Business Process as a Service Market by Business Process (Human Resource Management, Accounting & Finance, Sales & Marketing, Customer Service & Support, Procurement & Supply Chain, Operations and Others), Organization (Small & Medium Enterprises and Large Enterprises), Application (BFSI, Telecom & IT, Manufacturing, Ecommerce & retail, Healthcare, Government and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The global business process as a service market was valued at USD 50.2 billion and is projected to expand at a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the reduced operational costs, lower Total Cost of Ownership (TCO), and faster time to market (TTM).

Business process as a service, or BPaaS, is a type of business process outsourcing (BPO) that is offered over the cloud. BPaaS is completely flexible and connects to other services such as SaaS, PaaS, and IaaS. By leveraging the availability and efficiency of a cloud-based system, BPaaS offers businesses with the people, processes, and technology they need to operate as a pay-per-use service. By delivering an on-demand solution depending on services required rather than purchasing a package deal connected to a particular application, this approach to operations substantially decreases total cost of ownership. For decades, businesses have been automating business operations. They were obliged to perform it manually or programmatically at first. BPaaS allows businesses to stay on top of industry best practices and technological developments. With BPaaS's unique operating flexibility and agility, companies can simply boost service levels during peak periods and bring new products and services to market faster. Processes may be implemented manually or through automation in certain situations by whole business-process outsourcing organizations. With the introduction of cloud computing, this mindset is beginning to shift. Companies are increasingly focusing on a more service-oriented approach to services. It is feasible to choose a process application that isn't connected to a particular application rather than assuming you need a packaged application that contains business logic, data, and processes. HR operations like as payroll and benefits administration, procurement, advertising, marketing, and industrial operation procedures are examples of outsourcing services supplied under the BPaaS model.

Major IT companies such as IBM (US), Accenture (US), and Wipro (India) are among the top vendors of BPaaS solutions (India). These businesses offer solutions for a wide range of business processes. Other companies, such as Salesforce.com, specialize on certain business processes, such as customer relationship management (CRM). BPaaS allows a firm to get access to industry best practices for non-value-added procedures as well as standard internet apps and protocols, all while focusing on their core value-adding business operations. From a strategic standpoint, BPaaS allows businesses to transition from capital to operational expenses. Bringing a business process in-house necessitates a significant investment (e.g., hardware, software, human, and other physical resources). These expenditures are replaced with more flexible operating expenses with BPaaS. (e.g., a fixed monthly fee per number of users). This shift is in line with current IT service trends, which have been fuelled by the widespread availability of cloud computing capabilities. Companies are increasingly viewing IT services and resources as commodities that may be acquired on an as-needed basis. BPaaS extends the concept of commoditization to business processes to some level.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing demand for data accessibility through internet services and low-cost IT infrastructure by enterprises globally are major factors boosting the market growth during the forecast period.
• Growing need for business process automation various industry verticals such as BFSI, Telecom & IT, Manufacturing, Ecommerce & retail are adopting BPaaS solutions is expected to drive the market growth during the forecast period.
• Increasing adoption of cloud computing by SMEs owing to its benefits such as reliability, improved uptime, improved IT services, flexibility of data access, and operational speed are anticipated to push the market growth.
• Growing need for businesses to comply with information security rules in order to avoid large penalties and instill trust in their consumers are the major factors propelling the market growth during the forecast period.
• Increasing data security concerns as a result of external hacks as well as internal security failures are projected to hinder the market growth.
• Lack of IT skills and knowledge in underdeveloped countries presents as key challenge that can hamper the market growth during the forecast period.
• Extensive focus on R&D for new product development and technological advancements are projected to offer lucrative opportunities for the market players.
• Increasing use of BPaaS solutions for simplifying numerous workflows by scheduling them in an automated process is expected to create immense opportunities for the market player during the forecast period.

Scope of the Report

The report on the global business process as a service market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Customer service & support segment is expected to account for a key share
Based on business process, the business process as a service market is segmented into human resource management, accounting & finance, sales & marketing, customer service & support, procurement & supply chain, operations & others. The Customer service & support segment is expected to account for a key share of the market during the forecast period owing to rising number of companies are trying to overhaul their customer service operations. The emphasis is on lowering operating costs while flexibly scaling up operations/processes associated with shorter product life cycles. Customer service & support systems assist with customer care, asset/warranty management, contract management, field force management, and service performance management, among other things.

On the other hand, the accounting & finance segment is anticipated to expand at a rapid pace during the forecast period as it assists in the optimization of financial operations in order to boost revenue, enhance margins, and increase cash flow.

Large enterprises segment is expected to hold a key share
Based on organization, the business process as a service market is bifurcated into small & medium enterprises and large enterprises. The large enterprises segment is expected to hold a key share of the market during the forecast period as large businesses concentrate their efforts on controlling related processes and procedures, which are vulnerable to malware, spam, and viruses. BPaaS has proven to be an excellent response to these threats. Large businesses are primarily concerned with systematic business processes such as human resource management, accounting, monitoring sales and other financial records, storing employee and customer data, and other procurement-related services.

On the other hand, the small & medium enterprises segment is anticipated to expand at a rapid pace during the forecast period as these businesses are focusing on processing their services in order to obtain a competitive advantage. They are also benefiting from lower operating costs and a lower total cost of ownership. During the projected term, this will undoubtedly boost the segment.

Banking, financial services, and insurance (BFSI) segment is expected to constitute a key share
Based on application, the business process as a service market is segmented into BFSI, telecom & IT, manufacturing, ecommerce & retail, healthcare, government, and others. The banking, financial services, and insurance (BFSI) segment is expected to constitute a key share of the market during the forecast period due to its increased adoption of cloud computing which in turn has helped in attaining efficiency and rebalancing expenses on systems.

On the other hand, the ecommerce & retail segment is anticipated to expand at a rapid pace during the forecast period as BPaaS helps SMEs and online retailers in improving their marketing, sales, and services. Furthermore, favorable government regulations and increasing number of startups are also expected to drive the market growth further.

Asia Pacific is anticipated to dominate the market
On the basis of regions, the business process as a service market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market during the forecast period. The regional market growth can be attributed to rising number of startups in the retail and consumer products industries in countries such as China, India, and Japan are credited with the region's growth.

On the other hand, North America is expected to exhibit a rapid growth rate in the coming years due to rapid use of cloud computing, the US government and healthcare industry have implemented business process as a service widely. Furthermore, strategic agreements and collaborations are assisting in the creation of user awareness, therefore expanding the market.