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Indian IT-Outsourcing sees Mixed Trends
By siliconindia
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Wednesday, 07 December 2011, 01:11 IST
Bangalore: IT-Outsourcing has become one of the most significant growth enhancer for not only the Indian economy but also for various socio-economic parameters such as employment, standard of living and diversity among others. IT-BPO sector in India, alone has aggregated revenues of $88.1 billion in FY2011, generating direct employment to more than 2.5 million people. The industry has played a significant role in transforming India’s image from a slow moving bureaucratic economy to a land of world class technology solutions and business services.
The upbeat domestic IT-BPO spending trend will continue in FY2012 as the industry is expected to grow at 16 per cent to reach $20 billion. IT spending expected to significantly increase in verticals like automotives and healthcare while the government, with its focus on e-governance, will continue to be a major spender. Including the contribution towards India’s growth, IT-outsourcing is illustrating many trends and insights.
1. Knowledge Professionals
Out of 4 millions pass outs every year in India, 3.3 millions are from non-technical backgrounds including arts, commerce and science. This has given birth to an employability gap, where significant amount of money is spent to enhance employability with in-house training and academia partnership, creating talent pool of process and vertical specialists, which is equivalent to an employee’s 3-4 per cent of their salary bill. During the FY2011, there was a much greater focus on ongoing development of specialized skills and capabilities as Indian professionals has to be transformed from knowledge based talents to skilled manpower. Analysis indicates that the training spent per employee in the IT-BPO industry is among the highest in the organized services sector.
