The BPM (business process management) industry is set to achieve higher growth in terms of revenue in the next one and a half decade. The industry is expected to increase its revenue growth to twice its present figure by 2020. It is also expected to increase its employee growth to an impressive figure of 2 million within the same time frame.
The potential of BPM sector for future growth
The prediction for the BPM sector comes from the IT industry body NASSCOM. In a recent meet NASSCOM President R Chandrashekhar told reporters about the potential of the BPM industry for future growth. He said, “The BPM industry in India has potential to double its revenue growth to $42-50 billion and employ two million people by 2020, thanks to dynamic shifts in demand side markets spanning verticals, geographies, customers and services.”
Chandrashekhar stressed that there are some changes that need to be introduced in the BPM sector to achieve the predicted results. He was of the opinion that the BPM firms should have a relook at their service offerings and introduce changes into the area.
The growth of the BPM sector at the global level
The BPM industry is growing at a rapid speed even at the global level. According to a survey report, the global BPM spend jumped from $142 billion in 2010 to $168 billion in 2013. This means the growth took place at a CAGR (cumulative average growth rate) of 6 per cent. The offshoring market of global BPM industry size grew 9-10 per cent CAGR. It increased from $40-42 billion to $53-55 billion within the same time frame of 2010 to 2013. As per NASSCOM BPM council Chairman Keshav Murugesh, the key factor of the industry is the growing demand for knowledge services followed by marketing and data analytics and legal services.
The top BPM exporters in India
NASSCOM has released the list of top 20 BPM exporters in India for the year 2014. As expected, major players like Genpact Limited and Tata Consultancy Services Limited feature on this list. In fact Genpact has succeeded in becoming the top BPM exporter followed by Tata Consultancy Services. The third position is occupied by Serco Global Services.
The evolution of the BPM sector in India
In a time frame of just one decade the Indian BPM industry has evolved rapidly and continues to do so. According to Chandrashekhar, the revenues in FY 2014 stand at a figure of $23.2 billion. Based on the growth pattern of the BPM sector in India it can be said that the increment of the sector’s revenue growth to double of its present figure is just a matter of time.