Bangalore, Oct. 13
INDIAN tech services companies are poised to become the country's largest employers in the private sector.
The end of the second quarter this fiscal saw TCS crossing the 50,000-mark in employment with 53,329 people on its rolls.
"This makes us the largest private sector employer in the country," said Mr S. Padmanabhan, Head Global, Human Resource Development, TCS. In sheer employee numbers, this software services giant beat its group company Tata Steel which, with an employee strength of around 45,000 people, was hitherto the top employer in the country.
Also perched on the 50,000-threshold are Infosys with 46,196 employees and Wipro with 41,911 people.
Mr Mohandas Pai, CFO, Infosys Technologies, termed this as a `watershed year' and a `great turn' for the private sector in the country.
"This demonstrates the strength of the private sector and that they are more employment-intensive," he told Business Line today. In fact, no other emerging market in the world has technology companies as the top three employers.
And for the manufacturing sector to catch up, it needs to show a double-digit growth, he said. A quick look at the growth of the employee base of the three top IT companies shows that employee intake has more than doubled in the last two years.
Nasscom figures show that IT and ITeS services companies currently employ more than a million people, with most of the growth having taken place in the last three years. The Indian IT software and services employee base has grown at a cumulative annual growth rate of 23.6 per cent from 242,000 in fiscal year 2001-02 to 697,000 in fiscal 2004-05.
The services sector also boasts of another medallion in the form of indirect job creation at 1:1.5 ratio thus adding 75,000 new jobs to the economy for the 50,000 jobs that the tech company has created.