Over the past few years, the term Business Process Outsourcing (BPO) has slowly become synonymous with radical change. The Indian BPO industry has evolved from basic transactional process outsourcing to higher-end service delivery to selling Business Process as a Service (BPaaS) to its clients. The BPaaS market size is estimated to grow from US$1.62 Billion in 2015 to US$4.71 Billion by 2020, at a CAGR of 23.7 percent from 2015 to 2020 according to a report by Markets and Markets.
The term BPO, once synonymous with call centres has now evolved to reflect mature market offerings which take an end-to-end view of the processes and work on improving productivity by providing efficiency gains through hyper-automation, analytics, artificial intelligence, digitization etc. The tenets of creating a best fit solution for the client involves mapping their processes to industry benchmarks, looking at low cost locations, hiring the best resources, deploying tools and technologies, incorporating continuous process improvements and best practice sharing.
Moving from BPO to BPS, the industry has moulded itself from a service provider to a strategic partner for the future driving growth and business value. This has been possible due to the number of outsourcing models that the industry now offers. From takeover to managed captive to the build-operate-transfer model, the BPS industry now offers various customizations of business models best suited to the long term strategic goals of its clients. So a client can now evaluate what their business objectives are, be it optimizing cost, scaling operations, enabling maximum efficiency, adhering to controls and compliance, minimizing risk etc. and analyze which operating model works out best for them.
In BPaaS, the clients and companies can choose cloud based industry solutions that help them to adapt to the VUCA business environment through deployment of plug and play solutions, intelligent automation and analytics. Clients are provided standardized and agile business process services along with access to people, infrastructure and applications in a BPO as a Stack or BPaaS model. These solutions reduce operational expenses while eliminating the need for capital expenditure and thus reducing total cost of ownership (TCO). This has helped to drive more competitive prices as the industry now offers outcome based and gain sharing revenue models in place of simply charging for licenses or time and material.
The end goal is to drive savings, increase business value, deliver transformational benefits through process reengineering via standardization, bringing in efficiency drivers through platform based solutions, automation via robotics and AI, and ultimately focus on providing not only cost arbitrage but intellectual arbitrage as well. The end objective of the service provider has evolved into building a long term strategic and symbiotic partnership that helps both the organizations to grow and expand their businesses.