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IT sector to see up to 38% fewer jobs this fiscal

Source | The Economic Times : By Ranjani Ayyar

CHENNAI: In what comes as a harbinger of turbulent times setting in for the IT sector, Nasscom has said the industry would create 20-38% fewer jobs in FY18 compared to fiscal 2017. The industry would create 1.3-1.5 lakh new jobs (lateral plus campus) in FY18 while it had added 1.8 lakh jobs in FY17. At its peak, the sector added nearly 2.40 lakh jobs a year.

Nasscom president R Chandrashekhar said that while automation was leading to job loss, new ones too were being created. The Indian IT industry , which has been grappling with automation and digital needs of clients, has been reorganising its workforce to deal with automation and achieve cost savings. Earlier this month, TCSBSE 0.92 % and InfosysBSE 0.64 %, which account for around a fifth of India’s software exports of $116 billion, saw employee headcount reduce by 1,414 and 1,800 in April-June quarter respectively . WiproBSE 6.93 %, which announced its quarterly results on Thursday , reported a 1,309 rise in headcount.

There will be lower net addition of techies due to sectoral headwinds and macro economic factors. “Tech is eliminating jobs in every sector, including IT. It is also creating jobs. Countries like the US and UK have been adopters of technology and have experienced the same cycle. Today , their unemployment levels are close to zero. While there is job loss and pain, ultimately , it is the only route to economic prosperity ,“ said Chandrasekhar on the sidelines of an event here.

IT services companies have been the largest organised recruiters in engineering campuses. Without specifying any numbers, Chandrashekhar said the proportion of workforce coming in through campus placements would come down this year. “Companies are trying multiple avenues, including campus selection, lateral hires, etc. But campus will be on the lower side as compared to earlier years,“ he said.

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