Business processes often generate massive amounts of documentation. It is essential that stakeholders get access to information with ease. With the digital technology picking up, companies are making efforts to go paperless. As a result, many vendors are offering software that streamlines business processes and documents. It helps the business save money and time in sorting and storing paper-based document. Also, document management system provides a far more secure option as compared to paper-based documentation. Primarily, the document management software can be either self-hosted on users premise or cloud-hosted. Cloud-hosted solutions offer remote access and improved security measures. It comes as a no surprise that the market for document management software is growing at an impressive rate of 11.83%. The growth is mostly boosted by SMEs opting for the solutions in developing economies.
The demand market
North America is the most popular market for document management software in terms of volumes generated. The North American region has a sound IT infrastructure, high technological awareness, and easy accessibility to capital. SpendEdge report estimates that the market spending is expected to reach $2.5 billion by 2022. Considering the demand, Europe is also not far away as the region provides a similar type of infrastructure and economic development. The demand in APAC region is fast-growing as the IT infrastructure development is picking up the pace. Additionally, the development of capital markets will increase the access to capital for SMEs, encouraging them to deploy costly solutions such as document management software.
Market supply overview
The market is marked by the presence of global players that cater to the needs of organizational buyers. On the other hand, there are plenty of regional players that cater to the specific needs of buyers in a geographic region. Suppliers are continually adding new functionalities to develop a competitive edge. They have taken significant efforts to integrate advanced technologies such as cloud-based deployment and big data analytics to lower costs, widen the scope, and make the category more lucrative for buyers.
Technological innovations
Many developers have been offering cloud-based solutions which ease pressure on the buyer’s end to invest in physical infrastructure. In the field of document management, it is difficult for buyers to filter and manage the data for meaningful analysis due to the proliferation of sources of data. By using big data analytics, buyers can go through large volumes of unstructured data and explore hidden and meaningful relationships between previously unexplored variables.
Regulations and compliance
Since document management software vendors deal with sensitive information relating to an organization, protection of IP is of paramount importance. Different laws exist in different countries to safeguard the IP of developers and protect them from piracy. For instance, the ACTA of 2011, which is a multinational treaty, was established to enforce international standards for the protection of IP rights.
Supplier costing
Engineering and development costs account for a large chunk of the total cost base. Employee costs account for nearly half of these costs. Maintenance costs, customer support costs, third-party software license fees, and stock-based compensation are other costs that contribute to these costs. It will become increasingly difficult for suppliers to access highly skilled labor at low costs from developing countries due to increasing competition and tightening of labor and immigration laws in major development centers such as the US, the UK, and Singapore.
Read more about the supply market landscape in the document management software market along with supply market insights, procurement insights, trends, challenges, and pricing models in SpendEdge’s upcoming report on the global document management software market.
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