Domestic BPM Market 2016: On the Cusp of Transformation

Document created by NASSCOM Community on Jun 6, 2016
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A decade ago, business process management (BPM) in the Indian market was merely an emerging concept. The segment has now matured into a INR 25,000 crore opportunity. The third party BPM industry currently employs over 2,40,000 people. BFSI and telecom are the key sectors that have driven the demand for outsourcing and they currently constitute two thirds of the domestic BPM market.


The domestic BPM industry is on the cusp of a significant transformation. Going forward, it is likely to see a surge of demand from sunrise segments such as government and eCommerce. Increasingly, cost saving will not be the only or the key driver for outsourcing processes to third party vendors. Other imperatives such as domain expertise and scale of operations will become the more important ones. Further, the location of the domestic BPM industry is expected to shift from tier I and tier II cities to tier III and IV cities.


We believe that the government can play a crucial role in unlocking the true potential of the domestic BPM market over the next five years. With appropriate government intervention in infrastructure building, skill development, policy framework and marketing and promotion, the domestic BPM market could grow at a CAGR of over 19 per cent over the next five years to the INR 50,000 crore. This is expected to translate into an additional 3,27,000 job opportunities for third party BPM providers. Development of the smaller cities as attractive destinations for BPM will facilitate job creation in these locations. The Domestic BPO detailed study ascertains the domestic demand for BPM services across segments and verticals in the country. It gauges the domestic BPM opportunity as of 2020 and identifies growth areas.



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