I am not a great fan of Nasscom reports, but this one made me sit up. The technology sector (give or take a few) accounts for 36 billion dollars in revenue and just about 13 lakh jobs. The Hindu Businessline reports on the ITES/BPO part of it.
...INDIAN ITES-BPO exports are estimated to grow to $6.3 billion by the end of fiscal 2005-2006.
Exports from the sector had grown 48 per cent in 2004-2005, to $4.6 billion, up from $3.1 billion the year before, according to an analysis done by Nasscom. ( National Association of Software and Services Companies).
Net employment in the sector is estimated to have grown by approximately 1 lakh in 2004-2005, the total direct employment having risen to 3.16 lakh.
Based on the hiring trends over the year, this segment is likely end the current fiscal with total employment at 4.09 lakh...
Net employment in this sector is only about 3-4 lakhs? Umm, I was under the impression that it is much more than that. As it turns out from the Nasscom link, that figure is only the ITES/BPO total. IT services are estimated to employ about 3.98 lakh in comparison. If you count engineering services and R&D, you can add another 1.15 lakh estimate. The domestic market caters to around 3.65 lakh jobs. In any case, the entire tech sector seems to employ only about 13 lakh people.
To put that in perspective, Indias small scale industries employ about 282.9 lakh employees and account for 249,064 crores (approx 55 bn USD), as per an RBI report quoted in ET a few days back.
This is definitely worth a thought...
(cross posted on The Indian Economy blog)