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Business Process-as-a-Service Market Size - By Deployment Mode (Public Cloud, Private Cloud, Hybrid), Enterprise Size (Large Enterprises, SMEs), Application, Growth Prospects, Regional Outlook & Global Forecasts, 2023 - 2032

  • Report ID: GMI7246
  • Published Date: Nov 2023
  • Report Format: PDF

Business Process-as-a-Service Market Size

Business Process-as-a-Service Market size was valued at USD 56.5 billion in 2022 and is estimated to register a CAGR of over 11% between 2023 and 2032. The integration of AI services into business processes is driving the market growth. AI technologies enhance efficiency by automating tasks, improving decision-making, and enabling predictive analytics. For instance, in October 2023, NoBroker, a proptech unicorn, expanded into a contact center intelligence sector by introducing CallZen.AI, a conversational Artificial Intelligence (AI) platform. After successfully auditing all calls with reduced transcription latency and lower overall cost, the company integrated features such as business lead generation, fraud detection, and business process management into CallZen.AI.
 

Business Process-as-a-Service Market

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BPaaS providers streamline business processes by leveraging cloud-based technologies, automation, and AI. They offer scalable solutions, eliminating the need for extensive in-house infrastructure. Automation reduces manual errors and speeds up tasks, enhancing efficiency. AI-driven analytics optimizes decision-making processes. Through standardized workflows, businesses can achieve operational consistency and agility. Additionally, outsourcing non-core functions to BPaaS providers reduces operational costs, allowing companies to focus resources on strategic initiatives while benefiting from cost-effective & streamlined processes.
 

Data security is a paramount concern hindering the business process-as-a-service market demand. Businesses, especially those dealing with sensitive customer data, worry about the safety of their information when outsourcing processes to external providers. The fear of data breaches, unauthorized access, or data theft acts as a significant barrier. To overcome this challenge, BPaaS providers must implement rigorous security protocols, compliance standards, and transparent data handling practices to build trust among their clients, ensuring data confidentiality and integrity.
 

COVID-19 Impact

The COVID-19 pandemic positively impacted the business process-as-a-service industry. With remote work becoming a norm, businesses sought BPaaS solutions for seamless operations. Cloud-based services enabled continuity, ensuring work efficiency amid lockdowns. Companies embraced BPaaS to automate processes, enhance customer experiences, and reduce costs, driving market size. The pandemic accelerated digital transformation, making BPaaS essential for businesses, fostering innovations, and creating opportunities for service providers in a rapidly evolving business landscape.

 

Business Process-as-a-Service Market Trends

The escalating demand for automating intricate internal & external business processes is a key driver propelling the business process-as-a-service (BPaaS) industry. As businesses increasingly seek streamlined operations, efficiency, and cost-effectiveness, BPaaS providers offer tailored solutions. For instance, in September 2023, Tray.io, the developer of AI-driven multi-experience iPaaS, unveiled Tray Universal Automation Cloud. This iPaaS solution significantly reduces integration time, transitioning from months to mere days. By eliminating the necessity for various tools and technologies, it streamlines the automation of complex internal and external business processes.

 

Reduced operational costs play a crucial role in driving the market revenue. BPaaS providers offer streamlined & cost-effective solutions by leveraging cloud technologies and automation. By outsourcing processes to these providers, businesses minimize expenses associated with infrastructure, software, and manpower. This cost efficiency enables companies to redirect resources toward strategic initiatives, driving profitability. As businesses increasingly seek cost-effective solutions, the demand for BPaaS offerings continues to rise, fueling market expansion.
 

Business Process-as-a-Service Market Analysis

Business-Process-as-a-Service Market, By Enterprise Size, 2021 – 2032, (USD Billion)

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Based on enterprise size, the large enterprises segment dominated around USD 40 billion revenue in 2022, due to its operational efficiency benefits. BPaaS streamlines complex processes, enabling these enterprises to focus on core activities while achieving substantial cost savings. Additionally, the scalable nature of BPaaS solutions allows large enterprises to adapt swiftly to fluctuating demands without heavy investments. This scalability, coupled with innovative technologies offered by BPaaS providers, empowers enterprises to enhance efficiency, remain competitive, and concentrate resources on strategic growth initiatives.
 

