The Business Process Management (BPM) sector has seen phenomenal growth over the last two years because of the Covid pandemic and related shutdowns that forced populations worldwide to work from home and remain indoors while companies looked to deliver solutions at their doorsteps.
The Indian BPM sector is expected to reach $100 billion over the next decade as companies worldwide become increasingly dependent on the country’s tech talent to deliver satisfactory services, say officials associated with the National Association of Software Service Companies (Nasscom) in a recent report.
The current growth of the Indian BPM sector is at 14% in FY22 compared to FY21. The sector constitutes nearly 40% of the global outsourcing spend. Of the total $90 billion outsourcing market globally, $44 billion comes to the country. If the demand continues, the sector will reach $100 billion over the next decade, said Nasscom Industry Initiative vice-president KS Viswanathan.
Mainly, the demand is for support in core enterprise solutions as companies across the globe look at reducing operational costs. BPM companies are also changing their strategies as they focus on cost-cutting and return on investment. The BPM sector, meanwhile, is moving up the value chain by offering integrated technology-driven business operations from live customer interface, he said.
Indian BPM industry making the global tech sector run smoothly
The highest number of G2000 companies are using BPM services from India. Over 60% of the companies surveyed said they are extremely satisfied with the services offered in AI, finance and accounting, data, and insights. These services include highly-specialized industry-specific business process outsourcing solutions to global clients.
These companies are also looking at BPM service providers that offer end-to-end transaction processing through onsite, nearshore, and offshore solutions. There are also outcome-based models for specific requirements, said Vipul Khanna, CEO, FirstSource, and Chair of BPO Council, Nasscom. He added that the outsourcing industry’s demand for outcome-based models had increased by 15-20% over the last five years.
At the same time, there is an increased demand for tech talent as global companies demand services related to robotic process automation, data analytics, and other digital technologies. Experts said that the BPM sector has a workforce of 1.4 million; of that, 10% is the core tech talent. On its path to the $100 billion mark, the BPM sector has set its eyes on reaching $72-75 billion by 2027-28.
