Why the state of Indian IT jobs ambiguous?


The IT industry has been the largest creator of jobs in the globe and similarly in India, the IT region employees the largest amount of country workforce. There have been major shake-ups in the industry in a decade. It has recorded a period of highs with uncountable workforce and there have come a time when IT and tech majors are cutting off their workforce to somehow balance their falling financial strength. However, the differentiation still exists in the industry with some giants planning to increase workforce as well. This formation of IT and technology workforce mainly depends on the state of global and national IT industry that is not balanced at present.

“The Indian industry requires re-positioning itself and attracting workforce to work on digital and social platform. The regular work will remain there, but we now need coders who can upraise it to the next level and for that, enterprises need reflecting them a good growth path,” said Sangeeta Gupta, senior VP, Nasscom. Despite of the plans for hiring massive 170,000 workforces this year, the IT sector is endeavouring to position itself as an industry that would require niche skill workers and not and only mass-scale coders. The industry is having collaborations with engineering institutes, like IIITs for inspiring more R&D, added Gupta.

In this direction, Wipro is launching a fellowship programme termed as Distinguished Member of the Technical Staff (DMTS) in 2014. A selected lot of the technical front will see a career path chalked out as aligned with the career path of CEO. “This is unique and an industry first initiative, but it will be focused at an elite group,” said Saurabh Govil, senior VP of HR at Wipro. On the non-technical side, there are about 100 workforces from some global management school to be recruited and posted throughout different geographies and also exposed to a variety of businesses.

Expansion in Workforce:

The Indian IT giant Infosys is planning to create 50,000 jobs in a decade in Karnataka state of India. And, this has hit the state ministers to urgently create critical infrastructure like road and rail connectivity as well as seamless power and water supply. The second largest Indian software firm had planned to create these jobs on the outskirts of Bangalore and in cities like Mysore and Mangalore. “Mangalore has great potential, but customers/clients visiting center here get depressed at the condition of the roads leading to offices,” said Ramadas Kamath, executive vice president at Infosys. “The IT part build by government with investing hundreds of crore close to our campus is having no acquirers,” he added.

The software company invested about Rs 700 crore at the coastal city and developed an infrastructure for 6,000 employees within a 1.4 million square feet area. Similar to that, Infosys has proposed to create 15,000 high-paying jobs within 100 acres allotted to the company since four years in the IT Park close to Bangalore international airport. “We acquired the land on the basis of that the government will provide proper road connectivity as well as drinking water,” he said.

The head and vice president of human resource at Tata Consultancy Services (TCS), Ajoy Mukherjee has shared that the company is all set to recruit 55,000 workforces this fiscal year. He shared that offer letters to fresh workforce have already posted and they will begin joining the company from the 1st of June. About the increment of existing staff, Mukherjee shared that TCS is planning to give 14% hike for the best achievers, while rest of the workforce will get a 10% hike. On the global basis, there will be a 2 to 4 percent rise in the developed markets and 4 to 6 percent hike in developing markets. “From ours and our employee’s point of view, this has been a phenomenal year. And everyone will be happy about the hikes we will be giving,” said Mukherjee. TCS’ CFO Rajesh Gopinathan notified that the raised salaries will affect the operating margins, which had increased to an all-time high of 29.1% for fiscal year 2014.

Reduction in workforce:

On the other hand, Dell has shared to have cut down its workforce with a small percentage that can mean by reducing thousands of its employees. Dell did not confirm the number of employees that have cut down. Dell housed about 113,000 employees worldwide, as per the counts by the end of 2013 fiscal year ending on Feb 1. 2013. 40,500 of these employees were located in U.S. “We can confirm that a small percentage of our global team members accepted the Dell’s offer of a significant severance package coupled with a voluntary separation program,” said David Frink, Dell’s spokesperson in an emailed statement.

Dell has stated that the company has been taking steps to optimize its business, streamline operations and improve efficiency since past few years. Dell aims to continue in this path. Besides, Dell is planning to increase workforce in its strategic areas of business including hardware and software development, customer coverage worldwide and engineering development. In recent years, some other giants including HP and IBM have also cut down its workforce. Recently, Intel also announced to cut down its workforce. Dell didn’t give the details about the geographical distribution of the workforce. On Monday, Dell updated about 30 job openings on its website along with multiple jobs for software developers, sales engineers, channel account managers and some other posts.

Unconventional IT Workforce:

BYOD is ruling the requirements of IT sector. The BYOD Tech based job positions are in highest demand, according to the analysis of recent salary survey from Janco Associates. Janco Associates organized a survey combining about 1000 companies. It concluded that IT compensation and demand remained flat, with BYOD-related positions bucking the trend. BYOD is impacting on all sorts of IT positions from help desk to mobile app development, compliance and security.

“The professionals having knowledge and efficiency in working with BYOD, either in support, development or implementation, have their increased value in the market”, said M. Victor Janulaitis, CEO of Janco Associates. With BYOD, there are two specific and hot job titles, Supervisor of BYOD desktop support and Supervisor of hardware installation (BYOD). BYOD is emerging as one of the brighter spots in the industry. The IT job market grew by 74,900 in 2013 from 62,500 in 2012. It was concluded by Bureau of Labor Statistics. “This growth is not enough to employ the number of IT graduates”, said Janulaitis.

Apart this, as some of the major global online retailers are widening their businesses in a very vigorous way, the Indian eCommerce industry is expected to generate 30% increased employment that would altogether create up to 50,000 jobs in the next three years. Randstad India, a leading human resources consultancy has reported that the recruitment in this region would rise by 20% to 30% in upcoming years, which will be backed by emerging domestic eStores and eCommerce MNCs in India. Plus, as various global businesses are setting up their back-office operations in India, the employment will be supported further.

Unison International, an HR firm analysed and concluded that in past few years, hiring has been slow in the eCommerce region, but it will grow by 33% in coming years, as various retail brands are also entering eCommerce. Besides this, the eCommerce industry is expected to beget 15,000 to 50,000 jobs for data analysts in upcoming years, according to Jigsaw Academy. “The companies are recruiting aggressively and offering lucrative packages to allure the right talent,” said Gaurav Vohra, CEO of Jigsaw Academy.