Sunday, December 30, 2007

Increase in jobs in IT sector in India

Quite some time I was searching for this and finally I found this on the Hindu Business Line. Some excerpts from the article :

"The last ten days saw three of the top five Indian IT vendors announcing colossal hiring numbers: about 70,000 new jobs to their rolls during the current financial year. This hiring pace, if kept up for one more year, will give the tech pool the magical number of one million software engineers, say industry observers."

Estimated Increase in Intake :

TCS : 30,500

Infosys : 25,000

Wipro : 15,000

Satyam : 12,000

Headcount of major IT companies in India :

IBM : 40,000

Accenture : 20,000

TCS : 1,00,000*

Infosys : 80,500*

Wipro : 78,000*

Satyam : 47,500*

HCL : 45,000*

*Total global headcount.

The guys at Hindu Business Line say that a major portion of these newly recruited jobs will be engineering jobs and they will grow mainly because of freshers intake.

In this whole article I noted that a major point of concern was put forward in the last paragraph :

Every year, about 3.75 lakh people are made ready by the academia to the industry. This includes BSc (Comp Sc), BCA, BTech and BE graduates, but what is pertinent is that only about 8-10 per cent of these graduates are actually employable by the industry, though companies recruit others for want of talent.

Also I suggest that going through these articles will give a more clear idea of the scenario :

Offshoring Times

Business Week

The article on Business Week suggests that the new recruitment might very well be done in foreign offices.

"Infosys and other Indian outfits are hiring aggressively in the U.S. "
Today only 2.5% of Wipro's global workforce is non-Indian, but the company wants to boost that to more than 10% in a few years."
TCS plans to hire an additional 2,000 Americans within three years."

The reasons for these are well described in this article :

  1. It often costs more to ship in Indians on a temporary basis than it does to hire Americans.
  2. The companies typically have to provide the Indians with housing, and retirement benefits cost more because of India's social security contribution requirements.
  3. The Indian rupee has risen more than 10% against the dollar this year. Thus hiring Americans has gotten cheaper.
  4. Fierce competition for tech talent in India is pushing salaries there up by 12% to 15% per year, although they remain less than a third of those in the U.S.

Another notable point I found worth mentioning out in this article is that Indian companies are on their way to be large IT employers throughout the world :

"The Indians are doing to the world's IT processes what the Japanese did to manufacturing. Like Japan's carmakers before them, the Indians are becoming major employers in the U.S. as well."