MDM BPO Market
MDM BPO Market By Data Type (Supply-centric MDM, Enterprise-centric MDM, Customer-centric MDM), By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Function, By Industry & By Region - Global Market Insights 2023 to 2033
Analysis of MDM BPO Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
MDM BPO Market Outlook (2023 to 2033)
Expanding at a stellar CAGR of 15%, the global MDM BPO market is expected to increase from a valuation of US$ 5.2 billion in 2023 to US$ 21 billion by the end of 2033. Large enterprises widely adopt MDM solutions since their business operations require the usage of high-tech tools, including real-time data compilation tools, advanced analytical engines, and process blueprints.
- Master data management (MDM) involves processes, tools, standards, policies, and governance to consistently manage and define critical data generated by an organization for providing a single point of reference.
Maintaining consistency in customer data is made possible by the MDM process. Customer information is gathered, cleaned up, organized, and stored. Businesses need to understand how the data about their clients change across different geographies as they become more globally oriented.
A key focus for the enterprise world is the effective administration of business data. With the use of MDM solutions, businesses may get rid of duplicate data, maintain a uniform data format across the board, and quickly adopt new guidelines for effective data management procedures. The adoption of MDM solutions and services is anticipated to be influenced by many factors, including an increase in data quality tools for data management and a rising requirement for compliance.
master data management BPOs offer products and services for tasks such as data gathering, collation, quality assurance, matching, and consolidation to guarantee that the data is consistent in terms of the established standards and complies with the needs of routine maintenance activities and applications. The usage of MDM solutions and services is essential for efficient operations in the BPO sector due to the enormous increase in digital data.
MDM BPO is enabling suppliers to expand internationally. Due to the rising demand from developing countries in the region, MDM BPOs are becoming more popular in developing markets. The move towards data maintenance and cloud-based technologies is enabling MDM BPO to gain a lot of market traction.
The software will continue to be one of the most profitable MDM solution components for the business process outsourcing (BPO) sector because of the rising need for cloud-based solutions and their affordability and flexibility. The booming growth of end-use industries, including healthcare, IT and telecom, and manufacturing, has driven the need for cloud-based software solutions, especially in emerging economies.
MDM BPO Market Size (2023)
US$ 5.2 Billion
Projected Market Value (2033)
US$ 21 Billion
Global Market Growth Rate (2023 to 2033)
Market Share of Enterprise-centric MDM
Key Companies Profiled
Which are the Growth Determinants for the MDM BPO Market?
“Demand for MDM Increasing with Growing IoT Proliferation”
The advent of the internet of things (IoT) has accelerated the penetration of information technology into a wide range of businesses, leading to significant advancements in master data management. Organizations are ramping up their investment in IoT technology, as it offers various advantages in the sectors of global networks, big data technology and services, and cloud computing. Many startups across the globe have been surging, along with significant growth in businesses being conducted over the web.
Considering the direct proportionality of IoT proliferation to the requirement for data management, global demand for MDM solutions will witness an upsurge over the coming years. Master data management solutions enable organizations in deriving actionable insights from IoT data generated.
The need to invest in MDM has therefore become imperative for an organization’s success. Businesses today find it crucial for making effective business decisions in a short period. Organizations are continuously striving to acquire better productivity on the back of unstructured information and poor data quality, which in turn leads to poor decision-making and impacts business processes. Organizations rely on BPOs for the management of their data to overcome these difficulties.
MDM BPOs accomplish customer expectations through the provision of comprehensive solutions, which combine power data, technology, and analytics. MDM BPOs help enterprises in making informed business decisions and improve their ROI by excellently connecting the right people with the right products.
“Rapid Adoption of Advanced Data Management Tools”
Massive data created throughout a business are channeled through master data management solutions and services, allowing for secure data storage in a single location. Advanced data quality systems are required to achieve operational excellence.
The first step in establishing master data management, a powerful instrument that enables companies to track the stages of information flow and document data transformation, is to ensure data quality. While MDM solutions automatically update records and delete unnecessary data, data quality technologies ensure the accuracy of the data. This has made it possible for enterprises to embrace both data quality technology and master data management solutions.
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What Could Inhibit MDM BPO Market Expansion?
“Lack of Awareness about Benefits of MDM Solutions and Data Security Concerns”
Lack of awareness about the benefits of MDM techniques and users' general concerns about data security are hampering market growth. The present state of data-driven business settings in which organizations operate increases the risk of advanced data breaches, cyberattacks, and phishing efforts.
Data distributed across different systems cause many problems and raises the data's security threats. Isolated data systems are a limitation for many businesses that confront a high risk of security breaches and disseminated data.
- According to the sixth annual benchmark study on the privacy and security of healthcare data by the Ponemon Institute LLC, healthcare organizations are at risk of data breaches more than businesses in other sectors.
Which Region Will Provide Lucrative Opportunities for Market Players?
“Growing Need for Advanced MDM Software across Several Industries in Europe”
- Europe accounts for 50% share of the global market.
