AI and Technology Reshaping India's BPM Industry: New Roles and Skills Emerge

AI and Technology Driving Transformation in India's BPM Sector

India's Business Process Management (BPM) industry is undergoing a significant transformation, driven by technological advancements, particularly in Artificial Intelligence (AI). A joint report by Nasscom and Indeed, titled "BPM Shifting Gears: Shaping Tomorrow's Skills and Careers," highlights the emerging trends and challenges in this rapidly evolving sector 1

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Industry Growth and Technology Investment

The BPM industry in India has shown steady growth, generating $48.8 billion in revenue as of FY2024. The sector is transitioning from traditional process management to delivering end-to-end transformation solutions. According to the report, 45% of BPM companies plan to allocate over 12% of their revenue to technology, with an expected 8x increase in those spending above 20% in the next three years 1

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Emergence of New Job Roles

The integration of technology, especially Generative AI, is accelerating across various functions such as finance, accounting, and customer service. This shift is driving productivity and cost optimization while also giving rise to new job roles. Some of the emerging positions include:

1. Data Scientist Analyst and AI Strategy Director in finance
2. HR Data Scientist and Chatbot HR Specialist in human resources
3. AI Conversation Designer and Virtual Assistant Trainer in customer services 1

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Upskilling and Specialization

As the industry evolves, there is a growing need for upskilling the workforce in technical areas like Generative AI and analytics, as well as in soft skills. The report emphasizes the importance of specialized micro-verticals, such as loan processing, claims processing, and revenue cycle management. Domain-specific roles are on the rise, requiring specialized certifications lasting 2-12 months to address complex industry challenges 2

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Challenges in the BPM Sector

Despite the growth and opportunities, the BPM industry faces several challenges:

1. Skill Gap: 47% of surveyed organizations cite a lack of adequately skilled candidates as the top concern.
2. Data and Cybersecurity: 45% identify this as a significant challenge, including difficulties in implementing the DPDPA.
3. High Attrition Rates: 43% of organizations report attrition rates of 25%-30%, affecting operations and client relationships.
4. Margin Pressures: 39% point to intense competition leading to low-profit margins 1

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Future Strategies and Recommendations

To navigate these challenges and capitalize on the transformative changes, the report suggests several key approaches:

1. Partnering with academia to develop specialized programs aligned with industry trends and emerging technologies.
2. Building in-house learning platforms offering courses in AI, data analytics, and cross-functional skills.
3. Establishing clear career pathways and offering specialization opportunities.
4. Emphasizing analytical skills among new hires and prioritizing candidates proficient in data interpretation and visualization.
5. Seeking government support to update academic curricula, incorporating digital skills, GenAI, and domain-specific knowledge 2

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Industry Perspectives

Sashi Kumar, head of sales at Indeed India, emphasizes the shift towards specialized roles demanding advanced skills in Gen AI, analytics, and process optimization. He notes that professionals are moving into more strategic, high-impact positions 1

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Harita Gupta, chair of the Nasscom BPM Council, stresses the critical juncture at which India's BPM sector stands. She highlights the need for BPM organizations to focus on nurturing talent through continuous learning and upskilling programs, particularly in AI, data analytics, and specialized domain knowledge 1

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