The business process outsourcing market in India is all set for a robust growth in the next five years with a potential to capture at least 30 to 40 per cent share of the emerging $550-$700 billion global BPO market, according to experts at a Nasscom seminar on outsourcing in Chennai on Tuesday.
Outsourcing as a percentage of global companies' budgets was estimated to grow from 30 per cent in 2002 to 40 per cent in 2004 in the case of all industries and as much as 50 per cent in the case of large IT companies, Michael F Corbett, a leading international consultant on IT outsourcing and BPO, said.
Outsourcing was one of the greatest organisational and industry structure shifts of the century, he said adding that government outsourcing (privatisation) itself grew by 65 per cent during 1996-2001 to touch $400 billion in United States alone.
"However government outsourcing remains a good 10 years behind private sector outsourcing across the globe," he said.
Nigel Roxbough, another noted international consultant on outsourcing, said that IT infrastructure and business process outsourcing typically cuts cost by 12 per cent and off shore outsourcing offers 40-50 per cent cost reductions.
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