The Information Technology and Business Process Management (IT-BPM) industry is likely to create about 3 lakh jobs by March 2023 amid the rapid adoption of emerging technologies, according to a report.
The IT-BPM workforce is set to grow 7% in this fiscal year ending March 31, with the overall headcount increasing to 5.45 million from 5.1 million, TeamLease Digital, the specialised staffing division of TeamLease Services, said in a report titled Digital Employment Outlook Report for H1-2023.
The demand for digital skills will grow 8.4% by the end of this fiscal year, it said.
The report is based on a survey that interviewed more than 100 employers, and gathered insights from engineering colleges across 500 cities.
Further, the report showed that demand for contractual staffing will also increase, primarily by increased investments in the sector and rapid adoption of technology by enterprises.
Contractual staffing headcount is expected to grow 21%, the report said, adding that currently IT services companies, Global Capability Centres (GCC), and product development companies are the top contract staffing consumers, contributing in an excess of 70% of this trend.
"IT-BPM industry continues to be a sunshine industry in India, being the largest employer in the private sector, employing about 3.9 million people, and contributing to over 8 per cent of the GDP. Our industry here, also amounts to 55 per cent of the global outsourcing market," TeamLease Digital Chief Operating Officer Sunil C said.
Candidates are also enhancing their skills as employment opportunities surge, and companies look for talent with specialized digital skills, Sunil said, adding that 1.5 lakh professionals have upskilled themselves in digital-related technologies recently.
"Overall we also estimate that India's technology employment will grow from 5 million to 10 million in the next few years," he added.
Sunil pointed out that with work-from-home avenues increasing and more non-metro locations becoming popular for digital skills, companies are taking the jobs to people, instead of candidates migrating to the cities looking for jobs.
"For instance, Thiruvananthapuram, Coimbatore, Cochin, Chandigarh and Ahmedabad are building digital skills owing to the strong presence of large tier 1 players, product companies, GICs, and startups."
At least 20% of the digital talent employed at tier 1 cities are currently at emerging locations due to continuing work-from-home (WFH).
From an attrition perspective, India's IT-BPM attrition continues to be on a higher side and this surge is expected to continue in the next quarters, according to the report.
In FY23, contract staffing attrition is likely to increase from 49% to 50-55%.
"Over the last 10 years, more IT-BPM companies are aligning the synergies to improve gender parity in the workforce. Today, the emphasis is not just on diversity but inclusion as well. In fact, performance indicators reflect (up to 61 per cent) that diversity and inclusion has augmented business performance," Sunil added.
(With inputs from PTI)