India's IT-BPO mkt to touch $285 bn by 2020: study

The country's IT-BPO market (including exports) is expected to touch $285 billion in 2020 from $71 billion in 2009, on the back of doudle-digit growth, a study has said.

The Indian IT-BPO sector will grow at a compounded annual growth rate of 15 per cent, a joint study by KPMG and Asian-Oceanian Computing Industry Organisation said.

The country's export-driven IT sector witnessed a single-digit growth in 2009-10 due to the financial crisis and recession in the US, from where the sector gets more than half its revenue.

"India is expected to achieve double-digit growth rates in the IT-BPO industry," KPMG Global Head of Sourcing Advisory Kumar Parakala said.

Moreover, India, the current market leader in global sourcing supply, serving about 51 per cent of overall global sourcing demand is expected to retain its leadership position by 2020, it added.

The report also 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 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.