AI reshapes, not shrinks, India outsourcing: ING
- India’s software exports reached 5.2% of GDP, up from 3.3% pre-pandemic
- India earns about $205 billion a year from software exports
- Digitally delivered services grew 45% since 2022, above the global 32%
- India holds more than half of the global outsourcing market
NEW DELHI, INDIA — India’s outsourcing sector is expanding its global market share despite rapid artificial intelligence adoption, with software services exports reaching 5.2 percent of gross domestic product, digitally delivered services growing 45 percent since 2022 against a global rate of 32 percent, and the country maintaining more than half of worldwide outsourcing demand, according to an ING Bank analysis.
India earns approximately $205 billion annually from software services exports, supporting around 5.8 million workers, while the country’s business services sector, which spans finance, accounting, engineering, research, and analytics, has more than doubled its share of gross domestic product to approximately 3.3 percent since the pandemic.
ING finds India’s software services exports have climbed to 5.2% of GDP
According to an ING Bank analysis reported by briefs.co, India’s software services exports have climbed to 5.2 percent of gross domestic product from 3.3 percent before the pandemic, with the combined software and business process outsourcing (BPO) services sector now representing approximately 8.5 percent of the Indian economy.
Business services, including finance, accounting, engineering, research, and analytics, more than doubled their share of gross domestic product to approximately 3.3 percent over the same period.
India’s digitally delivered services exports grew 45 percent since 2022, outpacing the global increase of 32 percent.
“AI disruption fears look premature in India and the Philippines,” said Deepali Bhargava, head of Asia-Pacific research at ING Bank.
Outsourcing mix shifts from data entry toward analytics and engineering design
The ING analysis attributes India’s sustained outsourcing growth to artificial intelligence (AI) automating low-complexity functions while shifting demand toward higher-value work rather than eliminating it.
Data entry, document checks, and customer support are declining as outsourced functions, while analytics, software development, risk management, engineering design, and research and development are expanding.
India holds more than half of the global outsourcing market as the composition of work shifts, with total sector revenue and employment holding firm through the transition.
Bhargava added, “The evidence points to adaptation, not decline. AI is reshaping what gets outsourced, not shrinking demand for it.”
ING’s findings arrive as India’s IT and BPO sector absorbs AI tooling at scale, with companies investing in analytics and engineering delivery capacity rather than contracting headcount in response to automation.
For BPO providers and outsourcing buyers evaluating India’s delivery market, ING’s analysis signals that IT outsourcing vendor relationships structured around cost arbitrage are shifting toward higher-complexity functions in analytics, risk management, and engineering design.
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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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