India continues to be the world’s largest BPM base

India’s business process management (BPM) industry, generating annual revenue of around US$32.5 billion and with employee strength of 1.2 million, has shown consistent growth capitalising on newer technologies and re-skilling

October 4, 2018

The industry, a major driver of the Indian economy, is fast adapting to the challenges of the future, either through acquisitions or upskilling

Indian IT-BPM players are focussing on tools such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), robotics, blockchain

India’s BPM industry, with over 17.000 firms, has emerged from offering back-end services to becoming a hub for research and development

The Indian BPM industry currently control more than a 37 per cent share in global sourcing and is witnessing a revenue growth of 1.7 times

India has held on to its position as the world’s largest hub for business process management (BPM) services, as per a statement by the National Association of Software and Services Companies (NASSCOM) on October 4. Nasscom is a trade association of the Indian Information Technology and Business Process Outsourcing industry. NASSCOM said that India’s BPM industry has shown steady growth capitalising on newer technologies and re-skilling. This helped the sector ride out global technological and economic disruptions, generating revenue of around US$32.5 billion, and employing more than 1.2 million people.

The industry, a major driver of the Indian economy, is fast adapting to the challenges of the future, either through acquisitions or upskilling. The focus has steadily shifted to Intelligent Operations – process and domain expertise combined with digital technology. As a result, revenue mix from the BPM sector is expected to invert, with digital overtaking traditional by 2025. From industry giants to startups, the players in the space are increasingly focussing on artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), robotics, blockchain and cloud computing to win the trust of customers from world over.

India’s BPM industry, with over 17.000 firms, has steadily emerged from offering back-end services to becoming a hub for technological research and development. The Indian BPM industry currently control more than a 37 per cent share in global sourcing and is witnessing a revenue growth of 1.7 times. This is set to grow from US$154 billion to a projected US$167 billion in financial year 2018-19, an increase of almost 8 per cent. The high-margin expertise in the space has attracted growing investor interest from across the world. As a result, the IT-BPM sector has attracted FDI worth over US$31 billion since 2000.

India’s IT-BPM sector is expected to expand to US$350 billion by 2025 and BPM is expected to account for US$50-55 billion out of the total revenue.

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