nasscom, in collaboration with Indeed, has today unveiled a joint report titled BPM Shifting Gears: Shaping Tomorrow’s Skills and Careers, highlighting the evolving landscape of jobs within the BPM sector in India. As the sector undergoes rapid transformation driven by technological advancements, changing client expectations, and new engagement models, the demand for specialized skills and redefined job roles has become more critical than ever. The report emphasizes the need for BPM organizations to move beyond routine tasks and address more complex, strategic challenges, while offering valuable insights into the emerging skills that will define the future of work in this dynamic industry.
India's BPM industry is steadily growing, generating $48.8 billion in revenue as of FY2024, while undergoing significant shifts from process management to delivering end-to-end transformation solutions. Technology integration, particularly led by Generative AI, is accelerating across functions like finance, accounting, and customer service, driving productivity and cost optimization. Nearly 45% of BPM companies plan to allocate over 12% of their revenue to technology, with an 8x increase expected in those spending above 20% in the next 3 years. Additionally, there is a growing emphasis on specialized micro-verticals, such as loan processing, claims processing, and revenue cycle management.
Over the next 3 years, technology is expected to significantly accelerate the emergence of new job roles across BPM functions. Emerging roles include Data Scientist Analyst and AI Strategy Director in finance, HR Data Scientist and Chatbot HR Specialist in human resources, and AI Conversation Designer and Virtual Assistant Trainer in customer services. Existing roles are evolving, requiring BPM organizations to upskill their workforce in technical areas like Generative AI and analytics, as well as soft skills through certifications and training. Additionally, domain-specific roles, such as loan processing specialist and claims specialist, are on the rise, requiring specialized certifications lasting 2-12 months to address complex industry challenges.
Commenting on the report, Mr. Sashi Kumar, Head of Sales, Indeed India said, “The BPM sector in India is rapidly evolving, fueled by the rise of AI and cutting-edge technologies. As automation takes over routine tasks, the spotlight shifts to specialised roles that demand advanced skills in Gen AI, analytics, and process optimisation. Professionals are stepping into more strategic, high-impact positions, reshaping the future of work.
“Job movements now revolve around deep domain expertise, with a premium on candidates who can blend technical prowess with industry expertise. In fact, over the next three years, more than 80% of organizations are actively seeking to employ experienced professionals resulting in changes across the organizational structure. BPM is expected to see the emergence of new technology-driven roles across functions like HR, finance, customer service, and supply chain management. For organizations, cultivating a culture of innovation and adaptability is the key to attracting and retaining top talent in India”, he added.
Harita Gupta, Chair, Nasscom BPM Council said, “India’s BPM sector is at a critical juncture, transitioning from traditional process management to delivering transformative, tech-driven solutions. Emerging technologies, especially GenAI, are reshaping the industry; creating new opportunities and redefining job roles across all functions. To keep pace, BPM organizations must focus on nurturing talent by investing in continuous learning and upskilling programs. Building capabilities in AI, data analytics, and specialized domain knowledge will be key to unlocking the full potential of this transformation and ensuring that the BPM workforce is ready for the challenges of tomorrow’s digital economy.”
Navigating the BPM Landscape
While technology adoption is a major growth driver, talent shortages remain a key challenge, as nearly 4 in 5 BPM organizations report a widening gap between the demand for skilled professionals and available talent.
BPM organisations face several key challenges, with 47%of the surveyed organisations citing a lack of adequately skilled candidates as the top concern, as rapid technological advancements widen the talent gap. Data and cybersecurity issues, identified by 45%, pose significant challenges, with difficulties in implementing the DPDPA and global IT outages disrupting operations. High attrition rates (25%-30%) remain a critical issue for 43% of the surveyed organizations, affecting operations and client relationships. Additionally, 39% point to margin pressures, as intense competition in the BPM industry leads to low-profit margins.
To navigate the transformative changes ahead, the BPM industry must focus on equipping itself with the right talent, skills, and strategies. Key approaches include partnering with academia to develop specialized programs aligned with industry trends and emerging technologies and building in-house learning platforms offering courses in AI, data analytics, and cross-functional skills. Organizations should establish clear career pathways, offering specialization opportunities and mentoring for industry certifications. Emphasizing analytical skills among new hires is crucial, prioritizing candidates proficient in data interpretation and visualization. Government support is also vital, with updated academic curricula incorporating digital skills, Generative AI, and domain-specific knowledge to meet industry demands.
_20241021131045_original_image_21.webp)