They are helping transform global companies; and in the past one decade, they have also transformed many of India’s economic parameters.
The information technology and business process outsourcing (IT & BPO) sector today accounts for 6% of the country’s GDP, a quantum jump from 1.2% just a decade ago, according to a recently concluded study by industry body Nasscom, in association with research firm Evalueserve. The study estimates that by 2020, the sector will account for 10% of the country’s GDP and 14% of the total services sector revenues.
The study, presented exclusively to The Times Group by Nasscom president Som Mittal on Wednesday, says the industry has contributed significantly to the development of the American and European economies. It estimates that US and European companies saved a whopping $25 to $30 billion in 2009 alone on account of their outsourcing work to Indian companies. US-based customers are seen to have saved $14-19 billion and European ones $9-12 billion.
The off-shoring model is seen to have helped create over 250,000 direct and indirect jobs across the US during 2004-2007. In 2007, $2.75 billion was contributed by Indian firms to the US economy in the form of taxes and administrative expenses incurred by their onsite offices.
The sector contributed to 10% of the country’s service sector revenues, its unique “service-led” export oriented model contributed 9% of the country’s incremental GDP. The per capita GDP contribution of IT-BPO employees is 80 times that of agriculture. The industry grew twice as fast as the total Indian exports over the past decade and contributed 14% of the country’s total exports.
Source:http://timesofindia.indiatimes.com/business/india-business/Indian-IT-saves-30bn-for-US-European-cos/articleshow/6334156.cms
