Who is offering BPaaS and how does the current BPaaS market look like? — BPaaS

Market View

So what is the opportunity with BPaaS? According to a marketsandmarkets report from December 2017, will the BPaaS market grow from $33.6 billion in 2016 to $68.8 in 2022 at a compounded annual growth rate (CAGR) of 11.3%. For comparison this is roughly about one-third of the gigantic SaaS market size of $220.2 billion in 2022 which is growing at 13.1% CAGR (Source). The largest vertical for BPaaS will be the banking, financial services, and insurance vertical. North America will be the largest region consuming the service.

The market driver will be cost-effectiveness, lower TCO, faster time-to-market (TTM) and growing need to comply with regulations. Industry-specific regulations like in healthcare or banking can be more easily implemented in BPaaS offerings as the industry experience for the industries can be scaled throughout the whole process for every customer. This is bringing down cost and increasing quality due to increased specialization.

Key BPaaS Market Players and Vendors

Players that already have an established BPO unit emerge likely into BPaaS. The collected experience of outsources business functions is critical to delivering comprehensive BPaaS offerings.