Indian outsourcing market 'to see rapid growth'

The market in the country is expected to be worth $225 billion by 2020.The IT and business outsourcing market in India will grow rapidly over the next ten years, it has been predicted.

According to the country's National Association of Software and Services Companies (Nasscom), the sector will grow almost fivefold to be worth $225 billion (£136 billion) in 2020.

The news may be of interest to businesses that have been looking at India as a possible destination for their sales outsourcing.

Som Mittal, president of the body, explained that despite their being short-term challenges, "the potential for [the[ industry is tremendous".

During the 2008-09 fiscal year, sales in the Indian outsourcing industry reached $58.8 billion, Nasscom said, with the vast majority of this coming from clients based overseas.

A growth rate of between four per cent and seven per cent is expected during the current fiscal year, while expansion will return to double digits in the periods to come.

Mr Mittal added that the majority of the growth will come through businesses taking up outsourcing that have yet to do so, noting that 80 per cent will be "driven by opportunities outside current core markets".

Outsourcing specialist Jack Morkel recently recommended Indian outsourcing firms, noting that they offer a range of services, including lead generation.