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Dispelling fears that IT industry is laying off large number of employees, former Infosys co-founder Kris Gopalakrishnan has said there is no massive layoff, and that the industry is quite strong, doing very well and growing at a good rate.
The growth has slowed down but the base is large and globally, the industry is going through a transition, he said. However, with complete support of ecosystem consisting of government, industry and with technology changes, this industry has many good years ahead of it, he said at Connect 2017, the flagship information, communication and technology event of Tamil Nadu.
‘Strong companies’IT companies, especially the top five that employ around 8 lakh IT professionals, have strong leadership, are financially strong with good profitability, and with zero debt and growing. During last quarter, there was a total decrease in headcount of around 4,000 people in these companies. This was less than 0.5 per cent of their employee strength.
When growth slowed down, quarter-on-quarter there would be some small blip. However, Nasscom has said the industry will recruit 1.5 lakh employees this year. Average attrition is 12-15 per cent as people are finding new jobs and finding new opportunities, said Gopalakrishnan, past president of CII.
‘Growth engine’Nearly 25 per cent India’s exports are from the $150-billion IT sector, which contributes 6-7 per cent of GDP and employs nearly 40 lakh people. It is a significant driver of growth for the economy, and “we need sustain and make sure that this becomes an engine of Indian economy in years to come,” he said.
The industry should be backed by availability of right talent. On its part, the industry needs to retain existing employees. The pipeline of talent should be employable in future and educational infrastructure need to keep pace with technology and make sure that curriculum matches the requirement of the industry, he said.
Speaking on Tamil Nadu at the event, Gopalakrishnan said government support must continue by helping the industry stay competitive. Competition between States in ease of doing business and innovation rankings is an opportunity and a challenge for the States. Tamil Nadu definitely has an advantage in terms of investments and growing ecosystem in tier-2 cities, Gopalakrishnan said.
Emerging business in the State were recognised at CII Connect 2017 with State IT Minister M Manikandan conferring the awards.
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