Indian BPO industry targets $50 billion

The Indian Business Process Outsourcing industry should be booming in next four to five years, a study here has said and forecast that it would touch $50 billion by year 2012 from the current $11 billion and create over 2 million direct jobs in the nation.

The study, "Roadmap 2012 - capitalizing on the expanding BPO landscape", conducted by the National Association of Software and Service Companies (NASSCOM), the premier trade organization of Indian Information Technology industry.

The report indicates a possible target of $50 billion by year 2012 for the Indian Business Process Outsourcing industry. This would reflect a five-fold growth over the next five years and it could create up over 2 million direct jobs in India.

Since the inception Indian BPO sector has evolved tremendously, not only in its size but also in terms of maturity - service lines, service delivery capability and footprint, said National Association of Software and Service Companies president.

This $11 billion industry today employs more that 700,000 people across 25 countries and accounts for approximately 40 percent of the global BPO offshore market, thereby creating huge job opportunities and impacting the economy. The future potential is even bigger. This study not only estimates the opportunity ahead but also lays down specific agenda for all stakeholders to help achieve this.

The study outlines the need for significant collaboration between the industry, government and other stakeholders on a range of initiatives including education, infrastructure, country-competitiveness, and domestic Business Process Outsourcing.