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Large BPM firms ride digital data analytics wave

Genpact, EXL Services and WNS register healthy growth as clients increase investments in data analytics.

, ET Bureau|
Updated: Aug 29, 2019, 06.21 PM IST
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BENGALURU: Business process management companies Genpact and EXL Services are seeing growth quicken for digital services, as clients increase investment in data analytics to improve customer mining.

Among the top five BPM companies, US-listed Genpact grew more than 20% in the June quarter on big deals with large-format retailer Walmart, while EXL Services grew 15.9%, both typically faster than IT services companies.

WNS, the other big BPM player, has shown high single-digit growth.

Digital technology-led delivery is boosting growth for large BPM firms as more business applications are digitised and processes automated across businesses, said Sanchit Vir Gogia, chief executive officer, Greyhound Research.

“The confluence of Internet of Things, analytics and artificial intelligence is transforming their business models. And, investments in these areas are now paying off,” he said.

Gogia, however, pointed out that mid-tosmall size BPM firms continued to face hurdles.

“Customer demand for analytics has been a key driver (particularly within translation services), led by engineering, bundled with domainspecific AI and machine-learning capabilities,” said Marc Hardwick, an analyst with TechMarketView, a UK-based research firm.

Specifically referring to Genpact, Hardwick said it was “reinventing” itself to become a transformation partner for clients. Genpact’s transformation services are now embedded in some 70% of new deals (up from 50% in the first half of 2018) and grew in the quarter by 35% year-onyear, he said.

Tiger Tyagarajan, Genpact CEO, told analysts in a conference call recently that the total addressable market has grown, and its position “around transformation services allows us to that market.”

“So, I would say all of that augurs well for the future... we feel very good about the strength of the pipeline and the strength of the inflows,” he said.

EXL Services, too, is betting big on its analytics solutions. It garners nearly one-third of its revenue from the segment.

EXL has been able to help clients unlock value through its enterprise data management services, dataenabled solutions and AI embedded solutions, the company said.

“These capabilities have resonated very well in the marketplace and our analytics business has consistently grown over 15% in the past several years,” said Rohit Kapoor, CEO of EXL Services. Its analytics revenue now stands at $350 million on an annual run rate basis, he said.

WNS said nearly 35% of its revenue comes from digital services.

“Based on the company’s current visibility levels, we expect net revenue to be in the range of $855 to $895 million, representing year-over-year revenue growth of 8-13%,” said Keshav Murugesh, Group CEO of WNS, adding that the BPM industry was still significantly underpenetrated.

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