Balakrishnan Nirmala

The BPM story so far...

Blog Post created by Balakrishnan Nirmala on Apr 7, 2017

The bpm sector in India has grown over 1.6X in the last five years and is expected to cross USD 30 billion in revenues in FY2017, at a growth rate of 7.4% over FY2016. Of the total Indian BPM market in FY2017, exports contribute to over 87%, while the remaining 13% is from the domestic business. The Industry employs over 1 million people accounting for 30% of the total it-bpm employee base which includes over 25% domain specialists and technical graduates and post graduates. With automation of services becoming the key focus, there is a gradual shift towards adding employees for their skill rather than for adding scale with focus on people with skillsets on business processes, business strategies, and desired business outcomes and objectives.

 

Key takeaways:

  • Imroving profitability and productivity remains the key focus for service providers and customers
  • New technology platforms, analytics, cloud, mobility the key enablers for growth
  • Deal sizes shrink as customers look at process improvement, automation, business outcomes to be built into the contracts
  • Mature clients moving towards gain sharing, outcome based pricing; though FTE model continues to dominate
  • Customer demand driven by design thinking, automation, innovation centers and cognitive computing capabilities
  • Cross vertical sell, deeper client mining, adding local talent and increasing onshore presence, adding platformised solutions, increasing digital capabilities and revenue share– key service provider focus

BPM Growth story

I will be writing more about the above trends during the whole of next week. So do stop by to read. If you think I have missed out on any key aspect that could be the game-changer for the sector do let me know.

 

The  @NasscomR Strategic Review 2017 report dwells on these and many more key trends witnessed during the year across the IT-BPM industry. You can buy the full report or download the Executive Summary.

 

If you are interested only in the BPM sector you can buy only that.

 

Outcomes