Indian BPM companies must rethink approach to talent, prioritise right skills: Report

Business process management ( BPM) organisations must move beyond routine tasks and address more complex and strategic challenges while offering insights into the emerging skills that will define the future of work in this dynamic industry, a new report has said.

As the sector undergoes rapid transformation driven by technological advancements, changing client expectations and new engagement models, the demand for specialised skills and redefined job roles has become more critical than ever, said the report, ‘BPM Shifting Gears: Shaping Tomorrow’s Skills and Careers’, jointly prepared by industry association Nasscom and job search portal Indeed.

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 optimisation, the report said.

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 three years, it said. Additionally, there is a growing emphasis on specialised 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 chatbot HR specialist in human resources, and AI conversation designer and virtual assistant trainer in customer services, it said.

Existing roles are evolving, requiring BPM organisations 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 specialised certifications lasting 2-12 months to address complex industry challenges.

“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 organisations are actively seeking to employ experienced professionals resulting in changes across the organisational structure,” said Sashi Kumar, head of sales at Indeed India.

BPM is expected to see the emergence of new technology-driven roles across functions like HR, 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, chair of 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 organisations must focus on nurturing talent by investing in continuous learning and upskilling programmes.”

Building capabilities in AI, data analytics, and specialised 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, Gupta said.

While technology adoption is a major growth driver, talent shortages remain a key challenge as nearly four in five BPM organisations 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 organisations, 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 specialised programmes aligned with industry trends and emerging technologies and building in-house learning platforms offering courses in AI, data analytics and cross-functional skills, the report said.

Organisations should establish clear career pathways, offering specialisation opportunities and mentoring for industry certifications. Emphasising analytical skills among new hires is crucial, along with prioritising candidates proficient in data interpretation and visualisation. Government support is also vital, with updated academic curricula incorporating digital skills, GenAI, and domain-specific knowledge to meet industry demands, it said.