Most businesses are dynamic, with processes and objectives that are constantly developing. In order to keep the processes within a business streamlined and efficient as well as reduce costs across business functions, business process management (BPM) is necessary. In this article, we take a look at what BPM does for an organisation, the industry’s current situation in India, and the way forward.
Growth of the Indian BPM Industry in Past Years
India being among the largest offshoring destinations in the world for IT companies, the BPM industry here accounts for about 37 per cent of the global outsourced BPM market, which was earlier called the Business Process Outsourcing (BPO) market. The country’s IT-BPM exports have grown exponentially in last few years, and the sector has remained a top delivery centre. This industry in India is also one of the bigger employers with more than 1.1 million people engaged in it across firms that number above 2,500.
The growth rate in the BPM sector in the country has been rising substantially. In the period from 2000-2013, the IT-BPM sector in India had a compound annual growth rate (CAGR) of 25 per cent, which was estimated to be 3-4 times higher than the global statistics for the same sector.
In the fiscal year 2015-2016 the revenue for the IT-BPM industry was US$ 143 billion, which went up to US$ 154 billion in 2016-2017. The CAGR for the business expansion during FY 2017 was 11.4 per cent, another example of the steady growth for this sector in India.
Where are we headed?
According to a report by the Indian Ministry of Electronics & Information Technology, the Indian IT- BPM sector is estimated to expand to US$ 300 billion by 2020, at a CAGR of 9.5 per cent.
Today, there are several software solutions available in the market to effectively manage business processes, which has come a long way from the manual effort required in BPM. However, does this herald an end to the need of people in the industry? Are robots and software programs all set to take over? No. Rather, businesses are increasingly opting for a mix of both – BPM and Robotic Process Automation (RPA).
Here is a look at what will broadly influence the Indian IT-BPM sector in the year and time ahead according to experts:
Revamped partnerships: As mentioned earlier, the reliance of businesses on technology has seen a rapid increase in recent years. And as such, partnerships with IT players have become integral for the BPM industry. Moreover, Indian IT centres and BPM services are fast growing industries. Both these sectors have joined hands to provide maximum benefits to clients, which is why these partnerships are set to only strengthen in the times to come.
Disruptive technologies: With the prevalence of robotics and artificial intelligence (AI) in recent times, a whole world of possibilities has opened up. Many sectors such as Healthcare, BFSI, Retail, etc. are looking to optimise new-level technology for their benefit, and the IT-BPM industry has been fast to catch on. The industry has already started redesigning its services by incorporating AI, RPA, and machine learning to meet the newer demands of organisations. It certainly looks like the use of advanced technology in BPM is here to stay.
Enhancement of skillsets: A recent report commissioned by the National Association of Software and Services Companies (NASSCOM) and Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with the professional services firm Ernst & Young showcases several interesting insights on India’s job scenario by 2022. According to the report, there will be a job evolution in the IT-BPM industry, wherein 10-20 per cent of the existing workforce will be positioned in new jobs and a substantial 60-65 per cent workers in this sector will be deployed in jobs with radically changed skill sets. Hence, there is an immediate need to upskill the country’s workforce. As R. Chandrasekhar, President, NASSCOM, put it, “The report attempts to present a 2022 picture – a time when no one can afford to ‘rest on one’s laurels’ but needs a continuous learning culture.” The good news is that the Indian BPM industry has already started work on this, with extensive emphasis on upskilling and restructuring of current teams with a view to improve further.
The Indian IT-BPM industry is expected to continue helping clients achieve business success in the coming years. Capitalising on newer technologies and re-skilling the workforce to face the challenges of the digital era will only help the sector grow further.