450,000-550,000 FTEs (30% of the existing BPM workforce in India) may need to be replaced by 2021 due to automation and changing skills needs
One-third (or half a million) of the existing India BPS workforce may need to be replaced by 2021
ADP remains No. 1, Teleperformance leaps two spots to No. 2 and Accenture retains No. 3 ranking among world’s largest third-party BPS providers
Everest Group, a consulting and research firm focused on strategic IT, business services, and sourcing, today released the fourth annual edition of “The Everest Group BPS Top 50™,” a ranking of the world’s largest third-party providers of business process services (BPS). The list was launched in 2015 as the first of its kind for the global industry, which today is valued at more than US$175 billion.
This year’s ranking is based on both revenues (75 percent of the composite score used for ranking) and year-on-year growth, whereas the previous years’ rankings were based solely on revenues. Growth has two sub-parameters: absolute growth (measured as change in BPS revenue in US$ million, and accounting for 12.5 percent of the composite score) and percentage growth (measured as percentage change in BPS revenue, and accounting for the final 12.5 percent of the composite score).
Everest Group estimates there are more than 200 service providers with more than US$50 million in revenues offering BPS services around the globe. What started as a cost optimization concept focusing on “non-core” and “back-office” business processes today permeates the entire business process value chain, addressing a wide variety of business objectives.
“The industry has attracted many service providers from a broad range of backgrounds and heritages,” said Rajesh Ranjan, partner at Everest Group. “As digital forces create a new paradigm of value creation and service delivery, we are seeing a widening gap among providers in their capabilities and market success. By incorporating growth as an additional factor, we are making sure that the ranking reflects this. We also expect both the list and the rankings within to see greater volatility in coming years as this industry experiences accelerated change.”
This list helps enterprises to identify the scaled-up providers and their functional coverage. It helps BPS service providers to compare themselves against others in the industry.
***Download a complimentary copy of the 2018 Everest Group BPS Top 50 list and analysis.***
Topping the 2018 list of BPS providers are these 10 leaders:
Other highlights:
Top 3 North American Providers:
Top 3 “Rest of Europe” Providers (excludes UK providers):
Top 3 APAC Providers:
Human Resource Outsourcing:
Contact Center Outsourcing:
Document Management:
***Video: Watch “The Everest Group BPS Top 50 2018.***
BPS spending impacted by SDA can skyrocket to $10B by 2019 but will require a few kinks to be addressed.
The promise of next-generation benefits is powering explosive growth in the adoption of Business Process Service Delivery Automation (BPSDA), according to Everest Group, which reports that the number of BPS clients with SDA deployments rose by more than 80 percent year-on-year. SDA includes both Robotic Process Automation (RPA) and Artificial Intelligence (AI).
This growth in SDA is being driven not only by traditional drivers, such as efficiency and accuracy, but also by new-age drivers such as the need for enhanced customer experience.
“Increasingly, SDA is being used to enhance customer experience through much shorter response times for handling requests, round-the-clock availability, embedded intelligence, and reduced need to manually bridge gaps in technology,” said Rajesh Ranjan, partner at Everest Group.
However, although many more enterprises are adopting SDA, it is still rather nascent in the Business Process Services market today, says Ranjan. “Contrary to general belief, our data shows that the penetration and scale per BPSDA deployment is still quite low. One of the challenges is the mismatch between buyers’ expectations and reality, partly due to some inaccurate communication from service providers and automation vendors. However, the intrinsic benefits of SDA solutions, especially when combined with other digital components, the rising maturity of adopters and increasing sophistication of providers, suggest these issues will be addressed soon.”
As evidence of this low maturity of SDA, Everest Group points to the relatively meager amount of BPS spending on business processes where RPA has been applied. This amount is estimated to be US$700-800 million in 2016, or 2 percent of the addressable market, but it is expected to skyrocket in the future, reaching US$10 billion by 2019.
Another indicator that enterprises are barely scratching the surface of BPSDA’s potential is that a majority of current deployments (85 percent) involve Robotic Process Automation (RPA) only. Automation based on Artificial Intelligence (AI) is far away from widespread adoption.
These findings and more are discussed in Everest Group’s newly published report, “Business Process Services Delivery Automation (BPSDA)—State of the Market Report— 2017.” This report provides an in-depth view of the state of the BPSDA industry, offering a market overview, solution characteristics, an analysis of the service provider landscape, and recommendations for buyers and service providers on how to prepare for the future.
Other key findings:
***A complimentary 13-page abstract of the report is available for download here.*** (Registration required.)
Everywhere you turn today (ok, everywhere in the global services industry) you’ll hear talk of digital. And for good reason – if labor arbitrage had a rock-in-the-pond impact, digital could be a boulder. Which technologies are likely to have the greatest impact? And what do organizations have to do to maximize the benefits of digital for business outcomes?
The overall impact of digital on the BPM growth curve will be negative initially, driven by RPA. As other components mature and become pervasive, the tide will turn, and its impact will be positive.
The amount and timing of impact of next-generation technology levers on service providers varies by BPM segment; while some will be immediate and net negative, others can provide new growth opportunities
Market Insights™
Next-generation technology (digital) levers will have significantly higher impact than traditional levers for Business Process Services (BPS), but varying maturity and time-to-fruition for emerging technologies require calibrated focus
Tuesday, October 10th, 7:30 PM IST, 3 PM BST, 10 AM EDT, 9 AM CDT
Digital has emerged as the biggest disruptive force challenging existing business models and shaping the new ones. The BPS industry is no exception. However, most studies in this space have taken an overarching view rather than unraveling the specifics in terms of clearly identifying various digital components and their maturity, and quantifying their likely impact on BPS segments individually and collectively.
During this one-hour webinar we will focus on:
Presenters:
Michel Janssen, Chief Research Guru – Everest Group
Rajesh Ranjan, Partner – Everest Group
Who should attend?
Everest Group BPS Top 50™ broad-based providers’ share has steadily increased from 2014 through 2016
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