The Business Process Evolution: Powered by Digital Transformation | Tech Mahindra

The Business Process Evolution: Powered by Digital Transformation

At a time when globalization in sales and operations started, manufacturers identified the efficiency that business process outsourcing brought in. Industry experts started tracing the origins of outsourcing practices to the manufacturing industry Today, business process outsourcing has come a long way and digitalization has played an evidently pivotal role in this evolution.

However, for a very long time, business process outsourcing (BPOs) were synonymous with call centers and were limited to handling non-core and back-office operations. This handover would help businesses accomplish cost reduction, profit optimization, and impeccable returns on investment (RoI). With the advent of communication technologies and the internet at large, consumer preference shifted to digital channels. Add to that the democratized access to the internet, and during the ‘90s, BPO firms gained a push to diversify their services manifold.

At the turn of the millennium, BPO service providers began re-evaluating their position and realized the opportunities that lie in grooming themselves with niche skills were abundant. The idea was to move beyond the back-office and non-core tasks and meet the rising demands of their clients. From being mere service providers to emerging as strategic partners, the transition from BPOs to business process services (BPS) was all about value addition. Services offered by BPS organizations were more inclusive in terms of functions undertaken – anything from talent acquisition to onboarding, facility management to logistics, and sometimes, even sales and marketing, were being outsourced.

A Slow but Steady Evolution to BPaaS

As a digital explosion nudged the BPO industry to address the mounting pressures of volume, variety, and velocity of information, providers realized the urgent demand for having scale at their disposal. What’s more, on-demand analytics and business process automaton became the need of the hour to aid better data tracking and decision-making. Around the same time, cloud adoption gained mainstream attraction and proved to be a game-changer to the industry, thus paving the way for what we call business process as a service business process as a service (BPaaS) today.

Digital Enablers of the Business Process Services Evolution

Fast-tracking to a future-ready model is how the BPS industry can survive in today’s digitally disrupted market. The key contributors to the evolution of business processes can be classified into:

1) Macro Vectors

Unified communication

In the early years, BPO call centers functioned with telephones and the adjoining private branch exchange (PBX). When the internet came along, it revolutionized communications. From desk phones to interactive voice responses (IVRs), voice over internet protocol (VoIP), followed by mailers, instant messages, and remote desktops, the digital age paved the path for modern modes of communication. Unified communication (UC) offers all these tools under one roof, working in an integrated fashion. A UC system is highly scalable as it can meet the evolving communication demands of any growing organization.


The cloud allows applications and services to be available over the network on demand. This eliminates the need to invest in IT infrastructure which requires larger space and high maintenance. Cloud-based services such as software as a service (SaaS),  infrastructure as a service (IaaS), and platform as a service (PaaS) underpin the success of the BPaaS model.

Big Data and Analytics

Business Process Outsourcing brings forward a huge volume of business data to be handled on a regular basis. Analysis of this big data can help provide strategic insights that help service providers deliver better customer experience to clients. Predictive analytics enables service providers to derive insights about client behavior which can further be used to deliver targeted customer programs and build a personalized relationship.

Artificial Intelligence (AI) and Machine Learning (ML)

Customers today demand efficient and immediate response and resolution which has triggered the need for business process automation. That said, AI-enabled tools (chatbots and IVRs) backed by ML algorithms can help organizations connect with customers at any time and platform of their choosing and even handle complex requirements.

2) Micro Vectors

API-Based Integration

Call centers have adopted a new, modern look, one where they have evolved to multichannel contact centers built on APIs. With API-based integration, companies can leverage next-gen functionalities without having to worry about building them from scratch.

Customer Relationship Management (CRM)

An integrated CRM solution provides a 360-degree view of the consumer that includes details about purchase history, order status, important life events, customer service complaints, etc. Such a consolidated view enhances communication within teams in the organization; for instance, a customer representative can track a complaint and any actions taken by a colleague to avoid repeating the same information. This increases overall efficiency and promotes better digital customer experience.

In Conclusion

There is no questioning the myriad benefits that process outsourcing brings to the table. Flexibility, cost reduction, and resource optimization are just the surface. Today’s businesses need the scale and headroom to experiment and enhance their core proposition. BPS organizations allow them to do that. At Tech Mahindra, we recommend companies to factor in the ‘connectedness’ and evolve with a mindset to deliver holistic Business Process as a Service solutions to customers. The future of BPS lies in agile, customer- centric digital services that enable enterprises to build a symbiotic and long-term strategic partnership with customers for driving growth and value exponentially.

About the Author
Prabhjinder Bedi
Chief Growth Officer - Business Process Services Tech Mahindra

Bedi has over two decades of experience involving launching start-up ecosystems, scaling up businesses, and successfully taking products and services to market across industry verticals, spanning telecom and media, hi-tech/new economy, financial services, retail and consumer goods, manufacturing, and life sciences.More

Bedi has over two decades of experience involving launching start-up ecosystems, scaling up businesses, and successfully taking products and services to market across industry verticals, spanning telecom and media, hi-tech/new economy, financial services, retail and consumer goods, manufacturing, and life sciences. Having spent over 16 years at Tech Mahindra, Bedi is currently responsible for taking our existing and new-age service offerings to global markets and adding meaning to our shareholders, partners, and customers. Bedi is a bachelor’s in Engineering from IIT, Benaras and holds Master of Business Administration (MBA) from IIM Calcutta.