Nasscom Denies 30 Lakh Job Cuts In IT Industry; Claims 1.38 Lakh Were Hired
After a report suggested that there have been as many as 3 million job losses in IT sector in 2022, the IT industry body NASSCOM came forward to clarify that the sector, on the contrary, has been a net-hirer of skilled talent.
Due to robotic process automation upskilling, Indian IT outsourcing companies could see 30 percent reduction in low-skilled jobs globally by 2022 said a recent report by Bank of America (BofA) Securities.
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 will evolve overall leading to creation of newer jobs. The industry, with 138,000 new hirings in FY2021, 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 strong deal pipeline, is all set to become $300-350 billion industry by 2025. Presently, IT-BPM sector revenue is about $194 billion.
On the grounds of maturing automation and RPA in the last 3 years, more jobs have been created in the BPM sector. 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, have been the biggest gainers of the pandemic as it saw record deal wins during the period. Deals 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.
12 large deals with the total contract value of $1.4 billion were signed by Wipro in Q4 FY21.
With plenty new jobs, to attract and retain employees companies are willing to pay premium.
In addition to experienced professionals, close to a lakh freshers in FY22 can be hired by top IT firms.
This comes the back of the fact that digitization has been pushed by the pandemic and more and more companies want to digitize operations and hence this has increased demand for software services.