Business-Process-as-a-Service Market Share, By Industry Verticals, 2022

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Based on application, the business process-as-a-service market from Human Resource Management (HRM) segment held over USD 1.9 million revenue in 2022. Achieving success in HR solutions landscape through strategic acquisitions propels Human Resource Management (HRM) in the market.
 

For instance, in October 2023, Vensure Employer Solutions, a prominent HR/HCM technology provider and global business process outsourcing company, announced the acquisition of Resource Management Inc. (RMI), a renowned HR solutions provider based in Utah. This strategic collaboration aligns seamlessly with Vensure's expansion plans, enabling them to address a broader spectrum of client requirements and stand out in the HR solutions sector. These acquisitions bring expertise, allowing BPaaS providers to offer comprehensive solutions.
 

U.S. Business-Process-as-a-Service Market Size, 2021 -2032, (USD Billion)

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North America business process-as-a-service market accounted for 35% of the revenue share in 2022. A significant outsourcing trend is boosting the market in the U.S. U.S. businesses, especially large enterprises, increasingly rely on specialized BPaaS providers to handle non-core functions. By outsourcing tasks such as customer support, finance, and HR operations, companies can achieve substantial cost savings while benefiting from the expertise of service providers. This trend reflects a strategic approach, allowing businesses to focus on core competencies, innovations, and market expansion while ensuring operational efficiency through BPaaS solutions.
 

Business Process-as-a-Service Market Share

Major companies operating in the business process-as-a-service industry are:

  • Accenture
  • Capgemini
  • Cognizant
  • Fujitsu
  • Genpact Ltd.
  • TATA Consultancy Services Limited
  • Wipro Limited

In the BPaaS market, major companies such as TATA Consultancy Services Limited and Wipro Limited dominate due to their extensive experience, advanced technology offerings, and global presence. Their competitive edge is further enhanced through continuous innovations, strategic partnerships, and comprehensive service portfolios.
 

Business Process-as-a-Service Industry News

  • In February 2023, Oracle, a cloud technology company headquartered in the U.S., introduced Oracle banking cloud services. This innovative suite comprises modular & cloud-native services. These six services empower banks to handle scalable corporate demand deposit accounts, oversee enterprise-wide limits and collateral, facilitate real-time ISO20022 global payments, manage APIs, enroll retail customers, and develop new self-service digital experiences.
     

The business process-as-a-service market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Deployment Mode

  • Public Cloud
  • Private Cloud
  • Hybrid

Market, By Enterprise Size

  • Large Enterprises
  • SMEs

Market, By Application

  • Human Resource Management (HRM)
  • Accounting and Finance
  • Sales and Marketing
  • Customer Service and Support
  • Procurement and Supply Chain Management
  • Operations
  • Others

Market, By Industry Vertical

  • BFSI
  • IT and Telecom
  • Manufacturing
  • Retail and E-commerce
  • Healthcare
  • Government
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Kore
    • ANZ
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia

 

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of business process-as-a-service reached USD 56.5 billion in 2022 and is set to witness over 11% CAGR between 2023 and 2032, due to the rising integration of AI services into business processes.

Business process-as-a-service industry size from the large enterprises segment crossed USD 40 billion in 2022, owing to rising assistance to allow large enterprises to adapt swiftly to fluctuating demands without heavy investments.

North America garnered over 35% of the market share in 2022, attributed to the surging need for outsourcing tasks such as customer support, finance, and HR operations across the region.

Some of the major business-process-as-a-service providers are Accenture, Capgemini, Cognizant, Fujitsu, Genpact Ltd., TATA Consultancy Services Limited, and Wipro Limited.

Business Process-as-a-Service Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 354
  • Countries covered: 21
  • Pages: 220
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