India IT-BPO Market To Touch $285 Billion By 2020: Report

India’s IT-BPO market (including exports) could touch $285 billion in 2020 growing at a CAGR of 15 percent. According to a report release by KPMG and ASOCIO called Asia-Oceania Vision 2020: Enabling IT leadership through collaboration, India will cater to approximately 51 percent of overall global sourcing demand is expected to retain its leadership position by 2020.

The report claims that the IT-BPO industry in India has achieved impressive growth rates over the past decade.

“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,” said Kumar Parakala, Global Head, Sourcing Advisory and COO, Advisory, KPMG India. “India could also develop complementary skills in hardware, so that it can showcase a more diversified portfolio of products and services.”

According to the report, 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 by 2020. 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.

The report emphasizes that if diversity within the Asia-Oceania 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.

"While most economies are struggling with recessionary times, Asia-Oceania nations have already started experiencing an upturn. ICT is being used as a key enabler for growth, which is helping these economies move out of the downturn at a faster pace. ICT led growth is expected to push Asia-Oceania to greater heights, with some economies of the region achieving super-power status by 2020,” added Parakala.