, which enables the managers to set their priorities and work more efficiently.
  • With the rapidly growing market for business process management and companies around the world continually improve their IT infrastructures, it is expected that these factors will boost the demand for the BPaaS market. For instance, owing to the multitude of challenges faced by the financial services sector, including the regulations such as General Data Protection Regulation, Second Payment Services Directive, and also the younger demographics navigation towards services providers that offer interactive platforms, demands the sector to undergo constant stream of innovations. Many industry players have already switched to SaaS and BPaaS solutions that allow them to transform and digitize their operations and drive productivity and efficiency.
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North America is Expected to Hold a Major 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 toward the usage of technology to optimize business processes.
  • The region has been witnessing a series of collaborations, mergers, and acquisitions to take advantage of this opportunity. The major driver responsible for these investments has been the continuous evolution of new technologies and deployment options to unlock enormous volumes that were previously considered non-commercial.
  • 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, is driving the market growth in the region.
  • The high availability of adequate infrastructure, presence of numerous global financial institutions, and increased adoption of IoT devices and internet users, are expected to drive the growth of the United States segment of the market studied, over the forecast period.
  • 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.
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Competitive Landscape

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.

  • August 2021 - Wipro Limited, a global information technology, business process services, and consulting company, has been offered a multi-year strategic contract to assist E.ON with its digital financial transformation. As part of the contract, Wipro would administer E.ON's new IT system, which would handle over 16,000 people across eight European nations.
  • September 2021 - HCL Technologies and MKS Instruments Inc., a global provider of instruments, systems, and solutions for advanced manufacturing processes, announced a five-year digital transformation agreement to boost performance, efficiency, and speed to market. MKS Instruments would benefit from HCL's digital and cloud-enabled transformation, which would include AI/ML-driven automation, improved user experience with end-to-end Infrastructure services, digital workplace services, and IT transformation.

RECENT DEVELOPMENTS

  • October 2020 - Accenture and ServiceNow have introduced a new business that would assist enterprises in swiftly evolving organizational processes and unlocking the value of technology investments by embracing digital workflows that create modern, personalized customer and employee experiences.
  • May 2021 - Oracle has released two new cloud-native services that aim to streamline the complicated, fragmented processes that have hindered corporate banking. Banks can accelerate regular processes like loan and credit processing by using Oracle Banking Corporate Lending Process Management Cloud Service and Oracle Banking Credit Facilities Process Management Cloud Service.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Intensity of Competitive Rivalry

      5. 4.2.5 Threat of Substitute Products

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment on the Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand for Cloud Services and Standard Operating Processes

      2. 5.1.2 Rising Need for the Reduction of Operational Costs and Improvement of Productivity

    2. 5.2 Market Challenges

      1. 5.2.1 Data Security and Privacy Concerns

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Size of Organization

      1. 6.1.1 Small and Medium Organizations

      2. 6.1.2 Large Enterprises

    2. 6.2 By Process

      1. 6.2.1 Human Resource Management

      2. 6.2.2 Accounting and Finance

      3. 6.2.3 Sales and Marketing

      4. 6.2.4 Supply Chain Management

      5. 6.2.5 Other Processes

    3. 6.3 By End-user Industry

      1. 6.3.1 Government and Defense

      2. 6.3.2 Banking, Financial Services and Insurance (BFSI)

      3. 6.3.3 IT and Telecommunication

      4. 6.3.4 Healthcare

      5. 6.3.5 Retail

      6. 6.3.6 Manufacturing

      7. 6.3.7 Other End-user Industries

    4. 6.4 By Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 United Kingdom

        2. 6.4.2.2 Germany

        3. 6.4.2.3 France

        4. 6.4.2.4 Rest of Europe

      3. 6.4.3 Asia-Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 India

        3. 6.4.3.3 Japan

        4. 6.4.3.4 Rest of Asia-Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Tata Consultancy Services Limited

      2. 7.1.2 IBM Corporation

      3. 7.1.3 HCL Technologies Ltd

      4. 7.1.4 Genpact Limited

      5. 7.1.5 Wipro Limited

      6. 7.1.6 Accenture PLC

      7. 7.1.7 Fujitsu Ltd

      8. 7.1.8 Oracle Corporation

      9. 7.1.9 Cognizant Technology Solutions

      10. 7.1.10 Capgemini SE

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Global Business-Process-as-a-Service Market market is studied from 2019 - 2026.

The Global Business-Process-as-a-Service Market is growing at a CAGR of 11.21% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

IBM Corporation, Fujitsu Ltd, Oracle Corporation, Cognizant Technology Solutions Corporation, Tata Consultancy Services Ltd are the major companies operating in Global Business-Process-as-a-Service Market.

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