IT-BPO sectors serve as the catalysts for the growth of Indian Economy says Amit Goel, CEO, KnowledgeFaber. Apart from fuelling the economy, the sectors have a far-reaching impact on the lives of people. It has a direct and indirect hand in the socio-economic conditions of people in India. IT-BPO sectors were the ones who played a remarkable role in transforming the global image of India.
From a slow bureaucratic economy India to a land home to big companies, smart entrepreneurs and standard business services. The economy has seen a huge transformation from agriculture to knowledge base.
The Indian GDP growth was 5.5 per cent in the first quarter of the current fiscal year (2012-2013). The registered numbers are low compared to the previous fiscal. The rates fell further to 5.3 in the second quarter.
There were sectors which came out well even during the downturn last fiscal. Real estate, financing and business services, construction, trade, agriculture, forestry and fishing fared well previous year.
The Indian job market in 2012 showed varied statistics with highs and lows due to the setbacks in businesses. However, pharmaceutical and retail sectors were witnessing a period of job reforms. A number of cloud based services such as Dropbox and Skype had enabled the employers to get more people at work with an option of work from home. The temporary workforce may increase further to 4-5 per cent.
Insights for India
The BPO Sector
The Indian BPO industry showed rapid growth and now it has slowed down, allowing the Philippine BPO industry to take the top spot. The Indian BPO industry is estimated to have lost around 70,000 seats to Philippines. The Philippine BPO industry showed a stunning growth of 21 per cent last year.
The Indian BPO industry this year is expected to grow to 14 per cent compared to a close 12 per cent last year. The recruitment opportunities in the BPO sector, this year may be higher as the BPO industry have now moved up to non-voice processes in the value chain.
The IT sector in 2012 was confronted with various problems like the falling demand for rupee, borrowing costs hike, high production prices etc. The surprising thing remains the outstanding performance of Indian IT industry compared to BPO. The survey conducted by Assocham said that the new hires in the IT industry between January and March 2012 were 66,000. The IT sector is expected to employ 200,000 employees this financial year. The estimate says that the industry may grow between 12-14 per cent this year.
The recent FDI clearances, is paving new ways for better growth of retail sector. FDI in retail is expected to create 4 million direct and 5 to 6 million indirect jobs this year. The forecast says that the sectors will grow by 20-25 per cent this year in terms of hiring. Analytics, Logistics and Supply Chain skills are expected to gain considerable importance this year.
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