The Indian IT-BPM Industry and its sub-sectors

The Indian IT-BPM industry is a rapidly growing sector. At present the industry is generating more than USD 118 billion in revenues.

Being at the peak of the global IT-BPM industry, India is the only country that provides services across the different segments of the IT-BPM industry. The industry in India comprises of more than 500 companies.

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Classification of the IT-BPM industry into sub-sectors

The Indian IT-BPM industry is divided into four sub-sectors. Each of these sub-sectors comprises of a number of companies. The sub-sectors of the Indian IT-BPM industry are:

  1. IT Services (ITS)
  2. Business Process Management (BPM)
  3. Software Products (SPD)
  4. Engineering and R&D (ER&D)

1. IT Services (ITS)

IT Services or ITS sub-sector of the Indian IT-BPM industry involves a wide variety of activities like consultation, systems integration, IT outsourcing, IT hosting services, IT managed services, training and providing support or maintenance.

Custom Application Development (CAD)

The Custom Application Development or CAD services deal with the delivery of customised development of software applications and interface.

CAD services also focuses on enhancing existing packaged applications or pre-engineered templates. It deals with providing support and provision of custom applications.

Hardware Deployment and Support

The Hardware Deployment and Support services are related to installation of specific hardware devices and providing support for the devices.

As the name indicates, the service focuses mainly on the device and its various components.It does not deal with the software that runs on the device.

Among the activities included under installation services are hardware staging, configuration, testing and debugging, preparation of site deployment and physical installation of the device.

Software Deployment and Support

The Software Deployment and Support services are focused on activities and expertise that are related to proper installation and configuration of packaged software products. The services also include providing customised applications and proper ongoing support to customers.

The services also deal with providing access to resources and distribution of software product releases, updates and upgrades for the customers.

Information Systems (IS) Outsourcing

The Information Systems (IS) Outsourcing services deal with contractual arrangement where the service provider is responsible for managing all or some part of the client’s information systems operations or department.

Generally the contractual arrangement is for long terms and is based on a service-level agreement. The IS Outsourcing services normally includes data centre operations.

Among other activities included under the IS Outsourcing services are  operations management for local and wide area network, desktop management, application development and maintenance, network operations management, help desk support, disaster recovery consulting and services, and systems integration activities.

Infrastructure Management Services (IMS)

The Infrastructure Management Services or IMS pertains to all activities and services related to managing, monitoring and enhancing the performance of the IT infrastructure of a client.

This means IMS deals with data centre management, server management, asset management, network management, desktop support, help desk services, IT security services,  applications operations and maintenance services.

IT Consulting

IT Consulting services include IT and network planning, architectural assessments, IS Strategy, IS operational analysis, system and network designs, product-specific consulting, supplier assessment and maintenance planning.

2. Business Process Management (BPM)

The Business Process Management or BPM sector in India deals with the management of one or more business processes by an external organisation.

Further, the external organisation owns and deals with the management of certain selected processes or functions based on distinct and measurable performance metrics.

The evolution of this sub-sector of the Indian IT-BPM industry resulted in the change in the delivery of business processes from high-cost destinations to low-cost ones. This change took place due to the progress in information and communication technologies.

The BPM sub-sector can further be classified on the basis of the following types of organisations with diverse horizontal offerings:

  • Business Process Management (BPM): The conventional BPM services can be divided into major categories and vertical-specific offerings which require specific Industry vertical process knowledge:
    • Customer Interaction and Support (CIS): The Customer Interaction and Support or CIS services pertain to all kinds of IT-enabled customer contact, including inbound or outbound, voice or non-voice based support dealing with customer services, technical support, sales and marketing and help desk services.
    • Finance and Accounting (F&A): Finance and Accounting or F&A deals with services such as general accounting, transaction management, corporate finance (that includes treasury and risk management and tax management); compliance management and statutory reporting and other such activities.
    • Human Resource Management (HRM): Human Resource Management or HRM services involve payroll and benefits management, travel and expense processing, talent acquisition and talent management services, self-service delivery services related to employee and manager, employee communication design, and administration.
    • Supply Chain Management (SCM): Supply Chain Management or SCM services pertain to the transfer of the ownership of all or part procurement, sales and fulfillment functions to providers, such as an outsourcing agency. SCM processes or functions may include a variety of activities such as administrative, delivery or management-related processes or functions.
  • Knowledge Services: Knowledge Services include various activities such as market research, business research, data management and analytics.
  • Legal Services: Legal Services deal with the legal aspects of the business sector, such as legal and intellectual property services.

3. Software Products (SPD)

The Software Products or SPD refer to any kind of programmes or code sets that are commercially available by means of sale, rental, lease or as a service.

Revenues for packaged software generally include charges for initial and continuous use of packaged software licenses.

Offshore Product Development

Offshore Product Development pertains to offshore development of the software product as demanded by the customer.

This involves all aspects of the product lifecycle, such as R&D, prototyping, development, testing and debugging, providing maintenance and support and developing the next generation of the products.

Engineering and R&D (ER&D)

Engineering services include services or activities that enhance or manage processes and functions.

These processes are related to various other processes such as those that deal with the creation of a product or service, those that are related to maximising the life span and optimising the yield associated with a product or asset.

These services include design aspects of the product or service as well as the infrastructure, equipment and processes required for their manufacture and delivery.

  • Research and Development (R&D) Services: Research and Development or R&D services include activities such as providing research and development for hardware and software technologies, development of software running on embedded systems and so on.

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