India has certainly emerged as a sunrise destination for both Information Technology (IT) and BPO services related outsource work.
According to a Nasscom-McKinsey report released in early 2008, the Indian IT-BPO sector has the potential to generate export revenues of approximately USD 60 billion by 2010.
The quantity of outsourced work that India receives is estimated to be growing at over 25 per cent year-on-year. All these statistics show that India is still the most attractive destination for IT and IT-related work.
And the sheer size and diversity of the talent pool available in this single subcontinent is effectively the reason for such a preference. Since there is a high percentage of English speaking population in the workforce, this could be a sustainable differentiator in the near future.
"Market openings are emerging across four broad sectors -- IT services, software products; IT enabled services, and e-businesses -- thus creating a number of opportunities for Indian companies," says Sanjay Menon, Director, Programme Management, Sapient Corp.
Another area that is rapidly picking up pace is interactive media. Besides the export market, all of these segments have a omestic market component as well.
Says Menon, "India's leading IT research firm IDC (India) Limited, predicts that in 2008, the worldwide IT market growth will be lower, at a moderate 5.5-6 per cent worldwide, which is 6.9 per cent down from the data of 2007.
The domestic IT/ITeS market revenues will touch Rs. 1,10,000 crore in 2008, while sustaining the growth of 27 per cent recorded in 2007. This would result in the market growing at 24 per cent in 2008 over the previous year."
Contrary to sceptics, India will continue to command a position in the worldwide scenario. The reason: India enjoys certain inherent advantages, like abundant talent supply, strong cost-advantage, government support, and a scalable high-quality infrastructure that has been instrumental in driving the growth of this sector. These are reasons that we do not see waning in the near future.
For Neeraj Bhargava, Group CEO, WNS Global Services, "Some of the trends that we are witnessing in the industry will define its shape in the coming years."
In fact, with a large number of global players also viewing India as a strategic market for operations, it is anticipated that procurement of IT/ITeS services by Indian operations of these companies will increase in the future.