India’s IT-BPO market could touch US$285 billion in 2020, growing at a CAGR of 15 per cent. The IT-BPO industry in India has achieved impressive growth rates over the past decade which currently stands at US$71.6 billion in 2009. A report released by KPMG and ASOCIO titled “Asia-Oceania Vision 2020: Enabling IT Leadership through Collaboration” revealed 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 doubl-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, while that of the 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.
Even as the total demand for global sourcing services is expected to grow by 4.9 percent 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.
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 per cent in 2008.
