Business Process Outsourcing - India

Revenue in the Business Process Outsourcing market is projected to reach US$7.19bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.75%, resulting in a market volume of US$10.94bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$13.19 in 2024.
In global comparison, most revenue will be generated United States (US$146.30bn in 2024).

Definition :
The Business Process Outsourcing (BPO) market refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers). A distinction is made between horizontal and vertical outsourcing. Horizontal BPO combines function-centric as well as cross-sector and cross-industry services, such as human resources management or payroll accounting. Vertical BPO, on the other hand, focuses on specialized services and is especially appealing to customers from the financial services industry, the healthcare sector, the manufacturing industry, or the retail sector.

Additional Information:

The Business Process Outsourcing market comprises revenues, revenue change, average spend per employee, and the market shares of the different business sectors. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include Accenture, Cognizant, Wipro, and IBM.

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Back office process outsourcing, such as Genpact, Concentrix, HCL Technologies, Sutherland Global Services, EXL Services, Remote Coworker, and TechSpeed
Front office process outsourcing, such as IBM Global Services, Hewlett Packard Enterprise (HPE), Sitel Group, Teleperformance, and Qualfon

Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
Administration outsourcing, such as Conduent, Genpact, and ADP (Automatic Data Processing)
Infrastructure outsourcing, such as IBM Global Technology Services, Wipro Infrastructure Engineering, and Cognizant Infrastructure Services

India has been one of the leading countries in the Business Process Outsourcing (BPO) industry for several years now. The BPO industry in India has been growing at a steady pace, and there are several reasons for this.

Customer preferences: One of the primary reasons for the growth of the BPO industry in India is the customer preferences. Companies from all over the world are outsourcing their non-core business processes to India. The main reason for this is the cost advantage that India offers. The labor cost in India is significantly lower than in other countries. Additionally, the workforce in India is highly skilled and proficient in English, which makes it an ideal destination for companies looking to outsource their business processes.

Trends in the market: The BPO industry in India has been witnessing several trends in recent years. One of the significant trends is the shift towards automation and artificial intelligence. Many BPO companies in India are investing in automation and AI to improve their efficiency and reduce costs. Another trend is the emergence of niche BPO services. Many companies are now looking for specialized BPO services that cater to their specific needs. This has led to the emergence of several niche BPO players in India.

Local special circumstances: India's BPO industry has several unique characteristics that have contributed to its growth. One of the most significant factors is the availability of a large pool of skilled labor. India has a vast population of educated and skilled professionals, which makes it an ideal destination for BPO services. Additionally, the Indian government has been supportive of the BPO industry, providing various incentives and tax breaks to BPO companies.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the BPO industry in India. One of the most significant factors is the liberalization of the Indian economy in the 1990s. The liberalization policies opened up the Indian economy to foreign investment, leading to the growth of several industries, including the BPO industry. Additionally, the growth of the Indian middle class has led to an increase in domestic consumption, which has further fueled the growth of the BPO industry.

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.