Economy

Indian IT Industry Employment Prospects Looks Positive Despite Layoffs

Indian IT Industry Employment Prospects Looks Positive Despite Layoffs

It is reported in the mainstream media that the Indian IT industry is going through a lean patch since Trump Administration took up the office. Issues related to H1B visa and Australia’s harsh stand on Visa for employees has stirred controversy regarding jobs in IT sector.

The Doom in Indian IT Industry

Many reports show that many IT companies have gone through layoffs that resulted in termination of employees from these companies. Some companies called it a routine exercise while the other blamed it on Mr. Trump. While analysts claim that this is because of automation. Reports suggest that Indian IT companies will terminate more employees as automation will replace them but the government report contradicts the popular view.

Government’s latest data on IT Jobs

On May 23, 2017, the Ministry of Electronics & IT issued a press statement regarding IT jobs. It contradicts what the popular media says. The release states that there are possibilities of 2.5-3 million job creations in this sector by 2025. In 2017, the IT industry added 1.7 lakh new employees and 6 lakh employees in the last three years. The report also suggests that the IT industry is blossoming despite the negative news regarding layoffs.

The IT sector today employees 4 million people in India. India has remained a pioneer in IT export and the Indian IT market has grown to $7 billion in FY2017. The rate of growth is 9.5% and is promising. The domestic market grew by 10.5% while the export grew by 7.8%. The government has relied on self developed jobs rather than jobs offered by MNCs.

Why this Contradiction?

The reports that were circulated in the popular media was based on jobs offered by MNCs where layoffs have been reported while the government has relied on both MNCs as well as self generated jobs in IT sector. The government states that nearly 1 lakh jobs have been created by IT entrepreneurs in the FY 2016. There were 4700 startups in IT and related sectors that have created good number of jobs.

The government has relied on data generated by NASSCOM, the principal organization of IT sector. The government has also included indirect jobs created through IT industry.

Future Prospects of IT Sector

One should be very clear that automation will kill the jobs of basic employees and there can be space for only innovators and leaders. The closed doors of US and Australia have invited excellent software masters from there. The Indian government only needs to create a feasible atmosphere for them to work here. Innovation is the only way this industry can survive and Indian software leaders have the ability to deliver the best. Start ups in IT sector is the future and India is moving in the right direction. Relying much on established IT companies won’t pay much as they have limited number of employees but startups can be engaging and can become a hub for job creators rather than seekers.

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