NASSCOM BPM Summit 2013 - Future of BPM 2014 and beyond - Gaurav Gupta, Deloitte


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NASSCOM BPM Summit 2013 - Future of BPM 2014 and beyond - Gaurav Gupta, Deloitte

  1. 1. 18 September, 2013 Gurgaon Future of BPM: 2014 and beyond
  2. 2. Indian BPM Industry expected to grow at ~13% CAGR, and will be a ~$50 bn industry by 2020 2 Indian BPM Industry (in USD billion) Source: Deloitte Analysis, NASSCOM, Gartner, FT 500 Rankings, Datamonitor, Economic Intelligence Unit 17.8 42.3 3.0 7.4 2013E 2020E India BPM Exports Domestic BPM Market 49.7 20.8 Note: 1. Knowledge Services mainly includes Data Analytics, Market, Business, Social media research, Data Management & Reporting, Legal process services; 2. CIS – Customer Interaction Services • India will be the ‘Nerve Center’/ hub of Global BPM Sourcing industry – developing best practices; other emerging destinations will work around India • India to drive the global BPM industry through leadership in Analytics and other knowledge based services1; these services to grow ~2x times faster than other traditional horizontal services • Contribution of CIS2 offshore services to reduce; however shift to multichannel integrated services will result in opportunities • Emerging verticals (Healthcare and Retail) to grow ~1.5x times faster than mature verticals (BFSI, Telecom, Manufacturing), driven by changing regulations and adoption of newer services • Domestic market expected to increase ~2.4x, driven by increased maturity of Indian buyers and providers using the market as a testing ground for new-age service offerings
  3. 3. 3 Evolution of ‘Process as Science’: Focus shifting from pure Horizontal to Vertical to ‘Specialization’ • Customer expectations to vary from – one with ‘Unmet’ needs to the other with ‘Unknown’ needs • Change in definition of ‘Core’ / ‘Non-Core’ processes • Best-process and technology to virtualize work and make it location-agnostic; business outcomes to be ‘in focus’ • Social media, Enterprise mobility and other new technologies driving demand for specialized services • Journey from ‘Horizontal’ to ‘Vertical’ to ‘Specialization’ require BPM firms to make stringent, informed and calculated ‘Strategic investment choices’ ‘Paradigm Shift’ required for Growth and Survival of BPM firms Horizontal Verticalization ‘Horizontal’ to ‘Vertical’ to ‘Specialization’ … Source: Deloitte Analysis, Primary Interviews ‘Paradigm Shift’
  4. 4. 4 ‘Germination of new Service offerings’ for high value ‘unknown’ opportunities, however challenges persist • Significant automation of today’s generic BPM processes and emergence of a new set of ‘generic processes’ • Cognitive Business technology, Cloud services, Enterprise mobility, Platform based delivery to create unseen opportunities • Analytics embedded service offerings to play an important role in meeting ‘Unknown’ and ‘Unmet’ needs • Significant investment in Tools, Technology and Talent (3Ts) required to build appropriate solutions and effectively communicate the value proposition • However, shortage of data scientists and their ability to integrate with the current ecosystem pose challenges ‘Transition’ to ‘Germination’ of services with minimal presence of a ‘Baseline’ Source: Deloitte Analysis, Primary Interviews Cognitive Business technology C IT-BPM InterplayI K Knowledge Services D Data Analytics BPaaS B A Automation ‘Transition’ to ‘Germination’
  5. 5. 5 Need for Specialization and new Service offerings will necessitate complex Operating models • Emergence of ‘Transformational outsourcing models’ with significant shift from ‘Standalone & traditional processes’ to more ‘Integrated – technology optimized services’ • Ascent of new delivery models - Globalized to ‘Glocalised’ • Shift in pricing models - from ‘One price fits all’ to a ‘Many price equips variety’ • Non-linearity in Hiring – Focus on ‘Skilling’ rather than ‘Scaling’ and integration of global talent • Current operating models need to evolve further to nurture and sustain Innovation Flexible and continuously evolving Operating models required Source: Deloitte Analysis, Primary Interviews Pricing Talent Service Delivery Model Service Offerings Operating Model Changing Operating Models
  6. 6. 6 BPM 2020: What are the Challenges? • How capable are BPM firms today to meet the changing customer expectations? Where do you see the ‘Big Gap’? • How will the future operating models be different from today for various players (e.g. integrated vs. pure-play, globalized vs. glocalized)? • Are the BPM firms adept at handling faster technology changes effectively and to their advantage (e.g. BPaaS, Automation)? • How is the BPM industry going to address the ‘missing’ links in the eco-system such as specialized talent, enabling infrastructure, constricting regulations etc.? Some Questions for the Panel to ponder about …
  7. 7. Thank You