With services worth $300-400 billion in the United States being moved offshore or outsourced to other countries, business process outsourcing and offshoring segments are poised to grow substantially in the next five years, according to an industry expert.

Onshore outsourcing would grow 12 per cent per annum to over $664 billion by 2008, from $304 billion in 2001, McKinsey Global Institute director Diana Farrell said in her address at 'Nasscom 2004-India Leadership Forum' in Mumbai on Wednesday.

• India and Outsourcing: Complete Coverage

By 2008, offshore outsourcing would grow 38 per cent to over $164 billion from $17 billion recorded in 2001, while captive offshoring would register a 26 per cent growth $182 billion ($35 billion in 2001) in the next four years, she said.

India, which is the leading destination for BPO and offshoring, followed by Canada and Israel, would witness significant growth from move of contracts from the US, she said.

This has also resulted in a greater anxiety in America as technical jobs are moved to India and Russia from US, she said, adding it is estimated that around 3.3 million US service jobs would go offshore by 2015.

For every one dollar contract received by India, the country gets 33 cents, while the manufacturing jobs lost in the US amounts only around two per cent, she said.