Podcast Audio Transcript
Mimi: Hello listeners, this is Mimi; thank you for tuning in to yet another exciting and informative podcast from us at Infosys BPM. Today, we are discussing about “Changing the BPM Industry Value Proposition Over 25 Years”. And to talk about this, we have here with us, Ritesh Gandhi, VP & Sales Head at Infosys BPM. Welcome Ritesh. How are you?
Ritesh: I’m doing great, Mimi. It’s great to be part of this podcast.
Mimi:
It’s our pleasure. Ritesh, you have BPM industry experience of over 25 years. That’s quite impressive I must say. Would you explain to us how the business process management value proposition changed over such a long period?
Ritesh: Thank you Mimi. Yes the journey has been exceptional and highly rewarding. Let me mention a few turning points about how the value proposition changed:
- In the year 2000, the global delivery model took off in BPM. It began with contact center outsourcing and main proposition was around cost cutting through labor arbitrage.
- As you might imagine, the next 5 years were about organizations exploring more activities that could potentially be offshored. These included enterprise functions like F&A, order management, HR, etc.
- Subsequently, BPM organizations started looking at ways to differentiate themselves and started investing in process optimizations and technology to drive efficiencies.
- In those early days, Mimi, it was about lean, six sigma and using macros to drive efficiency and effectiveness.
- Then came the era of radically transforming processes. From 2005 – 2010, BPM organizations focused on scale and process transformation.
- Further, from 2010 – 2015, because of scale, organizations developed competencies in discrete industry segments. For example, how to create BIC processes for Retail in F&A vs creating BIC processes for F&A in Travel.
- In the years that followed, we were all about efficiently eliminating repetitive manual labor. During 2015 to 2020, we saw the flourishing use of RPA/robotics, analytics, customer and user insights, customer experience and creating CoEs for transformation.
- And finally today, transformation is again technology-led but focus is on extreme automation using AI, ML and tools and technologies provided by specialist players like Black line, Trade shift, etc.
So, Mimi as you can see, value proposition has changed dramatically over the last 25 years from arbitrage to expertise in helping transform organizations and move them to BIC.
Mimi: Ritesh, that was a perfect recap of the evolution of BPM through the years.
But wouldn’t the evolution of technology impact the BPM industry adversely? Wouldn’t the BPM pie shrink as newer technologies come to the scene?
Ritesh: This question is of great importance, Mimi. Back when RPA was the buzzword, this was the biggest fear that I had about outsourcing. The question is why would anyone outsource when they can eliminate work?
However, surprisingly the BPM industry boomed in 2015 onwards post the advent of RPA because organizations like Infosys BPM were ready to build expertise in RPA.
Not only did we build competencies in RPA, but we helped a number of clients set up RPA CoEs. Soon a lot of our prospects realized that it was better to outsource to a provider who could bring process competencies, industry expertise, and holistic capabilities including RPA which they could not do themselves.
This is a great lesson that we learnt and is holding us in good stead as newer technologies are coming to the forefront, such as AI and Gen AI which are disrupting the industry. Given our heritage in technology we are able to differentiate against the competition by building technological competencies.
Mimi: That’s quite a futuristic outlook Ritesh. And I am sure, looking at technology with a positive approach is behind your success.
How do you incorporate these disruptive, short-term technological developments in customer contracts as most of the BPM contracts are relatively long term?
Ritesh: Yes it’s quite an important concern you mentioned, Mimi. But I must say that we are quite able to manage it effectively.
There are various mechanisms that we built into the contracts to ensure they are up to date in the long term. Let me mention more details:
- Firstly, we are able to provide committed benefits based on current tech and levers but always build a mechanism for future innovations and new technologies.
- Secondly, given that we cannot predict the tech revolutions in the fast-changing landscape, we build in gain-share mechanisms with clients to share future savings.
- As we say the proof of the pudding is in the eating, we have seen several clients renewing 5-year deals with us 3-4 times because we have tried to keep the contracts current.
Ritesh: Mimi, we have a very focused mindset in transformation projects. We believe transformation of business processes is combining relevant technology and domain understanding to create a multiplier effect in eliminating effort or enhancing user experience.
Hence, I would say that, without a clear understanding of the process or industry or company and applying the relevant tool specific to that situation, transformation will not be possible. Transformation also entails a huge amount of change management at the customer environment.
Generative AI will be an enabler but like all technologies, success will depend a lot in the adoption of the technology and willingness to change within organizations.
Mimi: Absolutely, technology implementation has to be well thought-out and planned.
Before we wrap up today’s podcast, I have one more question. What is your outlook on the future of BPM organizations?
Ritesh: Mimi, as I mentioned earlier, the BPM landscape has dramatically changed over a period of over two decades. I see a bright future for BPM as well, dependent on a few important aspects that I will mention here:
- First of all, the organizations that adopt and embrace new technologies and make it real for existing clients will always do well.
- Secondly, the fundamental principle of outsourcing has been the same and will remain, which means organizations realize that these processes are not core to them and there is someone whose core competencies is to transform using tools and technologies that are relevant with the times.
- Finally, I would say that it will always be a make vs buy debate; why will you make when you can buy something which will always be better.
Mimi: Absolutely, Ritesh. Thank you so much for taking us through your thought process of the evolution of BPM and its prospects. I am sure our audience have thoroughly enjoyed today’s episode.
Ritesh: Thank you Mimi. It was definitely a pleasure to be here.
Mimi: Dear listeners, if you enjoyed our podcast today, please don’t forget to subscribe to it on the platform of your choice; our podcasts are available on Apple Podcasts, Spotify, and several others. Please don’t forget to share and like it on social media.
Also, if you have any queries, do reach out to us through the Infosys BPM website – www.infosysbpm.com.
Once again, thank you for tuning in, stay safe and sharp. This is Mimi signing off. Have a great day!
