Over the years correspondence management has increasingly transformed itself to be one of the core business pillars for enterprises across industries. Across all industries from Banking & Financial Services to Public Sectors - real time and constant communication with client or other associated members in client value chain through correspondence management solution is witnessing ever increasing demand.
However, in spite of being crucial, many enterprises over the years are not able to leverage crucial solution like correspondence management to automate certain parts of their processes to save cost for document aggregation and delivery; other than that by not adopting relevant correspondence solutions enterprises have also failed to gain advantage of reusing existing content and avoid duplication.
Real adoption of correspondence management solutions not only save cost, but also provide enterprise with options like compliance with ever changing government regulations, enhanced content efficiency, & better employee productivity.
As going gets tough for enterprises and they are trying to save dollars from every opportunity, increasing uptake of correspondence management solutions can certainly improve the bottom line.
Overall, the market for correspondence management solution market size is close to US$1 billion in 2014 and is expected to register growth of 10.5% till 2020 and will reach US$ 1.8 billion by 2020.
For vendors it will represent an incremental correspondence management opportunity of US$820 million during the forecast period. In terms of regional adoption, North America is leading the pie of correspondence management by occupying more than 30% of the total market opportunity. At a country level, USA represents the highest potential market for correspondence management, followed by UK and Germany.
Within Europe, Scandinavian countries have also demonstrated their interest for the solution in the recent past. Among emerging geographies, Brazil is slightly green field geography, in process of dramatically reducing paper correspondence however, interestingly Middle East Africa is a growing market for correspondence management solution.
In terms of vertical adoption of correspondence management, Financial Services and Public Sector entities are leading the charge and constitute more than 60% of the total market share in 2014.
The key drivers for increasing uptake of correspondence management among public sector are increasing traction of electronic communication systems along with emphasis on digitization where old processes are getting streamlined by implementing new technologies. For financial services, increasing requirement of adhering to compliance is driving the correspondence management solution uptake.
Software License revenue primarily dominates the correspondence management market by holding more than 35% of the total correspondence management solution market opportunity; however for vendors this is an opportunity as the providers need to showcase this as an end-to-end solution; combination of software & services; FMI also noted that Service Providers with Case as a Service portfolio is witnessing preference in the market.
The correspondence management solution market is expected to flourish over the forecast period owing to the growing need to reduce budgeting and planning cycles. In addition to this, the market is predicted to witness rapid automation of internal as well as external communication as analytics, and big data solutions are increasing. Further, the correspondence management solution market size is expanding on account of the rapid adoption rate of correspondence management software by organisations to effectively implement real-time communication and thus manage correspondence. Companies, at a certain stage, requires to enhance efficiency, accuracy, auditability, and controls. A correspondence management system helps in automation and, thus, delivers speed and agility to deliver quality insights about customer and internal affairs.
The correspondence management software enables businesses to boost revenues by keeping the shareholders and customers in the loop via regular correspondence, thereby resulting in a high adoption rate. Furthermore, the advent of new IT applications and related infrastructures, such as advanced analytics and big data, are accelerating the market growth of correspondence management systems. Coupled with this, companies are now leveraging big data, which helps make more precise decisions via correspondence management solutions’ predictive capabilities. The market is also being driven by rising internet access and the introduction of smart offices. Digitalisation across the globe is bolstering the implementation of correspondence management solutions among businesses to effectively communicate and manage documents.
The usage of a correspondence management solution helps mitigate the utilisation of printed correspondence, which causes inefficiency and considerable time wastage. The correspondence management system is considered a valuable solution for institutions and organisations as it helps in minimising paper wastage, consequently reducing the printing cost. Thus, the move towards a paper-free environment is boosting the deployment of correspondence management solutions. The market, however, may impede due to expensive costs associated with the maintenance and implementation of the software and the dearth of technical experts in the market.
The North America correspondence management system market is expected to represent the largest market share. This can be attributed to the rising adoption rate of automation and the surging requirement for effective internal and external communication to sustain the growth of various industry verticals like government, BFSI, and eCommerce. Within North America, the United States of America and Canada are two leading markets observing robust adoption of modern technologies, like correspondence management system solutions. The key players present in the region are providing several cloud-based solutions at competitive prices, thus promoting market growth of correspondence management systems in the region.
FMI in the upcoming report highlighted that there are several options how vendor can tap this opportunity. The Service Providers should try to go to the market through a solution approach by tying up with software houses and providing it as an end to end solution and behaving like a one stop shop for the correspondence management solution.
Also, service providers can evaluate options of offering correspondence management solution as a service under their BPO portfolios.
This research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data and statistically-supported and industry-validated market data and projections with a suitable set of assumptions and methodology.
It provides analysis and information by categories such as market segments, regions, product type and distribution channels.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
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Correspondence Management Solution Market
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