Nasscom: The Indian IT sector would only generate 60,000 jobs in FY24 compared to 2.7 lakh in FY23

Nasscom: The Indian IT sector would only generate 60,000 jobs in FY24 compared to 2.7 lakh in FY23

According to NASSCOM, the IT sector overhired during the COVID year, hence a certain amount of recovery is "expected" and "necessary" in the sector.

In the fiscal year 2023–2024, the IT sector is expected to add 60,000 new jobs, bringing the total workforce to 54.30 lakh. This is a far cry from the 2.7 lakh jobs the IT industry generated in the previous fiscal year.

The significant drop in numbers occurs at a time when the global economic downturn in important US and European economies is placing demand pressure on the IT sector.

Over 60–80% of the $250 billion in revenue that the corporations in the services sector make comes from North America and Europe.

"We are seeing some level of recovery, which is expected as well as required for the industry," said Debjani Ghosh, President of NASSCOM, "because a lot of hiring was done during the COVID year."

According to him, employment is shifting toward positions in fields like cyber security, cloud computing, big data, and artificial intelligence (AI). He stated, "So the frontier technologies are where we're seeing demand truly rising."

According to NASSCOM, the sector invests 60–100 hours annually on skill development for each employee. Providing an update on generative AI, the trade association said that by 2023, these activities should have grown nine times annually. Over 6.5 lakh workers are receiving training on the new technologies.