Nasscom, the premier trade body of the Indian IT-BPO industry, on Wednesday said the aggregate revenues of the sector are expected to reach $60 billion by FY09.

Export revenues for the Indian IT-BPO industry, excluding domestic market and hardware exports, are expected to record growth of 16-17 per cent and clock revenues of $47 billion in 2008-09.

However, factoring the impact of the global economic crisis in the second half of 2008-09, the industry is expected to grow by 16-17 per cent by March 2009. The domestic IT-BPO market in India will cross Rs 111,000 crore (Rs 1,110 billion) by FY09, exhibiting 20 per cent growth rate.

Despite an uncertain economic environment, the Indian IT-BPO industry will see sustainable growth over the next two years and will clock revenues of $60-62 billion by 2010-11, said the association in a press release.

"2008-09 has been challenging for economies across the globe, however the Indian IT-BPO industry has exhibited a balanced growth. We are hopeful that the government will continue to recognize the contribution of this sector and will stimulate investor confidence and growth by extending fiscal incentives to this industry and boosting domestic IT spend through the allocated IT budgets," said Ganesh Natarajan, chairman, Nasscom.

Europe, Asia Pacific and rest of the world has grown more than the US, reaffirming geographical diversification as an encouraging trend for the industry.

The Indian industry has made global footprint in over 400 delivery centres across 52 countries and this strategy of geographical diversification will also help the industry take forward its competitive edge.

In the next 20-24 months, the industry should focus by organisations on productivity, benchmarking, and enhanced operational efficiencies. From a customers' point of view, the focus will remain on consolidation, integration and regulation -- all of which will drive newer business opportunities for the industry, he said.

Due to India's strong fundamentals and as a derivative of the value we add to our global customers, the Indian industry will continue to grow inspite of global slowdown.

Besides cost savings, customers derive great value from transformation of processes, access to critical resources, quality trained workforce and reduced reaction time, from the Indian industry, said Som Mittal, president, Nasscom.

At an employee level, the industry continues to focus on training and building higher end skills and capabilities that enable employees to gain domain expertise.

Performance benchmarking and skill upgradation will be strong measurement parameters for the industry as customer expectations of Indian companies will be higher. Overall, the industry will remain a net hirer. From an employee perspective, with lower attrition, industry workforce will stabilize and this trend will extend into wage moderation in the coming year.

The industry has also spread across tier-2 and tier-3 cities in India and is creating employment opportunities' for workforce in these centres, and is helping economic development beyond metros, said Pramod Bhasin, vice chairman of Nasscom and president and CEO, Genpact.