Cloud Services to produce 2 million jobs in 3 years: IDC Study 2012

March 9, 2012: A recent study has reported that cloud computing will create about 14 million jobs across the world and 2 million in India, by 2015. The study was carried out by IDC and was commissioned by Microsoft.

The study observes that there is a strong relation between cloud computing, innovation and entrepreneurship. It also says that organizations world over are moving towards adopting cloud services in order to free up their resources and to concentrate on innovative projects. This will help organizations to free up their budgets and thus reallocate it in other innovative IT processes that will lead to business innovation and ultimately create jobs.

The study says that in India, the major contributors in job creation will be the manufacturing sector along with communication sector. In addition to this the banking sector will also create large number of jobs in the country. The study notes that out of the 2 million jobs created, half of the jobs will be in the small and medium enterprises.

According to a survey carried out by NASSCOM and Deloitte in 2011, the cloud computing adoption in India is increasing and will create revenue of $ 16 billion by 2020.

A senior source from IDC said that it is a common misconception that adoption of Cloud computing will result in loss of jobs. He said that it is a job creator.

According to Floris van Heist from Microsoft Corporation India, 70 per cent of employees are engaged in IT related jobs and so the adoption of cloud will free up such employees who can in turn can concentrate on productive tasks.

Information Technology and Information Technology enabled Services were the major contributors of job creation in India during 2011. About 2.5 million employees are employed in the IT/BPO sector. IT/BPO sector has also created indirect jobs to about 8.3 million people in the country. In 2011, cloud services created 1.5 million new jobs and this is expected to increase this year.

The study has also found out that in the Asia Pacific region, job creation is dominated by countries such as India and China. Only 5 per cent of total job creation is contributed by small countries in the region.

The biggest advantage for the Indian companies is that they do not have high level of dependency on IT systems as in the Western countries and they can shift their applications to the cloud without much difficulty which will result in bringing about innovations in the processes and products these companies offer.

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