M&A deal drivers:
- Consolidate industry solutions to create market leadership within particular verticals.
- Transform services into solutions to capitalize on the rise of the "As-a-Service" economy.
For B2B services and BPO outsourcing firms focused on deals below $1m ACV, the race to develop cloud enabled solutions has been driving capital investments over the past few years and is likely to trigger additional M&A in the foreseeable future.
As the market for outsourced services has grown beyond traditional outsourcing to reduce costs; to solution providers which handle transactional processing and services delivered via cloud-enabled managed solutions; the need for service provider to expand and evolve their service delivery model to pace with emerging technologies and increased customer expectations becomes the bifurcator between industry leaders and laggards.
Announcements highlighting the rise of the BPaaS Economy.
2018 – A Better way to outsource with OneSource. 5 Key BPaaS differences.
2018 - Creating competitive advantage through digital transformation from Cognizant.
2017 – Use BpaaS for non core competencies from Accenture.
2017 – Gartner forecasts that digital transformation will shift expenditures from “procure and maintain” to “service-oriented” models.
2015 - Delivering scalable backoffice preconfigured solutions from Capgemni and Unit4 partnership.
2014 - Flatworld Solutions BPaaS online center pricing calculator.
2012 - Convergence of cloud and BPO creates BPaaS from NGA global HRO-BPO.
2012 – The paradox of BPaaS small business SMB adoption.
Technology is changing the business landscape in every industry. And today, virtually all companies can convert their services into a solution. These emerging technologies combined with the cloud creates the opportunity to deliver every service as a managed solution (MSP). The “As-a-Service” model goes beyond traditional “lift-and-shift” outsourcing to deliver “Everything-As-A-Service” model.
- Everything “AaS” is for work internal company employees do not want to spend their time on
- The cloud, mostly, eliminates the need for upfront investments
- Because AaS is scalable; cost dynamics are changing enabling smaller service providers to compete
List of industry deals available upon request.