View from India: What's your next big goal?
An inquisitive impatient 18-year-old would want to know about things like the big goal in life and how it needs to be achieved. Such apprehension is acceptable. But interestingly, a summit this week on business process management has put forth a rather engaging question, The Next Big Goal: Effective to Strategic, can BPM get this right? And this made me inquisitive.
It’s a high-impact agenda, and even as I was into the morning session of of the NASSCOM BPM Strategy Summit 2016, I realised that there’s much more than goal-setting in the BPM sector. The Indian BPM industry is rarin’ to go, with support coming from new technologies like advanced analytics, social media and mobility. Millions of dollars are riding high on the back of analytics, robotics, technology, data sciences, domain experts and digital transformation specialists to help companies reorient themselves and understand specific client requirements.
“Automation, digitalised processes and new business models are enabling the BPM sector to take a step forward in adopting a more strategic role as compared to being just another outsourcing platform,” said NASSCOM president R Chandrashekhar. NASSCOM is the premier trade body and the chamber of commerce of the IT-BPM industries in India.
Growing at a CAGR of over 8 per cent, the BPM industry clocked total revenue of US$28bn during FY2016. Of this, the domestic revenue is $3.6bn. With a share of over 25 per cent of the total IT-BPM exports, the industry added 49,000 employees to its workforce, at a rate of 4.7 per cent, taking the total number of employees to 1,086,000.
“The BPM sector contributes 2 per cent of India’s total GDP,” added Keshav Murugesh, chairman of the NASSCOM BPM Council. The BPM industry is expected to grow to $50bn by 2020. It’s anyone’s guess what innovation and newer strategies are required to fulfill this ambitious target. “NASSCOM’s BPM Council has chalked out initiatives to meet the $50bn target,” highlighted Murugesh. The Council has set out on a rebranding exercise for both the supply and demand side wherever required. A centre of excellence (CoE) is being set up to promote data sciences. In its effort towards capacity development NASSCOM runs an outreach programme with colleges at the national level, where the training programme focuses on big data and analytics. The Apex body has invested in professors who are being trained to distil the essence of data, domain knowledge and share insights on statistical tools with students. This is the key to attract talent across disciplines. That’s agreeable because as the BPM industry is gearing up for new innings, the pipline should not have a deficit of talent.
Also on the agenda is a policy advocacy programme, whereby NASSCOM works with the government and policy makers to build partnerships through collaborative efforts.
Such initiatives prove that the growth in the BPM industry is no longer linear. As the rate of change is exponential, business models are changing rapidly.
“From being order-driven, BPM is now outcome-driven. There’s a shift in operations, wherein the focus is on the experience of customers. Hence, it’s essential to strategise partnerships with clients in a way such that service providers are given a bigger sense of responsibility,” felt Chandrashekhar. For instance, a company serving the travel sector, will link itself to customer experience. A time has come when linkage to solution is critical and it’s even more critical to address the solution appropriately.
Now for that Wow! Factor, check this out…
India has the largest BPM base in the world, with over 2,500 firms
The revenue growth in the next five years is predicted to be 1.7X
The Indian BPM industry has 38% share in global sourcing
The number of analytics focused start ups in India is 400
BPM sector has 500+ entities in MNCs and GICs (global in-house centres) in India
To be continued…