Why Employment in IT Sector Will Rise in Modi 2.0?
‘Development, Trust and Big Changes’ were the three powerful words used by the NDA government to describe the completion of 100 days of the Modi government 2.0. Proving the value, in the recent Parliament session, PM Modi’s government recorded the most number of bills passed in the history of any Parliament sessions in the past 60 years. Indian Prime Minister, who is known for his courageous decisions, is eager to make the nation a $5 trillion economy within the next five years. However, in order to achieve this mighty task, which is not impossible, the most crucial will be the IT sector which must consistently record a double-digit growth in the next four years.
How Modi 2.0 Reacted to Prevent the Job Crisis?
Last week, Modi Government slashed the corporate tax (from 30 percent to 22 percent) for the domestic firms and other private companies with an objective to create more jobs and to strengthen ‘Make in India programme’ which eventually makes India a better place for doing business. Modi government was facing an uphill task as the nation was battling a 45-year high unemployment rate and a six-year low economic growth. The new tax rate will be applicable on the current fiscal which began on April 1. Also, PM Modi’s Skill India campaign, launched in the earlier stint aims to train over 40 crore people in India in different skills by 2022. Reports say that Indian Information technology (IT) industry added a record number of employees in the first quarter (April-May-June) of the ongoing financial year, with around 85,000 new hires.
Why is India Still the Preferred Destination for IT?
Almost 79 percent of the revenue generated from the $167 billion IT industry comes from abroad, specifically the US. The outsourcing industry expects India to be a $2.5 billion industry in the next two years. Globally, India is still the preferred destination for IT recruitment, as it tops in the world’s lowest paying employers with a mid to senior level software developer receiving an average salary of 4 lakh per annum while other European countries pay around 57 lakh as per the study by ‘Payscale’. Given its cost advantage, India continues to be a leading destination for IT development which brings-in more global IT development companies to the country, which simultaneously increases the staffing requirements.
How IT Sector is Shaping Up?
Reports say that Indian IT workforce will touch 30 million by 2020, recording the highest sector employer in the country. With the ideal plans and goals, companies now focus on scaling their operations, especially in areas such as cloud computing, algorithm design and data sciences, paving to a significant rise in recruitment and staffing. A report from Randstad, a Dutch consulting firm, expects a nine percent growth in the Indian IT/ITeS sector.
Concerns on Employability
Also, a report by Aspiring Minds, a talent assessment company, states that 90 percent of Indian IT engineers lack key skills in coding and only three to four percent are fit for the roles of a product engineer or startup engineer at various companies. These stats question the employability factor in India and being a major contributor to the Indian foreign exchange, IT sector requires an ample support for the growth. Besides indicating a poor employability rate, India has seen a huge rise of 14 percent in the last five years from 33 percent in 2014. Implementing a modular approach of teaching, improving the soft skills and following an outcome-driven learning system than an input-driven one, institutions now develop a skilled pool of employees who are employable not only nationally but globally. The wonder pillars of technology, AI and Blockchain can easily evolve Indian IT sector to a whole new level. With the current trend slowly shifting towards healthcare and retail from the existing finance and telecom, IT services are needed in much numbers which requires skilled workforce.
Global Demand of IT Professionals
In US, there is a huge scarcity of workforce and being cost-effective, competent and with a mindset to achieve better with the international clients, Indian IT professionals have a clear route ahead. The industry is evolving vastly every day and with better modern IT staffing, domestic and international clients realize the potential of Indian professionals. With the approval of ‘Fairness of High-Skilled Immigrants Act, 2019’ in the US, almost 90 percent of Indian IT professionals would be able to avail Green Card, which can eventually fly the techies abroad and bettering the earning opportunities to find more stability in their lives. This ultimately, helps the Indian economy with the rise in NRI investments. Better financial stability automatically increases the productivity of the business as well. Well, Modi 2.0 is on the right track for the IT industry and good times are ahead for the IT professionals.
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