In 2023, Business Process Management (BPM) and Human Resources Outsourcing (HRO) industries face a pivotal moment. The confluence of technological advancements, global economic shifts, and competitive pressures has set the stage for both opportunities and challenges. Global and India-specific outlooks highlight the need for radical transformation and growth, requiring strategic agility and a forward-thinking approach.

BPM: Thriving Amidst Changing Realities

Amid today’s challenging macroeconomic conditions, marked by barriers like cybersecurity threats and talent shortages, the need for better data, enhanced performance, and innovative partnerships is paramount. By tackling key areas such as data underutilization, governance and slow tech adoption, BPM service providers can usher in a new era of efficiency and excellence.

Need for Outcome-Driven Partnership Models

BPM stands at the forefront of a transformative era, where the shift from effort-based workflows to outcome-driven models is reshaping the industry’s landscape. This evolution is not just a matter of choice; it is imperative for service providers as nearly 50% of enterprises now view their relationships as strategic rather than transactional. 

The latest NASSCOM report underscores the undeniable shift in the mindset towards paying for outcomes and data rather than the linear provision of resources. Organizations are increasingly looking to BPM partners to uncover fresh sources of value and deliver solutions guided by data insights.

Strategic Evolution of BPM from Transactional to Collaborative

The shift in approach to value creation underscores BPM’s vital role in fostering growth and innovation in today’s complex economic landscape. Over 75% of enterprises organize BPM scope by underlying process today, but nearly 40% expect services to be defined around enterprise data-flows in the next few years (customer data, employee data, vendor data)

HRO: Navigating the Talent Landscape with Precision

Human Resources Outsourcing (HRO) is undergoing a parallel transformation, particularly in the realm of talent management. The evolution toward outcome-driven models is redefining how organizations approach employee lifecycle management.

Specialized Expertise to Fill Talent Gaps

In a global landscape marred by talent shortages, HRO providers step in as strategic enablers. Their specialized expertise and scalable offerings address the void left by skill gaps. This collaborative approach not only mitigates talent challenges but also empowers organizations to navigate the future of work with confidence.

Managing Remote Work and Streamlining Employee Lifecycle

Remote work has seamlessly woven itself into the fabric of today’s workscape. With the power of technology, 75% of organizations are embracing a leaner, streamlined employee lifecycle. This is evident in the 1.6x increase in tech spending on future work solutions. HRs are reshaping the employee journey to suit the needs of the modern workforce, leading to heightened efficiency and adaptability. 

Over 50% acknowledge remote work’s potential in addressing talent shortages. Additionally, 30% attribute the ‘Great Resignation’ to decreased availability of skilled professionals and are actively pursuing broader access to a qualified workforce. The talent attraction and recruitment segment of HR management has exhibited a noteworthy surge in technology adoption, with over 80% of post-pandemic hiring conducted in a virtual setting. Within the HRO sector, small and medium enterprises looking to rapidly scale their operations exhibit a marked preference for the Software-as-a-Service (SaaS) model.

India’s Enduring Influence on BPM and HRO

India’s stature as a global hub for BPM services remains unshaken. With more than 60% of enterprises expressing high contentment with the cloud, AI, data, and insights derived from India, the nation’s dominance in this domain is undeniable. Furthermore, Indian BPM commands nearly 40% of the Global Sourcing spend, firmly establishing the country as a stronghold for the industry.


In conclusion, the evolution of BPM and HRO within distinct realms highlights the adaptability and resilience of the outsourcing industry. From transforming engagements to embracing outcome-driven models, these sectors are steering toward growth and innovation. As they navigate macroeconomic challenges and changing mindsets, BPM and HRO providers redefine their roles as strategic partners in the ever-evolving business landscape.

Leave A Comment