IT offshoring in India, a $60 B industry by 2010
By agencies   |   Tuesday, 13 December 2005, 20:30 IST
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NEW DELHI: Software and customer services outsourced to India are forecast to grow 25 percent a year by the end of the decade to $60 billion. A Nasscom- McKinsey study estimated that outsourced services will earn $110 billion worldwide by 2010 and Indian companies will get more than half of that business. "India has the potential to capture more than 50 percent of this opportunity," said Noshir Kaka, a partner at McKinsey who helped prepare the report. The study said India now gets 65 percent of the global offshore software market and 46 percent in services. Most of the new business is expected in outsourced work by insurance, retail, banking and travel companies abroad. Software and services now add about $17 billion to the economy and directly employ 700,000 people, the report said adding to grow further India will have to train more skilled workers and drastically improve its infrastructure. Kaka said “The next five years will see a huge increase in the global outsourcing potential. India’s share in the total market will remain steady and the country will, thus, capture a significant proportion of the total market opportunity.” He added that the estimates were conservative and faster innovation could spur further growth.

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