Business process outsourcing sector in India will grow by at least 60 per cent during 2004, IT tracking firm Giga said in a report.
"Today this market is still small. During 2001, India exported $7.68 billion worth of software and related services while it only exported $1.5 billion in ITeS",Giga said in a report "IT Trends 2004: Offshore Outsourcing.
This is, however, up from $264 million worth of ITeS exports in 2000, it said.
Given the cost benefits and the early successes that Fortune-class companies have had with Indian IT-enabled service outsourcing, this market will grow dramatically during the next several years, Giga analyst Stephanie Moore said.
In its growth projections, Giga said offshore outsourcing to India would grow by at least 30 per cent during 2004 on the back of increased offshoring by bigwigs like IBM, EDS and Accenture.
"Offshore outsourcing to India will grow by minimum 30 per cent during 2004 as global outsourcing and consulting firms like IBM, EDS and Accenture will continue to increase their presence in India", it said.
These companies will increase their presence in India to compete against the major Indian vendors, to accommodate companies that are struggling to do more with less, it said while adding using India as an offshore destination has quickly developed into an optimisation strategy rather than a pure cost containment initiative due to the quality and productivity benefits being realised.