Growing need for advanced MDM software across several industries and the high adoption of IoT across various organizations are driving market growth in the region. Market expansion can be ascribed to the rise in demand for risk management solutions.
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Why is the United States Set to Be a Highly Profitable Market for MDM BPO?
“Huge Popularity of Cloud Computing in the Country”
The United States is projected to remain the prominent country in the market during the forecast period owing to the presence of numerous MDM service providers and the highly developed network infrastructure. The United States is anticipated to hold a prominent market share due to an increase in R&D spending to offer advanced data quality systems and the rising popularity of cloud computing.
Why Does Germany Hold a Leading Position in the European Market?
“Surge in Small & Medium Enterprises' Demand for Business Intelligence Solutions”
Market expansion in Germany is attributed to the surge in small & medium enterprises' demand for business intelligence solutions. SMEs are increasingly implementing MDM BPO solutions, which has prompted them to look for more precise data regarding both their clients and the goods they are producing. This enables these businesses to take data-driven decisions that boost their productivity and improve customer service.
How is Japan Supporting Market Expansion in Asia Pacific?
“Increasing Need to Boost Operational Effectiveness in Major Corporations”
Japan is a key country for outsourcing various processes and operations. The market in Japan is projected to emerge as the most promising one over the coming years due to a rise in the implementation of MDM in e-Commerce, a surging need to boost operational effectiveness in major corporations, and the increasing need for quick & accurate information.
Which Data Type is Generating the Most Revenue in This Space?
“Enterprise-centric MDM Preferred for Management of Large Enterprise Data That Can Be Shared across Multiple Departments”
By data type, the market is segmented into supply-centric MDM, enterprise-centric MDM, and customer-centric MDM.
- Enterprise-centric MDM accounts for 60% share of the global market in 2023.
The generation and management of large enterprise data that can be shared across numerous departments are the main focus of enterprise-centric MDM. It makes sure that all relevant information is correct and updated regarding an organization's clients, partners, suppliers, and employees to enable business executives to make smart choices. Enterprise-centric MDM helps in effective communication with other companies or organizations through targeted marketing efforts in addition to assuring accuracy.
In supply-centric master data management, controlling product data throughout an organization is the main goal. Preserving each product's distinctive characteristics in one, the central location ensures consistency among varied items. The major goal is to maintain good data quality while minimizing duplication and inaccuracies that could influence current and future business decisions and processes.
Which Industry is Forecast to Account for a Prominent Market Share?
“MDM Solutions Widely Used in BFSI Sector to Avoid Data Duplication”
Based on industry, the market is divided into manufacturing, automotive, BFSI, healthcare & pharmaceuticals, IT & telecommunication, retail & consumer goods, aerospace & defense, and others. The adoption of MDM in the BFSI (banking, financial services, and insurance) sector is rising as a result of the many advantages it offers to end users, including gathering and combining data from many sources into a single source and identifying and correcting inconsistent master data.
The BFSI sector is experiencing rapid technology adoption as well as ongoing changes in consumer preferences with digitization and net banking. The industry is always evolving as a result of the rise of automation in current business models, which has led to a growth in the usage of MDM over time.
In the BFSI industry, sensitive and detailed financial and transactional data as well as consumer information is generated in massive quantities regularly through transactions. Financial organizations, including banks, businesses, and insurance agents employ MDM techniques to maintain these data's accuracy and security as well as to manage them effectively. These options support these financial institutions' efforts to manage risks and enhance customer service.
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Competitive landscape highlights only certain players
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Key market players are investing in R&D projects to advance their internal business processes following safety regulations. Major businesses are increasingly forming alliances & acquiring other companies and improving product standards to obtain a competitive edge in the market.
Leading companies are concentrating on developing advanced communication services and pricing trends to maintain market profitability. They are focusing on new developments, supply chain management, and quality control to attract new clients and increase market share.
For instance :
- In 2020, IBM Corporation, unveiled IBM invention master V12.0, the newest iteration of their product information management system, which will aid users in understanding information.
- In 2021, Oracle Corporation, teamed up with KPIT, a leading global provider of digital solutions, to offer its clients a superior product data management solution.
Key Segments of MDM BPO Industry Research
By Data Type :
- Supply-centric MDM
- Enterprise-centric MDM
- Customer-centric MDM
By Enterprise Size :
- Large Enterprises
- Small & Medium Enterprises
By Function :
- Finance & Accounting
- Others (Logistics, Sales & Delivery)
By Industry :
- Healthcare & Pharmaceuticals
- IT & Telecommunication
- Retail & Consumer Goods
- Aerospace & Defense
- Others (Education, Government)
By Region :
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- FAQs -
The market for MDM BPO is valued at US$ 5.2 billion in 2023.
The global MDM BPO market is expected to reach a valuation of US$ 21 billion by 2033.
The market for MDM BPO is set to rise at a stupendous CAGR of 15% through 2033.
TIBCO Software, Genpact, and Informatica are the leading companies in the global market.
Europe accounts for around 50% share of the global market for MDM BPO solutions.