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The India BPO Promotion Scheme (IBPS) is a government initiative launched under the Digital India Programme with the aim of promoting the establishment and expansion of Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) operations across India. The scheme was introduced to foster growth in the IT/ITES sector beyond the traditional hubs in metropolitan cities, encouraging the spread of this industry to smaller towns and rural areas. By doing so, the IBPS seeks to catalyze economic development, create employment opportunities, and build capacity in terms of infrastructure and manpower across various states in India. The scheme is designed to distribute the benefits proportionally across states based on their population, ensuring equitable development across the country. This initiative is not just about creating jobs but also about developing local economies and fostering the growth of new entrepreneurs in smaller cities and towns.
The data on India’s BPO Promotion Scheme reveals significant patterns in the business process outsourcing sector’s development between fiscal years 2018 and 2025. Initially, there was considerable expansion in the program, with seat allocation increasing from 47,965 in 2018-19 to a peak of 53,348 in 2019-20. This expansion phase was accompanied by a rapid growth in operational seats, which rose from 37,237 to 49,009 during the same period, indicating a strong implementation rate. The scheme’s geographic reach was particularly significant in its early years, with coverage extending to 125 tier-2 and tier-3 cities in 2018-19. However, this coverage contracted slightly in subsequent years, stabilizing at 104 cities from 2022-23 onward. This suggests an initial broad deployment followed by strategic consolidation in areas demonstrating greater success or sustainability. Employment generation shows the most consistent positive trend throughout the dataset. Despite the slight contraction in geographical coverage and stabilization in operational seats, employment figures grew steadily from 25,731 in 2018-19 to 53,287 by 2024-25—more than doubling over the seven-year period. This indicates significant improvement in employment efficiency per operational seat over time, suggesting enhanced productivity or possibly a shift toward higher-value services requiring more staff per operational unit. The period from 2020 onward shows remarkable consistency in several metrics, with the number of operational seats, units in operation, and cities covered remaining virtually unchanged from 2022 through 2025. This stability might reflect program maturity, funding constraints, or a deliberate policy decision to maintain rather than expand the existing infrastructure while focusing on employment quality and operational effectiveness within established centers.
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