The Business Process Outsourcing (BPO) and Offshoring services sector, which is expected to grow to over $300 billion in the next years, will provide the necessary impetus to both outsourcing and globalisation, creating a win-win situation for all the parties, according to Mckinsey Global Institute (MGI) director Diana Farrell.

Farrell, addressing the `Nasscom-2004-India Leadership Forum' said that around US dollar 300-400 billion of services would be moved offshore from US or outsourced by that country.

"In the next five years, about $100-300 billion services will be off-shored and this trend will be beneficial for India and the US," she said.

"US economy is expected to see a significant decline in the share of the working population. About five per cent or 15.6 million, additional workers would be needed by 2015 to maintain the revenue level of working population in 2001," she said.

This short fall must be addressed through an approach of innovation and productivity, Farrell said.

Offshore services stood at $1 billion potential in 2001 and was posting a substantial growth year over year. According to the estimates, India's offshore potential stood at 77 per cent in the global market whereas China has only 1.1 per cent, she pointed out.

Offshore outsourcing would grow at a 38 per cent growth to post $164 billion by 2008 from $17 billion posted in 2001, while captive offshoring would post a 26 per cent growth at $182 billion ($35 billion in 2001) in the next four years, she said.

India, which is the leading destination for BPO and offshoring, followed by Canada and Israel, would witness significant growth from move of contracts from US, she said.

This has also resulted in a greater anxiety in US as technical jobs are moved to India and Russia from US, she said. IT is estimated that around 3.3 million US service jobs would go offshore by 2015.

For every $1 contract received by India, the country gets 33 cents, while job losses to BPO from manufacturing segment amounted to only around two per cent, she said.