Indian BPM services could reach $100 billion in revenue over the next decade: Nasscom
By siliconindia | Monday, 14 November 2022, 08:58:44 AM IST
Higher demand for business process management (BPM) services following the Covid-19 pandemic could see the $44 billion Indian IT services market growing to $100 billion in the next 10 years, senior executives at technology industry body Nasscom said.
The Indian BPM industry, with revenues of $44 billion, is estimated to have grown at a rate of over 14% in FY22 compared to the previous fiscal year and accounted for nearly 40% of global sourcing spend, according to a report by Nasscom in collaboration with HFS Research, titled ‘The Evolution of BPM Services - Cost, Outcomes, and Growth’.
“About $44 billion of the $90 billion BPM outsourcing services market already comes to India… if the demand events continue, perhaps in the next 10 years we could be a $100 billion dollar industry,” said KS Viswanathan, vice president, industry initiative, Nasscom.
This demand is led by a requirement to support core enterprise solutions, which are increasingly being outsourced due to cost control measures by global clients, he added.
The emphasis on cost optimisation and return on investment is also changing the traditional business models in the BPM sector, Viswanathan said.
“The interim, by 2027-28 our goal is to be a $72-$75 billion industry,” he added.
According to the report, the BPM segment is also moving up the value chain from live customer interface services to integrated technology-led 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.
“Some of these models include highly specialised industry-specific BPO solutions,” said Vipul Khanna, CEO, Firstsource and Chair, BPM Council, Nasscom.
“Companies are also looking out for models where the BPM service provider will manage the end-to-end transaction processing across onsite, nearshore and offshore solutions. And finally, there are the outcome-based models for a specific set of efforts and quality of work,” he said.
The demand for outcome-based models has increased by 15-20% for the outsourcing industry over the past five years, he said.
This demand profile is also blurring the lines between talent sourcing for BPM and IT sectors, the experts added.
About 10% of the Indian BPM industry’s 1.4 million workers comprise core technology talent.
However, with increased focus on solutions like robotic process automation, data analytics and other digital technologies, there is a higher emphasis on attracting tech talent.
Read More News :