India’s IT-BPO market to touch $285 billion by 2020: KPMG - ASOCIO report
09 Feb 2010
India's IT-BPO market (including exports) could touch $285 billion in 2020 growing at a CAGR of 15 percent. The IT-BPO industry in India has achieved impressive growth rates over the past decade which currently stands at $71.6 billion in 2009, (estimated in 2009 as the of the IT-BPO market, NasscomASSCOM in its latest announcement has pegged at $64 billion as of 2009.)
A report release by KPMG and ASOCIO titled Asia-Oceania Vision 2020: Enabling IT leadership through collaboration reveled 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; COO, advisory, KPMG, in India, said, ''India is expected to achieve double digit growth rates in the IT-BPO industry, with a focus on innovation. 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.
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.
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 emphasizes that if diversity within the region is effectively leveraged it could lead to collaborative growth. Collaboration is likely to act as a facilitator for nations to address common challenges, leverage each others' competitive advantage and thereby aim for a much larger target market in the Information, Communication and Technology (ICT) industry by 2020.
