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India is expected to retain its leadership position in global sourcing supply of IT-BPO by 2020 and could touch the market at USD285 billion by then, growing at a CAGR of 15 per cent, says a report released by KPMG and Asian-Oceanian Computing Industry Organisation (ASOCIO).The report,Asia-Oceania Vision 2020: Enabling IT leadership through collaboration revealed that India, which is the current market leader in global sourcing supply serves around 51 per cent of the overall global sourcing and has achieved impressive growth rates over the past decade. Nasscom in its latest announcement said that Indian IT-BPO market stands at USD 64 billion as on 2009.
“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,” global head of sourcing advisory, COO and advisory, KPMG India, Kumar Parakala said at the global launch of the report here at the NASSCOM India Leadership Forum 2010 here.
He said 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 nations 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, the report said.
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. 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 market in information, communications 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.
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