The Indian information technology enabled services industry is poised to touch $26 billion by 2009-10 and $10 billion by 2006-07, according to credit rating agency ICRA.
ICRA said in its latest research report that with the global ITeS industry expected to maintain a healthy growth rate over the medium term, corporations are expected to continue outsourcing many of their labour-intensive business process service tasks to developing countries like India to gain cost savings and quality advantages.
The report said that demand growth in the ITeS industry is likely to be export-led, with the domestic market also expected to grow at a rate in excess of 50 per cent.
In the report, ICRA said that the biggest challenge which the ITeS industry in India was facing was lack of good infrastructure.
It said the ITeS sector in the country was facing the threat of rising labour costs, high attrition rates and security concerns.
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