The BPM industry

India has the world’s largest number of IT-BPM (Business process management) firms, more than 16,000. 80% of the IT-BPM revenue comes from 135 large and mid-sized companies. The top domestic BPM companies and their services include: Genpact, TCS, Wipro BPO, Infosys BPO, Aegis and WNS Global Services.

As per NASSCOM, The Indian BPM (Business process management) industry with revenues at $44 billion experienced double-digit growth of over 14% in FY22E as compared to FY21 and accounts for nearly 40% of Global Sourcing spend. The segment is also moving up the value chain from live CIS to Integrated Technology led intelligent business operations.

The highest concentration of G2000 enterprises is currently using and evaluating India as a delivery location for BPM services. Over 60% of the surveyed enterprises have declared extreme satisfaction with the delivery of Cloud, AI, F&A, data and insights from India.

As firms increasingly rely on data to generate revenue, data management and data interoperability are seen as important capabilities. Leveraging data to improve operational efficiency has emerged as the top priority for the BPM service providers in the next 2 years.

Moreover, firms are increasingly focusing on building an integrated Digital Capability Platform that will ensure seamless data flow. Over 33% of the surveyed BPM providers are currently leveraging data to create insights for decision making, whereas over 38% of BPM providers are expected to use data-as-an-asset to find a completely newer source of value in the next 2-3 years.

Experts say, “The BPM industry in India has matured significantly. The next evolution for this sector will be more dynamic, reliable, and significantly more agile in driving and shaping the next-gen needs of clients. The sector’s natural blend of capabilities- data-driven insights, technically skilled talent, utilization of new-age technologies, etc. further narrates the country’s BPM Advantage to the World.”

The scale of technical talent also continues to be the primary source of competitive advantage for India. BPM service providers are investing in not just technology experts, but also soft skills.

Training and building the in-house talent pool with problem-solving, analytical, logical & reasoning skills, along with project management skill sets have also emerged as key requirements to meet the growing talent demand for the sector.

Nearly half of enterprises (49%) strongly view their BPM relationship shifting from transactional to one of a strategic business partner. While until now BPM providers were focused on costs and outcomes of their clients, going forward, they will need to match their growth with the goals and purposes of their clients.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA