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The India IT and BPO services market size is estimated to increase by USD 151.59 billion and grow at a CAGR of 10.8% between 2022 and 2027. The growth of the market depends on several factors, including the rising cost pressure to maintain in-house IT systems, the need to focus on core competencies and improve efficiency, and access to new technology, domain expertise, and round-the-clock service. IT and BPO services help organizations create, manage, and optimize information and business processes with business and technical expertise. They also aid in managing IT systems and are process-focused. These services focus on providing a framework to structure IT-related activities.
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The IT and BPO Services Market in India is thriving, driven by various macroeconomic factors and the increasing adoption of technology across industries. B2G enterprises and B2B enterprises are leveraging internal resources to enhance their operations through horizontal and vertical-specific services. Telemarketing and niche BPO services play crucial roles in driving customer engagement and problem resolution. The industry is witnessing significant growth in AI technologies, which are revolutionizing computer software and hardware solutions. Skilled labor and incentives such as tax breaks further bolster the market, encouraging technology spending and up-selling IT solutions. BPO services encompass a wide range of functions, including payroll, accounting, data processing, and forms processing, providing essential support for businesses across sectors. With its core competency in IT and BPO services, India continues to be a global leader in the industry, offering innovative solutions and unmatched expertise.
The need to focus on core competencies and improve efficiency is the key factor driving the growth of the market. IT and BPO services help in improving business performance because businesses do not need to invest in resources or worry about managing limited available resources. Some companies have previously saved a significant amount of money by implementing IT and BPO services as market players help them plan IT-related business strategies such as software development, procurement IT, and data center outsourcing at minimal costs.
Moreover, IT and BPO not only help to reduce the costs of IT functions but also help to reduce the costs of non-IT functions such as finance, marketing, and customer relationship management (CRM). Cost savings can be achieved by allocating the resources saved in operations to other functions such as marketing, finance, and CRM, which will drive the growth of the market during the forecast period.
Increasing digital transformation in organizations is the primary trend in the market. The new digital era in the IT industry is rapidly changing market behavior, requiring IT solutions that can quickly adapt to business needs. Businesses are realizing the benefits of implementing digital technology that helps them to improve business efficiency and deliver superior services to customers.
Moreover, companies adopting digital technology are seeing significant shifts in their financial performance and business models. This helps the growth of the market as many IT service providers in India provide digital transformation support to global businesses, which will drive the growth of the market during the forecast period.
Lack of effective communication between clients and companies is a challenge that affects the growth of the market. Technical communication in outsourcing contracts between customers and suppliers is essential to reduce outsourcing risks and build trust. Communication is necessary at different stages of the IT service delivery system to avoid system failures and provide backup and recovery functionality. Communication gaps that can occur due to language and cultural differences can lead to misinterpretation of instructions provided by the provider.
Furthermore, effective technical communication between customers and suppliers through appropriate channels such as email, video conferencing, and online project discussion meetings helps customers share information needed to execute IT projects . This will impede the growth of the market during this forecast period.
This market in India report extensively covers market segmentation by end-user (finance, insurance, telecom, healthcare, and manufacturing and others), type (export and domestic), and product (IT services, BPM, and software and R&D). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the finance segment will be significant during the forecast period. One of the main reasons behind the number of banking and financial institutions is increasing. Thus, banking and financial institutions are adopting IT services for IT infrastructure management and BPO services for customer support and sales to focus on their core operations. Many global financial institutions and banks depend on India for IT and BPO services, which supports the growth of the market.
The market share growth by the finance segment will be significant during the forecast period. One of the main reasons behind the number of banking and financial institutions is increasing. Thus, banking and financial institutions are adopting IT services for IT infrastructure management and BPO services for customer support and sales to focus on their core operations. Many global financial institutions and banks depend on India for IT and BPO services, which supports the growth of the market.
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The finance segment showed a gradual increase in the market share of USD 35.58 billion in 2017. However, the Indian financial sector is expected to face certain challenges during the forecast period, such as stringent regulations on banking license approvals. Such regulatory issues related to the licensing of new banks may restrict the growth potential of the banking sector in market during the forecast period.
The export market will witness significant growth. One of the main reasons for this is the availability of a technically skilled workforce. Since IT and BPO companies in India provide 24/7 services to organizations across the globe, many developed countries like the US and the UK choose to source from the country. In addition, India has a large population and high demand for jobs. This leads to the availability of cheap labor. In addition, the country has a workforce that is highly educated, experienced, competent, fluent in English, computer savvy, and technically talented. Therefore, these factors will drive market growth during the forecast period.
The Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023-2027, as well as historical data from 2017-2021 for the following segments.
The market is thriving, driven by factors such as Artificial Intelligence, skilled labor, and macroeconomic incentives. Companies leverage niche BPO services and AI technologies to offer specialized consulting and outsourcing services to B2G, B2B, and B2C enterprises. Technology spending and internet penetration further fuel market growth, with a focus on personalized services and data security. Automation, cloud technology, and intelligent workflows optimize business processes, while IT associations and surveys provide valuable insights. The industry encompasses a wide range of services, from payroll and accounting to social media marketing and insurance processing. With expertise in horizontal and vertical-specific services, India's IT and BPO sector continues to play a crucial role in global business operations, offering cost-effective solutions and unparalleled customer support. Bank reconciliations ensure financial accuracy. Form processing services streamline data entry. Online form processing offers convenience. Contact centers provide efficient customer support.
Moreover, the regional market is thriving, fueled by various factors such as tax breaks, macroeconomic conditions, and the adoption of digital technologies. B2G and B2B enterprises are leveraging IT services and consulting solutions to enhance their operations and drive growth. With a large pool of internet users and robust telecommunication infrastructure, India's IT and BPO industry flourishes, offering a wide range of services, including forms processing, payroll processing, and medical billing. The sector's core competency lies in process automation, ERP systems, and business scheduling, leading to improved efficiency and cost savings for businesses worldwide. Despite challenges like BPO attrition and troubleshooting, India remains a global leader in IT and BPO services, providing unparalleled customer service and solutions tailored to meet diverse business needs.
India IT And BPO Services Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.8% |
Market growth 2023-2027 |
USD 151.59 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.23 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Automatic Data Processing Inc., Cognizant Technology Solutions Corp., ExlService Holdings Inc., Firstsource Solutions Ltd., Genpact Ltd., HCL Technologies Ltd., Hinduja Group Ltd., Infosys Ltd., International Business Machines Corp., Morae Global Corp., Serco Group Plc, Srisys Inc., StarTek Inc., Sutherland Global Services Inc., Tata Consultancy Services Ltd., Tech Mahindra Ltd., TTEC Holdings Inc., Wipro Ltd., and WNS Holdings Ltd. |
Market dynamics |
Parent market analysis, market growth and trends, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Market Segmentation by Product
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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