The Hindu Business Line : `Indian IT industry can create 5 million jobs'

The Indian IT industry has the potential to create about 5 million jobs and by 2015 account for about 50 per cent of the total outsourcing pie of about $300 billion, according to Mr Prashant Srivastava, Managing Partner, The Gallup Organisation.

To achieve this India needs to tackle its biggest challenge of ensuring steady flow of employable workforce.

The Nasscom has predicted that by 2010, there would be a shortage of about 5,00,000, he said.

Speaking here at the ERA meet, Mr Srivatsava said often studies point towards competition coming from countries such as Vietnam, Hungary and the like. This is absurd as India has about 25 Vietnams.

The growth currently witnessed is from barely four five major and 10 smaller cities. The potential from other centres has hardly been tapped.

to tier-I, tier-II cities

There is the beginning of a trend wherein companies are shifting to Tier II to tier III cities. Genpact is going to Jaipur, some are opting for Chandigarh, and such moves will only broaden the workforce.

Research studies point that there would emerge a few hubs of excellence and India is clearly seen as a hub for the services industry.

The interesting aspect is that this need not be limited to the IT and ITES but could cover a host of new areas such of healthcare, manufacturing, drivers and even professionals in the cleaning and upkeep industry.

The attrition rate is one of the highest in India at about 18 to 20 per cent in IT sector and about 60 per cent in BPO causing manpower cost escalation. Retention of talent has become a key issue in a CEO's agenda today, he said.

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