India’s IT & BPO industry set for $116Bn growth
NEW YORK, UNITED STATES — India’s IT and Business Process Outsourcing (BPO) market is on track to grow by US$116.01 billion, registering a compound annual growth rate (CAGR) of 9.19% from 2021 to 2026.
Research and advisory firm Technavio reports that the increasing costs of maintaining in-house IT systems and a rising trend towards application outsourcing are driving this growth.
Labor arbitrage, the process of searching and using the lowest-cost workforce to produce products or services, is a significant factor in the market’s growth. This allows companies to leverage the advantages of outsourcing, gaining a competitive edge.
Technavio highlights that the cost of operations in India is considerably lower than in countries like the United States and the United Kingdom. As a result, outsourcing enables companies to focus on their core competencies, strengthening their market position.
India offers distinct growth opportunities in the region, with key contributors including a skilled labor pool, emerging markets, and government policies. Urbanization is on the rise, leading to an increase in real estate opportunities, and innovation centers are driving technological advancements.
Technavio emphasizes that businesses must align with local nuances and cater to regional preferences to ensure success in the industry.
