India’s IT, BPO services market to grow by $116.01Bn
The Information Technology (IT) and Business Process Outsourcing (BPO) services market in India is projected to grow by US$116.01 billion in 2026, accelerating at a compound annual growth rate (CAGR) of 9.19%.
According to a forecast by market analyst Technavio, the IT segment will be the most significant contributor to the market’s growth between 2021 and 2026.
Technavio explained that many firms are shifting their IT infrastructure model to IT-as-a-service (ITaaS). This increasing demand will fuel the growth of India’s IT outsourcing market during the forecast period.
The rising cost pressure to maintain in-house IT systems is also causing companies to turn to inexpensive locations like India. The total cost of operations in developing countries such as India is lower than that of developed countries such as the United States (US) and the United Kingdom (UK). Hence, many global companies prefer India as their sourcing location.
In terms of the industry’s growth in 2022, Technavio expects India’s IT and BPO markets to grow by 7.65%.
