The Indian BPM (business process management) industry is progressing at an impressive speed. Among the major sectors that are contributing to this phenomenon are data analytics and healthcare. In fact data analytics is fast emerging as one of the key players of this industry with huge growth opportunities.
BPM industry focusing on new business aspects
The Indian BPM (also known as BPO or business process outsourcing) industry is shifting from its conventional mode. It is reaching out for other business aspects apart from just outsourcing work to India.
Today the industry is laying emphasis on managing the business process of the customers from a location that is most efficient to do so. As such, the industry is opening up to options of managing the business processes from the client location as well.
NASSCOM predicts analytics will be the second largest BPM segment
The shift in the working process of the industry is bringing in positive results. Evaluating the industry’s progress at the BPM Strategy Summit 2014, the IT industry body NASSCOM predicted that analytics would emerge as a leading segment of the BPM industry by 2016. It expected that analytics would become the second largest BPM segment after the leading segment of Customer Interface Services (CIS).
This is a very good sign for the analytics segment considering the fact that CIS accounts for 41% of the BPM revenue share. At present finance & accounting is second biggest BPM segment.
The increasing growth of the analytics segment of BPM
As per records shared by NASDAQ-listed BPM major WNS, analytics grew 18% in revenues in the June quarter compared to the same period last year. The company employs 2600 people under its research and analytics division. EXL, another NASDAQ-listed BPM company claimed that its analytics service grew 40% in the last two quarters as against the growth in the same period last year.
One reason for the tremendous growth of analytics is the competitive pressure to leverage data. After the crisis of 2008, even banks and financial organisations have started valuing the importance of analytics for building risk models, authenticating and improving them.
New techniques and business areas are helping the growth of analytics
BPM companies and firms are used to controlling data as part of their conventional work. In recent times this data is being utilised so that clients can derive benefit from it. New analytics techniques are being introduced into the industry in order to analyse unstructured data and derive meaningful analytics from it.
According to Keshav Murugesh, CEO of WNS and chairman of the NASSCOM BPM Council, there are several business areas today that require the use of analytics today. He said, “Smaller verticals are growing faster with speedy decision making in areas like healthcare, retail, shipping and logistics, as also consulting and professional services, all of which need solutions around data.”
A bright future awaits the data analytics sector
As per NASSCOM’s estimates, the Indian BPM industry is slated to double its revenue from the current $23.2 billion to $50 billion by 2020. This is expected to happen as a result of performing higher value services like analytics and platform-enabled services and placing itself as a transformational partner to clients. Industry experts are of the idea that the rise of analytics is due to the shift from its conventional methods.
It has helped analytics to emerge as a solutions provider. New technologies combined with new business models is helping the cause of analytics and creating new opportunities.
The Indian BPM industry is expected to earn more revenues from places like Latin America and Continental Europe in the near future. This is due to the fact that price pressures in Europe are bringing a change there, which has always followed its inward looking policies.