Efficient document management is a key feature of successful enterprises. Leading outsourcing companies to provide document conversion services that allow easy capture and management of all valuable information, and allow data to be stored safely and processed quickly. A recent report from Fortune Business Insights predicts that the global document management services market is set for major expansion. According to the report, the size of the market, which was 34.21 billion in 2019, will reach USD 57.56 billion by 2027, expanding at a CAGR of 6.9% during 2020-27. Let’s look into the key findings of this report.
The adoption of document management solutions by the corporate, medical and other important sectors is the main factor driving the growth of the global market. Document management service providers convert paper based data to electronic data, offer secure and convenient document storage solutions, and also provide document shredding services. Outsourced solutions also include digitization, imaging and document scanning management, archiving services, and document indexing. These processes:
- Digitize business processes
- Saves physical storage space
- Allow for safe storage and easy retrieval of data
- Facilitate tracking of important data
- Increase productivity
- Improve customer satisfaction
- Mitigate risks
- Reduce costs
- Streamline workflow, and
- Enhance operational efficiency
The outbreak of the COVID-19 pandemic affected the demand for business process outsourcing services, notes the report, and it fell by 1.1% in 2020. However, document conversion is expected to see a surge in the coming years due to the adoption of cloud based processes, remote work, and online activity by consumers and organizations.
The shift to electronic document management is one of the main factors driving document conversion. Enterprises are abandoning paper based processes and focusing on electronic document management to reap the advantages of the digital revolution. To cater to this requirement, key players are integrating technologies such as cloud and big data to develop electronic document management services.
However, the report notes that certain factors are inhibiting the growth of the market. While outsourced document management and document conversion services offer many benefits, the report notes that they also come with information security and privacy concerns. Sensitive information stored in the cloud can be breached and misused by criminals. The vulnerabilities hindering the growth of the global document management services market include data security breaches, sharing of sensitive information, identity theft, and the threat of cyber attacks. Breach of sensitive data can result in lawsuits and heavy penalties.
The report segments the document management services market based on service segments, end users, and regions.
Segment-wise, the market comprises archiving and storage, imaging and scanning, printing, mailroom services, and others such as indexing, metadata, and more.
- The printing segment is predicted to hold the largest share during the forecast period due to the increasing adoption of advanced printing techniques, including thermal transfer printing to manage large volumes of information.
- Document archiving and storage based on big data and cloud services allow end users to organize, monitor and retain business critical documents.
- The imaging and scanning segment is also expected to show notable growth due to the adoption of smart scanners, 3D imaging cameras, and connecting tech like Bluetooth 5.0, Wifi, and Iot, among others. The benefits offered include cost-effectiveness, improved efficiency, and time and cost savings.
- The mailroom services segment is expected to register the highest CAGR owing to rising demand from enterprises looking to minimize errors and save time in mail segregation, and also manage large mail volume.
- Indexing and metadata are also expected to show considerable growth as they help in digitizing documents, and to ensure simple access, retention and archiving of data.
The end user segment comprises medical, financial, government, audit and consulting, corporation, telecommunications, and insurance and reinsurance.
- The corporate industry is expected to see the highest adoption of document scanning services. Key contributory factors include the increased use of connected devices such as smartphones, smart TVs, smart projectors, smart scanners, tabs, laptops, etc.
- Medical organizations are also implementing outsourced solutions as they offer increased clinical efficiency, decrease healthcare costs, promote compliance efforts and improve data security.
- Government is another sector with a high demand for document management services, owing to the need to reduce paper based processes, streamline workflow and ensure efficient provision of data to end users.
- The telecommunication, finance, insurance audit and consulting segments are also expected to see growth due to the need to provide cost-effective services, implement electronic document management, need to ensure regulatory compliance, and improve compliance.
Geographically, the report segments the global market for document conversion and management into North America, Asia Pacific, Europe, Middle East & Africa, and Latin America. North America is expected to have the largest market share during the forecast period due to the rising adoption of core technologies and the presence of tech giants in the region. Other factors fuelling demand for document conversion in this market segment include the need for efficient and cost-effective business processes, strict policies, high infrastructure costs, and regulatory frameworks.
The Asia Pacific is predicted to see the highest CAGR during for forecast period due to the advancement of business processes. China and India are expected to supplement the growth of the global outsourcing solutions market during the forecast period.
