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Statistical Insight on BPO Promotion Schemes in India from 2018 to 2024

UID: ST-20240830-IN-04

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Source

Ministry of Electronics and Information Technology, GoI

Last Updated

August 31, 2024

Time Range

FY 2018-19 – FY 2023-24

Periodicity

Annual

Overview

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.

Trends & Insights

Initially, there was a growth phase in the scheme from 2018-19 to 2019-20. The number of seats allocated increased from 47,965 to 53,348, and operational seats saw a significant jump from 37,237 to 49,009. This period also witnessed an increase in operational units from 194 to 262, and employment reported rose from 25,731 to 36,217. However, the number of Tier-2 and Tier-3 cities covered slightly decreased from 125 to 123. The COVID-19 pandemic appears to have impacted the scheme in 2020-21. There was a notable decrease in seats allocated (47,293), operational seats (46,818), operational units (246), and Tier-2 and Tier-3 cities covered (105). Despite these setbacks, employment continued to grow, reaching 40,367. From 2021-22 onwards, the scheme seems to have stabilized. The number of seats allocated and operational remained constant at 45,543, and the number of operational units stayed at 246. The coverage of Tier-2 and Tier-3 cities stabilized at 104 from 2022-23. However, employment continued to show steady growth, increasing from 50,514 in 2021-22 to 53,163 in 2023-24. Despite the initial setback likely caused by the pandemic, the scheme has shown resilience. The stabilization of seat allocation and operational units suggests a consolidation phase after initial expansion. While the number of seats and units has remained constant since 2021-22, employment has continued to grow. This indicates increasing efficiency in utilizing existing resources. The consistent coverage of over 100 Tier-2 and Tier-3 cities highlights the scheme’s commitment to decentralizing BPO operations beyond major urban centres. Even during challenging periods, the steady rise in employment underscores the scheme’s success in job creation. From 2018-19 to 2023-24, reported employment more than doubled from 25,731 to 53,163. The data suggests that the scheme adapted to challenges, potentially through measures like work-from-home policies, which might explain the continued employment growth despite stabilized physical infrastructure.

In conclusion, while the BPO Promotion Schemes faced challenges, particularly during the pandemic, they have demonstrated resilience and adaptability. The consistent growth in employment, even as other metrics stabilized, indicates a maturing industry that’s becoming more efficient in its operations. The sustained focus on Tier-2 and Tier-3 cities aligns with the goal of distributed economic development. Moving forward, the challenge may be to find new avenues for growth in terms of seat allocation and operational units while maintaining a positive employment trend.

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Citation

Please cite this article using proper attribution to 360 Analytika when referencing or sharing our content.

Ministry of Electronics and Information Technology, GoI. (2024). BPO Promotion schemes: Total Seats-Allocated, Seats- Operational, Units-Operation started, Tier-2,3 cities covered, Employment reported in India from 2018 to 2024 (360 Analytika, Ed.) [Dataset]. 360 Analytika. https://360analytika.com/bpo-promotion-schemes-total-seats-allocated-seats-operational-units-operation-started-tier-23-cities-covered-employment-reported-in-india/

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