admin A recent report from Kotak Institutional Equities, released on August 24, 2025, highlights a pivotal shift in India’s outsourcing landscape: Business Process Outsourcing (BPO) exports are growing at a faster clip than Information Technology (IT) services exports and are projected to maintain this edge through Fiscal Year 2026. This acceleration is being driven by global firms’ intensified pursuit of cost efficiency, with many opting to outsource more business functions and embrace offshore delivery models to streamline operations.
The global BPO market, in which India plays a central role, is anticipated to swell to USD 268 billion by 2029, underscoring the sector’s expanding importance on the global stage.
Generative AI: Catalyst and Challenge
The report also emphasises the rising influence of generative AI in the BPO space, with its potential to reshape how services are delivered. While AI-driven innovations promise enhanced efficiency, automation, and the creation of new service avenues, they also introduce novel challenges for the industry. (Note: Additional reporting—such as from The Washington Post—further underscores how AI is transforming India’s call centers, with tools like real‑time accent alteration and agent “co-pilot” systems boosting efficiency but threatening entry-level, repetitive roles—a dynamic that could similarly affect BPO operations broadly.
Contextual Insights
To place this development in context: India’s broader IT–BPM sector continues to be a powerhouse. According to recent data, its combined export revenue reached approximately USD 194 billion in FY 2023, with total IT‑BPM revenues nearing USD 254 billion. Meanwhile, consultancy figures from Everest Group show that the BPM (successor to BPO) sector outpaced IT services in growth, with projected global BPM growth of 4.5–5% in 2025, compared to 1.5–2% for IT services.
This renewed focus on BPO reflects not only evolving global cost dynamics but also India’s increasing sophistication in delivering a wider range of outsourced services. As generative AI redefines the workflow, the sector may well be entering a transformative phase—with automation, innovation, and recalibration of workforce roles all in the spotlight.
Magazine 
