BPO, ITeS industry could grow to $225 billion by 2020

Written by fe Bureaus | Chennai | Updated: Jul 31 2010, 04:34am hrs
The time has come for the BPO and ITeS industry to increase its presence in tier-II and tier-III locations as the industry is poised to reach a size of $225 billion in 2020. The industry expects 40% growth from tier-II and tier-III cities, said Som Mittal, president, Nasscom at a media briefing on the Nasscom HR summit here.

Last year we have conducted a granular study in association with AT Kearney in identifying the next 43 locations for IT-BPO penetration as the 60% of the BPO growth is happening only in the 7 major cities in the country. The growth of key infrastructure like airports and roads are welcome signs in such places, he said.

As the offshoring customers are now becoming location agnostic, the building of BPO and ITeS delivery centres in non-major cities would progress at a much higher pace, he added. Mittal released a study on the job potential of the BPO and ITeS industry and stated that by 2020 the industry would be employing about 10 million people directly that in turn would provide 20 million indirect jobs.

The contribution of IT-BPO industry to organised sector employment has jumped from 5% in 2000-01 to 15% in 2005-06 with 58% of the workforce hailing from tier II and tier III cities. Interestingly, 56% employees are chief bread winners. On gender inclusivity, 37% of the workforce are women with 26% of them found to be the chief wage earners.