For all the fuss in the world only 1% of IT workforce is laid off in India
Services sector contributes to 50% of India’s GDP but only employs a 25% of its workforce.
IT workforce is a very small percentage of the overall work force in India. IT comes under services sector and the fuss around any lay-offs is justified as it contributes towards the 50% GDP.
But isn’t it much ado about nothing? As per NASSCOM IT in India did not come under the grip of large scale layoffs. In fact only 1% of the workforce is laid off so far. That is almost negligible – if the estimates are to be believed. In other words it is a non-event.
If you ask someone at the outskirts of a city he has a completely different opinion. Many think that the global slump is because of IT. Few people working in textile industry or diamond industry would have known but broader population thinks IT is the culprit. Many in fact pity the IT crowd. We cannot give a economics 101 to them.
“This is the difference we are seeing today and it has not manifested in huge layoffs. In fact, the current layoffs would represent less than 1 per cent of the total industry, maybe, 0.5 per cent. Besides, any vacancies presently arising at companies are not being filled up, as hiring plans have been affected by lower growth rates,” (Business Standard)
So, this is to everyone out there. Situation isn’t bad. Not bad at all. And no, IT is not the reason for the slump. It’s the banks which screwed everything up. I mean everything. And I also mean all the banks.
The only sane people out there are the engineering students. They are the smart lot. In spite of being in a tough market they still prefer IT over anything else. Is that a problem or a solution? Food for thought and for my next post.