Global BPaaS Market Expected to Reach $15K Mn by 2023
The banking, financial services, & insurance (BFSI) segment is expected to be the major revenue contributor to the global BPaaS market, due to growth in customer base and internet users. The global BPaaS market was valued at $3,916 million in 2016, and is projected to reach at $15,144 million by 2023, growing at a CAGR of 21.8 percent from 2017 to 2023, states a study by Allied Market Research.
The reduced investment cost for new hardware and software in banking sector, insurance industries, and capital market are expected to drive the BPaaS market in the near future. Moreover, the healthcare segment has exhibited an increasing cloud adoption across various regions, owing to the associated benefits of low cost and improved reliability & scalability.
The surge in ICT expenditure, increase in cloud adoption across several industry verticals including BFSI, retail, healthcare, manufacturing, and government & education are anticipated to augment the market penetration. The prominent markets, such as Asia-Pacific and Europe, with developed cloud infrastructure, high adoption of Internet of Things (IoT) technology, and surge in demand for low-cost IT infrastructure deployment are anticipated to fuel the market growth in the near future.
Asia-Pacific region is projected to grow at the highest CAGR of 23.9 percent during the forecast period, owing to growing penetration of mobility and cloud adoption by small- and mid-sized companies.
Top Impacting Factors
Need for Low Cost it Infrastructure and Data Accessibility
Enterprises globally are focused on creating a mobile workforce, where employees can access data from distant places through internet services, hence need of virtual sets of IT applications such as servers, storage, networks, and others is expected to fuel the BPaaS market growth.
Increase in the need for business process analytics
Multiple industry verticals such as BFSI, retail, healthcare, manufacturing, telecommunication & IT, media & entertainment, and others are adopting BPaaS solutions to enhance their business process cycle and automation processes.
Rise in cloud adoption across several industry verticals
Several industry verticals, such as BFSI, retail, healthcare, manufacturing, telecommunication & IT, media & entertainment, and others, are adopting cloud services at a rapid pace. In addition, the banking sector is keen to adopt BPaaS due to benefits, such as cost savings, data protection, and disaster recovery services, which is expected to augment the BPaaS market growth.
Lack of IT skills and knowledge in underdeveloped nations
Several countries from Asia-Pacific, Latin America, the Middle East, and Africa are yet to transform to technologically advanced hubs with rich IT infrastructure and digital content. This factor is expected to hinder the BPaaS market growth in the future.
Rise in preference of cloud technology
Cloud computing is witnessing increased adoption among SMEs, owing to advantages such as enhanced uptime, reliability, enriched IT service, increased flexibility of data access, and operational speed, which in turn is anticipated to create potential space for cloud computing, globally.
- Choosing The Right HR Management System For Your Firm
- India’s Digital Payments Will Touch USD 1-Tn By 2022: Report
- Weekly Rewind: Top 10 Stories On CXOToday (Feb 12-17)
- Smart Cars Can Be The Next Big Thing For Indian IT Firms, Says Study
- Using RPA For Greater Accuracy, Efficiency In Business
- E-Commerce Payment Market To Reach USD 135 Bn By 2023: Study
- 4G Smartphones Sees 14 pc Growth In India: IDC
- Wipro Teams Up With Cisco To Unveil Internet of Lighting Solutions
- F Secure Is Growing Much Faster Than The Market
- Outlook For Indian IT Is Cautiously Positive In 2018: Nasscom