IT-BPM Industry Will Create 3 Lakh Jobs in FY23: Report
Close to three lakh jobs will be created by the IT BPM industry in FY23 says a report. It indicates that the IT BPM workforce is on the trajectory to grow by 7 per cent in FY2023, with the overall headcount increasing from 5.1 million to 5.45 million (close to 3 lakh jobs being created).
The report by TeamLease Digital also forecasts that the demand for digital skills will grow by 8.4 per cent by the end of this fiscal, and the report also highlights the top 15 digital skills that will be in demand
The ‘Digital Employment Outlook Report’ says fueled by increased investments in the sector and rapid adoption of technology by enterprises; the demand for contractual staffing will also increase, as per the report findings. Contractual staffing headcount is expected to grow by 21 per cent. Currently IT services companies, Global Capability Centers (GCC), and Product Development companies are the top contract staffing consumers, contributing in an excess of 70 per cent of this trend. In fact, by itself, GCC headcount is growing over 10 per cent y-o-y.
“IT-BPM industry continues to be a sunshine industry in India, being the largest employer in the private sector, employing about 3.9 million people, and contributing to over 8 per cent of the GDP. Our industry here, also amounts to 55 per cent of the global outsourcing market. As a super-cycle of digitization and with more companies focusing on rapid adoption of emerging technologies, demand for tech talent is going to see a strong surge in the coming quarters, especially in IT-BPM. As employment opportunities surge, and companies look for talent with specialized digital skills (reflective in the 8.4 per cent growth in the demand for digital skills), candidates are also taking ownership of up-skilling themselves. Incidentally, 1.5 lakh professionals have upskilled themselves in digital related technologies recently”, said Sunil C, Chief Operating Officer, TeamLease Digital.
“Overall, we also estimate that India’s technology employment will grow from 5 million to 10 million in the next few years”, added Sunil.
The report indicates that from a digital skills point of view, in FY-2023, at least 7 out of 10 IT companies will be looking for candidates with digital skills from emerging locations, as the demand for digital skills will witness an 8.4 per cent growth. MarTech and IoT are two new additions to the digital skill set this year, with demand for MarTech expected to increase by 5 per cent to 7 per cent and that of IoT by 4 per cent to 6 per cent for FY-2023.
From an attrition perspective, India's IT-BPM attrition continues to be on a higher side and this surge is expected to continue in the next quarters. In FY-2023, contract staffing attrition is likely to increase from 49 per cent to 50 per cent - 55 per cent. However, on the brighter side, gender parity is improving. Industry leaders are continuing contractual gender diversity in Digital Skills in FY-2022 (at 20 per cent currently) and in FY23 it is going to grow to 25 per cent.
“Over the last ten years, more IT-BPM companies are aligning the synergies to improve gender parity in the workforce. Today, the emphasis is not just on diversity but inclusion as well. In fact, performance indicators reflect (up to 61 per cent) that diversity and inclusion has augmented business performance”, added Sunil.
This report has surveyed and interviewed more than 100+ employers, gathered insights from engineering colleges across 500 cities. The survey highlights employment trends in the IT-BPM sector, skills in demand, hiring of engineering graduates, attrition & diversity trends and global vs. India technology trends.
