Indian Outsourcing Industry and Its Scenario: 2021

It would be an understatement if we said that the year 2020 has been unkind to the world. The global occurrences caused by the pandemic of COVID19 have changed our daily lives. They have affected every single aspect of society, interactions, communication, and business. Today, with outsourcing being the top business trend, the biggest question on everyone’s mind is: what will the future of outsourcing in India look like in the post COVID-19 world?

The Impact of COVID-19 on Outsourcing in India

During the pandemic, India’s rise as a global outsourcing hub accelerated. Multinational corporations sought to reduce overhead costs and leverage a highly skilled remote workforce. India gained global trust, offering access to fast internet, a vast workforce, high-quality results, fast turnaround times, and competitive pricing. The scope of outsourcing grew from traditional technical support to a wide array of services including BPO (Business Process Outsourcing) to KPO (Knowledge Process Outsourcing) and LPO (Legal Process Outsourcing).

Key Trends in the Indian Outsourcing Industry 2021

Between 2012 and 2016, the global business process outsourcing (BPO) industry saw a compound annual growth rate of 4.4%. In 2020, the BPO market was valued at USD 232.32 billion and projected to grow at a CAGR of 8.5% from 2021 to 2028. Organizations around the world are turning to BPO providers to focus on core competencies and drive business growth.

Why India Remains a Top Outsourcing Destination

India has repeatedly proven itself as a force to be reckoned with when it comes to the BPO industry. As affirmed by Tholons Top 50 Digital Nations and A. T. Kearney Global Services Location Index of 2021, India remains the leading country to outsource. The Indian outsourcing industry began in the early 1990s and is now the largest outsourcing destination globally directly employing about 5 million people.

According to Statista, India has approximately 757 million internet users in India in 2020 and the experts are predicting its growth with a forecast until 2025. The introduction of the government’s Digital India initiative hand in hand with the increasing internet penetration over the recent years resulted in the country’s digital population amounting higher than any other developed nation.