December 15, 2011: The Indian IT-BPO industry has affirmed that it is the major source of employment for the population across the country. The industry had earned revenue of $88.1 billion in the year 2011, based on recent data. According to the Ministry of Labor, the sector has generated 2.5 lakh jobs during the April-June quarter.
Companies in their effort to attain industry ready status, has equipped the employees on sharpening their know-how in areas like multiple language capabilities, global business process knowledge, business analytics, etc. The industry was successful in creating a large number of process and vertical specialists, with in-depth knowledge of domain and process functionalities. India’s transformation to a knowledge based economy requires a new breed of educated and skilled workforce.
According to the report by the Ministry of Labor, the employment in India was not affected by the economic slowdown across the world. When considering the last four quarterly surveys (March 2011-March2010) conducted by the Ministry of Labor, overall employment increased by 9.79 lakh. The highest increase was recorded in the IT-BPO sector with 6.65 lakh.
In India about 4 million graduates pass out from colleges, out of which 3.3 million are from non technical graduate streams, which include arts, commerce and science. This has led to employability gap, and so organizations have to invest considerable amount of money to enhance employability with in-house training and academia partnership. This amounts to 3 to 4 per cent of an employee’s salary bill. So the 2011 witnessed greater focus from IT-BPO organizations on skills and capability development, which has changed the Indian professionals from knowledge based professionals to skilled manpower.
The IT-BPO domestic spending is expected to expand at 16 % to reach USD20 billion. The spending in Information Technology is expected to increase in most of the sectors such as automobile and health care. The Indian government and the state governments will be the leading spenders in IT.
It is estimated that outsourcing from across the world will increase in the years to come. India being the favorite destination for outsourcing will get a greater chunk of the business. So the skilled talent pool that is created during 2011 will serve to be of great advantage to the Indian outsourcing industry. More over there will be increased need for manpower in the years to come. The industry-academia partnership will help the industry to hire industry ready professionals, which reduces the effort on training after graduation.