The NASSCOM, India's premier trade body for IT-BPM companies, signed a framework agreement with Dalian Municipal People's Government, allowing more Indian companies to penetrate into huge Chinese software market.
Security provisions and safe digital payment practices are needed for a sector that requires a fourfold increase in mobile wallet transactions, with a gross value of Rs 105 lakh crore from March 2016 to March 2017.
When growth rate slows down, one has to manage the expectations of the employees within the company, former CEO of Bengaluru-headquartered IT major, Infosys, Kris Gopalakrishnan said.
Stating that the IT industry with turnover of USD 154 billion employs about 3.9 million people, NASSCOM President R Chandrashekhar today said if India remains under USD 154 billion turnover it would require less number of employees.
The sector is expected to reach USD 16 billion by 2025 and register CAGR of 26 per cent over next five years, they said.
The numbers put out by the industry body are very realistic because the global IT spending is not going up this year and there are political uncertainties in the US and parts of Europe, two key markets of Indian firms, said T V Mohandas Pai, the former Chief Financial Officer (CFO) of Infosys.
The Indian IT industry is all set to move beyond the heavy-dependent markets - the USA and the UK - which account for almost 80 per cent of export - and expand footprints to newer geographies such as Continental Europe, Japan, China and Africa.
The IT-BPM industry is expected to add 1.3-1.5 lakh new jobs during 2017-18, Nasscom president R Chandrashekhar told reporters here. In the previous fiscal, the industry's net hiring stood at 1.7 lakh.
Nasscom said on Thursday that the last fiscal year added USD 11 billion in revenue to Indian IT industry, and that the domestic market is expected to grow faster than export revenues.
The government estimates the digital economy to surpass USD 1.115 trillion by 2024-25.
Employees fear that release from ongoing projects to a bench awaiting deployment to a new client could mean a layoff.
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The National Democratic Labour Front’s IT Employees wing is planning to approach the Madras High Court against what it calls the arbitrary downsizing of employees by Cognizant and Wipro. It says the two companies are planning to lay off as many as 30,000 employees between them.
Ramkumar Ramamoorthy, Senior Vice-President of Corporate Marketing at Cognizant, said that IT is largely a people-driven industry even as automation gains prominence.
In FY 2017, the sector added 1,70,000 people, Nasscom said in a report titled ‘Jobs and Skills: The Imperative to reinvent and disrupt’. In the last quarter of FY17, top 5 software companies hired over 50,000 techies.
At a time when software companies are cutting jobs, India’s second largest software company Infosys will maintain its annual campus hiring at 20,000, as it does every year.
While there is panic over job losses in the industry, the government and IT governing body Nasscom say that the current year is no different than any other.
From Nasscom perspective, we are also putting together an initiative for imparting skills in the new areas of technology, said R Chandrasekhar, President, Nasscom.
But employees and industry watchers believe nearly 1 lakh IT jobs will vanish by the end of this year, as revenues and profit margins are under severe pressure.
Some are also looking at changing the industry as the call to acquire new skill sets gets louder.
The Competition Authority of India (CAI) should probe the allegations, since the voices of IT employees are not heard by Nasscom and IT companies, NCU Chairman JSR Prasad told PTI.
IT industry body Nasscom today came out in defence of its members TCS and Infosys, saying the two accounted for only 7,504 -- 8.8 percent -- of the approved H-1B visas in 2014-15.
Replying to query on the latest announcements curbing skilled job visas by Australia and the US, he said there is a rising trend of "protectionism" globally and anti-globalisation.
H1-B Visa issue is a very small one in the whole immigration debate in the US and it is not the only issue that drives the Indian IT industry, said R Chandrasekhar, President, Nasscom.