You are here: Home » Companies » Industry
Business Standard

BPM sector sees faster growth than IT services: Nasscom

$29.8 bn industry hired more people than IT services companies in FY17

Topics
Bpm Industry

Ayan Pramanik  |  Bengaluru 

(From left) Mohanakrishnan P, Sandip Sen,Keshav Murugesh and Mohit Thukral at the Business Standard round table at the Nasscom BPM Strategy Summit in Bengaluru
(From left) Mohanakrishnan P, Sandip Sen,Keshav Murugesh and Mohit Thukral at the Business Standard round table at the Nasscom BPM Strategy Summit in Bengaluru

The $29.8-billion Indian business process management (BPM) services expects to become worth more than $50 billion by 2025.

body National Association of Software and Services said the BPM have caught up with the business transformation challenges of their clients much ahead of time. The body claimed that this approach has helped them achieve better growth at a time when the core IT services players are witnessing a slowdown.

BPM such as WNS, EXL Service, Genpact and others, who have seen 8.8 per cent growth in FY17, added 1 lakh employees of the 1.7 lakh people hired by the overall Indian IT and .

The Indian IT-BPM sector overall is worth nearly $154 billion.

The IT services industry - which counts companies such as Infosys, Wipro, TCS, HCL Technologies, Tech Mahindra - have seen single-digit growth for the first time in many years. The pure IT players are seeing an increasing demand for digital technology-based services from clients resulting in a major shift in business model and slowdown. They have been slow in transforming from traditional software maintenance services business, which still forms roughly 80 per cent revenue on an average.
Nasscom said BPM sector has overcome “earlier phase of a slower growth" and is witnessing a revenue growth of 1.7 times. "Revenues for India's BPM sector are projected to increase from $30bn in FY17 to $50-55bn by 2025. Digital streams will account for 60-70 per cent of the BPM service providers' revenue by 2025, overtaking traditional streams, with advanced technology solutions and intelligent automation driving much of this growth."

K S Viswanathan, vice president, industry initiatives, Nasscom said BPM industry's growth should become double-digit soon. "Our own estimate for the IT industry is close to 8 per cent, whereas the whole is growing at 8.8 per cent and poised to grow double-digit. BPM is growing faster than the overall IT services industry growth. They have adapted to the business challenges much earlier than the game whereas IT in the past was more of a shared services at the back."

EXL Service, a major BPM player, believes that the per employee revenue for the sector will grow "significantly" and the industry would focus training more people in key skills such as big data analytics, design thinking, robotic process automation, artificial intelligence, DevOps, cybersecurity.

"The ability to create value for clients is going to increase. In the past our clients would trust us to do a portion of the work, now they are giving us entire work and in many cases allowing us to change their business model," said Rohit Kapoor, vice chairman and chief executive officer, EXL, who is also the Nasscom BPM Council Chairman.

BPM sector is slowly emphasising on creating strong domain knowledge across segments such as insurance, travel, healthcare and others.

"With the advent of new pricing models and increasing demand for unique skills in analytics, domain-knowledge and emerging technology, the is being aided by strategic acquisitions, partnerships and collaborations. It is reported that there has been more than 60 per cent increase in revenue per FTE for analytics in the last three years," added Nasscom.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 12 2017. 21:46 IST
RECOMMENDED FOR YOU
.