In the past decade, India's BPM (Business Process Management) sector witnessed stable growth momentum. From a modest beginning, the sector has undergone a sea change to cater to the dynamic and ever-evolving marketplace. Today, it has emerged as the hotbed of all BPM-related outsourcing activities.
With its revenue pegged at $26 billion in FY 2015, the Indian BPM sector is contributing significantly to the Indian economy. At present, this sector accounts for almost one-fourth of the country's IT/ITES exports. In terms of the global BPM market, India holds a 38% share. Given its growth potential, the Indian BPM sector is projected to become a $50-billion entity by 2020.
The germination of new service offerings in this sector is likely to add pace to its future growth. The first of their kind in the global BPM industry, these new services are aimed at addressing ‘unmet’ and even ‘unknown’ requirements of customers through new generic processes, automation, the cloud, enterprise mobility, and cognitive business technology.
To stay in this changing frontiers of services and convey their value propositions effectively, the BPM companies are now making significant investments in ‘3 Ts’-Tools, Technologies, and Talent.
Over the years, this sector has played a crucial role in producing ‘multi-faceted talent’ who acts as a catalyst of this sector's growth. Being one of the main employment-generating sectors in the country, it boasts almost one million direct employees and about three million indirect employees.
However, like many other sectors, the BPM sector is also grappling with talent shortage. Especially in the recent time when the sector has started offering higher value services, the problem is getting severe. Further, with the introduction of new technologies, the shortage of experienced and skilled BPM professionals is apparent more.
The changing landscape of the Indian BPM sector has led to a growing demand for domain specialists having expertise in particular domains and skills. But finding the 'right' talent for this sector is a serious challenge despite the fact that about 5-6 million people are added to the country's workforce every year.
According to the HR head of a Bengaluru-based BPM service provider, "Honestly speaking, there is no dearth of resumes and profiles. Further, we are in touch with the placement cells of some renowned colleges and universities across the country. But the main problem is that we find most of the applicants are not 'job-ready' better to say, 'industry-ready'. Therefore, meeting our manpower needs is a big concern for us."
Undoubtedly, the growing talent shortage is a rising threat to India's leadership position in the global BPM industry. A study on the Indian BPM sector has revealed that presently, the total potential supply to the sector is about 2.5 million. However, the industry finds only around 0.45 - 0.5 million of them employable.
The prevailing talent shortage and low employability are leading to a supply deficit for the Indian BPM sector. To address these issues, workforce reengineering has emerged as a ‘necessity’ for every industry professional. Now the obvious question is ‘why?’
In a report, Gartner analysts wrote, "A lack of trained and experienced BPM professionals is negatively impacting the ability of organizations to deliver against their enterprise objectives." Further, some recent surveys conducted by Gartner have revealed that most of the participants in these surveys have unanimously agreed on the fact that "scarcities of resources and skills" are the main factors behind the failure of their BPM projects.
Indeed, several reasons are prompting more Indian BPM service providers to act on reengineering their workforce. Here are some of these reasons.
By reengineering their BPM workforce through training and certification, employers can easily define the objective of every job, evaluate employees' performance better, and encourage them to stay abreast of the latest changes in the industry. On the other hand, having a pool of BPM-certified trained professionals gives organizations an edge when it comes to winning clients' trust.
Workforce reengineering enables organizations to enhance existing skill set and knowledge of their employees.Certified professionals show improved proficiency in creating hierarchical process models, utilizing different tools and technologies to evaluate and analyze process performance, and implementing the best practice principles for process improvement-and all these efforts contribute immensely to the organization's growth.
Better hiring is another profitable outcome of workforce reengineering. The process will put the organization in a better position to evaluate candidates' knowledge, experience, skills, and credibility against a proper industry standards. This is will ultimately help in determining whether or not the candidate is the right fit for the job.
At present, several initiatives are being taken to address the talent shortage issue in the Indian BPM sector, with workforce reengineering being an important one. Therefore, in the long run, the likelihood is that BPM certification or training will be mandatory for every professional working or aspiring for this sector.