Business Process as a Service (BPaaS) Market size is expected to grow at a significant CAGR from 2021-2027. BPaaS adoption is increasing as enterprises focus on complying with regulations and achieving better agility to minimize time-to-market. The continuous growth in cloud adoption for optimizing and automating business processes will further boost the adoption rate. From inventory management to organizing email and handling customer records, BPaaS helps companies facilitate the delivery of products and services in a streamlined and automated manner with the help of cloud technologies.
The demand for low-cost IT infrastructure and data accessibility is leading to an increased need for business process analytics, augmenting the BPaaS market forecast. Businesses and enterprises globally are focused on creating a mobile workforce, especially since the outbreak of the COVID-19 pandemic, that allows employees to access data remotely via internet services. According to a CNBC survey published May 2020, more than 52% of respondents were working from home and 48% said they were happy to work remotely. Consequently, the demand for virtual sets of IT applications such as storage, server, networks, and others is increasing.
BPaaS refers to the delivery of business process outsourcing (BPO) services that are sourced from the cloud and built for multitenancy. It offers companies the technology, processes, and people they need for operating as a pay-per-use service with the help of a cloud-based system. The use of BPaaS reduces the total cost of ownership significantly by offering an on-demand solution based on services required.
BFSI sector is anticipated to acquire a substantial share of the BPaaS market by 2027. The rise in cloud adoption and digital services is propelling the deployment of BPaaS in BFSI applications. BPaaS solutions help consumers with onboarding activities, buy and sell operations, know your client (KYC) processes, accounting, and fund administration. BFSI companies are leveraging the technology for cross-product processing, client portfolio administration, and regulatory reporting. The evolving commercial and regulatory requirements are encouraging companies in the BFSI space to implement business process as a service model.
Europe BPaaS market revenue is projected to expand at a steady pace in the next few years. This can be attributed to the increased adoption of cloud and digital technologies across industries. Enterprises both big and small are investing in big data analytics and cloud computing platforms to keep up with the digital transformation. The rise in teleworking population due COVID-19 pandemic has led to an increased demand for BPaaS solutions. Post COVID-19 crisis, the demand will be amplified by the rise of connected devices and BYOD trend.
Accenture, Computer Science Corporation, HCL, Infosys Limited, DXC Technology, Tech Mahindra, IBM, Oracle, TCS, WNS, Cognizant, eBuilder Sweden, Wipro, Capgemini, Fujitsu, Genpact, SAP SE, EXL, ADP LLC, and NGA Human Resources are a few prominent BPaaS solutions providers around the world. These companies are continuously working towards product improvement to develop and roll out innovative BPaaS tools for various end-users.
Some of the companies are expanding their portfolio through strategies such as acquisitions and partnerships. In March 2021, for instance, Tech Mahindra had acquired a 70% stake in Perigord Asset Holdings Ltd., a leading BPO services firm. The deal will help Tech Mahindra accelerate priorities around platform-led BPaaS offerings to expand its global footprint and strengthen its position in the digital supply chain in the healthcare space.
The BPaaS industry has experienced a positive growth trend throughout the COVID-19 pandemic due to the rapid switch to remote working practices. With an exponential rise in cloud usage, BPaaS adoption among SMEs and large enterprises has increased considerably. In the healthcare sector, the rising use of digital solutions such as telehealth, remote patient monitoring, and electronic medical records has created a strong outlook for BPaaS providers.