Infrastructure

India poised to grab the opportunity of BPM 4.0: Nasscom

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NEW DELHI :
The Business Process Management (BPM) industry is poised for accelerated growth spurred by the covid-19 pandemic and is expected to witness the highest volume of new work in the next five years, according to a new Nasscom report released Wednesday.

The BPM industry’s resilience during the pandemic-led crisis has paved the way for BPM 4.0 which will be more reliable and agile in driving the future needs of clients.

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In its new version, the sector will span across front, mid and back-office enterprise functions and will grow at a healthy rate over the next five years, according to the report.

The global BPM market size is expected to grow from $254 billion to $336 billion by 2025.

“…With the experience of performing and evolving during the global crisis, the industry now paves the way for BPM 4.0, and we expect it to be process-based, industry-oriented, and most of all, technology-based for it to create a transformative value for all stakeholders globally. This will be a major transformation and will certainly have far reaching implications and massive disruption in the industry. We expect this change will come through accelerated growth for all to create value and opportunities backed by the transformation that BPM 4.0. will introduce,” said K S Viswanathan, Vice President, Industry Initiatives, Nasscom.

India is the most mature BPM location with almost half of the global BPM workforce and one-third of all global capability centers globally are located in the country, Nasscom said. Given the intersection of talent, technology, and innovation that India has, it is best poised to capture the opportunities of BPM 4.0.

Additionally, the country has vast untapped potential in Tier-2 locations and beyond which are likely to be unlocked with the emergence of a distributed workforce. This can also help unleash the next wave of operational efficiencies and cost savings and equip India to be at the forefront, the report said.

BPM segments expected to witness the highest volume of new work in the next five years include 45% enterprise back-office BPM, 67% industry vertical oriented BPM, 35% enterprise front office,11% new age BPM, and 45% contact center.

Traditionally, barring primarily the UK and Australia, governments in very few countries have outsourced BPM. However, covid-19 saw multiple governments across the globe leverage BPM for contact tracing and other related activities. This has the potential to open up this sector for future BPM adoption.

Technology will assume center stage in BPM 4.0, especially through platform-based services and data-driven analytics that will be necessary ingredients to deliver the BPM 4.0 promise.

BPM 4.0 teams will be made up of people from different areas such as development, IT operations, and business process operations for better collaboration, speed, and agility. Similarly, highly-skilled talent in a hybrid location model and flexible employment arrangement will be the fuel for the BPM 4.0 engine.

The report said that a mix of permanent and non-permanent workforce will be important going forward, where non-permanent workforce such as gig workers will be used for certain use cases such as highly repetitive work, highly specialized skills, or to manage volume fluctuations.

There will be a hybrid location model, with preference for WFH and hybrid (combination of office-based and WFH setups) service delivery increasing at the expense of the office-based delivery model. The existing hub and spoke delivery model will evolve to a hub-spoke-edge delivery model, where the edge will be leveraged primarily for WFH service delivery.

In fact, 65% BPM stakeholders expect increase in the adoption of the hybrid delivery model while 56% BPM stakeholders expect 10-25% of the workforce to consist of non-permanent workers.

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