Talent shortage hits IT sector as hiring swells to 3,80,000 in 2006-07

08 March 2007

Mumbai: Demand for technology talent gained further momentum with the IT and ITeS sector hiring an estimated 3,80,000 people during the current financial year, official sources said.

Although average salary growth in the industry during the year at 12-15 per cent was same as in the previous year, overall demand for engineers from other industries in the country was higher, T V Mohandas Pai, director and HR chief of the NASDAQ-listed Infosys, said.

Pai said the growth in employment was about 35 per cent compared to the previous financial year 2005-06.

"The IT industry is finding it tougher to hire quality talent because of growth. There is need for more training," he said.

The information technology (IT) sector employed a total of 180,000 while the information technology-enabled services (ITeS) employed 2,00,000 in the 2006-07 financial year.
Among the country's top four software exporters, TCS employed 35,000, Infosys 30,000, Wipro 28,000 and Satyam 20,000, adding up to a total of 1,13,000 during the year, industry sources said.

On shortcomings that the industry sees in fresh engineering graduates, Mr Pai said their education was not based on what was needed by the industry. "Soft skills are poor and communication skills is way behind needs".