4 Fold Growth Expected for Employment in IT-BPO
According to Nasscom which is the highest body in the IT industry, the employment in the IT BPO industry is likely to grow by 4 times to 1crore by the year 2020. Currently it is touching the 23lakh mark. Of the 1crore
41lakh jobs would be based in rural and semi-urban locations and about 50lakh would comprise of women. The momentum would add 20 million jobs indirectly by the same time. When asked about quality manpower's supply posing a challenge currently compared to business availability, President of Nasscom, Som Mittal told that larger companies deliver 100% of the projects themselves these days, but that is not sustainable and a partnership model is what they have to move towards in the future.
According to Som Mittal, it is a different thing managing a company with a 5lakh headcount compared to a company with 1lakh headcount. In the greater interest of executing things with high quality, the larger vendors have to think about sharing their margins with the smaller vendors. One of the examples cited by him was of the Unique Identification Authority which is awarding the application development part to Mindtree Consulting. This would be on the basis of a partnership model.
He has also pointed out that hardware companies have been using the partnership model well for product distribution. Software service firms will also in all likelihood follow suit. The aggressive plan of hiring taken up by many IT companies, according to him was because there weren't enough pipelines built during slowdown causing demand for experienced hands. This is leading to a round robin where one company loses experienced people to another company and then fills the place with experienced hires from the same industry pool. That would also be addressed by the end of this year according to Mittal.
