BPO powers India’s $221.4Bn software export haul
- India’s software exports reached $221.4 billion in FY26, up 8.2%
- BPO services hit $56 billion, 82.4% of the ITES segment
- Off-site delivery held 91.7% of total software exports
- The U.S. took 54.1% of India’s exports, at $119.7 billion
NEW DELHI, INDIA — India’s software services exports reached $221.4 billion in fiscal year 2026, growing 8.2 percent year-on-year across computer services and business process outsourcing segments, according to the Reserve Bank of India’s annual survey covering 2,363 responding firms that represent approximately 89 percent of projected software exports.
Computer services and information technology-enabled services each expanded in FY26, with computer services holding 69.3 percent of the total at $153.4 billion and the ITES segment contributing the remaining 30.7 percent at $68 billion.
RBI survey puts BPO at $56B of India’s $68B ITES segment
According to Tribune India reporting on the RBI annual survey, business process outsourcing (BPO) services reached $56 billion in FY26, representing 82.4 percent of India’s $68 billion information technology-enabled services (ITES) export segment.
Computer services grew from $138.1 billion and 67.4 percent in FY25 to $153.4 billion and 69.3 percent in FY26, as artificial intelligence (AI) infrastructure and cloud technology demand sustained the segment’s expanding share of the total.
Engineering services within ITES expanded to $12 billion from $10.8 billion, while software product development contracted from $6.8 billion to $6.4 billion, the only segment to record a year-on-year decline.
The RBI survey found that off-site delivery reached $203 billion, accounting for 91.7 percent of total software exports, rising from 90.7 percent in FY25.
U.S. share rises to 54% as Europe’s portion of India’s exports declines
The United States remained India’s dominant software export market at 54.1 percent and $119.7 billion, with its share rising from 52.9 percent and $108.3 billion the prior fiscal year.
Europe’s combined share declined from 32.8 percent to 31.8 percent, with the United Kingdom alone representing 15.4 percent at $34 billion of India’s total software services exports in FY26.
The offshore outsourcing delivery model’s 91.7 percent share of India’s total software exports confirms the sustained structural preference among India’s largest software services buyers for remote rather than on-site staffing models.
The RBI survey noted that U.S. dollar invoicing dominated at 72.6 percent of export value, followed by the euro at 9.6 percent and the pound sterling at 6 percent.
For BPO providers and outsourcing buyers evaluating India’s delivery capacity, the FY26 data confirms broad-based growth, with BPO services at $56 billion and computer services at $153.4 billion both expanding year-on-year.
The BPO segment’s 82.4 percent share of the $68 billion ITES total signals that enterprise demand for India-based outsourced delivery has held firm, while the U.S. market’s rising 54.1 percent concentration introduces geographic dependency risk that buyers with diversification requirements should monitor.
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Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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