BPO Industry in India: 2024 Confidence Rating

Matt Kendall; Peter Ryan

Skyline of Bengaluru, India under an orange and pink sky, with high-rise towers above green trees. India, Offshore BPO Confidence Index 2024 — Bengaluru, India

Respondents in India express very high confidence in all categories, demonstrating first-hand belief in the market as a BPO powerhouse, likely stemming from decades of growth in the industry. While slight concerns exist over Tier-3 talent availability and traffic challenges in major cities, India’s stability, safety, and cost competitiveness cement its number-one position in the Offshore BPO Confidence Index for the second year running.

Overall rating93.9% 4.1 pts up since 2023
Labor market94% 4.6 pts up since 2023
BPO ecosystem91.4% 7.8 pts up since 2023
Infrastructure94.4% 1.2 pts down since 2023
Commercial property96.3% 3.5 pts up since 2023
Safety & security96% 4.1 pts up since 2023
Political stability91.1% 5.1 pts up since 2023
Economic stability96.1% 6.6 pts up since 2023

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With its vast talent pool, India is positioned to lead the generative AI revolution.

Sapna BhambaniSenior VP of OperationsTaskUs India

How do your clients view India as a BPO and CX delivery destination? What aspects of the market make them most confident?

Sapna Bhambani: Our clients regard India as a leading destination for BPO delivery, thanks to our extensive pool of educated and skilled professionals. With over 125 million English speakers, India boasts the world's second-largest English-speaking population, ensuring seamless communication with our clients and their customers. Clients also value the significant efficiencies driven by India's competitive labor costs and skillset. India’s BPO sector has evolved from transactional support to providing end-to-end CX and complex business solutions. These factors combine to position India not just as a cost-effective BPO destination but as a strategic partner for delivering world-class customer experiences.

From an operational standpoint, what makes India unique as a BPO and CX destination?

Sapna Bhambani: With three decades of experience supporting global businesses, India is uniquely positioned to align with Western markets, offering 24/7 service delivery and real-time support for clients and customers worldwide. Renowned for its diversity, cultural sensitivity, and adaptability, Indian professionals excel at catering to diverse international markets. Adding to these strengths is strong government support for the BPO sector and India’s advanced IT ecosystem, which drives innovation and provides state-of-the-art infrastructure for efficient operations.

What makes you confident about India’s future in the BPO industry? How will India likely stand out in 2025?

Sapna Bhambani: While the industry has been on a digital transformation journey with the help of AI for quite a few years, the game-changer reshaping our industry today is generative AI. At TaskUs, we see more opportunities than risks in GenAI, a sentiment that extends to India’s BPO sector. With a vast talent pool of engineers and computer science graduates, growing contributions to global AI advancements, and a thriving tech ecosystem, India is uniquely positioned to lead the GenAI revolution. Supportive government policies further bolster this leadership, driving innovation and infrastructure growth. These strengths firmly position India to shape the future of the BPO industry in 2025 and beyond, leveraging GenAI to unlock transformative potential for businesses worldwide.

Founded in October 2019, TaskUs India has over 11,500 employees and 4,500 seats across 5 sites. The company provides customer service through voice, email, and chat, along with back-office, collections & monitoring, trust & safety, and AI operations to clients in the US, UK, Europe, Australia, and Canada, with capabilities for English, French, German, Italian, Spanish, Portuguese, Japanese, Korean, and Mandarin.

Learn more at TaskUs.com

Local labor market

There’s very little doubt that India has the volume and the quality of talent for all BPO roles and positions. However, respondents do express slightly lower confidence in the availability of talent in Tier-3 locations. On the language front, English is the primary draw, but some respondents felt that French, German, and Arabic-speaking talent could be in sufficient numbers too.

2024

Confidence rating

94%

How confident are you in your capacity to recruit for the following positions in your country?

Agents97.8%
Team leads100%
Supervisors97.8%
Managers97.8%
Executives97.8%

How confident are you in your capacity to recruit for the following roles within your country?

