India's IT-BPO mart may touch $285 bn in 2020

India's IT-BPO market (including exports) could touch $285 billion in 2020 growing at a CAGR of 15 per cent, according to a report.

The IT-BPO industry in India has achieved impressive growth rates over the past decade and stood at $71.6 billion in 2009, said the report prepared by KPMG and Asian-Oceanian Computing Industry Organisation.

The report, 'Asia-Oceania Vision 2020: Enabling IT Leadership Through Collaboration' was released in Mumbai on Tuesday at Nasscom India Leadership Forum 2010.

India is the current market leader in global sourcing supply, serving approximately 51 per cent of overall global sourcing demand.

"India is expected to achieve double-digit growth in the IT-BPO industry, with a focus on innovation. The country, however, needs to sustain cost competitiveness and develop the requisite skills of its large workforce," Kumar Parakala, global head of sourcing advisory, KPMG in India, said.

"India could also develop complementary skills in hardware, so that it can showcase a more diversified portfolio of products and services."

The report 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.