IT layoffs: Silver Lining for techies

'The good news is the technology industry is creating a space for you somewhere else.'
Illustration: Dominic Xavier/Rediff.com

Nasscom, the apex body of information technology companies in India, has said while per capita employment in the IT sector is declining, the employment opportunity outside the sector is increasing.

The industry body plans to research the impact of technology in other areas, Nasscom President R Chandrasekhar said.

Due to automation and other technology, per capita employment is gradually declining in the IT sector, and also in absolute terms the total quantum of employment in the sector is down from its peak of 240,000 people on a net basis to 130,000 to 150,000, said Chandrasekhar.

The Nasscom president was speaking at a discussion on trends in the IT industry organised by the Southern India Chamber of Commerce and Industry in Chennai.

"It looks like the employment opportunities have shrunk. However, the employment opportunity outside of the sector has gained importance because technology has become more pervasive. We are looking at researching the impact of technology in other areas," he said.

"Flipkart is believed to have created almost 400,000 jobs. Though it is not part of the technology sector, it is a product of the technology application in e-commerce," he added.

Increasingly, opportunities for technically skilled personnel is spreading across sectors, where a combination of technology skills, domain knowledge and soft skills is needed.

The nature and combination of skills have become more important than a uni-dimensional skill.

This is because the value today has shifted to the junction point between technology and domain or the point between domains.

"The good news is, even if you are not a techie, the technology industry is creating a space for you somewhere else," he said.

The customer budget on technology was increasing and the industry was also growing.

The domestic industry, growing at 11 to 12 per cent, showed new opportunities, Chandrasekhar added.