A recently released Nasscom-McKinsey report stated that India's BPO and IT industry could see a near 10-fold growth from $17.3 billion at present to $166.5 billion in 2010.

According to the report, India's BPO industry will continue to grow to $150 billion by 2010 driven by traditional industries, finance and accounting. On the other hand, the country's IT sector will reach the $150 billion mark sooner (in 5 years time) because of new technologies. Moreover, indian companies will maintain their 46 percent share in the global BPO market and 65 percent share in the IT outsourcing market up to 2010.

Noshir Kaka, partner at McKinsey & Co., said, "The next five years will see a huge increase in the global outsourcing potential. India's share in the total market will remain steady and the country will, thus, capture a significant proportion of the total market opportunity."

The report also named four future problems for the booming Indian IT industry. These include poor infrastructure, shortage of skilled manpower, political opposition in developed countries, and a decreasing demand.

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