NEW YORK (TheStreet) -- WNS Holdings (WNS - Get Report) has gained more than 43% in 2015, driven by impressive results and a robust end-market opportunity; but investors should still pile in, as this stock's run isn't over. 

WNS Holdings is an India-based provider of process management services. The company's verticals are spread across different areas such as data, voice, analytical, and business transformation, along with services such as supply chain planning and others. 

While the company is well-positioned as a mid-size player in the business process management industry, it is uniquely positioned for growth as India continues to modernize its digital infrastructure. 

Recording Steady Growth

Earlier this month, WNS announced its first-quarter results. It reported 3.6% growth in non-GAAP revenue from $ 122.1 million last year to $ 126.5 million this year. Its net profit increased 10.8% year-over-year. WNS reported earnings of $0.42 per ADS, outperforming analysts' expectations of $0.39 per share. The following charts display WNS' growth last quarter:

 

Source: WNS

It is likely that WNS will be able to accelerate its growth going forward as the company added six new clients last quarter. WNS also strengthened its position in the industry by expanding business terms with nine of its existing clients with a renewal of 17 contracts.

WNS Chief Executive Officer Keshav Murugesh galvanized investors in saying, "Our pipeline remains robust, and the company is focused on improving sales productivity to drive accelerated revenue growth." Although WNS is only a mid-sized player in the business process managemtn industry, it commands a strong positioning in the marketplace due to the differentiation that it offers. The company is also well-positioned to profit from the growth of digitization in India.

The Opportunity

The business process management industry in India is slated to grow at a CAGR of 12% until 2020, when it will register $50 billion in revenue. In comparison, WNS has generated $537 million in revenue in the last twelve months, indicating that there is a huge addressable market in front of the company. A key portion of this growth will be driven by the various digitization projects launched by the Indian government in the past one year.

WNS is on track to benefit from government-led digitization campaigns such as Digital India, Make in India, and the creation of smart cities.

In the last year or so, the Indian government has been focusing on Digital India initiatives. These include spreading broadband coverage, removing tax-related hurdles, and empowering start-ups. All these measures will give rise to more businesses in India, thereby expanding WNS's addressable market for business process management services.

All that WNS is waiting for in India is more "clarity in terms of the procurement process and budgets of the ambitious government campaigns," Murugesh told the Economic Times. Once this clarity comes, WNS will be right in "front and centre of it." Murugesh sees immense potential and opportunity in the Indian market from an IT and business process management point of view, which the company can use to its advantage in the coming years given its expertise in these fields.

The fact that WNS has the NASSCOM (National Association of Software and Services Companies) business process management council chairman as its CEO will be a huge plus for the company in tapping this opportunity. This is one of the reasons why WNS has been the driving force behind many of the initiatives announced by the Indian government. At present, WNS is leading the Innovate for India initiative, a program focused on bringing ideas to benefit India to the fore driven and curated by NASSCOM and its members.

Risks

The company, in its annual report, outlined concerns regarding the significant influence India's government has on the economy.

Taxation-related policies regarding foreign investment, including the business process management industry, keep changing. Further, any civil disturbance in the future could lead to adverse implications for the general economic condition of India, such as the recent terrorist attacks in the Gurdaspur district of Punjab or difficulty in passing bills in the Rajya Sabha, the upper house of the Indian Parliament.

Yet, the BPM industry is booming in India. Despite the risks, the economic and political conditions here are shaping up well, making the country an attractive investment destination. WNS Holdings also acknowledges that the current policies such as tax holidays, the liberalization of import and export duties, and favorable conditions for foreign investment and repatriation will benefit it going forward. Thus, WNS's prospects in India look strong going forward, as the company looks set to benefit from the digitization initiative being carried out in the country.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.