The IT/IT-enabled services (ITeS) and business process management (BPM) sector, a key driver of India’s economic growth, stands as a frontrunner in digital transformation. Enterprises in the sector are strategically harnessing cutting-edge digital solutions such as artificial intelligence (AI), data analytics, chatbots and cloud computing to optimise operations and elevate the customer experience. However, with the rapid adoption of these technologies, there is a wider surface for cyberattacks, exposing organisations to heightened risks of data breaches and system vulnerabilities. Against this backdrop, it becomes imperative for IT/ITeS and BPM players to continually embrace innovation while fortifying their cyber defences to safeguard against evolving threats.
A look at the key tech trends dominating the IT/ITeS and BPM sector…
AI at the forefront
Being an umbrella term, AI can be divided into different technology segments, such as machine learning (ML), deep learning, natural language processing, image processing and speech recognition. ML-enabled monitoring tools can automate root cause analysis, identifying issues and suggesting possible remedies. Supervised ML algorithms can carry out sentiment analysis to better assess end-user satisfaction. Furthermore, AI-powered chatbots and virtual assistants can handle multiple customer queries simultaneously, reducing response times and increasing customer satisfaction. They can also be coded to offer personalised recommendations, boosting customer engagement and loyalty.
Generative AI (GenAI) constitutes a subset of the broader AI landscape. GenAI offers several benefits to the IT/ITeS sector in terms of efficiency, productivity, personalisation and cost savings. The most significant advantage of GenAI is its ability to automate repetitive manual tasks such as data entry, customer service and even software development. By automating these activities, IT companies can improve efficiency, reduce error rates and cut operational costs. Within the BPM segment, GenAI proofs-of-concept are resulting in significant improvement in productivity in areas such as code generation and content summarisation. They improve business performance by enabling the use of data to impact the topline, bottomline and customer satisfaction. GenAI is enabling companies to enhance their understanding of customers, enabling the personalisation of products. These benefits are further strengthening the IT/ITeS and BPM industry’s partnerships with global corporations.
For instance, Persistent Systems’ Autonomous Insights solution simplifies executive decision-making—it scans e-mail communication, meeting calendars, client exchanges and more for negative sentiments and project risks, and generates summaries with actionable insights on managing risks and making decisions across various business areas. Infosys claims that its use of specialised AI models for code generation, code completion, documentation and testing has brought about a significant boost in developer productivity. Additionally, the company’s implementation of a data and AI engineering platform has facilitated faster time-to-market for its AI services, helped extreme automation across lifecycles and enabled democratisation of AI capabilities for data scientists within the organisation, resulting in threefold faster delivery times. Germany-based Software AG has developed AI features such as AI-based translation for BPM content and an AI-based root cause miner for analysing performance indicators in process mining.
Computing on the cloud
Cloud computing enhances agility, empowers hybrid workspaces and facilitates intellectual property-led innovation for the IT/ITeS sector. The infinite pool of storage, networking and computing offered by cloud-based solutions makes process operations frictionless. IT/ITeS and BPM organisations often deal with dynamic and evolving processes. Cloud computing enables them to quickly adapt to changing business requirements by providing scalable infrastructure and flexible computing resources. BPM platforms hosted in the cloud offer the agility to modify and optimise processes in real time, ensuring responsiveness to market demands and customer needs. Cloud allows users to access critical information on the go from any device. This is ideal for team members who travel for work or who need to retrieve information quickly during client meetings. It facilitates seamless collaboration for companies with global operations by providing centralised process repositories and real-time access to process documentation. Furthermore, legacy IT/ITeS and BPM solutions typically require significant upfront investments in hardware, software and IT infrastructure. Cloud eliminates the need for costly hardware procurement and maintenance by offering a pay-as-you-go pricing model.
