NEW DELHI, INDIA – Kotak Institutional Equities recently reported that India is seeing faster growth in BPO exports compared to its IT services. The BPO exports are expected to maintain this lead through fiscal year 2026.
This growth is driven by global firms aiming to reduce costs, outsource more business tasks, and shift toward offshore delivery models. With these, BPO firms are becoming more efficient and steadily gaining market share.
Gen AI Also Plays a Role in Reshaping BPO Firms
The Kotak Report emphasizes that the latest adoption of generative AI is influencing or reshaping the way Indian BPO firms do business.
On the positive side, automating routine tasks through gen AI enables increased productivity, especially for firms offering data annotation, data collection, and data curation services.
On the negative side, it might result in the disruption of traditional BPO business models, especially for those offering non-industry-specific BPO support services, such as customer service support. The effect will ease for those offering industry-specific BPO services (for example, patient information management of healthcare outsourcing), as they’re expected to adapt well to the potential changes.
What This Means for the Indian BPO Sector
The growth of BPO exports means the increasing transformation of India’s outsourcing space. They’re well-positioned to capture the growing demand of global firms, especially when they integrate gen AI into their services to enhance client productivity and service delivery.
Furthermore, the sector’s future competitiveness will rely on its ability to embrace AI, upskill its workforce, and offer more industry-specific, value-driven services.
