Indian IT Industry Will Create 2.7L New Jobs in 2016; $20M Loss Pegged Due To Chennai Floods

Nasscom is confident that IT industry in India is headed for some high octane growth in 2016, as they have said that 2.7 lakh new jobs would be generated by the industry in the next 12 months. Driving this new hiring frenzy would be revenue expectations for the whole industry in the coming months.

As per Nasscom Chairman BVR Mohan Reddy, the industry will manage $20 billion worth of extra revenues in 2016, which is an increase of 25% compared to last year (2014-15) when $16 billion of revenue was added compared to previous year.

Overall, the sector is poised for a healthy growth of 12-13%, depending on the currency fluctuations. Last year, revenues from IT sector touched $148 billion.

At a function organized by IIT Hyderabad (where a health sector incubator was recently launched), Reddy said, “But if you compare it with the previous years, we will probably add about $20 billion extra revenue this year. Last year we only added about $16 billion”,

Reddy shared that majority of this growth would come from ‘disruptive technologies’, such as automation and knowledge based outsourcing projects. He added that the industry is well on its course to achieve $225 billion revenues by 2020 and $350 billion by 2025. By the end of 2016, Nasscom is projecting IT revenues worth $168 billion in India.

In the month of July, we had reported that Nasscom is predicting less hiring in the IT sector. At that time, it was mentioned that against 2.44 lakh new hires in 2014-15, the industry will hire only 2 lakh in 2015-16. However, as the recent statements issued by Nassom Chairman, it seems that hiring signs are good.

As per another report, automation will wipe out 50% of all IT jobs in India; whereas ecommerce industry is all set to add 50,000 new jobs in the next 2-3 years.

Chennai Floods Result In Loss of $20 Million

As per some reports, IT industry is estimating that $20 million was lost due to Chennai floods. TOI published a report, wherein losses to the tune of $5-10 million for mid sized firms and $40-50 million for large firms have been pegged.

Considering that bigger IT companies have arranged special buses to ferry their employees to safer location in Bangalore, around 2000 employees from Infosys, Cognizant, TCS and other biggies have already left the city, thereby incurring loss in productivity. HR department of all IT companies have been appreciated for following up with all their employees, and ensuring that everyone is safe.

On the other hand, automobile sector has estimated their loss t the tune of $2.5 billion (Rs 15,000 crore), as factories and offices of Hyundai, Renault-Nissan, Ashok Leyland and Royal Enfield remain closed. Considering Chennai is a hub for automobile manufacturers, the loss may be greater.

Besides, small and medium enterprises, engineering, textiles and tourism sectors have also been badly hit. There are 6.89 lakh registered MSMEs in the state, and they collectively produce 8000 different products in various niches churning out revenues of Rs 32,000 crore.

Out of these 6.89 lakh SMEs, around 1 lakh SMEs are based out of low-lying suburban Ambathur and Guindy areas of Chennai.

Overall, total losses for industries and business in Tamil Nadu is expected somewhere between Rs 20,000 to Rs 25,000 crore.

Here are some of the things which brands & businesses did for helping those who were affected by the flood.