IT Sector- An Employment Hub
Employment generation in the IT- ITes Sector has continued to surge as has been witnessed in the past years. The growth has beaten all records with the total number of candidates recruited in the industry set to exceed 1.6 million within this fiscal year, up from around 1.26 million in the year 2005-06. This impressive growth rate has managed to give fillip to the employment generation objectives of the overall strategy of the government and the industry alike.
As per Strategic review 2007 prepared by NASSCOM, Core IT services continue to lead the job market with 5.62 lakh positions in the current financial year as against 3.98 lakh employment generation opportunities in the last fiscal year. The next biggest sector contributing to the growth is ITeS- BPO, which expects to employ close to 5.45 lakh employees by the end of the financial year as against 4.15 lakh a year ago.
Nasscom has also added that employment in engineering services, R&D and software products is growing at a healthy rate of over 25% on year to year basis. Based on an analysis of all the factors in the sector, the total job opportunities available would be around 16.30 lakh in 2006-07 as against 12.93 lakh employment placements in the previous year.
However to achieve the sustainable growth rate in the sector, there is also a need to have an active collaboration between government, industry and other stakeholder to promote the growth of the sector and to further enhance the availability and access of the suitable talent for the IT and ITeS sector. This would require a careful analysis of what is being imparted now and what is required by the industry as well as other policy initiatives which may be taken by the government.
An Education Special Economic Zone
As per NASSCOM, a comprehensive skill assessment and certification program for entry level talent and low and middle level management is also underway. It is in this regard that the concept of experimenting with special economic zone (SEZ) for education may also be explored. NASSCOM has proposed the setting up of a chain of finishing schools for IT professionals to make them more employable with a simple 3-4 months of honing of technical skills and imparting soft skill training. This would bridge the manpower supply and demand gap by as much as 30 to 40%. The pilot program of NASSCOM Assessment of Competence (NAC) has been successful and is proposed to be extended to a number of states in coming months.
The future growth scenario of the IT industry in India looks very positive and with right kind of policy initiatives, the sector can achieve higher and higher trajectory. Domestic software services and IT-BPO exports are going to be around 31$ billion in the current financial year, posting a healthy growth rate of 32-6% from the previous year. The industry is very well poised to tap new opportunities in off-shoring and domestic sectors in future times.