Impact of cannibalization far outstripped by new demand creation
2017 was an excellent year for pure-play BPS vendors as the automation opportunity in BPS rapidly moved beyond RPA, through NLP, into service delivery involving completely new combinations of technologies and channels. Going forward, this need for process reimagination and digitalization made possible by new technologies is accelerating, increasing the opportunities for BPS vendors. And while it is true that automation and digitalization cannibalize BPS contracts on a like-for-like basis, these new technologies and digitalization are having a much greater upside impact in creating new demand than they are on the downside.
Overall, the need for process automation and re-invention is having a twofold effect. Predictably it is providing BPS vendors with opportunities to extend the scope and value of existing contracts. Secondly, and more importantly, it is also opening up opportunities to identify and implement new digital process models and new ways of working across previously sacrosanct in-house shared services and retained organizations.
Specifically, by service line:
- The CX Services market is exhibiting relatively high growth rates, fueled by the current need to reengineer customer service to maximize the now immensely important ”customer experience”
- The life and P&C insurance BPS markets are maintaining solid growth, driven by the need to improve the speed of acceptance of new business, eliminate fraud and unprofitable business, and automate processes to improve levels of straight-through processing
- In the manufacturing & logistics sectors, supply chain management has strengthened as a key growth opportunity, fueled by the ability of new analytics & AI technologies to assist organizations in making improved stocking, routing, and scheduling decisions
- Within F&A BPS, standalone purchase-to-pay BPS continues to decline in importance, though new standardized platform-based digital process models are emerging. However, the market for multi-process F&A outsourcing remains solid, with record-to-report outsourcing continuing to show strong demand
- New technologies from intelligent purchasing assistants to cognitive contract analysis to real-time identification of ”questionable” spend are bringing renewed interest in sourcing & procurement outsourcing, though the lack of category management expertise remains a significant market inhibitor.
The impacts of these factors are evident in NelsonHall”s latest version of its highly-acclaimed and comprehensive business process services market forecast, ‘Global BPS Market Forecast: 2018-2022’, which shows the global BPS market due to reach ~$600bn by 2022.
The report consists of 305 pages and is complemented by NelsonHall”s self-service forecasting facility which enables subscribers to download forecasts and vendor shares tailored to their needs across any combination of 81 BPS service lines, 39 geographies, and 39 industry sectors.
The forecast is essential reading for executives with business planning responsibility in the business process services (BPS) or BPO industry.
NelsonHall is the leading global analyst firm dedicated to helping organizations understand the ”art of the possible” in next generation IT and business services. With analysts in the U.S., U.K., and Europe, NelsonHall provides buy-side organizations with detailed, critical information on markets and vendors (including NEAT assessments) that helps them make fast and highly informed sourcing decisions. For service providers, NelsonHall provides deep knowledge of market dynamics and user requirements to help them hone their go-to-market strategies.
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BOSTON, LONDON and PARIS, June 8, 2018 /PRNewswire/ —