IT Outsourcing from India to be valued at $60B by 2010Thursday, March 09, 2006
In the mid December 2005 a report from the private company released stating that IT Outsourcing from India to be valued at $60B by 2010 including the share of business process outsourcing (BPO) services industry. It could be bringing in such huge amount with the growing at over 25 per cent a year. Though the industry might face a shortage of half a million manpower and professionals unless remedial measures in public education sectors and corporate training centers are taken quickly. Offshore Outsourcing India and services exports were around $17 billion in the fiscal year that ended March 31 this year. According to the NASSCOM (National Association of Software and Service Companies) in Delhi this figure grew up by 34.5% from the previous year. This whole statistical analysis was the joint efforts from NASSCOM and management consulting firm McKinsey & Co.
It is marked that a large no. of multinational corporations (MNC) technology and user companies are stepping up to take the advantage of Offshore Outsourcing India. Microsoft Corp. also announced during the same time that the company was increasing its staff in Indian Territory from 4,000 to 7,000 workers over the period of next three to four years time duration, while Dell Inc. stated in April 2005 that company was planning to increase its staff in India to 10,000 workers by the end of this year for IT Outsourcing and services. Aviva PLC, a British insurance company, also declared that company’s suppliers were increasing the figures of staffers performing work for the company from 4,300 to 7,800 over the period of next two years time duration in India and Sri Lanka.
IT Outsourcing segment employed about 1 million
Survey from the above companies also stated that the total noticeable market for Offshore Outsourcing is approximately $300 billion, of which almost $110 billion would be covered by 2010. One more thing stated by the survey is that by 2010, the country’s IT and BPO services segment could directly employ almost 2.3 million workers, besides facilitating indirect employment to an extra 6.5 million people. The IT Outsourcing segment employed about 1 million employees and fulfilled indirect employment to 2.5 million manpower in the fiscal year to March 31 this year, information released by the Naasscom earlier this year.
Though skilled manpower shortages could be a major bottleneck for the IT Outsourcing segment of the country. The talent and quality of the people needs to be improved as only 25% of technical graduates are suitable for jobs and services in the Offshore Outsourcing India, while only 10% to 15% of general computer graduates are perfect for employment by the industry like Business Process Outsourcing, the survey suggests. Country’s urban infrastructure demands improvement as Offshore Outsourcing companies deal with various bottlenecks globally. Further growth of the IT segment in the country should come from totally new business areas outside the first- and second-tier cities to pose competitions in the market.
All these suggest the capabilities of the country and how fast the country is growing. Still lots of efforts to be put for the better future of country are IT Outsourcing services.