India’s business process management (BPM) industry will exceed its projected revenue of between $50 billion and $55 billion by 2025 on the back of strong demand from global clients and value-addition, National Association of Software and Solutions Companies (Nasscom) officials told the media on Thursday.
“Industry is in a great position. There is a strong level of demand. It is one of the best in several years,” said Rohit Kapoor, chairman, BPM council, Nasscom.
In February, Nasscom had projected a growth rate of 7-9% for the IT and business process outsourcing industry in 2018-19 as against 7.8% in 2017-18. Exports would be $137 billion in 2018-19 against $126 billion in 2017-18. The industry is expecting to add one lakh jobs in 2018-19. The overall IT-BPO industry would add $14-$16 billion. “Macroeconomic environment is very positive globally,” Mr. Kapoor said. “Political rhetoric and regulatory requirements have receded. [Indian] currency is at a comfortable level,” he added.
Going by the current growth rates, the BPM industry would exceed its projected revenue of about $55 billion by 2025 driven by digital initiatives such as automation and Artificial Intelligence, said K.S. Vishwanathan, vice-president, Nasscom.
“From the current 25% of digital component revenue, the share of digital will rise to about 70% [in 2025],” he said. “Currently the BPM industry is valued at $32.3 billion.”
BPM industry had gone beyond from labour arbitrage to adding value to clients, Mr. Kapoor said. “We are introducing more automation and AI. We are finding more opportunities,” Mr. Kapoor said. India’s BPM sector employed 1.2 million people, he said.
“There is a big shift in terms of skill set. There is lot of reskilling, and new employees come with a specialised skill set. It is a good healthy environment for the industry. Data analytics is growing rapidly,” Mr. Kapoor added.
Keshav Murugesh, vice-chairman of Nasscom, said India’s
The industry had adjusted to the Brexit, trade wars quite well. Of the 271 new global in-house centres set up by U.S. companies, 24% were have been in India, Keshav Murugesh, vice-chairman of Nasscom, said.
