Employment Generation: IT industry will create huge job opportunities in India


After Mr Donald Trump got elected as U.S. President, a fear among IT professionals got set in that as per his earlier announced policy of reducing the outsourcing, reduction in visas for non-Americans and reduction in job opportunities in IT sector and others, whether this high job creator sector would offer jobs to IT professionals and MBAs in future.


This became a hot discussion topic among the prospective IT professionals, MBAs as well as the corporate sector and B-schools. Many MBA colleges have chosen this topic for their GD round in MBA admission process. The facts, prospects and views from the Corporate sector on the topic are shared below. This will help you prepare well on the topic. 

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NMIMS Univesity Mumbai, MBA/PGDM 

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Key facts

Information Technology (IT) sector of India has remained one of the high employment sectors in the recent past.


IT Industry has contributed considerably to changing India's image from a slow developing economy to a global player in providing world class technology solutions.


The key reasons for the companies opting India as IT destination and offering more employment is the low salary structure of working staff and lower operational costs in India


IT Sector to remain high job creating sector: Projections

  • Industry experts and NASSCOM say the Indian IT workforce will touch 30 million by 2020, becoming the highest sector employer.
  • It is expected that there will also be steady increase in salary structure in IT sector
  • The outsourcing industry is also exploring India to set up their base and is expected to be a $2.5 billion industry in the next 24 months.
  • According to the IBEF (India Brand Equity Foundation) figures, the Indian IT industry is set to touch $225 billion by 2020. 
  • Companies are looking to beef up operations, especially in areas like data sciences, algorithm design and cloud computing.
  • Indian IT/ITeS sector is poised to grow at a cumulative growth rate of 9%, according to figures from recruitment and staffing company Randstad.
  • The Teamlease Employment Outlook report predicted an increase in hiring from October 2016 to March 2017 compared with the previous six months.
  • Moorthy Uppaluri, CEO, Randstad India predicts “We foresee at least 75% of the Indian IT/ITeS companies increasing their headcount in the next six months. The industry is expected to remain competitive, but would do well to remember that value proposition is necessary in order to maintain that edge”

Most companies have good hiring plans. Tech Mahindra Vice Chairman Vineet Nayyar says that its headcount will cross the 1-lakh level in about a year, from close to 85,000 at present. 

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BIMTECH Greater Noida, PGDM- 2020-22

Xavier University, Bhubaneswar, MBA

SDMIMD Mysore, PGDM-2020-22

MDI Murshidabad, PGP Admission 2020

IRMA Anand, PGDRM Admissions 2020 Open

GIM Goa, PGDM 2020-22, Last date Dec15

SIBM Bangalore, MBA Admission 2020

SOIL Gurgaon, PGDM Admissions 2020 Open

IBA Bangalore, PGDM 20-22(20th Batch)

 VJIM Hyderabad, PGDM Admission 2020

Why India a preferred destination for IT recruitment  

  • India is among the world's lowest paying employers in IT sector. The mid to senior level staff in IT sector in India gets an average salary of $36,120 (about Rs 18.5 lakh) per annum - less than one-fourth of the IT pay package at globally top-paying Swiss companies.
  • The IT sector salaries are highest in the world in Switzerland at an average of $167,890 (about Rs 87 lakh) per annum, as per a study titled 'World wide IT Salary 2011'.
  • India therefore, continues to be amongst the leading destinations for IT development, given its cost advantage.
  • Lower-level roles in IT sector are being moved to regions like India where talent is cheaper
  • This is the reason that more IT development companies operate from India and this will continue to grow even after increase in salary structure as huge gap exists in European and U.S. salaries as compared to salary structure in India.

Word of caution

  • IT professionals and institutes offering IT education need to note that consistent improvement could sustain and push the IT sector to grow
  • Since higher number of IT professionals would be required in near future, the talent shortage could impact adversely on the decision of the IT companies to operate from India
  • Salary inflation in near future could also check the expansion and growth perspective of IT sector

India's journey on the path of economic reforms has transformed it to one of the world's fastest growing economies. India’s large population is its biggest asset. It can put India in the league of developed economies in next decade.

The services sector needs many million knowledge workers. Jobs continue to be created, needing an educated workforce. The need is to recognise new opportunities and prepare the supply side. IT sector is likely to hold us in good stead in the future in terms of employment generation and business growth. Read More GD Topics


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