As the industry undergoes rapid transformation driven by technological advances, changing customer expectations and new engagement models, demand for specialized skills and redefined job roles has become more critical than ever, according to the report ‘BPM Shifting Gears: Shaping Tomorrow’s Skills and Careers’, jointly prepared by the industry association nascom and job search portal Indeed.
India’s BPM industry is growing steadily and generated $48.8 billion in revenue as of fiscal 2024, while undergoing significant changes from process management to delivering end-to-end transformation solutions.
Technological integrationparticularly led by Generative AIis accelerating in functions such as finance, accounting and customer service, driving productivity and cost optimization, according to the report.
Almost 45% of BPM Companies They plan to allocate more than 12% of their income to technology, and an 8-fold increase in those spending more than 20% is expected over the next three years, he said. Additionally, there is a growing emphasis on specialized micro-verticals such as loan processing, claims processing and revenue cycle management.
Over the next three 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 HR chatbot specialist in HR, and AI conversation designer and virtual assistant trainer in customer services , said. Existing roles are evolving, requiring BPM organizations to upskill. its workforce in technical areas such as generative artificial intelligence and analytics, as well as soft skills through certifications and training. Additionally, roles in specific fields, such as loan processing specialist and claims specialist, are on the rise, requiring specialized certifications lasting between 2 and 12 months to address complex industry challenges. “Labor movements now revolve around deep experience in the field, with a premium for candidates. who can combine technical skill with industry experience. In fact, over the next three years, over 80% of organizations will actively look to employ experienced professionals, driving changes across the entire organizational structure,” said Sashi Kumar, Head of Sales, Indeed India.
BPM is expected to see the emergence of new technology-driven roles in functions such as human resources, finance, customer service and supply chain management. Cultivating a culture of innovation and adaptability is the key to attracting and retaining top talent in India, Kumar said.
Harita Gupta, Chairperson, Nasscom BPM Council, said: “India’s BPM sector is at a critical juncture, transitioning from traditional process management to delivering transformative technology-driven solutions. Emerging technologies, especially GenAI, are reshaping the industry, creating new opportunities and redefining job roles across functions. To keep pace, BPM organizations must focus on nurturing talent by investing in continuous learning and skills improvement programs.”
Develop capabilities in AI, data analysisand specialized domain knowledge will be key to unlocking the full potential of this transformation and ensuring the BPM workforce is prepared for the challenges of tomorrow’s digital economy, said Gupta.
While technology adoption is a major driver of growth, talent shortages remain a key challenge, with nearly four in five BPM organizations reporting a widening gap between demand for skilled professionals and available talent. .
BPM organizations face several key challenges, with 47% of organizations surveyed citing a lack of adequately trained candidates as the top concern as rapid technological advances widen the talent gap.
Data and cybersecurity issues, identified by 45%, pose significant challenges, with difficulties implementing the DPDPA and global IT outages disrupting operations. High attrition rates (25%-30%) remain a critical issue for 43% of organizations surveyed, affecting operations and customer relationships. Additionally, 39% point to margin pressures as intense competition in the BPM industry leads to low profit margins.
To address the transformative changes ahead, the BPM industry must focus on equipping itself with the right talent, skills and strategies. Key focuses include partnering with academia to develop specialized programs aligned with industry trends and emerging technologies and building internal learning platforms that offer courses in artificial intelligence, data analytics and cross-functional skills, according to the report.
Organizations should establish clear career paths, offering specialization opportunities and mentoring for industry certifications. It is crucial to emphasize analytical skills among new employees, in addition to prioritizing candidates proficient in data interpretation and visualization. Government support is also vital, with updated academic curricula incorporating digital skills, GenAI and domain-specific knowledge to meet industry demands, he said.
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