Bangalore: U.S. and European companies saved a whopping $25 to $30
billion in 2009 alone on account of their outsourcing work to Indian
companies. U.S.-based customers are seen to have saved $14-19
billion and European ones $9-12 billion, reports The Times of India.
According to a recently concluded study by Nasscom in association
with research firm Evalueserve, the information technology and
business process outsourcing (IT & BPO) sector accounts for 6
percent of the country's GDP, a quantum jump from 1.2 percent just a
decade ago. The study estimates that by 2020, the sector will
account for 10 percent of the country's GDP and 14 percent of the
total services sector revenues.
Nasscom president Som Mittal said that the industry has contributed
significantly to the development of the American and European
economies. Amidst allegations that outsourcing has increased
unemployment in U.S., the study reveals that the off-shoring has
created over 250,000 direct and indirect jobs across the U.S. during
2004-2007. In 2007, $2.75 billion was contributed by Indian firms to
the U.S. economy in the form of taxes and administrative expenses
incurred by their onsite offices.
The IT-BPO sector have contributed to 10 percent of the country's
service sector revenues, its unique "service-led" export oriented
model contributed 9 percent 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 percent of the
country's total exports.