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BPM's growth potential PDF Print E-mail
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Written by Vaseem Khan   
Wednesday, 05 August 2009 16:08

Over the years customers who are planning to buy BPM suites are educating themselves on BPM’s limitations and benefits. Due to an increase in awareness of what BPM is and what benefits it carries, the sales cycle for selling BPM suites has shortened. A new challenge of meeting intelligent customer expectations has arisen due to the increase of awareness in BPM and its methodology.

It has been estimated by Forrester Research that the BPM market has “grow[n] from $1.2 billion in 2005 to more than $2.7 billion by 2009, which is more than a 21% compounded annual growth rate (CAGR).”1 The steady demand for BPM has ensured that the attrition rate amongst the workforce of BPM offering vendors is significantly less. Job satisfaction amongst the employees is also one of the reasons for low attrition rate in the BPM sector.

BPM vendors have grown smart as the demand for BPM increases; the vendors are identifying market segments and devoting their focus to it. Hence there is market share distribution among the BPM vendors. The barrier for entry is weak in the BPM market, this has also increased the number of new BPM vendors competing with the rest of them.

Healthcare and Financial Services are the hottest business segments where most of the BPM vendors are targeting.2 The advantage for the user due to the segregation of the BPM vendors is that the amount of time to deploy BPM in to an organization has reduced. This is due to the use of BPM templates. A user can now easily buy BPM service and customize the template than let the BPM consultants build one from scratch. Hence reducing the implementation time as well as decrease in service related costs. Two other market sectors which are seeing the rise in demand for BPM deployment are Manufacturing and Retail sectors.

If you have been following this article it should be clear to you that the market for BPM in the coming years is not slowing down. More companies are willing to optimize their business process by eliminating the redundant business operations and automate them. The market for Mergers and Acquisitions is hot as well, the big boys of IT sector are tying up with promising BPM vendors to make their presence felt in the BPM sector. The race to capture the market share of BPM is definitely on.

References:

  1. S. Chandrashekar. Nasscom. Opportunities and HR Challenges in Business Process Management (BPM). Retrieved August 05, 2009,  from http://www.nasscom.org/upload/50866/BPM.pdf
  2. H. Ashton and D. Kelly. (2006). Upside research. The state of the bpm market: a look at the market landscape where we’ve been and where we are headed.  Retrieved August 04, 2009, from http://www.upsideresearch.com/files/State%20BMP%202006.PDF

 

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avatar outsourcing tech support
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Thank you! This was a very interesting and well-researched read.
Thursday 01 July 2010, 07:47
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avatar essay samples
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Big boys from IT? Yey, waiting for what they done. Because there are still to much bugs into your products.
Tuesday 29 November 2011, 13:48
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avatar Romil Turakhia
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Hi Essay Samples - wondering which products from which big boys you are talking about. We would be happy to help you overcome some of them if we have found a way to overcome them.
Saturday 17 December 2011, 05:07
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Last Updated on Thursday, 26 November 2009 07:56
 
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