Creating a Future Ready Workforce for the $200 billion Industry

  • Admin
  • 19 December, 2022

The Indian IT industry workforce will grow by 7% in FY23 increasing the headcount to 5.45 million. Interestingly, both tech and non-tech companies are engaging with apprentices for tech roles.

The Indian IT-BPM industry crossed $200 bn revenue and employs over 5 mn people, solidifying its positions as the largest private sector employer. The industry added 450000 jobs in FY 22 and in the last two years, the industry has added 2 mn jobs. The high growth rate is an outcome of the rapid adoption of technology, and migration to cloud post pandemic.

IT-BPM contributes 8% to the GDP and also accounts for 55% of the global outsourcing market. With the unprecedented growth in the adoption of technology and digitalisation, the industry’s hiring sentiment continues to be bullish.

As per a recent report, the sector will add 3 lac jobs in FY23. The demand for digital is expected to grow by 8.4% and this surge in demand has brought non metros and tier 2-3 cities in the forefront for fulfilling talent needs.

By 2025, about 20 to 22 lac employees will quit their jobs

The dearth of talent continues to be a matter of concern. As per the NASSCOM report, the talent demand supply gap stands at 21.1% which is alarming and has a cascading impact in the form of poaching and attrition which is on the rising side and is expected to be up from 49% t0 50% in FY 23.

While engineering college hiring has improved, it has not reached the optimum potential. Only 33% of the engineering graduates are getting hired and the employability of technical graduates is only around 45-46%.

The sectoral growth needs to be complemented with talent availability. While the trend for upskilling has picked up in last 2-3 years for existing workforce to upgrade them with updated technology, there is an equal need to focus on preparation of digital workforce through skilling and apprenticeships.

Apprenticeships in the IT Sector

Though the overall number may be abysmal to the potential and demand, the adoption of apprentices in the IT-BPM sector is on the rise and in the next few years, it is expected to gain unprecedented growth. Organisations have already experimented with apprenticeships with low order technical skills such as data operators, software developers, web designers to more enveloped high-end roles which needs high order technical skills.

“Interestingly, both tech and non-tech companies are engaging with apprentices for tech roles. They have truly realized the potential of apprentices to create a strong digitally skilled talent pipeline which is not only helping them address high attrition rates but also improving the productivity of the workforce”, said our Chief Business Officer, Sumit Kumar to ETCIO.

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Moreover, with the adoption of digitalisation by non-tech organisations, more IT job roles will be covered by organisations that have already dabbled with apprenticeships and have enjoyed favourable returns on investment.

With more sectors such agricultural adopting technology for climate sustainability, improve predictability, and reducing the crop diseases, the demand for data analytics, robotics (in the form of drone) and artificial intelligence is on the rise.

Martech is another emerging sector which uses machine learning, data analytics and artificial intelligence for enhanced customer experience and engagement. Digital marketing continues to garner interests across sectors which need talent in internet technologies, CRMs, marketing platforms and social media.

The best way to create talent and leverage apprenticeships is to engage fresh graduates in live projects to give hands on experience.

Though apprenticeships have been traditionally associated with manufacturing, the number of enrolments in non-technical and services oriented roles have surpassed the trade apprentices. 

Organisations can evaluate talent before absorbing them into employment and students from tier 2-3 colleges and non-metros, get an opportunity to showcase their talent and learn more.

Employers can enjoy 3-4 times of return on investment in apprenticeships in the form of

- Real time talent availability

- Optimisation of hiring cost

- Enhanced output and talent engagement leading to reduced attrition

Growth without talent is an uphill task, to achieve 10% contribution mark to GDP by 2025, the sector has to aggressively and actively engage in skilling for digital workforce creation.

Know more on what tech apprenticeship programs can do for your organization?

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