In terms of security and regulatory compliance, cloud computing offers robust features and certifications to ensure the confidentiality, integrity and availability of sensitive data and processes. IT and BPM enterprises implement advanced security measures such as encryption, access controls, and data isolation, enabling them to achieve compliance with industry regulations and data protection laws.
Blockchain and smart contracts
Blockchain’s decentralised and tamper-resistant architecture allows transparency in business operations. By using blockchain in IT/ITeS and BPM operations, data is distributed across the network in a decentralised manner, reducing the likelihood of a single point of failure and increasing the process’s overall resilience. In addition to enhancing security measures, the technology facilitates cost reductions by eliminating intermediaries and promoting operational efficiency through streamlined processes. Blockchain-based IT/ITeS and BPM solutions automate invoice generation, verification and payment processing, eliminating manual reconciliation and reducing processing times. It simplifies compliance management by securely storing regulatory data and audit trails on a distributed ledger. Companies can enforce trigger alerts for non-compliance issues.
Blockchain-enabled smart contracts are self-executing contracts with the terms of the agreement directly written into code. Blockchain platforms such as Ethereum enable the creation and execution of smart contracts, automating various business processes and eliminating the need for intermediaries. It simplifies contract lifecycle management by securely recording contract terms, revisions and execution on a tamper-proof ledger. IT/ITeS and BPM platforms integrated with blockchain enable automated contract creation, execution and enforcement through smart contracts. This reduces the risk of contract disputes, enhances compliance and accelerates contract cycles. Smart contracts can also facilitate automatic invoice verification and payment release upon fulfilment of predefined conditions, improving accuracy and transparency in financial transactions.
Robotic process automation
Robotic process automation (RPA) is revolutionising operations in the IT/ITeS and BPM sector by automating repetitive tasks and streamlining business processes. In IT services, RPA is utilised for tasks such as software installation, system updates and data migration, freeing up valuable time for IT professionals to focus on strategic initiatives and innovation. In the ITeS sector, RPA is employed in customer service operations for routine tasks such as data entry, query handling and ticket routing, enhancing service delivery and response times. Additionally, RPA is instrumental in BPM organisations for automating back-office processes such as invoice processing, order fulfilment and inventory management, leading to improved efficiency, accuracy and cost savings. Moreover, RPA enables seamless integration with existing IT systems and applications, making it a versatile tool for optimising operations across diverse functions and departments.
Cybersecurity concerns
IT/ITeS and BPM organisations collect and process sensitive customer and personal employee data, making them prone to cyberattacks. The deployment of new technologies introduces further cyber risks due to larger attack surfaces. In fact, according to a recent report by Singapore-based cybersecurity firm Cyfirma, India is the most targeted country globally, facing 13.7 per cent of all cyberattacks. The report found that IT/ITeS and BPM companies were at the receiving end of 14.3 per cent of cyberattacks between March 2021 and September 2023. To this end, these enterprises spend more on security to facilitate the integration of advanced technologies such as AI and cloud computing.
Enterprises are increasingly updating their security policies to include standard security measures such as two-factor authentication, password policies, and user access and authorisation controls. They are also conducting periodic cybersecurity training programmes to make employees cognizant of security risks, policies, data protection as well as legal and compliance requirements. Additionally, a data backup policy has become essential to any cybersecurity strategy to reduce the risk of data loss in ransomware and malware attacks.
The way forward
The Indian IT/ITeS and BPM sector is on the cusp of unprecedented growth, fuelled by the adoption of cutting-edge solutions to automate operations and enhance business efficiency. As customer and enterprise IT demands surge across various sectors, the IT/ITeS industry is poised to play a pivotal role in meeting these evolving needs. That said, the accelerating pace of digitalisation brings with it new challenges, particularly in cybersecurity. Enterprises must prioritise cybersecurity measures and leverage appropriate technological solutions to strengthen their systems against emerging threats. This emphasis on cybersecurity readiness will be paramount in safeguarding sensitive data and ensuring uninterrupted business operations amidst the digital revolution.
