Japan Business Process as a Service (BPaaS) Market – Industry Trends and Forecast to 2030

Market Analysis and Size

Companies frequently outsource non-essential activities, such as payroll or IT issue management, to service providers in order to focus on their primary business. Business Process Outsourcing is the common name for this method (BPO). When outsourced business processes are supplied by service providers using the cloud computing paradigm, traditional BPO becomes Business Process as a Service (BPaaS). Companies use common Internet technology like web browsers and mobile apps, platforms to access their outsourced processes.

Data Bridge Market Research analyses that the Japan business process as a service (BPaaS) market is expected to reach the value of USD 7,006.38 million by 2030, at a CAGR of 14.4% during the forecast period. The Business Process as a Service (BPaaS) market report also covers pricing analysis, patent analysis, and technological advancements in depth.

Market Definition

Business process as a service (BPaaS) is defined as the delivery of cloud-sourced and multitenancy-built business process outsourcing (BPO) services. Services are often automated and there is no publicly dedicated labour pool per client when human process actors are needed. The pricing models are commercial words based on usage or on subscription. The BPaaS model as a cloud service is accessed through Internet-based technologies. Business process as a service (BPaaS) is connected to completely configurable services that include SaaS, PaaS and IaaS. By making use of the availability and reliability of a cloud-based infrastructure, business process as a service (BPaaS) provides enterprises with the staff, processes and technologies they need to function as a pay-per-use service. In comparison to the purchase of a package deal linked to a single application, this approach to operations dramatically decreases overall ownership costs by offering an on-demand solution focused on services needed.

Business Process as a Service (BPaaS) Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Growing need to comply with regulations

Compliance refers to conformation of a rule such as a policy or a law that keeps the company in check and increases cooperation among others. It has been historically viewed as a burden by business houses and the ever increasing obligations of these regulatory compliances have presented a unique class of challenges across several industry verticals especially for the IT sector. Regulations such as HIPAA (Health Insurance Portability and Accountability Act) / HITECH Omnibus Rule, PCI-DSS (The Payment Card Industry Data Security Standard), GDPR (General Data Protection Regulation), CCPA (California Consumer Privacy Act), POPI (The Protection of Personal Information Act) and many more have been put in place by government agencies so as to protect the citizens. However, companies have started realizing that these compliances can be a boon in disguise for them and steadily accepting them wilfully. Following security compliances can help them avoid hefty penalties. Change in preference of manufacturers from conventional to energy-efficient cooling technology

• Increasing need for business agility

Business agility refers to the capability of a business to realize and retain its maximum potential both its terms of profits and its employees amidst a dynamic external and internal environment. Undergoing a cultural change is one of the toughest parts in achieving business agility as it requires commitment from top leadership. The competition has increased exponentially and established methods such as Scrum and Safe may not be good enough. As a result, companies today are switching to Business Process as a Service (BPaaS) as they can increase the efficiency with reliability while minimizing the risk. This is done by focusing on customer-centric goals and promoting collaboration among the team which can lead to new innovations.

Opportunities

• Focus on multi-workflow scheduling of business

Earlier, automated workflows were reserved only for the wealthy organizations that were willing to invest heavily in complex CRM and ERP systems. But, the advent of cloud technology has turned this concept on its head. As the technology transformed, people started leveraging its power to automate their complex workflow processes in order to achieve process integration. The cloud workflow technology is capable of improving and optimizing businesses processes, allowing us to achieve better process control and increasing the flexibility and quality of the process. This technology makes it very convenient for building, managing, executing and monitoring. It has also enabled the organizations to reach new standards of efficiency.

As BPaaS heavily relies on cloud, thus it is able to automate and provide its services efficiently. Not only that, they are also able to scale their offerings as well as offer a standardized or a customized service with very minimal costs. Not only that, it is also capable of scheduling the workflow by drawing up a strategy as per the user requirements.

Restraints/Challenges

• Growing concerns regarding data security

Data security refers to the process of protecting digital data from unauthorized access and corruption throughout its lifecycle. To ensure this, various data security controls such as authentication, access control, encryption, backups & recovery, data masking and many more. However, in the past one and a half decade, the attacks on data security have increased significantly. Various types of data security risks can arise such as data tampering, data theft and modifying user identities among others. Technological advancements have boosted business activities on one hand but they have also presented severe privacy issues on the other hand. As BPaaS uses cloud computing, they are also susceptible to similar data breach attacks and due to their heavy reliance on cloud, their threat surface area is also high.

