Enterprise spending on BPO services in India to increase at 5.8% CAGR by 2025
As India gradually unlocks itself post COVID-19 restrictions, the enterprises spending on business process outsourcing (BPO) services in India is set to grow at a compound annual growth rate (CAGR) of 5.8 percent to reach $8.8 billion by 2025, driven by a huge push for outsourcing knowledge-based and vertical-specific processes, states a new report.
According to GlobalData, a leading data and analytics company, the BPO market in India is now supported by the country’s efforts to liberalize regulatory guidelines for the BPO industry in recent times to ward off competition from countries like the Philippines, Malaysia, Mexico, and Canada.
Senior Technology Analyst of the GlobalData, Pragyan Tarasia said, “The country’s expertise in providing knowledge-based and vertical-specific services, particularly in areas such as healthcare, life sciences, banking, insurance, legal processing, risk management, financial research, research and analytics, and digital marketing, is expected to drive growth during the forecast period”. He further added, “The new guidelines will go a long way in enabling ease of doing business for the industry and establishing the country as the most preferred hub for BPO services in the world.” He projects the combined spending from micro (1-50 employees) and Small and Medium Enterprises (51-1,000 employees) on the other hand, will increase at a CAGR of 5.8 percent over the forecast period.
In June this year, the government liberalized guidelines for voice-based BPO firms, classified under other service providers (OSP) by narrowing the gap between domestic and international service centers and allowing interconnectivity between all types of OSP centers.
Besides, providing ease of work for their employees who relocated themselves to remote areas after the pandemic, enabling them to work from any place will also help BPO firms to improve the scale and speed of services. In November 2020, the government had simplified BPO and ITES guidelines to ease the compliance burden on service providers and establish the ‘Work-From-Home‘ and ‘Work-From-Anywhere‘ framework.
Enterprise spending on finance and accounting BPO segment, on the other hand, will grow at the fastest CAGR of 9.6 percent during the forecast period. The large enterprise segment (1,000+ employees) will account for the largest share of the total BPO spending in India through the forecast period.
[With Inputs from IANS]
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