The Indian IT-BPO industry has grown tremendously in the last two decades from USD 100 million to USD 100 billion. Leveraging on cost arbitrage and quality work, India commands 50 – 55 percent offshore market share. But with more countries or contenders in the fray for offshore services, this can no longer be India’s trump card; to continue the growth momentum India needs to become a Global Hub for IT-BPO.
And the Hub and Spoke model is the key to increasing its current market share, which is currently 5 – 6 percent. By getting a few things right, India can increase this market share to 15 percent in the next 10 years.KPMG recently released a report titled ‘Hub and Spoke operating model — a new business paradigm for the Indian IT-BPO industry’. The report explains the hub and spoke model, its key benefits, and suggests imperatives for India to leverage on this model to become a leader in global outsourcing. The report also envisages India as an established brand for global outsourcing, managing global supply chains with its skilled workforce.