Service Model – Segment Analysis
Software as a Service held the major share of 38.85% in 2019. Adoption of software as a service (SaaS) by major number of organizations set to drive the market growth owing its speed and accuracy. With this platform, information can be retrieved more quickly which helps in improving the productivity of employees. Customer base can be increased since this service model allows small and medium businesses to use a software which set to drive the market. Generally, SaaS solutions reside in in cloud deployment that are scalable and have integration with other SaaS offerings. Additionally, Costs and efforts associated with SaaS upgrades are lower than the traditional model and this set to drive the market growth.
Application – Segment Analysis
BFSI is the fastest growing segment in Business Process as a Service market and estimated to grow at a CAGR of 10.48% during forecast period 2020-2025. In BFSI sector, business process as a service (BPaaS) solutions assist the consumers on onboarding activities, Know Your Client (KYC) processes, buy and sell-side operations, cross-product processing, regulatory reporting, client portfolio administration, fund administration, and accounting. BPaaS assist banks and financial institutions in delivering the expectations of socially connected consumers. It also quickly integrates with new groups of service partners, fintechs and 3rd party providers and this set to drive the market growth.
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Geography- Segment Analysis
North America dominated the Business Process as a Service market in 2019 with a market share of 35.86%, followed by Europe and APAC owing to the early adoption of advanced technologies. Additionally, the presence of top BPaaS service providers, high adoption rate of cloud computing in this region set to drive the market. The high growth rate can be majorly attributed to high adoption of advanced technologies such as cloud, big data analytics and others by various organizations in this region. Additionally, high investments in adoption of BPaaS is set to drive the market in this region.
Drivers –Business Process as a Service Market
- Growing need in order to comply with regulations
Many Governments across worldwide lay regulations for all enterprises for data security and business process. Every company should comply with government rules and regulations in order to run their businesses. Health Insurance Portability and Accountability Act (HIPAA), Hitech Omnibus Rule, Health Information Technology for Economic and Clinical Health (HITECH), and Payment Card Industry Data Security Standard (PCI DSS) are a few regulations that have an impact on this market. These regulations assist companies in improving their information security strategy by providing guidelines and best practices based on the company’s industry and type of data they maintain. This set to drive the market growth.
Increasing acceptance of technologies is set to drive the market growth
Increasing acceptance of technologies such as business analytics, cloud computing, social media platforms, and process automation software is set to drive the market growth. Growing need for business agility and faster time to market have created demand for adoption of these technologies thereby driving the market. Adoption of automation technologies in industries and enterprises have been driving BPaaS market. BPaaS provides support for the operation of the various services and manage the way to support business requirements which set to enhance the market growth.
Challenges – Business Process as a Service Market
- Data Security and Compliance Concern is the major challenge
Data Security and Compliance concern has become one of the major challenge in business process as a service market. The risk of losing data and security concerns have made top management of the businesses to have a cautious approach towards BPaaS market and reduces the effectiveness. Increasing deployment on cloud based model have increased the demand for adopting security software for data protection. This hampers the growth of BPaaS market. However, stringent regulations in order to protect the privacy and security breaches related to cloud services create opportunities for the market growth.
Technology launches, Acquisitions, and R&D activities are key strategies adopted by players in the Business Process as a Service market. Business Process as a Service top 10 companies include Cognizant, Capgemini, Tata Consultancy Services, Wipro, Genpact, Accenture, IBM, HCL, Canon, Oracle, SAP and others.
- In April 2020, Wipro which is one of the business process service had partnered with Nutanix in order to launch digital database services. This enables enterprises or organizations to efficiently manage databases by optimizing time, thereby increasing the Company’s BPaaS market share.
- In March 2018, IBM expanded its innovations in its product portfolio, by adding a cloud private data, which is designed to help organizations or enterprises in utilizing the data science and machine learning techniques, in order to generate valuable insights from data.