Indian IT-BPO mkt to touch $285 bn by 2020

NEW DELHI, INDIA: India’s IT-BPO market (including exports) could touch USD 285 billion in 2020 growing at a CAGR of 15 per cent, said a report released by KPMG and ASOCIO.

The IT-BPO industry in India has achieved impressive growth rates over the past decade and it stands at USD 71.6 billion in 2009.

Titled ‘Asia-Oceania Vision 2020: Enabling IT leadership through collaboration’, the report issued today said that India, the current market leader in global sourcing supply, serving approximately 51 per cent of overall global sourcing demand, is expected to retain its leadership position by 2020.

Speaking at the global launch of the report, Kumar Parakala, global head of Sourcing Advisory (who is also the COO of Advisory, KPMG in India) said, “With a focus on innovation, India is expected to achieve double digit growth rates in the IT-BPO industry. However, the country needs to sustain its cost competitiveness and develop the requisite skills of its large workforce. India could also develop complementary skills in hardware, so that it can showcase a more diversified portfolio of products and services.

The report also 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, a press statement said, citing the report.

However, the contribution of developing countries like India and Thailand is expected to increase in the coming years. Newer countries such as Sri Lanka, Pakistan and Bangladesh are also expected to make their mark on the global sourcing supply landscape by 2020, it suggested.

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.

“ICT based transformation would be a major enabler of socio-economic transformation of Asia. We foresee an emergence of a diverse set of globally competitive IT organizations in the region, which would be the key-enablers of this IT-based transformation,” said Ashank Desai, president, Asian-Oceanian Computing Industry Organization (ASOCIO).

“To accelerate the pace of this transformation there is an urgent necessity of collaboration amongst all the players - Industry, Academia & Government and others - in the regional IT eco-system,” Desai added.

Even as total demand for global sourcing services is expected to grow by 4.9 per cent every year from 2008 to 2020, demand from Asia-Oceania countries is expected to grow by around 7 per cent every year in the same period. This will take the contribution of Asia-Oceania countries in the total global sourcing demand from 20 per cent in 2008 to around 26 per cent by 2020, the report said.

On the supply side too, Asia-Oceania is expected to dominate the global services sourcing industry. The share of countries in the region is likely to reach around 74.5 per cent in 2020, from around 73.1 percent in 2008.

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