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U.S. and European companies saved a whopping $25 to $30 billion in 2009 alone on account of their outsourcing work to Indian companies. U.S.-based customers are seen to have saved $14-19 billion and European ones $9-12 billion, reports The Times of India.

According to a recently concluded study by Nasscom in association with research firm Evalueserve, the information technology and business process outsourcing (IT & BPO) sector accounts for 6 percent of the country’s GDP, a quantum jump from 1.2 percent just a decade ago. The study estimates that by 2020, the sector will account for 10 percent of the country’s GDP and 14 percent of the total services sector revenues.

Nasscom president Som Mittal said that the industry has contributed significantly to the development of the American and European economies. Amidst allegations that outsourcing has increased unemployment in U.S., the study reveals that the off-shoring has created over 250,000 direct and indirecta jobs across the U.S. during 2004-2007. In 2007, $2.75 billion was contributed by Indian firms to the U.S. economy in the form of taxes and administrative expenses incurred by their onsite offices.

The IT-BPO sector have contributed to 10 percent of the country’s service sector revenues, its unique “service-led” export oriented model contributed 9 percent of the country’s incremental GDP. The per capita GDP contribution of IT-BPO employees is 80 times that of agriculture. The industry grew twice as fast as the total Indian exports over the past decade and contributed 14 percent of the country’s total exports.