Bangalore Business process management (BPM) companies may face a surge in growth in the near term as generative AI tools like ChatGPT disrupt business models through increased automation.
Industries such as HR, finance, and other transaction-based operations will be the first to be affected by such tools, according to industry experts.
Pure BPM companies in India and BPM subsidiaries of most IT services companies already face the risk of more tasks being automated through ChatGPT type tools. If this phenomenon occurs at scale, it can be expected to hit the bottom line of IT-BPM companies that staff and deliver customer service solutions.
“In a recent interview, IBM CEO Arvind Krishna said that AI and automation will replace up to 30 percent of IBM’s non-customer-facing roles over the next five years. AI will undoubtedly replace jobs through automation.The impact of such automation will have a significant impact on BPM companies in India in the short term,” said IT Outsourcing Advisor and Founder of Pareekh Consulting. One Pareekh Jain told Bizz Buzz.
However, he added that the medium-term impact should be judged on whether BPM companies can create value-added jobs in the future.
Indian BPM companies have increased their use of automation tools in recent years leveraging emerging technologies such as AI, ML and big data. However, generative AI tools like ChatGPT can cause sudden chaos as leveraging these tools can greatly increase the rate of automation. India’s BPM firms are therefore facing risks to their current business models, the sources said.
“Industries such as HR, finance and related transaction-based operations will face the impact of such tools as the rate of automation could increase significantly. BPM companies are rapidly integrating ChatGPT tools for value-added work,” added Jain.
Genpact, WNS, Tele Performance, Concentrix, Accenture, TCS, Infosys, Wipro, HCL Tech, and many midsize companies, either as pure BPM players or through their subsidiaries, provide BPM services to global clients. The focus on automation is likely to constrain job growth in these BPM sectors in the coming quarters, HR officials said.
“As you can see, overall employment growth is unlikely to be as great over the next few years as many data entry, analysis and other tasks will be replaced by ChatGPT type tools.” said an industry insider involved in the HR industry. Earlier, executives at skills firm FunctionUp told Bizz Buzz that many entry-level data science jobs are getting tighter.
outsourcing
in danger
n More tasks are automated through tools like ChatGPT
IBM CEO says 30% of HR functions will be automated
n Therefore, BPM companies in India face risks to their current business models.
n BPM needs to create value-added jobs in the future
