According to NASSCOM, the IT industry body of India, the acronym BPO which stands for business process outsourcing, no longer suits the outsourcing industry considering the maturity level its has attained now. Henceforth, the IT apex body will use the term BPM, business process management to address the outsourcing industry in India.
BPO operations in India kick started with call center business where agents take calls from overseas, speak in the regional accent and try to sell products to people back in the home country. Over the years, industry matured to deliver complex back office works across varied industry verticals helping it to re-position itself as a partner to clients rather than just third party outsourcer. NASSCOM after seeing this change in the scope and role of BPO vendors has called for re-branding the industry to a much broader and strategically significant, BPM term, to make the stakeholders understand the value of outsourcing industry in India.
Why call as BPM?
According to NASSCOM, Indian outsourcing industry has moved up the value chain from just being a third party service provider to business partner who manages the entire business process of their clients. Today, the service offerings from Indian BPO industry include complex data analytics, financial and accounting processing, legal processing, compliance and regulatory services etc
Earlier outsourcing was considered to be merely a cost saving proposition for companies. However, as the market and vendors got evolved, companies started looking more than just cost saving from their outsourcing partners. Today they expect their outsourcing partner to deliver them specific business outcomes by providing flexibility in operations, innovation in products and services as well as skills and expertise in core processes which they lack in-house. Indian service providers have succeeded to a great extent in meeting the new expectations of the clients.
According to industry experts, Indian BPO companies are shifting from being efficient to effective by taking up the responsibility to manage the processes that could transform the business outcomes for the clients. The companies are re-engineering themselves by developing in-depth capabilities in varied industry verticals and high end business process to deliver excellent customer service. As per the industry reports, Indian BPO industry continues to hold the major market share in the global BPO. Indian BPO industry accounts for 37% of the total revenue earned by the global sourcing market.
NASSCOM president Som Mittal commented that the tremendous growth that Indian BPO companies showcased during the economic downturn and their rapid transformation from business process outsourcer to business process manager are the two most vital factors which has helped India maintain its leadership position in the global sourcing market. The re-engineering strategy has lead many BPO, now called BPM companies to deliver high end services that has direct impact on the business outcomes of their clients.
Further NASSCOM claims that re-branding of the industry is necessary to make all the stake holders both inside and outside the country to understand the value of services that Indian BPO companies offer since customers now have options of sourcing services from other geographies especially with the concepts of nearshoring and onshoring emerging.