IT sector to create 3 lakh jobs in FY23, claims study

The Information Technology and business process management (IT-BPM) industry is all set to add around 3 lakh jobs in India this year, with the overall headcount going up from 5.1 million to 5.45 million. The industry is also projected to grow by 7 per cent in FY2023, as per TeamLease’s Digital Employment Outlook Report.   

Contract staffing headcount, on the other hand, is projected to grow by 21 per cent. IT services firms, global capacity centres (GCCs) and product development companies are top contract staffing consumers, contributing an excess of 70 per cent in the trend. 

Besides being one of the largest employers in the private sector, the industry contributes more than 8 per cent of India’s GDP. It also amounts to almost 55 per cent of the global outsourcing market.   

TeamLease Digital COO Sunil Chennakotil underscored, “IT-BPM industry continues to be a sunshine industry in India, being the largest employer in the private sector, employing about 3.9 million people, and contributing to over 8 per cent of the GDP. Our industry here, also amounts to 55 per cent of the global outsourcing market.”  

Demand for digital skills is also projected to go up by 8.4 per cent by the end of this fiscal. At least 7 out of 10 IT companies will look for candidates from emerging locations given the growing demand given the presence of tier-1 players, product companies, global information and communications (GIC) players and startups.    

Thiruvananthapuram, Coimbatore, Cochin, Chandigarh, Ahmedabad, Indore, Mysore, Vadodara, Jaipur, Madurai, Visakhapatnam, Mangalore, Lucknow, Goa, Salem, Nagpur, Durgapur, Vijayawada and Trichy are 20 locations that contribute over 85 per cent of the talent.   

Chennakotil further specified that candidates are working to upskill themselves as  more and more companies look for candidates with specialised digital skills. 1.5 lakh professionals have upskilled themselves in digital related technologies.   

He also said, “Overall we also estimate that India’s technology employment will grow from 5 million to 10 million in the next few years.”  

While there are some green shoots on the hiring front, the industry has some red herrings on the attrition front. As per this report, attrition rates among the contract staffers are likely to go up from 49 per cent to 50-55 per cent.  

The situation, however, continues to be grim vis-a-vis the employability of engineering graduates in India as only 33 per cent of engineering graduates or 4.95 lakh out 1.5 million are getting hired.   

Commenting on the unemployability of engineering graduates, Sunil mentioned, “Only 33 per cent of engineering graduates (4,95,000 from 1.5 million) are getting hired and 35 per cent of the graduates are emerging from the top 500 cities. However, initiatives like degree apprenticeships and faster implementation of NEP will help make students more employable.” 

 The report states, “Qualified but unemployable is a challenge that India is facing for a long time now. The (National Education Policy) or NEP and apprenticeship models prepare young graduates with skills and attributes needed for employment and long-term growth. Developing a required set of skills will be a sure-shot way to bridge the gap between qualified and employable talent.”  

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