IT & ITES sector to add 183,000 jobs

The growing significance of emerging markets like India and China, has led to many global corporations including these countries, in their growth and workforce strategies.

At the beginning of 2010, the Ma Foi Randstad Employment Survey had predicted creation of 1 million jobs in the organized sector through the year.

Its year-end METS shows creation of 1.13 million jobs across 13 industry verticals. Healthcare, Hospitality, Real Estate, Construction, IT and ITeS sectors played a major role in 2010 in fuelling the growth and job creation.

For 2011, they expect the trend to continue and estimate creation of 1.6 million jobs across various sectors. A large number of these jobs are envisaged to be happening in the healthcare, non-machinery manufacturing, hospitality, IT & ITeS and real estate & construction sectors.

According to the METS first edition of 2011, the service sector indicators reflect continuation of growth momentum. Though the external demand remained relatively weak, indicators related to transportation and financial sectors look reasonable. Employment generation has remained stable and upbeat in most of the sectors.

The IT & ITES sector is expected to add 183,000 jobs in 2011. IT & ITES sectors have remained as one of the major job providers during the fourth Quarter of 2010. The responses from the surveyed companies suggest that the sector will keep growing in 2011 as well.

According to NASSCOM, the IT-ITeS industry is India's one of the largest employment generators in the organized sector creating jobs for over 10 million people both directly and indirectly.

The spread of the IT-ITeS sector to the tier II and tier III cities has further widened the growth potential of the sector thereby generating more employment. Increase in number of Rural BPOs has also contributed to the sector's role in increasing employment across the country.

However, the process of geographical dispersion of the industry is being adversely affected by the non-extension of the STPI scheme and attendant tax incentives. A proactive role on part of the government will lead to increased job creation in the sector.

Companies in this sector are consciously moving up the value chain in the journey of outsourcing, to stay competitive in the global arena. This has impacted the employment trends in this sector.

Increase in lateral job shifts among employees within the sector has resulted in substantial increase in the salary levels, for the new hires, as well as for existing employees.

Total jobs in the sector:
Estimated December 2010:  1,918,865
Expected June 2011: 2,019,665
Expected December 2011: 2,101,865