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Tuesday, January 31, 2023

Nasscom Denies that 30% of the IT industry’s Job cuts occurred and claims that 1.38 million jobs were filled instead.

As a result of a report saying 3 million jobs were lost in the IT sector in 2022, the industry body NASSCOM clarified through a communiqué that the industry had been hiring skilled talent on the contrary.

Bank of America (BofA) Securities recently reported that upskilling in robotic process automation would allow Indian IT outsourcing companies to reduce low-skilled jobs by 30 percent by 2022.

NASSCOM Claims New Jobs, Clarifies On Job Losses

NASSCOM also said that due to the evolution of technology and increasing automation, traditional IT jobs and roles would evolve, leading to new positions. With 138,000 new hires in FY2021, the industry continues to be a net hirer of skilled talent for the year.

The sector has witnessed the hiring of 40,000 freshers and upskilling of 2.5 lakh employees in digital skills. It also said that the industry, on the back of an intense deal pipeline, is all set to become a $300-350 billion industry by 2025. Presently, IT-BPM sector revenue is about $194 billion.

More jobs have been created in the BPM sector on the grounds of maturing automation and RPA in the last three years. According to a NASSCOM-McKinsey Report, the addressable opportunity for BPM is $180-220 billion, which in turn signifies the significant headroom for growth and jobs.

IT Sector Riding High On The Back Of Pandemic

IT industry, amongst few others, has been the biggest gainers of the pandemic as it saw record deal wins during the period. Contracts worth $9.2 billion in Q4 FY21 were clocked by TCS, which also happens to be its highest ever in the quarter, with a total of over $31.5 billion over the last fiscal.

On the other hand, with over 60 percent in net new deals, Infosys won $14 billion in total. A total of 12 large contracts valued at $1.4 billion were signed by Wipro in Q4 FY21.

With plenty of new jobs to attract and retain employees, companies are willing to pay a premium. In addition to experienced professionals, close to a lakh fresher in FY22 can be hired by top IT firms. 

This comes from the fact that the pandemic has pushed digitization, and more and more companies want to digitize operations, which has increased demand for software services.

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