India’s IT-BPO market (including exports) could touch $285 billion in 2020 growing at a CAGR of 15 per cent, according to a report.
The IT-BPO industry in India has achieved impressive growth rates over the past decade and stood at $71.6 billion in 2009, said the report prepared by KPMG and ASOCIO (Asian-Oceanian Computing Industry Organisation).
The report, ‘Asia-Oceania Vision 2020: Enabling IT leadership through collaboration’ was released here at NASSCOM India Leadership Forum 2010. India is the current market leader in global sourcing supply, serving about 51 per cent of overall global sourcing demand.
“India is expected to achieve a double-digit growth in the IT-BPO industry, with a focus on innovation. The country, however, needs to sustain cost competitiveness and develop the requisite skills of its large workforce,” Kumar Parakala, Global Head of Sourcing Advisory, KPMG in India, said.
“India could also develop complementary skills in hardware, so that it can showcase a more diversified portfolio of products and services,” the report said.
The report highlighted that the composition of demand will undergo a change from 2008 to 2020. The contribution of some of the developed countries like Japan, Australia and New Zealand in the regional demand for IT-BPO service is likely to decrease.
However, the contribution of developing countries like India and Thailand is expected to increase in the coming years. Countries such as Sri Lanka, Pakistan and Bangladesh are also expected to make their mark on the global sourcing supply landscape by 2020, it said.
One of the focus areas of the KPMG-ASOCIO report was to identify the potential for effective collaboration among countries of the Asia-Oceania region.
The report emphasises that if diversity within the region is effectively leveraged it could lead to collaborative growth.