Indian IT industry fully capable of responding to the global changes: Nasscom
What can be observed as an indicator of rough times to come, Nasscom has said that the industry would create 20-38 per cent fewer jobs in FY18 compared to FY17. The industry would create 1.3-1.5 lakh new jobs in FY18 while it had added 1.8 lakh jobs in FY17. The sector has added nearly 2.40 lakh jobs a year at maximum.
Nasscom president R Chandrashekhar said that while the jobs were being affected by automation, new jobs were also being created. The Indian IT industry has been suffering with automation and changing business needs has forced the companies to cut down on employees and cope up with the cutting costs.
R Chandrasekhar also added that the Indian IT industry which is currently facing pressure is fully capable of responding to the global changes.
Earlier, TCS and Infosys reduced their employee count by 1,414 and 1,800 in April-June quarter respectively. However, Wipro has surprisingly reported a 1,309 rise in its employee count. There will be lower net addition of techies due to macro economic factors.
Chandrasekhar told TOI, "Tech is eliminating jobs in every sector, including IT. It is also creating jobs. Countries like the US and UK has adopted technology and has experienced the same cycle. Today, their unemployment levels are close to zero. While there is job loss and pain, ultimately, it is the only route to economic prosperity."
IT sector has been the largest recruiter in engineering campuses. Over 30,000 students were placed through campus placements last year in Tamil Nadu and this is not expected to change.
He added, "Growth has to outpace impact of automation for a firm to be a net hirer. If a company does not undertake realignment, it can impact 0.5-3 per cent of people. There was a time when 100 per cent jump in revenues meant 100 per cent increase in employees. Today, it is only a 60 per cent jump in employees.