• Integration with third party BPaaS vendors

Nowadays, almost all the website and companies rely on third party integration leading to reduced manpower, saved time and various other benefits and business processes are no exception. However, reliability on third party vendors has their own set of integration problems. Various companies that are outsourcing are using different modules designed as standalone services. Even though it is slowly improving, it is still unable to function smoothly and meet customer requirements.

For starters, during 3rd party application analysis, any issues related to third party system may be erroneously shown as product issues which can slow down the overall testing and can delay the launch and use of the product. In addition, during testing phase the integration may fail due to improper support and compatibility issues. Problems may even arise after deployment or integration. Apart from that, existing business processes which have worked for one company may not be suitable for other company. Hence, integration issues arising with third party vendors are a major factor which is posing a challenge for the growth of the market.

Post COVID-19 Impact on Business Process as a Service (BPaaS) Market

COVID-19 created a major impact on the business process as a service market as almost every country has opted for the shutdown of corporate facilities. So companies faced issues while operating remotely at initial phase.

However, the growth of the business process as a service market post pandemic period is attributed to the increasing demand of digital skills in underdeveloped economies.

Service & solution providers are making various strategic decisions to bounce back post-COVID-19. The players are conducting multiple research and development activities to improve the technology involved in the BPaaS. With this, the companies will bring advanced technologies to the market. In addition, government initiatives related to smart energy system has led to the market's growth.

Recent Development

• In January 2022, Maxihost announced the strategic partnership with Ankr, a leading company in digital asset space as a service and decentralized infrastructure. This partnership will work on monetizing unused server capacity of Maxihost via Ankr protocol. This will benefit the growth of Web3 platforms, applications, and services. Maxihost’s presence in North America, Latin America, Europe and Asia-Pacific will support the Ankr’s goal of expanding distributed global networks.
• In March 2022, Datadog announced the partnership with Microsoft within Azure Cloud Adoption Network. As a result of this partnership, Azure customers can leverage monitoring and security capabilities of Datadog within their cloud services. Microsoft’s worldwide presence will help the Datadog to expand in global markets.

Japan Business Process as a Service (BPaaS) Market Scope

The business process as a service (BPaaS) market is segmented on the basis of business processes, organization size, application, and end-user. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Business Processes

• Human Resources (HR & Payroll)
• Finance & Accounting
• Sales & Marketing
• Procurement & Supply Chain Management
• Customer Services & Support (Customer Experience)
• Operations
• Analytics
• Others

On the basis of business processes, the Japan business process as a service (BPaaS) market is segmented into human resources (HR & payroll), finance & accounting, sales & marketing, procurement & supply chain management, customer services & support (customer experience), operations, analytics, others.

Organization Size

• Large Organization
• Small & Medium Organization

On the basis of organization size, the Japan business process as a service (BPaaS) market has been segmented into large organization, small & medium organization.

Application

• Managerial
• Operational
• Supportive
• Connected Market Area

On the basis of application, the Japan business process as a service (BPaaS) market has been segmented into managerial, operational, supportive, connected market area.

End-User

• Banking
• Financial Services & Insurance (BFSI)
• IT & Telecommunication
• Retail & E-Commerce
• Healthcare
• Government
• Manufacturing
• Media & Entertainment
• Others

On the basis of end-user, the Japan business process as a service (BPaaS) market has been segmented into banking, financial services & insurance (BFSI), IT & telecommunication, retail & e-commerce, healthcare, government, manufacturing, media & entertainment, others.

Business Process as a Service (BPaaS) Market Regional Analysis/Insights

The business process as a service (BPaaS) market is analysed and market size insights and trends are provided by country, business processes, organization size, application, and end-user as referenced above.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Japanese brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Business Process as a Service (BPaaS) Market Share Analysis

The business process as a service (BPaaS) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Japan presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to business process as a service (BPaaS) market.

Some of the major players operating in the business process as a service (BPaaS) market are IBM Corporation, Capgemini, Cognizant, Oracle, Wipro Limited, Accenture, Tata Consultancy Services Limited, HCL Technologies Limited, NTT DATA, Inc., DXC Technology Company, Open Text Corporation, FUJITSU, Genpact, ADP, Inc., WNS (Holdings) Ltd., TIBCO Software Inc., Ceridian HCM, Inc.

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