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Published & Updated as on -
2010-02-17
India's
IT-BPO market (including exports) could touch USD 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 today at NASSCOM India Leadership Forum 2010.
India
is the current market leader in global sourcing supply, serving approximately
51 per cent of overall global sourcing demand.
"India
is expected to achieve 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 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.
According
to NASSCOM, the Indian IT-BPO industry should aim to drive innovation, in
addition to retaining its competitiveness. In order to successfully achieve its
goal, key stakeholders of the Indian IT-BPO industry need to address the issues
currently faced by the industry.
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.
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, it said.
"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
organisations in the region, which would be the key enablers of this IT-based
transformation," ASOCIO President Ashank Desai said.
Even
as total demand for global sourcing services is expected to grow by 4.9% every
year from 2008 to 2020, demand from Asia-Oceania countries may grow by around
7% every year in the same period.
This will take the
contribution of Asia-Oceania countries in the total global sourcing demand from
20% in 2008 to around 26% 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% in 2020, from around 73.1% in 2008.
While most
economies are struggling with recession, Asia-Oceania nations have already
started experiencing an upturn, it said. ICT is being used as a key enabler for
growth, which is helping these economies move out of the downturn at a faster
pace, the report said.
"ICT-led growth is expected to
push Asia-Oceania to greater heights, with some economies of the region
achieving superpower status by 2020," added Kumar Parakala.
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