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The document outsourcing market size is estimated to grow at a CAGR of 5.69% between 2022 and 2027. The market size is forecast to increase by USD 17.79 billion. The growth of the market depends on several factors, including increased efficiency of document management using hybrid solutions, the need for cost reduction, enhanced efficiency, regulatory compliance and the need for automated and centralized document management solutions. Document outsourcing is a BPO service, whose adoption is driven by the need to reduce fixed and overhead costs, avoid capital expenditure, improve business processes, ensure compliance with complex regulations, and enhance communication with customers.
This document outsourcing market report extensively covers market segmentation by service (onsite contracted services, statement printing services, and DPO services), end-user (large companies, small, and medium companies), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increased efficiency of document management using hybrid solutions is driving market growth. When documents are in non-standardized formats and contain unstructured content, document management becomes extremely challenging. Generally, documents stored in paper file cabinets and record storage boxes at different locations or digital documents stored in different applications are very difficult to access. Hence, hybrid solutions are used for document management to overcome such problems. With quick and convenient access to all documents of digital document storage systems, the hybrid document management solutions deliver the cost-effectiveness of the paper storage of information
Moreover, documents are kept in paper format and also scanned to convert them to digital format in a hybrid document management solution which improves the accessibility of documents for customers. In addition, service providers that offer physical record storage and outsourcing services of documents can deliver the hybrid model that offers higher efficiency when compared to the conventional forms of documenting. Therefore, the emergence of the hybrid model is expected to boost market growth during the forecast period.
An increase in preference for cloud sourcing is an emerging market trend. The integration of outsourcing services with cloud computing technology is referred to as cloud sourcing. For the effective integration of their business processes, businesses are shifting to cloud sourcing. Companies are outsourcing the deployment and maintenance of specialized cloud products and services to cloud service providers. The gradual shift from traditional data centres to cloud sourcing is expected to drive IT spending during the forecast period.
Moreover, the demand for cloud sourcing will generate the requirement for cloud platforms and online data centres for data storage purposes. Small and medium-sized businesses (SMBs) are readily opting for cloud-sourcing services to benefit from cost-effective document management in the cloud. Without spending on costly infrastructure, pay-as-you-go services and cloud applications allow these SMBs to adopt emerging technologies. Due to the benefit of cost-saving, cloud sourcing is expected to experience an expansion in its adoption during the forecast period.
System integration issues is a significant challenge hindering market growth. The major reason behind this is when outsourcing service providers deploy document management systems and software on legacy systems of enterprises. As a result, the delay in document management system projects incurs extra costs for businesses that subscribe to outsourcing services. Companies might face technical and connectivity issues while incorporating numerous systems with document management systems owing to the distinctions in the versions of operating systems and software.
However, the use of legacy IT infrastructure can block the flow of digital documents via online channels, which, in turn, can hinder the operational workflows of businesses. Therefore, it is critical for service providers to analyse the system configuration and architectural designs for their client firms to provide the latest outsourcing services. Hence, system integration issues may hinder market growth during the forecast period.
The market share growth by the onsite contracted services segment will be significant during the forecast period. In the onsite contracted service model, service providers deliver onsite technology establishment and services for document conversion, assessment and consulting, and in-house printing. These services are particularly designed to meet the client's requirements and evaluate the client's IT architecture. Depending on the type of industry vertical, the size of the business, and other competitive factors they implement document management solutions.
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The onsite contracted services segment was valued at USD 24.63 billion in 2017 and continued to grow by 2021. The market in focus has various companies that provide onsite contracted services, including Xerox Corp. (Xerox), Canon Inc. (Canon), and several others. For instance, Xerox provides onsite contracted services for data centres, finance companies, human resource applications, IT companies, legal organizations, and several other industries. The company's clients for onsite contracted services include telecom companies, chemical companies, and government agencies. Vendors are emphasising on innovating advanced document management solutions with the advances and increasing complexities involved in document management in industries. Such factors are expected to drive market growth during the forecast period.
The large enterprise segment was the dominant segment of the global document outsourcing market in 2022, and it is expected to remain dominant during the forecast period. The primary element that propels the growth of the large business segment is the growing demand for productivity and resource management in the business value chain for various sets of industries, such as manufacturing, logistics, banking, and finance. In addition, the large business sector is also being constantly penetrated by the need for digitization. Operational efficiency, cost reduction, and compliance standards are the major factor driving the demand for the digitization of operations. The rising workload and the trend of digitization in large businesses are significant reasons for the adoption of document outsourcing services. Such factors will fuel the market growth during the forecast period.
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Europe is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to vendors is North America. In North America, the US contributed a significant share of the global document outsourcing market in 2022. US corporate income tax is one of the highest in the world and corporate entities in the US find it advantageous to outsource functions to developing countries, such as India, which have a lower corporate income tax.
Moreover, the region is experiencing the fast adoption of cutting-edge technologies such as cloud computing, AI, IoT and RPA. Therefore, companies in the market leverage these advanced technologies to deliver better services to their clients. In North America, the healthcare, BFSI, and telecommunication sectors are projected to be the significant drivers of the global document outsourcing market. With the increasing adoption of technologies, innovations using technological platforms, and partnerships across diverse industries, the document outsourcing market in the region is likely to register growth during the forecast period.
In 2020, the COVID-19 pandemic had a positive impact on the document outsourcing market in the region. The easing of lockdown restrictions due to the large-scale vaccination drives in different countries across North America, coupled with increased funding toward the development of software infrastructure and connectivity across end-user industries in 2021 and 2022 and is anticipated to lead to the incremental growth of the document outsourcing market in North America during the forecast period.
The Document Outsourcing Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Document Outsourcing Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABBYY Solutions Ltd. - The company offers document outsourcing such as intelligent document processing automation
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The document outsourcing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Document Outsourcing Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.69% |
Market growth 2023-2027 |
USD 17.79 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.93 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABBYY Solutions Ltd., Accenture Plc, Adreno Technologies India Pvt. Ltd., Canon Inc., Compart AG, FUJIFILM Holdings Corp., HP Inc., Imaging Business Machines LLC, Invensis Technologies Pvt Ltd., Iron Mountain Inc., Konica Minolta Inc., Lexmark International Inc., Pitney Bowes Inc., Ricoh Co. Ltd., Seiko Epson Corp., Swiss Post Ltd, Toshiba Tec Corp., Williams Lea Ltd., Xerox Holdings Corp., and Siemens AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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