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Bangalore , Oct. 15

OUTSOURCING to India will grow at over 50 per cent year-on-year, and India could double its share of the $1 trillion global IT services and BPO outsourcing pie in a year or two, said Mr Michael F. Corbett, outsourcing guru and President and CEO, Michael F Corbett & Associates. He was speaking at the 2003 India Outsourcing Summit here on Wednesday .

While there was some concern and legislative moves in the US on preventing outsourcing to destinations such as India, these could be considered part of `election year' sentiment and should disappear once the US economy picked up, he said.

It must be communicated that more high-tech jobs would be added to the US economy than it would lose to off-shoring destination, Mr Corbett said.

Outsourcing would eventually be done to enable innovation, said Mr Corbett, adding that a survey by Corbett Associates had found that while a third of enterprises outsourced to contain costs, about 27 per cent of them did so to retain focus. The other reasons for outsourcing included speed to market, access to skills, controlling variable costs, growing revenues, conserve capital and improve quality.

In the third wave of outsourcing, it was the transactional activities in a business that were getting outsourced, Mr Corbett said.

The first wave saw the outsourcing of physical activities such as manufacturing and facilities maintenance and while in the specialist wave, functions such as PR and advertising were outsourced. It was the operational services that were seeing outsourcing now, said Mr Corbett, adding that BPO players and call centres with niche offerings were likely to get quality clients and work.

Bioinformatics had been identified as a growth sector, said Mr S.N. Zindal, Director-General, Software Technology Park of India.

Mr B.V. Naidu, Director, STPI, said the Indian BPO scene offered cost savings of up to 50-60 per cent and that surveys had showed better response times and performance parameters for voice, Web and process activities.

The Minister of State for IT, Mr D. B. Inamdar said the quality of work from India was of the best.

He added that with the Government formulating the Millennium BPO policy, the sector would get a boost.

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India can double BPO pie share in 2 years: Corbett

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