NASSCOM conducted a survey among its BPM member firms to highlight the strengths and attributes of the industry, to trace changing customer expectations, evolving technology trends and the resultant transformational opportunities across dimensions such as service offerings, service delivery models, pricing, talent and operating models.
The ensuing key findings from the survey substantiates the premise that the industry is continuously adapting to change and has shifted gears leading to differentiated segmental growth. There has been a paradigm shift in customer expectations; service offerings has moved from pure ‘Horizontal’ to ‘Vertical’ to ‘Specialisation’. Advent of new delivery models, markets and digital technology has also resulted in the industry becoming more mature, transformational and client-centric.
Survey highlights enumerated below:
- Changing customer behavior/expectations
- Perception of the industry shifting from a “lift and shift” industry providing only voice /call center services to “Transformational partners” providing business value to the clients
- Providing business outcomes for the client to be the main focus, while reduction/rationalize costs continue to be a significant client requirement
- Mature markets, such as the US and UK continue to contribute significantly to growth, while Latin America and Continental Europe likely to grow at a faster pace
- In addition to established verticals and horizontals, growth will be driven by rapidly growing verticals such as healthcare, retail and horizontals such as Analytics and F&A
- Delivery Models
- There is a continuous shift from ‘location specific’ to ‘client-specific’ global delivery models driven by the demand to penetrate new markets
- Customers demand multi-shore presence from vendors with continued focus on service quality
- Market Access
- With a need to focus on specialised geographies/service offerings, service providers to look at accessing new markets through M&As and establishing independent subsidiaries
- Collaborations with the local players to be based on local market expertise and domain knowledge
- Pricing Model
- Though currently fixed and FTE/T&M pricing models more prevalent-hybrid models to drive business outcomes in the future driven by customer expectations and new services
- Co-existence of different pricing models to be witnessed, dependent on the type, level of maturity and value of service offerings
- Sources of talent
- Talent to grow through FY2016, albeit at a slower rate compared to previous years
- Recruitment to move to tier II and III cities to drive down costs, to access quality, high-skilled talent
- Emerging technology
- Using SMAC technologies, to cater to customer demand and increase business outcomes for the customer and provider now a pre-requisite
- Analytics: Customer and Financial analytics to remain growth drivers while healthcare, BFSI, retail verticals with large customer volume to gain huge benefits
- Platforms/Clouds: Analytics and SCM to drive platform growth with retail & BFSI becoming the fastest adopters of platform based services
- Social Media: Human resource consistently using social media tools for better employee engagement with manufacturing and healthcare emerging as the main adopters of social media tools
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