Indias National Association of Software and Service Companies Nasscom said Tuesday that the countrys outsourcing industry can potentially earn revenue of US USD225 billion by 2020, of which about USD175 billion will come from exports, and the balance from the domestic market.The countrys revenue from outsourcing in the fiscal year to March 31 was about USD60 billion, of which USD47 billion was from exports, a Nasscom spokeswoman said.

The Nasscom figures include revenue of both Indian outsourcers and the Indian services and research and development subsidiaries of multinational companies.

Nasscom however warned that the industry faces some challenges, including competition from other countries, and poor quality of education and infrastructure in India.

Currently only a small percentage of graduates have the skills necessary to be employed directly by the outsourcing industry. Only about 26 percent of engineers, for example, can be employed for technology services.