The Indian IT-BPO industry is likely to touch revenues of $225 billion by 2020, of which exports will account for about $175 billion, as  per a new report. The industry also has the potential to generate an additional $150 billion in revenues, provided it takes some measures to transform the business environment, infrastructure, talent development and innovativeness.

The report, Perspective 2020: Transform Business, Transform India, by industry association Nasscom and McKinsey, points to a few threats to India’s competitiveness, including a shortage of employable talent, inadequate infrastructure development and growing competition from emerging outsourcing destinations such as China and Philippines.

The projection of $225 billion in revenues is based on a few assumptions, McKinsey partner Ranjit Tilankar said. These include some basic academic reforms such as collaboration with industry on curriculum, increase in employability of graduates from the current 10-15%, at least a 5.5% GDP growth and no impact of protectionism. “Protectionism could put about $50 billion of the projected revenue at risk,” Mr Tilankar said. (more…)