Friday, September 23, 2016

US$50 Billion Revenues for Indian BPM Industry by 2020: Nasscom

The Indian Business Process Management (BPM) industry is forecast to touch $50 billion by 2020, according to the software lobby group Nasscom. The BPM industry present revenues amounts to $28 billion in both domestic as well as in exports.
Nasscom has kick-started the two-day Nasscom-BPM Strategy Summit 2016 in Bangalore. Growing at a CAGR of over 8%, the BPM industry clocked a total revenue of US$28 billion during FY2016. With a share of over 25% of the total IT-BPM exports, the industry added 49,000 employees to its workforce, at a rate of 4.7%, taking the total no. of employees to 1,086,000.
The top management attributes analytics and process innovation evolve as key driving factors of Indian BPM that are likely to trigger off the growth. Over the last five years the industry grew about 1.7 times and has about 2,500 companies.
Keshav Murugesh, appointed as the new chairman of Nasscom’s BPM Council said, “The industry that has demonstrated resilience in the face of economic uncertainty by constantly re-inventing itself to meet market needs, is forecast to touch $50 billion by 2020 from the present $21 billion.
“While BPM 1.0 in the late nineties was centered on cost efficiencies and productivity, BPM 3.0 in late 2000 focused on specialisation, process re-engineering, technology-enabled platforms and taking BPM to the rural areas. I believe that the era ahead is that of clients and providers working together even more closely on disruptive innovations.”
“We have a rather audacious goal ahead of us as a Council. We are looking to rebrand the image of the industry from BPO to BPM to signify the evolution and the value that it creates for client companies globally.”
Speaking about the wave of change, R Chandrashekhar, President, Nasscom said, “Automation, digitalized 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. The next wave of growth for the industry will come from increasing demand of technologies like advanced analytics, social media, mobility and other new technologies, driving demand for specialised services.”

Nasscom also discussed the preliminary recommendations of its Consumer Interest Protection Task Force (CIPTF) in dealing with reputational risk. These recommendations will be shared with the Government and other relevant agencies in greater detail. The recommendations identify the following intervention points to address cases of tech fraud, and enhance consumer interest protection.  
i.        Prevention via development of a common code of practice featuring standards security, privacy and ethical practices
ii.      Detection and Reporting by setting up an accessible whistleblowing mechanism for registering complaints
iii.    Investigation through an independent govt. investigation agency with the jurisdiction and power to co-ordinate between governmental agencies and departments

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