Customer care95.6%
Technical support93.3%
Content moderation84.4%
Finance & accounting100%
Marketing & sales95.6%
Back-office admin100%
Voice95.6%
Non-voice100%

How confident are you in your capacity to recruit for the following languages within your country?*

English100%
French60%
Arabic55.6%
German55.6%
Spanish48.9%
Portuguese44.4%
Italian35.6%
Mandarin35.6%
Dutch33.3%

*Note: Language scores are for guidance only and not factored in to the overall confidence rating

There’s a huge pool of foreign language students in Tier-2 cities like Pune, where you can find Japanese, Mandarin, Spanish, Dutch, and more.

Ease of sourcing work visas for internationals86.7%
Talent availability in Tier 2 locations86.7%
Talent availability in Tier 3 locations73.3%

How confident are you in the public education system's ability to teach the necessary skills for a career in an international CX delivery environment?

93.3%

How confident are you in the availability of domestic graduates to fill BPO/CX roles?

100%

How confident are you that the majority of domestic students will remain in your country after graduating?

91.1%

How confident are you in your public education system's ability to teach the following languages?*

English100%
Arabic62.2%
French62.2%
German55.6%
Spanish51.1%
Portuguese44.4%
Dutch42.2%
Mandarin42.2%
Italian40%

*Note: Language scores are for guidance only and not factored in to the overall confidence rating

Certain schools in Tier-1 cities like Mumbai offer French, German, and Portuguese as a second language where English is the first language.

BPO ecosystem

Very high confidence is apparent in all aspects of India’s BPO ecosystem, with only slight dips in relation to industry unification, Invest India’s lobbying prowess, and long-term support for BPOs, which elicit high confidence nonetheless.

2024

Confidence rating

91.4%

Close alignment with industry needs96.7%
Soft-landing support for market entrants93.3%
Long-term support for incumbents86.7%

How confident are you in Invest India's ability to lobby the government for favorable industry regulations?

88.6%

How confident are you that the country's BPO association(s) is/are aligned with the industry's needs?

97.1%

Investment promotion agencyInvest IndiaFounded 2009investindia.gov.in BPO associationNational Association of Software and Service Companies (NASSCOM)Founded 1988nasscom.in

How confident are you that your competitors present a professional, attractive image of your country to international clients and prospects?

95.6%

How confident are you that the country's CX and BPO players are unified and collaborate effectively to maximize the industry's success?

88.9%

How confident are you in the government's ability to engage in open dialogue with the BPO industry?

93.3%

Quality of fiscal incentives88.9%
Favorable legislation for BPO industry86.7%
Lack of government interference91.1%

Infrastructure

Respondents in India have near total confidence in all aspects of the country’s infrastructure, with only minor doubts over the quality of healthcare, roads, and public transport, primarily influenced by “traffic challenges” in major cities.

2024

Confidence rating

94.4%

How confident are you in the quality of the following utilities in your country?

Fixed phone lines100%
Fiber internet97.8%
Mobile (internet)97.8%
Mobile (voice)95.6%
Power grid95.6%
Roads & throughfare88.9%

How confident are you in the quality of the following services in your country?

Airports97.8%
Hotels & accommodation95.6%
Food & restaurants95.6%
Leisure activities93.3%
Healthcare88.9%
Public transport86.7%

Commercial property

India is considered to have abundant available property at cost-competitive rates, with the potential to find affordable commercial space all over the country.

2024

Confidence rating

96.3%

How confident are you in the availability of the following options for commerical property?

Office space100%
Warehouses95.6%
Plug and play97.8%
Co-working space100%
Leasing options100%
Purchasing options91.1%

How confident are you in the cost-competitiveness of leasing commercial property in your country?

93.3%

How confident are you in the cost-competitiveness of purchasing commercial property in your country?

91.1%

How confident are you in the ability to leverage non-metropolitan areas for commercial space in your country?

97.8%

Safety & Security

Respondents in India have near-unanimous total confidence in the safety and security of the country as it relates to operating a BPO.

2024

Confidence rating

96%

How confident are you that foreign business travelers will be safe visiting your country?

97.8%

How confident are you that the local labor force is safe using public transportation for commuting?

95.6%

How confident are you that local law enforcement is trustworthy and helpful?

95.6%

How confident are you that local law enforcement will respond to criminal activity promptly and efficiently?

95.6%

How confident are you that your country will perform a peaceful transition of power after elections?

95.6%

During my 21 years of hosting many foreign business partners and clients, I’ve never had or heard of any problems with safety. Plus, the government enforces regulations to ensure employee safety during commutes.