India Outsourcing Market to reach US $225 billion by 2020
September 15, 2009
After a successful first edition of the CEO summit last year, Kolkata once again saw industry captains converging to discuss, debate and strategize on the next phase of the industry’s evolution at the second annual NASSCOM CEO Summit 2009 held today at ITC Sonar Bangla.
The industry in the last one year has witnessed slowdown in growth as a result of the global economic downturn. NASSCOM’s estimates for the IT- BPO industry for 2009-10, include export growth at 4-7 percent and domestic market growing at 15-18 percent. While uncertainty prevails, the sentiment now being reflected is that the worst of the crisis is over. The industry in this period has demonstrated maturity, resilience and enhanced efficiency. Of specific interest was the growth in domestic market, a three-fold growth in emerging verticals and geographies, enhanced globalization of the industry and over 90 percent repeat business from clients in this tough environment.
Mr Som Mittal, President, NASSCOM said, “While the short-term challenges exist, the potential for this industry is tremendous and the industry will not be demand constrained. The opportunity ahead is likely to increase by three times and India can aggregate revenues of US$225 billion by 2020. However, 80% of incremental growth will be driven by opportunities outside the current core markets, verticals and customer segments and will require industry to build different business models and the country to invest more in education and infrastructure”.
The CEO Summit will address issues of both the short-term 2010 outlook as well as the long-term potential of the industry as outlined by the NASSCOM Perspective 2020 report done in collaboration with McKinsey & Co.
Mr Som Mittal further added “West Bengal has a huge talent pool which can play a major role in sustaining the growth of Indian IT-BPO industry. Building a viable ecosystem is an imperative for the growth of the sector in the region. Focus on infrastructure development, enhancing the employability and an enabling policy environment should be the key priorities for the state government. NASSCOM will continue to strengthen its initiatives in the eastern region”
NASSCOM set up its office in Kolkata in 2007 and has focused on building a vibrant ecosystem of companies as well as address the supply side issues of talent development, security and promoting global trade development. Some of the initiatives for NASSCOM in this region include:
- Talent Development: Partnership with Webel and other government departments for Finishing School program, framework for animation and conducting skill gap analysis with the NASSCOM Competence of Assessment (NAC).
- Security: The Data Security Council of India, a NASSCOM promoted organisation set up its chapter at Kolkata and the the consent of Kolkata police has been received to establish the first cyber-lab in the eastern region.
- Global Trade Development Program:NASSCOM joined hands with UK Trade & Investment (UKTI) and British Deputy High Commission to conduct a series of 6 – 7 sessions, in order to promote investment in the United Kingdom and vice versa.
- Emerging Companies Thrust: NASSCOM has been regularly organizing sessions with emerging companies and two emerging companies from Kolkata – InfoSoft Global (P) Ltd and A1 Future Technologies were ranked as EMERGE Leaders from over 250 applicants.
- Building and promoting Eastern India: The NASSCOM AT Kearney Study in 2008 has ranked Kolkata as a leader location and identified a roadmap to build other centres in the state. NASSCOM has also focused on development of the entire Eastern region with specific thrust on partnering with Orissa government and building talent initiatives in the North Eastern region. The NASSCOM Regional council led by the industry has helped to define the vision and activities for NASSCOM in this region.
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