Smaller cities may capture 2-3 Mn IT/BPO jobs by 2018
Date: Saturday , May 31, 2008
So far we thought only huge cities like Bangalore, Mumbai, Delhi, Hyderabad, and Chennai were the only options for the job seekers in IT and BPO field. But a study released by Nasscom and A.T. Kearney predicts a paradigm shift in this regard as it says the smaller cities could capture 2-3 million IT and BPO jobs by 2018, if government and industry take concrete measures for balanced growth that entail development of infrastructure, improving curriculum in line with industry needs, and ensure human resources development.
According to the study, front runners in the current growth scenario are seven leading cities – Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, the National Capital Region (NCR), and Pune. These cities together account for 85 percent of the IT sector employment and over 90 percent of the BPO employment in the country. Apart from employment, these cities have realized significant gains in terms of improved visibility, consumption-led economic growth, and improvement in social infrastructure.
“We believe that over the next decade, the employment share of the top seven locations will decline to around 60-75 percent with the total direct employment in these locations growing to 5-6 million. It will be a significant challenge for the physical and social infrastructure in these locations to absorb this growth. And at the same time, other locations will have an opportunity to capture 2-3 million direct IT/BPO jobs. More than the total current employment in the sector,” said Som Mittal, President of Nasscom.
The analysis indicates that based on stages of development, the locations can be categorized into four groups – leaders (above mentioned seven cities), challengers, followers, and aspirants. While ‘challengers’ includes cities such as Ahmedabad, Bhubaneswar, Chandigarh, Coimbatore, Indore, Jaipur, Kochi, and Lucknow, the ‘followers’ includes locations such as Aurangabad, Bhopal, Goa, Gwalior, Hubli-Dharwad, Kanpur, Mysore, and Nashik. The ‘aspirants’ category includes Allahabad, Dehradun, Durgapur, Gangtok, Guwahati, Ludhiana, Patna, and Raipur.