High Demand for BPM Services from India: Key Reasons

EM Admin
Nov 5, 2024
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Global businesses are fostered because of the unprecedented support that business process management companies are providing in time. Startups and SMEs are specifically leveraging their expertise and talents, which drive efficiency at much lower costs. Besides, their productivity continues to enhance year over year. India, in particular, has become an apple of the BPM service industry. This Asian country is capable of meeting scaling demand without breaking the bank. This is simply because it is enriched with a skilled and affordable workforce, robust technology infrastructure, scalable demands, and favorable government policies.

Why Are India’s BPM Services in Demand?

Several reasons are behind it. The foremost ones are the following:

Cost-Effectiveness

No company wants to pay more for any services that they leverage. By outsourcing data entry to India, beneficiary businesses overseas, especially in North America and Europe, save a significant amount on backend operations. This practice allows them to align their resources to core business activities for more revenues.

According to NASSCOM, investing in Indian outsourcing services can save up to 60% of companies’ amounts. Moreover, 59% of companies discover reduced costs when they outsource services to countries like India, according to Deloitte.

Skilled and English-Speaking Workforce

India is where over 3 million graduates become eligible for jobs. Out of which a substantial portion is proficient in English and technical skills, as per NASSCOM. Considering the statistics, India is where over 1.3 million BPM professionals were recorded in 2022. This much bigger talent pool helps BPM companies to serve a range of industries, from finance to healthcare.

So, this country has fair chances to lead the business process outsourcing industry. Global customers leverage their experience and proficiency to deliver excellent customer experience and process complex data.

Advancements in Technology and Digital Infrastructure

India is in the third position globally which is friendly for startups. Its rapidly enhancing digital infrastructure represents a robust tech ecosystem that is compatible with advanced BPM services that are in demand. With the rise of artificial intelligence, data mining, machine learning, and cloud computing, these companies can significantly focus on technology and AI to deliver cutting-edge solutions. The rapidly advancing technologies and their proficiency ensure these companies deliver with accuracy. This practice certainly makes customers happy. Considering the study by MeiTY, India’s digital economy is likely to add $1 trillion to the national GDP by 2025, which represents outstanding growth in technology-driven solutions.

Flexibility and Scalability

Business process management services must be flexible. And India is particularly highly flexible and conveniently meets scaling up or down demands. With this kind of flexibility, companies easily expand or contract their requirements. Overall, seasonal spikes, market expansions, and customer demands can be meticulously handled while collaborating with Indian BPM companies. Once signed the agreement, the customer does not need to pay additional charges for hiring. Nor does he need to invest in the in-house infrastructure.

The Grand View Research reports that the global BPM market is likely to inflate at a compound annual growth rate (CAGR) of 10.6% from 2020 to 2027. This is, of course, because of the valuable support that Indian companies provide to achieve growth in double digits.

Time Zone Advantage

A survey by Deloitte revealed that 47% of companies hire a third party or vendor for business continuity by leveraging their time zone advantages. India, for overseas and European companies, has become a center of attraction because of its strategic time zone. It’s a key selling point for this country, which helps it in providing continuous service supply across the globe.

In a nutshell, this Asian country’s time zone helps in achieving 24/7 production. Ultimately, the beneficiaries witness a high production rate and reduced turnaround times. This particularly proves its efficiency in meticulously handling customers’ queries, back office operations, and data management tasks without any glitches.

Comprehensive Service Range and Industry Expertise

NASSCOM came with another finding, which is about India’s high-end value services like data analytics and financial processing. Nearly 38% of BPM services in this country are such types that are continuously enhancing their dimensions. Moreover, these services are delivered to 60+ sectors, which proves their versatility and expertise.

Overall, these BPM companies are known for advantageous call center services and complex services like finance and accounting, healthcare, analytics, human resources, and legal process outsourcing.

Government Support and Favorable Policies

The Indian government is committed to promoting its software product industry. This commitment led it to introduce a national policy on these products so that desirable IT and BPM industry growth, which is likely to be $350 billion by 2025.In this direction, special economic zones (SEZs) across India also emerged as a helping hand to BPM companies offering lower operational costs and tax incentives. This kind of support has brought India into a strong position against its competitors in the global market.

Focus on Data Security and Compliance

Nearly 90% of Indian outsourcing companies are now ISO 27001 certified, as revealed in a report by Cybersecurity Ventures. This certification proves their eligibility to comply with data security regulations. Simply put, these companies are proven to be able to deal with sensitive information while maintaining high levels of security.

So, companies from finance and healthcare or other domains can be at peace as these companies follow international regulations for data security, such as GDPR, HIPAA, and ISO.

Established Reputation and Proven Success

According to NASSCOM, India has acquired a 40% share of its global BPM market, which indicates its high value that drives overwhelming demand from global businesses. If evaluated, this demand accounts for over $38 billion in revenue that this industry generates here. These overall progressive figures have built a strong reputation for this country, which is consistently increasing its business value.

Conclusion

The high demand for BPM services from India is a result of several strategic advantages that include cost savings, a skilled workforce, technological prowess, and government support. As global business landscapes continue to evolve, India’s BPM industry remains well-positioned to provide companies with flexible, scalable, and secure services that drive growth and efficiency.

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