Report predicts Indian IT-BPO market will reach $285-bn mark in 2020

The Information Technology and BPO market in India is progressing at a compound annual growth rate of 15% and may reach the USD 285-billion mark in 2020. A report jointly organized by KPGM and the Asia-Oceania Computing Industry (ASOCIO) stated that the growth achieved by the IT and BPO segment in India has been impressive during the last decade (USD 71.6 billion in 2009). The report titled ‘Asia-Oceania Vision 2020: Enabling IT Leadership through Collaboration’ was made public at the ‘NASSCOM India Leadership Forum 2010’ in Mumbai on Wednesday.

Currently, India is the front runner in international outsourcing services having a market share of about 51%. A news item widely published in India says that according to the report released today, the structure of the demand is likely to change between 2008 and 2020, as the involvement of a number of developed nations, such as Australia, New Zealand and Japan, in the local requirement for IT and BPO services will dwindle.

Nevertheless, it is anticipated that the involvement of some developing nations, such as India and Thailand, will grow. Even other Asian nations like Pakistan, Bangladesh and Sri Lanka, are also likely to have a mark in the international outsourcing service scene by the turn of 2020, the report predicted.

At the same time, the report highlighted that while it is anticipated that the entire requirement for international outsourcing services will expand by 4.9% each year between 2008 and 2020, orders for Asia-Oceania nations will increase by approximately 7%.

Speaking on the occasion of the release of the report at the ‘NASSCOM India Leadership Forum 2010’, Kumar Parakala, the global head of sourcing advisory at KPMG in India, observed that it is anticipated that India will attain a double-digit expansion in the IT and BPO sector, as the highlight will be on innovation. He, however, pointed out that India must maintain its cost effectiveness as well as build up necessary expertise. In addition, India is likely to build up corresponding expertise in hardware which will allow a greater range of products and services, Parakala emphasized.

Meanwhile, NASSCOM emphasized that in addition to holding on to its affordability, innovation should be target of the industry. It may be mentioned that on of the key areas highlighted by the report is the need to recognize the prospects for successful alliances among the nations in the region. According to the report, collaborative growth was possible only if the stakeholders were able to capitalize on the diversity in the region.