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The Indian BPM Industry: Talent Evolution and Overcoming Challenges
The Indian BPM Industry: Talent Evolution and Overcoming Challenges

December 8, 2024

BPM

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This is the third blog in a three-part series detailing the Indian BPM Industry in 2024.

The Business Process Management (BPM) industry is undergoing a profound transformation fueled by technological advancements, particularly the integration of AI and Generative AI (Gen AI). This evolution is reshaping organizational structures, redefining job roles, and compelling businesses to rethink their talent strategies. However, alongside these opportunities lie challenges that the industry must address to sustain growth and innovation.

 

Transforming Organizational Structures

 

Source: 1. Deloitte and Nasscom BPM Survey 2024

 

The traditional BPM organizational structure is evolving to keep pace with the dynamic demands of the industry.

  • Managerial Layer Expansion: Companies are strengthening their managerial tiers to oversee increasingly complex, technology-driven processes.
  • Operational Role Transformation: Operational roles are adapting to blend human expertise with machine capabilities, enhancing productivity and efficiency.

 

Emerging Job Roles in BPM

The rapid adoption of technology is driving the creation of new job roles across BPM business functions:

  • Finance and Accounting (F&A): Data Scientist, AI Strategy Director.
  • Human Resource Management (HRM): HR Data Scientist, Chatbot HR Specialist.
  • Customer Services: AI Conversation Designer, Virtual Assistant Trainer.

Existing roles are also transforming, requiring upskilling in areas such as Gen AI, data analytics, and soft skills. Additionally, domain-centric roles like Loan Processing Specialist, Claims Specialist, and Revenue Cycle Management Executive are gaining prominence, demanding specialized certifications that take 2–12 months to acquire.

 

Shifting Talent and Skills Strategies

 

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To stay competitive, BPM organizations are recalibrating their talent strategies to focus on future-ready skillsets:

  • Key Skill Prioritization: Creative and analytical thinking are becoming essential as organizations emphasize these capabilities over the next three years.
  • Upskilling Initiatives: Continuous learning programs, cross-functional training, and Gen AI-based development are equipping employees for evolving roles.
  • Human-Technology Synergy: Organizations are integrating human expertise with advanced technologies to maximize efficiency and innovation.

 

Challenges Facing the BPM Industry

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Despite these advancements, the BPM sector in India faces several critical challenges:

  1. Skill Gaps: Nearly 47% of BPM organizations cite a lack of adequately skilled candidates as a significant issue. The demand-supply gap continues to widen as new roles emerge from rapid technological advancements.
  2. Data Security Concerns: 45% of organizations identify data and cybersecurity challenges as a key issue. Compliance with regulations like the DPDPA and disruptions from global IT outages exacerbate this concern.
  3. High Attrition Rates: High turnover, historically 25%-30% in the BPM industry, remains a major challenge, disrupting operations and client relationships.
  4. Margin Pressures: 39% of organizations report low-profit margins due to intense competition in the BPM sector.

 

Recommendations for the BPM Industry

To navigate these challenges and leverage emerging opportunities, the BPM sector must adopt a multi-faceted approach:

  1. Form Academia Partnerships: Collaborate with educational institutions to create specialized programs and update curricula in line with industry trends.
  2. Develop In-House Learning Platforms: Build platforms offering training in AI, data analytics, and cross-functional skills to enhance employee versatility.
  3. Establish Clear Career Pathways: Provide employees with well-defined career growth opportunities, mentorship, and access to industry-recognized certifications.
  4. Emphasize Analytical Skills: Focus on hiring fresh talent with a strong foundation in data interpretation, statistical analysis, and visualization tools.
  5. Government Involvement: Encourage the government to update academic curricula to include emerging technologies like Gen AI, digital skills, and domain-specific knowledge.

 

Preparing for the Future

The BPM industry stands at a crossroads, poised to harness the transformative power of AI and Gen AI. By addressing skill gaps, recalibrating talent strategies, and fostering partnerships with academia and government, BPM organizations can overcome challenges and lead the way in innovation, efficiency, and growth.

The future of BPM lies in its ability to adapt, evolve, and equip its workforce with the tools and skills necessary to thrive in an increasingly dynamic and technology-driven landscape.

To know more, download our full report, "BPM Shifting Gears: Shaping Tomorrow’s Skills and Careers." 

 

Report linkhttps://tinyurl.com/5cutpr9e

 

 

 


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Prajwal Pandey
Research Analyst

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