MeitY slams reports of IT sector layoffs, says outlook robust

23 May 2017

1

Amidst increasing concerns of potential spike in layoffs in the IT sector and rising unemployment levels triggered by policy changes in western countries, especially the United States, the ministry of electronics and information technology (MeitY) has asserted that the employment potential and prospects in the IT and related sectors are robust and promising.

Indian IT sector employment prospects, both in the near and long-term are expected to be broadly positive and encouraging for the future. Indian IT companies currently serve two thirds of the fortune 500 companies and have created 4 million direct jobs in India, the ministry pointed out.

Pointing to some reports to the contrary appearing in the media, the report said that in order to present an objective and realistic potential of the employment scenario, the ministry, apart from its own feedback, has taken note of projections by industry body Nasscom as well as of other well-known independent organisations and consultants working in this field.

Nasscom, the ministry pointed out, has publicly contradicted reports of large scale layoff and has confirmed that the industry continues to be a net hirer and reports that:

  • 2.5-3 million new jobs will be created by 2025;
  • The industry added 1,70,000 new jobs in FY17; and
  • IT industry added 600,000 in last three years taking the total to 3.9 million.

TeamLease analysis for 2017-18 reports that IT sector hiring sentiments is positive and is up by 4 per cent in October 2016 to March 2017, compared to the previous six-month period, says the ministry.

The TeamLease analysis also indicates that e-commerce and technology startup sector hiring sentiments has increased by 2 per cent, with projected 14.94 per cent job growth. (This is despite recent challenges in these sectors.)

Recruitment and staffing firm Randstad projects (in December 2016), a cumulative growth rate of 9 per cent in the IT / ITeS job market.

The Indian technology startup sector will offer strong and growing employment prospects to Indian IT professionals. According to Nasscom, in 2016, Indian technology startups employed 95,000 to 100,000 IT professionals, across more than 4,750 startups (including ecommerce and hyperlocals).

India's domestic IT market offers strong prospects for industry growth and consequently employment growth, even if global markets were to face challenges. The ministry also quoted figures to show that India's total software product market grew at 9.5 per cent in FY2017 to reach $7 billion. While exports grew 7.8 per cent to $2.3 billion, domestic market in comparison grew much faster, at 10.4 per cent, reaching $4.8 billion.

India's overall domestic IT/BPM sector is expected to grow at 8.5 per cent from $35 billion in 2016 to an anticipated $37 billion in 2017.

The report said other sectors of employment in the overall of IT Industry under Digital India, include, the following:

  • CSC has generated 1 million local level employment by way of village level entrepreneurs;
  • The IT/ITES industry provides 4 millions direct employment and 13 million indirect employment;
  • State-owned Software Technology Park of India (STPI) has generated 50 per cent of the employment generated by the Indian IT/ITES industry;
  • Out of 56 STPI centres, 48 are located in tier-II and tier-III cities, benefitting the qualified youth of such locations;
  • MeitY has come up with India BPO promotion scheme with an aim to provide employment to 1.45 lakh persons, mostly in the small towns;
  • More than 48,000 BPO seats created in 2017-18 and more are being created in towns like Imphal, Guwahati, Siliguri, Patna, Muzaffarpur, Samastipur, Gazipur, Unnao, Amravati etc;
  • MeitY has a separate North East BPO promotion scheme with 5,000 seats and having employment potential of 15,000 persons;
  • Started 72 new mobile manufacturing units in the last 30 months, creating 1 lakh direct and 3 lakh indirect jobs in India, while all major brands like Apple, Samsung etc are manufacturing in India;

The emerging and promising digital economy in the country is going create a very powerful potential for job creations, the report said, adding, the government is giving greater stress on cyber security and this will lead to greater focus on innovation, research and thus significant potential for job creation.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more