India’s business process outsourcing (BPO) sector is experiencing rapid growth, outpacing traditional IT services in export performance. A recent report by Kotak Institutional Equities projects that BPO exports will reach $45 billion by 2026, capturing 20% of global outsourcing spending and strengthening India’s position as a leading outsourcing hub.
BPO sector accelerates export growth
India’s BPO exports currently stand at $45 billion, supported by an impressive 7.8% compound annual growth rate (CAGR) between 2015 and 2025. This performance exceeds global BPO market growth by 250 to 300 basis points, demonstrating India’s rising competitiveness.
The global push toward cost optimization and offshore outsourcing drives this momentum since businesses worldwide aim to streamline operations and reduce expenses. India remains a top outsourcing destination due to its highly skilled workforce, cost advantages, and advanced digital capabilities.
Further strengthening its outlook, the global BPO services market could expand to $268 billion by 2029. This opens up broader opportunities for Indian providers to diversify service offerings, penetrate new markets, and attract international clients from other industries, including e-commerce, fintech, healthcare, and telecommunications.
IT services show steady growth but lag behind
The IT services sector remains a key contributor to India’s export economy. But its growth is comparatively slower. Crisil Ratings forecasts a 6% to 8% IT services expansion for 2026, aided by steady international demand and a 2% currency depreciation.
The broader services sector continues to perform strongly. Reserve Bank of India (RBI) data shows a 12% year-on-year increase in total services exports as of June 2025, driven by IT, BPO, and financial services.
Kotak’s report highlights that this shift represents a structural transformation rather than a temporary trend. While IT services maintain consistent growth, the BPO sector’s faster acceleration signals India’s evolving role in the global outsourcing ecosystem. It positions the country as a dominant player in high-value outsourced services.
India’s BPO sector is poised to consolidate its global leadership, driving export growth and shaping the country’s role in the future of outsourced services.
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Communications Today. (2025, August 25). Indian BPO export growth outpaces IT services. Retrieved from https://www.communicationstoday.co.in/indian-bpo-export-growth-outpaces-it-services/
