The 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 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.
- 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
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.