Back Office Workforce Management Market

The global back office workforce management market size was USD 3.7 Bn in 2022 and is likely to reach USD 9.6 Bn by 2031, expanding at a CAGR of 11.2% during 2023–2031. The market growth is attributed to the increasing usage of cloud-based workforce management software for reducing traditional labor-intensive processes to save time and for effective workforce utilization.

Back office workforce management is a technology bouquet, utilized by organizations to maximize the productivity of employees. Estimations of labor requirements on an hourly and daily basis are carried out through workforce management tools. Business management processes are efficiently handled by this solution. It includes workforce management software, HR software modules, and analytical tools that help to streamline business processes.

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Workforce management (WFM) is efficient in business expansions, for the creation of forecasting outlines, scheduling, budgeting, and the effective running of business operations. It automates the business process. However, strategic goals can be met through the effective use of automation through the simultaneous improvement of efficiency.

Back office workforce management platforms aid in reducing paperwork, which in turn boosts the organization’s security by eliminating associated threats. It involves the strategic allocation of people, resources, attendance tracking, and complying with workplace regulations. Optimizing productivity and risk reduction are the intended end objectives of back-office workforce management software.

The use of artificial intelligence (AI) in workforce management helps to examine the skill sets of employees. Matching employees with the necessary skill set according to work types, prior work experience, abilities, and career choices is managed by AI-based workforce management systems. AI-integrated solutions manage enormous amounts of data with the generation of objective data reviews than subjective human assessments. This enables managers in evaluating employee performances fairly, without bias.

The COVID-19 pandemic propelled the back office workforce management market, due to the abrupt shutting of businesses owing to the government-imposed lockdown restrictions. This in turn decreased the manpower at workplaces and encouraged businesses to implement remote working structures. However, managing employees became a top priority in remote working, which encouraged several organizations to opt for cloud-based back office workforce management solutions that fueled the market.

Back Office Workforce Management Market Dynamics

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Major Drivers

Growing requirement for workforce analytics from large enterprises is anticipated to boost the demand for back office workforce management. Workforce analytics play a crucial role in scheduling and reviewing employee performance. Performance management programs through workforce management allow organizations to achieve their goals with quality and increase productivity.

Rapid expansion of new businesses across the globe and the increasing demand for business automation are likely to fuel the market. The number of new enterprises in the US grew up to nearly 4.5 million, which is 20% more than the existing 3.5 million in 2019.

Existing Restraints

Lack of awareness about back office workforce management solutions among emerging businesses is likely to hamper the market growth. Moreover, the high costs of workforce management software and upgrading existing systems are likely to restrain the market to a certain limit.

Emerging Opportunities

Rising demand for mobile apps from organizations to create smart workplaces is expected to create a lucrative opportunity in the market. Availability of all work-related materials combined into one app ensures the smooth functioning of employees either from the campus or from remote locations. It provides consistency in employee experience.

Scope of Back Office Workforce Management Market Report

The report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Back Office Workforce Management Market Segment Insights

Based on component, the back office workforce management market is bifurcated into software and services. The software segment is expected to expand at a significant growth rate during the projection period, due to the wide applications in scheduling and workforce tracking. Streamlining and automating processes for effective management of workers' time and efficient deployment of the labor force is likely to propel the use of back office workforce management software.

The services segment is expected to register a robust growth rate during the forecast period, owing to the availing of professionally backed office management services that comprise maintenance, implementation, training, and support. It helps to expand or upgrade systems without hiring and training employees. It further assists in schedule changes and provide flexibility.

On the basis of solution, the market is segmented into process analytics, robotic process automation, performance management, back office optimization, and others. The robotic process automation segment is expected to expand at a significant growth rate during the projection period, due to the rising deployment, creation, and management of robots that emulate human behavior.

Flexibility, profitability, and responsiveness of business processes are improved through robotic process automation (RPA). It further enhanced employee engagement, productivity, and satisfaction by eliminating redundant day-to-day work routines. Growing demand for business automation is likely to boost the segment.

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In terms of deployment, the market is divided into on-premise and cloud-based. The cloud-based segment is anticipated to hold a key share of the market during the forecast period, owing to the cost optimization factors, reduction in deployment time, and license change capabilities. As per reports by the International Customer Management Institute (ICMI), more than 36% of companies that use on-premise solutions are switching to cloud-based solutions due to the flexibility.

The self-service capabilities of cloud-based workforce management solutions assist organizations in lowering manual efforts that are necessary for completing labor-intensive jobs. The ability to prevent data theft makes cloud-based solutions highly safe and secure. Enterprise software and real-time data are hosted on cloud-based platforms that are accessible from any location.

Based on end-user, the market is segregated into transportation, IT & telecom, retail & e-commerce, BFSI, and others. The IT & telecom segment is expected to dominate the market during the forecasted period, owing to the rising requirement to efficiently handle large traffic. IT & telecom industries need automation in workforce tasks, as it handles large amount of data. Self-service portals provided by IT & telecom for their consumers through web-based access are preferred by over 90% of customers which is likely to drive the segment.

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In terms of region, the global back office workforce management market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, owing to the increasing investments in research and development and in IT projects. The necessity to manage a large workforce is fulfilled through the use of workforce management systems. Increasing medium and large-scale enterprises at a rapid pace is likely to boost the regional market.

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Segments

The global back office workforce management market has been segmented on the basis of

Component

• Software
• Services

Solution

• Process
• Process Analytics
• Robotic Automation
• Performance Management
• Back Office Optimization
• Others

Deployment

• On-premise
• Cloud-based

End-user

• Transportation
• IT and Telecom
• Retail and E-Commerce
• BFSI
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• NICE
• Verint Systems, Inc.
• Calabrio Inc.
• Genesys
• OMNIA Partners, Inc.
• ActoiveOps Limited
• Intradiem
• Verint Systems Inc.
• Genesys
• ActiveOps PLC
• Alvaria, Inc.
• Intradiem
• Open Text Corporation
• Oracle Corporation
• Monet Software
• Aspect Software
• Cicero Inc.
• Teleopti
• Kronos Incorporated
• Infor Group
• Calabrio Inc.

Competitive Landscape

Players in the global back office workforce management market are NICE; Verint Systems, Inc.; Calabrio Inc.; Genesys; OMNIA Partners, Inc.; ActoiveOps Limited; Intradiem; Genesys; ActiveOps PLC; Alvaria, Inc.; Intradiem; Verint Systems Inc.; Open Text Corporation; Oracle Corporation; Monet Software; Aspect Software; Cicero Inc.; Teleopti; Kronos Incorporated; Infor Group; and Calabrio Inc.

These companies adopted several strategies such as mergers, acquisitions, partnerships, collaborations, and product launches to increase their presence. For instance,

• In 2022, Genesys collaborated with Thrive to transform their relationships with employees by developing well-being tools for the workforce and workflow management solutions. The tools were aimed at de-stressing employees in real-time.

• In 2022, Verint Systems Inc., headquartered in Melville, NY, launched One Workforce for unifying bots and humans. The customer engagement workforce including bots and humans is channelized through One Workforce.

• In June 2021, Omnia and ADP signed an agreement to provide human resource and payroll management solutions for educational and government organizations. The deal includes the involvement of local governments and international governments of multiple countries.