It would be an understatement if we said that the year 2020 has been unkind to the world. The global occurrences caused by the pandemic of COVID19 have changed our daily lives. They have affected every single aspect of society, interactions, communication, and business. Today, with outsourcing being the top business trend, the biggest question on everyone’s mind is: what will the future of outsourcing in India look like in the post COVID-19 world?
During the pandemic, India’s emergence as a global outsourcing hub was a consequence of multinational corporations wanting to eliminate the overhead costs and make use of the highly skilled remote workforce. India has developed global confidence with chief players, opting for India because they are poised of gaining access to vast internet penetration, a huge remote workforce, superior talent, quality results, fast turnaround times, and low costs. The increasing scope of outsourcing grew from technical support to a wide range of services. From BPO (Business Process Outsourcing) to KPO (Knowledge Process Outsourcing) and LPO (Legal Process Outsourcing), the type of services outsourced has seen expansion.
Between 2012 and 2016, the global business process outsourcing (BPO) industry grew at a compound annual growth rate of 4.4%. The global business process outsourcing market size was valued at USD 232.32 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 8.5% from 2021 to 2028. Several organizations across the globe are leveraging the benefits of business process outsourcing (BPO) services and are focusing on core competencies, thereby generating avenues for market growth.
India has repeatedly proven itself as a force to be reckoned with when it comes to the BPO industry. As affirmed by Tholons Top 50 Digital Nations and A. T. Kearney Global Services Location Index of 2021, India remains the leading country to outsource. The Indian outsourcing industry began in the early 1990s and is now the largest outsourcing destination globally directly employing about 5 million people.
According to Statista, India has approximately 696 million internet users in India in 2020 and the experts are predicting its growth with a forecast until 2025. The introduction of the government’s Digital India initiative hand in hand with the increasing internet penetration over the recent years resulted in the country’s digital population amounting higher than any other developed nation.
The revenue in the Indian BPO industry is projected to reach ₹269,459.40m in 2021 and the average spend per employee is projected to reach ₹531.38 in 2021.