20 lakh new IT jobs in 5 years

Nasscom sees Indian IT, related sectors touching $350 bn by 2025

• Indian IT industry clocks $132 billion in FY15
• To touch $225 billion by 2020

Hyderabad: Here is good news for all youngsters who are eager to work in the information technology and related sectors and realise their dream of becoming an IT professional.

A report by Nasscom-McKinsey has revealed that Indian IT and related service sectors would create a whopping 20 lakh jobs in next five years by which time their cumulative size would reach $225 billion.

The report, titled Perspective 2025: Shaping the Digital Revolution, maintained that the industry is well on track to grow from $132 billion (Rs 8.61 lakh crore) in FY 2014-15 to $350 billion by 2025 after hitting the $225 billion milestone in 2020.

"The industry is well on track for growth. There is a continued progression of double digit growth despite expansion of base.

But below the calm waters, there is a lot of churn happening as well and companies will have to do a lot of things to address the challenges as well," Nasscom President R Chandrashekhar told media while releasing the report in New Delhi on Monday.

He added that these challenges range in nature, from geopolitical to regulatory to the need for innovation and disruption.As per the report, the total addressable market for global technology and business services, driven by the adoption of digital technology, is likely to reach $4 trillion by 2025, growing at an average annual rate of about 3.6 per cent.

However, the industry in Indian is projected to grow at over 11 per cent annually till 2020 and over 10 per cent a year till 2025. “About 1.2-2 million people will be added with the next $100 billion revenue," the report said.

The first $100 bn in revenue of Indian IT sector generated over 30 lakh jobs. According to Noshir Kaka, Managing Director India, McKinsey & Company, companies hoping to prosper in the new environment will have to closely watch six new service lines, including the Internet of Things, cyber security, social, mobility, analytics and cloud.

"Probably the most pressing need is for companies to develop offering along with new digital service lines, even as they re-invent their traditional service lines," he remarked.

Interestingly, the domestic market is expected to play significant role in the growth of IT sector in the country. Out of the projected $350 billion, exports are expected to account for about $280 billion, while the domestic market is projected to contribute $70 billion, up from $34 billion in FY 2014-15.

"The focus on Digital India, skills India and other such initiatives will drive consumption in India," Kaka maintained. Talking about regulatory challenges, Nasscom Chairman BVR Mohan Reddy said issues with taxation and difficulties around starting and exiting businesses are some of the impediments faced by businesses, especially in the technology sector.

"We are engaging with the government to suggest how it can be made easy for entrepreneurs to start business. We are looking at rebranding Nasscom and the role that we play to reflect the changes in the environment," he added.

He further said that Nasscom will continue to play an active role as the bridge between regulators, consumers, enterprises and government.