Business Process Services Delivery Automation (BPSDA) – State of the Market Report – 2017

3 Nov 2017
by Amardeep Modi, Rajesh Ranjan, Sarah Burnett

The Business Process Services (BPS) market is being buffeted by strong winds of change. Multiple digital elements are disrupting the status quo on both the demand- and supply-side of the market. Enterprises are expecting not only cost reduction but also next-generation benefits from their BPS relationships, and service providers are recognizing that they need to pivot quickly from the traditional labor arbitrage-driven model to a digital-powered one to provide those benefits to their buyers.

One of the most potent digital levers enabling this transformation is Service Delivery Automation (SDA). A spectrum of SDA solutions is being deployed by service providers to help buyers attain certain key benefits – higher speed, improved accuracy, enhanced customer experience, and reduced cost, among others.

In this research, we analyze the dynamics of Business Process Service Delivery Automation (BPSDA) along the following dimensions:

  • BPSDA market overview
  • BPSDA solution characteristics
  • BPSDA service provider landscape
  • The future and how to prepare for it

Scope and Methodology

We focus on Business Process Service Delivery Automation (BPSDA) solutions, containing a services component, offered by prominent BPS providers operating in this space.

  • Services: Business Process Services (BPS)
  • Geography: Global
  • Service providers: 18 leading broad-based BPS providers

Everest Group’s BPSDA research is based on three key sources of proprietary information:

  • Everest Group’s proprietary database of BPSDA capability of 18 providers
  • Service provider briefings and demonstrations
  • Buyer surveys and interactions

Content

This report will assist key stakeholders (enterprises, service providers, and technology providers) understand the dynamics of the BPSDA market and identify the upcoming trends. This report provides a comprehensive coverage of the global service delivery automation market from the purview of business process services and analyzes it across various dimensions such as market overview, buyer adoption trends, solution characteristics, service provider landscape, and future implications of SDA on the BPS industry as well as how to prepare for it.

Some of the findings in the report are:

  • SDA is witnessing rapid growth in adoption at more than 80% while the BPS spend impacted by SDA grew by more than 180%
  • F&A and contact center emerged as the leading areas of application of SDA in BPS, followed by banking and insurance. BFSI industry accounts for the majority of the clients with BPSDA deployments
  • However, the penetration as well as the scale of deployment of BPSDA is low, given the nascent nature of the market. Also, only about 15% of SDA deployments in BPS have an AI component – the majority are RPA deployments. Moreover, customer satisfaction with BPSDA is rather low
  • SDA is likely to significantly impact the BPS industry in the near- to medium-term along five dimensions – service provider revenue & margin, pricing model, shoring model, talent model, and contract composition
  • In the face of this disruption, enterprises should adopt a set of best practices to ensure success with BPSDA. Service providers must develop robust strategies to ride the wave of BPSDA disruption and back those strategies with smart investments

Membership(s)

Banking and Financial Services (BFS) - Business Process Outsourcing (BPO)

Finance & Accounting Outsourcing

Healthcare & Life Sciences Business Process Outsourcing

Human Resources Outsourcing (HRO)

Insurance - Business Process Outsourcing (BPO)

Procurement Outsourcing

Service Optimization Technologies (SOT)

 

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