The Indian publishing BPO industry is expected to grow at an estimated rate of 35 per cent per annum and become a $ 1.46 billion industry by 2010, Puducherry CII Vice Chairman Sriram Subramanya said on Thursday.

Addressing a conference on Publishing BPO Services, organised by CII in Chennai, Subramanya said Chennai had emerged as a global hub for publishing BPO services and the Indian publishing BPO services industry had grown phenomenally over the years.

Several global publishers are offshoring their publishing services to India, making the country a publishing BPO services hub of the world, he said.

''There is an accelerated trend of acquisitions, which is likely to intensify as more players look to acquire new capabilities, clients, market presence, offshore capacity and onshore capability,'' he said.

Subramanya said the industry was facing challenges due to recession in the global economy, the rupee appreciation and emergence of new media.

''The publishers' expectations are increasing in terms of speed to market, consistent quality, end-to-end services, reduced pricing, multiple and complex deliverables, need to deal with fewer suppliers,'' he said adding ''there is an increasing demand supply gap on the manpower side combined with high attrition and increasing cost.''