IT, BPO industry to grow strong at 31-32 pc: Raju

New Delhi, Feb 1: Nasscom Chairman Ramalinga Raju today said that this year the IT and BPO industry is expected to grow at the rate of 31-32 per cent and exports could touch 30 billion dollars.

Releasing Nasscom McKinsey study here, Mr Raju said if IT and BPO industry continues to grow at this rate, exports may hit 75 billion dollars by 2010 surpassing 60 billion dollar mark.

The study validates that customers are highly satisfied with remote centres, and as a result are ramping up operations in India, and their expectation are rising too, Mr Raju said.

''Operational excellence is critical for the industry to maintain its market leadership by capturing a disproportionate share of the 300-billion-dollar addressable market for offshore services,'' Partner of McKinsey Noshir Kaka said while addressing the mediapersons here.

The study indicates BPOs with effective practices reduce operating costs by 20-30 per cent and IT services companies to increase EBIT margins by 3-6 per cent.

Indian IT and BPO industry is undergoing fundamental structural shifts which include evolving client profile, changing nature of work and tightening supply market.

As per the findings of the study, clients are highly satisfied with remote centre performance and their focus is rapidly evolving which in turn is likely to place increasing pressure on the offshore units.

''The financial proposition of India is getting stronger,'' Mr Kaka added.

The third party providers usually outperform captives in practices and metrics, but best-in-class captives show this gap can be bridged, the study suggested.

''India has clearly been the market leader with over 50 per cent of the global market in offshore services. By focusing on operational excellence as the next frontier in offshoring we can realise 60 billion dollar export revenues by 2010,'' Nasscom President Kiran Karnik said.

UNI