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Why Choose India - NASSCOM

While choosing an ideal firm or a company as an outsourcing partner, there are various important aspects which need to be ensured to choose both the associating agency and country. One of the key area to be ensured is the availability of required skilled and professional workforce. In this context, India as a chosen country gets priority over its competitors in not only the Asia but almost in respect of all the countries of the world.


Besides above, Indian software services industry strong value proposition of a large, English speaking, technically qualified manpower, competitive billing, high productivity gains and scalability - which had helped the country emerge as a key IT services outsourcing destination, continue to hold India in good stead. These intrinsic strengths and advantages gave India a leg up in the burgeoning KPO space as well, taking it beyond the realms of IT services.


The country is at an important juncture, having completed the transition from an agrarian economy to a fully-fledged world economy. A key element in taking the country forward and maintaining its growth momentum is the provision of a highly skilled and competent global workforce.


Having appropriate IT and management skills is assuming an ever-greater importance, and the IT sector is emerging as a major driver of the Indian economy. IT manpower development today, is not only crucial for sustaining the growth of the Indian economy, it is also important for maintaining the country’s edge in the global markets.


Growth of IT Professionals in India

The total number of IT and ITES professionals employed in India has grown from 284,000 in 1999-2000 to over 1 million in 2004-05, growing by over 200,000 in the last year alone.


Indian IT Sectors: Growth in Professionals



Break-up of Professionals in the IT industry

Most of the new entrants in the industry are fresh graduates indicating the availability of a large pool of fresh resources each year as against the siphoning off of resources from other industries. A break-up of the 10 lacs professionals in different sectors reflect that the number of employees in the IT segment has witnessed the highest levels of growth over the last few years. This growth is attributed to the tremendous growth in demand for these services in the IT sector. IT companies recruited approx. 1 lac professionals in 2004-05. In the IT software exports only, the It companies have recruited over 75,000 professionals in 2004-05, compared to 65,000 professionals recruited in 2003-04.

Indian IT  Sectors: Professionals Employed

  2001-02 2002-03 2003-04    2004-05 
Software Exports sector 170,000 205,000 270,000 345000
Software-domestic sector 22,000 25,000 28,000 30000
Software- in house captive staff 224,250 260,000 290,000 322000
ITES-BPO 106,000 180,000 253,500 348000
Total 522,250 670,000 841,500 1045,000



Supply pool of IT professionals


Indian IT sector: Labour Supply

(in '000s) 2003-04 2004-05 2005-06E 2006-07E
No. of Engineering Graduates 215 284 348 382
No. of IT (Computer Science, Electronics, Telecom) professionals 141 165 181 193
No. of IT professionals entering the workforce 80 94 103 109
No. of non-IT engineers entering the workforce 40 40 40 40
No. of graduates (other disciplines) entering the IT workforce 30 30 30 30
Total fresh IT labour supply 150 164 173 180


With India poised to be US$ 80 billion software market in 2010, providing direct employment to more than 2.2 million besides nearly twice the number by way of indirect employment, the need is to strengthen professional education through curricula, faculty, infrastructure, pedagogy improvements in line with the IT industry requirements. Also, there is need to further catalyze the interface between the academia and corporate/industry.


To take this forward, NASSCOM has been conducting annual HR Summit in Chennai for the past three years that witnesses the confluence of the IT industry and academia at one common platform. The summit’s aim to address some of the areas of concern from the industry and academia perspective such as solutions to company HR challenges, appointing and retaining the right talent, etc. NASSCOM launched the IT Workforce development initiative during the summit last year, to focus sharply on the creation and nurturing of the human resources, which provides the knowledge base or intellectual capital as India moves towards a knowledge economy.


Given the growing demand for skilled professionals, and the rapid changes in technology, there is an increasing need to keep the academia abreast of the skill set requirement of the industry. To meet this requirement, NASSCOM signed a Memorandum of Understanding (MoU) with University Grants Commission (UGC). As part of the MoU, NASSCOM and UGC will jointly undertake a Faculty Development Programme (FDP) for up-gradation of the skill-sets and knowledge base (in the area of emerging technologies, project management skills related to information technology) of the existing technical faculty in partnership with IT industry.

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