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Analysis & Outlook Global BPaaS Market 2012- Future Outlook: Growth driver for Indian IT vendorsEverest Group defines Busi...
Analysis & Outlookthe Small & Medium Business segment but slowly the large business organizations too aresignificantly inc...
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Global BPaaS Market 2012- Future Outlook: Growth driver for Indian IT vendors

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Indian IT Vendors have been investing in BPaaS for future growth.

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Global BPaaS Market 2012- Future Outlook: Growth driver for Indian IT vendors

  1. 1. Analysis & Outlook Global BPaaS Market 2012- Future Outlook: Growth driver for Indian IT vendorsEverest Group defines Business-Process-as-a-Service (BPaaS) as a model in which buyersreceive standardized business processes on a pay-as-you-go basis by accessing a shared set ofresources – people, application, and infrastructure – from a single provider.Advantages of BPaaSmodel includes potential cost reductions, efficiency in operations, access to best expertise,processes and technologies, and also allows the businesses to focus on the core processes byoutsourcing the support functions and this is particularly benefit for SMBs and also Largeorganizations. According to Everest Group research, BPaaS delivers 35-40% cost savings forsmall businesses, 25-30% cost savings for medium size businesses and 10% cost savings forlarge enterprises over the traditional IT+BPO model. Many times there is confusion betweenSaaS and BPaaS, Gartner clarifies SaaS is an offering that enables a business process and itdelivers a fully managed application that client uses to deliver a business outcomewhereasBPaaS is a cloud service that delivers a business process and it delivers the businessoutcome for the client.Forrester is predicting BPaaS will grow from $0.53 B in 2011 to $10.02 Bin 2020According to Gartner report “Forecast: Public Cloud Services, Worldwide, 2010-2016, 2Q12Update (ID:G00234814)”, Gartner predicted that BPaaS will grow from $84.1B in 2012 to$144.7B in 2016, generating a global CAGR of 15%. Of the eight sub segments Gartner istracking in the BPaaS forecast, Cloud Payments (17.8%) Cloud Advertising (17.1%) andIndustry Operations (15.1%) are expected to have the greatest CAGR in revenues generated by2016.In terms of revenue generated, Cloud Advertising is projected to grow from $43.1B in 2011to $95B in 2016, generating 17.1% CAGR in revenue growth through 2016.Cloud Payments areforecast to grow from $4.7B in 2011 to $10.6B in 2016, generating a CAGR of 17.8%worldwide.E-Commerce Enablement using BPaaS-based platforms is expected to grow from$4.7B in 2011 to $9B in 2016, generating a 13.6% CAGR in revenue globally. Gartner 2011Annual Survey of 610 Organizations highlights the fact that organizations are currently using orplanning to use business process utility (BPU) or BPaaS for BPO exceed 60%.Most of the Indian IT Vendors including BPO Vendors have developed their own BPaaSofferings and are actively offering them to their clients as these offerings fall under the nonlinearrevenue model category that will allow vendors to charge premium pricing leading to highermargins and also fueled by economic slowdown, manpower issues and changing client needswherein they are looking at outsourcing vendors as business partners who will help themimprove both Topline and bottom line. TCS, Infosys, Cognizant Technology, Wipro, HCLTechnologies, Genpact, WNS, etc. are all offering BPaaS services or Platform BPO offerings.These services have been developed for the past ten years and Indian IT Vendors are brandingthese offerings and successfully offering them to their clients.Platform BPO is a win-winoffering for both the clients and vendors as they improve their process and service delivery andthey will earn more from their clients on outcome basis. There has been significant demand fromRajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
  2. 2. Analysis & Outlookthe Small & Medium Business segment but slowly the large business organizations too aresignificantly increasing their adoption of the BPaaS.Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

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