“The BPM industry is extremely resilient, has adapted quickly, and is leading the change. It is growing as an industry, despite the cannibalization of revenue because of automation and use of robotics in a pervasive way. The value this industry brings will be significantly higher in the times to come,” said Rohit Kapoor, chairman of Nasscom’s BPM Council. He is also the vice chairman and CEO of Nasdaq-listed EXL. The BPM industry grew 7.5% to $30.1 billion in 2016-17.
Digital contributed to 15%-20% of the BPM revenue mix in 2015, while the remaining 80%-85% came from the traditional business. By 2025, digital is expected to become 60%-70% of the business.
Moving to digital is a rather complex one. The industry has to bear the burden of elongated training cycles to develop domain specialists with deep process knowledge. “As an industry we have to move from scale to skills and that is our biggest focus,” said Raman Roy, chairman of Nasscom. “Globally, no single location has the capability that India has and our No.1 position has been reinforced,” he said.
The BPM Council has identified big data, analytics, RPA (robotic process automation), develops, and cyber security as hot skills. The BPM industry had a net addition of 1 lakh people last year, out of the 1.7 lakh hired by the IT BPM sector.
About 60% of all new projects have digital components embedded. The BPM industry has witnessed more than a 60% increase in revenue per employee in analytics. The addressable market for analytics and big data is estimated to be $200 billion by 2020.
Keshav Murugesh, CEO of NYSE-listed WNS, said the environment has never been better for the industry . “In the past, the business was driven by the offshore-based model and revenue per employee was abysmal. All of us are now focused on driving a right-shore model for our clients,” he said, noting however that India remains the location with the most comprehensive capabilities. He said the BPM industry’s history of working closely with clients’ internal processes now enable it to transform those processes innovatively with new digital technologies.