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The UK, US, and South Africa back-office workforce management market is estimated to witness a growth of US$ 1,289.8 Mn during the period 2022-2030 and is estimated to reach US$ 2,489.7 Mn by 2030. The market is expected to register a CAGR of 9.6% during the forecast period.
The growth in the market is attributed to several factors, including the introduction of workforce management tools, growing financial support from governments, flexible working hours, and supportive campaigns leading to employee efficiency and maintenance. Furthermore, initiatives, such as introducing virtual-themed chats, aimed at building connections with other employees even while working remotely to enhance employee well-being are expected to favor the rate of adoption of back-office workforce solutions and services in these countries.
The market is also profiting from the introduction of innovative solutions, including artificial intelligence-based tools that result in lower operational costs and time and tools and solutions that simplify the work and reduce the burden on employees.
Top players hold a substantial share in the market, accounting for more than 40% in 2021. Some of the leading players in the market are Active Operations Management International LLP, Genesys Telecommunications Laboratories, Inc., Aspect Software, Verint Systems Inc., Monet Software, NICE, Calabrio, Cicero Inc., Intradiem, ADP Workforce Now, UiPath. Companies. Companies are adopting strategies like mergers, acquisitions, and new product launches to stay competitive in the market, some of which are mentioned below:
Factors leading to the growing presence of players in the back-office workforce management market are:
Increasing Adoption of Mobile Workforce Management Applications
Mobile workforce management applications are becoming an important tool for corporates to strengthen their data structure and management. Technological advancements are allowing the development of smart workforce management solutions, making it easy to keep a check on schedules, the amount of labor required, and the time needed to complete a specific task. For instance, specialized back-office workforce management solutions, provide many strategies for large-scale enterprises and SMEs to maximize workforce efficiency.
The increasing popularity of cloud-based solutions and the implementation of technologies such as machine learning and AI are also fueling market growth. Organizations are favoring back-office WFM applications for their ability to offer a platform for employees to interact and coordinate with each other and the whole company. This also helps in tracking the time at which workers are arriving at their workstations.
Increasing Demand for Work Forecast and Resource Scheduling
Back-office workforce management software helps stabilize the schedules of back-office tasks by looking into factors such as the availability of employees, holidays, skills required, and shift rotations. Moreover, it helps the manager to track daily tasks and adjust schedules according to the workload of the employees. The software also helps to take note of employee activities and data to compare it with tasks allotted and makes it easy for managers to determine how well the staff is carrying out daily tasks.
Current trends in the market
Growing Adoption of Cloud Services
The introduction of cloud computing has made the process of corporate optimization simple; the self-service feature of cloud computing has led to a reduction in labor-intensive tasks and physical labour. Cloud-based solutions keep critical business data safe even if the device collapses and the data can be accessed anytime and anywhere. With the help of cloud computing, businesses have been able to improve system performance and optimize the productivity of labour. Many emerging companies in the U.S., Canada, and Mexico are implementing back-office workforce management software to introduce flexibility, security, and mobility to their system.
Factors restraining market growth
High Cost of Back-office Workforce Management Software
The cost of workforce management software varies based on factors like software features, employee size, deployment type, and others. The implementation and maintenance of on-premises software are challenging, time-consuming, and expensive. The overall implementation cost is more than the subscription fees and may go higher depending on factors like the number of users and add-ons. The cost of workforce management software can range anywhere from $2.50 per person per month for entry-level small business solutions to $72 per user per month for enterprise tier capabilities and scalability.
Impact of COVID-19 on Back-Office Workforce Management Market
The back-office workforce management market was one of the least affected markets during the pandemic. The market witnessed a surge as businesses abruptly shifted to a remote work model, which was a new routine for employees. Many activities, like managing employee performance, assigning tasks, and rewarding employees, were done through web-based applications.
Market Segment Analysis
Based on the solution segment, the robotic process automation segment is expected to register the highest CAGR of 10.3% during the forecast period. Robotic process automation provides a way for error-free and quick completion of daily operations and allows employees to devote their time and energy to high-value tasks.
The back-office optimization segment held the highest share of 24.3% in the market and was valued at US$ 273.4 Mn in 2021. Back-office optimization contains services and software that help in the automation and simplification of many tasks in the back-office. These solutions help the back-office department in forecasting, scheduling, and tracking staff performance and the HR department to focus on one task while efficiently managing repetitive tasks with ease.
By Deployment Type
In terms of deployment, the cloud deployment segment is expected to expand at the highest CAGR of 9.9% over the forecast period, followed by the hybrid segment, which is expected to register a CAGR of 9.4% during the forecast period. Factors such as rapid deployment, high scalability, and cheaper setup and training costs are leading to its fast development in the market. The cloud-based deployment also enables secure communication and protected data transfer. Large-scale adoption of new technologies like AI tools and 5G enhances the workplace and digitization management.
By End User Analysis
Based on end users, the BFSI segment holds the highest CAGR of 10.4% in the market during the forecast period. This is attributed to the notable increase in the remote services and training provided by banks to new and old employees for developing new skills, such as technology skills to financial advisors.
The IT and telecommunications segment held the highest share of 30.7% and was valued at US$ 344.9 Mn in 2021. The IT and telecom sector is one of the leading consumers of back-office workforce management solutions as telecom companies are focusing on the use of the right resources according to their skills and providing the best customer experience using workforce management tools.
Organizational Type Analysis:
Based on organizational type, the small and medium-sized enterprises segment is expected to register a higher CAGR during the forecast period. Small and medium-sized enterprises are the largest users of workforce management solutions as these solutions help them manage their daily activities with a proper schedule and remove all unnecessary and repetitive tasks coming in the way of their growth. These solutions are helping them manage the staff more effectively and the use of cloud-based solutions is helping them manage operational costs in a better manner.
In the UK, large enterprises held the highest share of 60.7% in 2021 due to technological advancement and the growing adoption of artificial intelligence and cloud computing across organizations in the country.
The IT & telecommunications sector holds the highest share in the US market and is projected to register the highest CAGR of 10% over the forecast period. This is due to the presence of several leading market players in the country. The large-scale enterprise segment is the highest shareholder in the South Africa market and is expected to expand at the highest CAGR of 8.5% over the forecast period, owing to an increase in government initiatives for workforce management.
The UK, US, and South Africa back-office workforce management market is segmented into:
By Deployment Type
By End User
By Organisation Type