BPM cos rev up efforts to survive AI scare
Impact of GenAI on Business Process Management firms is severe unlike their counterparts in IT services space
image for illustrative purpose
On IT services industry, the impact of GenAI is sideways. But in BPM sector, the impact is more direct. Because the work can be done by chatbots. Therefore, BPM firms are witnessing more direct competition as compared to IT firms. Used cases have started appearing from financial institutions wherein large scale process-based work is being done through GenAI tools, replacing workers - Pareekh Jain, Founder, Pareekh Consulting, tells Bizz Buzz
Bengaluru: BPM (Business Process Management) firms are fast integrating Generative AI tools into their platforms and solutions in order to mitigate the adverse impact of GenAI on their businesses.
Experts are of the opinion that the impact of GenAI on BPM firms is both immediate and harsh unlike their counterparts in the IT services space. Therefore, these companies have to navigate GenAI-led disruption at a priority level than IT services companies.
“On IT services industry, the impact of GenAI is sideways. But in BPM sector, the impact is more direct. Because the work can be done by chatbots. Therefore, BPM firms are witnessing more direct competition as compared to IT firms. Used cases have started appear from financial institutions wherein large scale process-based work are being done through GenAI tools, replacing workers. So, GenAI has more potential in the core business of BPM firms like voice-based support, chatbot, and many more,” Pareekh Jain, an IT outsourcing advisor & Founder of Pareekh Consulting, told Bizz Buzz.
In the last two years, Indian and global BPM firms like Genpact, WNS, Concentrix, Firstsource Solutions and many more have witnessed good growth in the last two years. On the back of investment in the digital space, especially in the data analytics domain; BPM firms were able to post sound top line growth.
“Customer support, chat support, social media support, and voice support are likely to be impacted more. Similarly, horizontal services like HR processes, and finance & accounting (F&A) are also going to be affected through GenAI tools,” Jain said.
In recent quarters, sensing the disruption potential of GenAI, most BPM firms have started integrating these tools into their solutions and platforms. They are also upskilling their staffers in GenAI skill in order to bag more deals from clients. For instance, NYSE-listed Genpact, which has a majority of its employees in India, has announced that it would invest $600 million over the next three years in building its AI capabilities. Similarly, all BPM firms including WNS, Concentrix, Firstsource Solutions among others have taken up massive reskilling initiatives for their employees.
Experts opined that BPM sector has navigated many such technological changes successfully earlier.
“When RPA (robotic process automation) came, BPM sector was the most impacted, which companies navigated successfully. Now, the BPM firms will also be able to adopt to GenAI-led changes as they have seen many technology changes on past occasions,” Jain of Pareekh Consulting said.
