Durgapur and Salem among 20 emerging IT destinations in India: TeamLease

• Tier 2 and 3 cities like Thiruvananthapuram, Ahmedabad, Cochin, Coimbatore and more are identified as emerging IT destinations by Teamlease.
• These cities are likely to contribute over 85% of the talent from emerging locations across India.
• More than 40% of the companies intend to hire from one or more of the 20 emerging locations, as per TeamLease report.
• This has also led to an increase in the number of contract jobs by at least 24,000 in the last two quarters.

The fast paced IT and business process outsourcing companies, which are slated to grow by 7% in FY23, will turn to emerging locations for the supply of high tech talent. This means that people will not go to jobs, but jobs will come to people.

The Digital Employment Outlook Report by TeamLease suggests that tier 2 and 3 cities like Thiruvananthapuram, Ahmedabad, Cochin, Coimbatore, Chandigarh, Indore, Mysore, Vadodara, Madurai, Visakhapatnam, Jaipur, Bhubaneshwar, Mangalore, Lucknow, Nagpur, Goa, Salem, Durgapur, Vijayawada and Trichy are the 20 emerging destinations for IT in India.

These cities are likely to contribute over 85% of the talent from emerging locations across India. “We estimate the digital skills population across emerging locations to be over 75,000,” the report suggests.

“Opening centers in emerging locations would ensure taking jobs to people instead of taking people to jobs. This would ensure better utilization of talent across the country and help India become a talent superpower,” said Sunil Chemmankotil, CEO at TeamLease Digital.

More than 40% of the companies intend to hire from one or more of the 20 emerging locations.

Tier 1 city employees continue to work from home towns

At least 20% of the digital talent employed at tier 1 cities are currently located at emerging destinations due to continuing work from home (WFH) policies, according to the report.

The Covid-19 pandemic pushed the companies in almost all the sectors to offer work from home to employees. The workforce which shifted to their hometowns now are reluctant to come back.

The companies are also willing to adopt permanent remote working and are also tapping into tier 2 and 3 cities to attract the talent pool in these locations.

Keeping in mind that work from home will still persist, more than 61% of IT-BPM companies had contract employees working from remote locations. This helped the companies to reduce the burden of hiring full time employees at short notice and execute short-to-medium term projects at lower costs and minimal resources.

It has also led to an increase in the number of contract jobs by at least 24,000 in the last two quarters, the report highlights. The number of contract job opportunities is estimated to grow from 1.5 lakh in FY22 to 1.81 lakh in FY23.

“As India’s IT employment is expected to double in the next five years, contract staffing share is expected to grow from the current 3% to 6%. This growth in contract staffing would ensure building an additional bridge between demand and supply for companies struggling to meet the talent demand,” Chemmankotil added.

IT Business Process Management industry created 3.2 lakh indirect jobs

By the end of FY-2022, the IT BPM industry employed around 5.1 million full-time employees. Further, every job in the technology sector had a multiplier effect leading to the creation of about 3.2 million indirect jobs, the report says.

The headcount in the IT BPM industry will grow from 5.1 million to around 5.45 million in FY-2023 which is about 7% growth when compared to the previous year. Out of 5.1 million people, the majority of the employees are working from home as companies have started looking for other ways to get back to normalcy.

“IT-BPM industry continues to be a sunshine industry in India, being the largest employer in the private sector, employing about 3.9 million people, and contributing to over 8% of the GDP. Our industry here also amounts to 55% of the global outsourcing market,” Chemmankotil said.

Chemmankotil of Teamlease further highlighted that the employment in the technology sector in India will further increase from 5 million to 10 million in the next few years.

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