Indian Tech Industry Anticipates To Add 60,000 New Jobs In FY24 Vs 2.7 Lakh In FY23: Nasscom Report

The tech industry is gearing up to usher in a wave of 60,000 new jobs during the upcoming financial year of 2023-24, a significant drop from the 2.7 lakh jobs created in the previous fiscal year. This adjustment comes against the backdrop of a macroeconomic slowdown in key markets, particularly the United States and Europe, prompting a reevaluation of hiring strategies.

The $250-billion services industry, which heavily relies on North America and Europe for 60-80% of its revenue, is experiencing the effects of demand pressure. Nasscom president, Debjani Ghosh, attributes the decline in numbers to a correction phase following the over-hiring spree during the COVID-19 year. Despite the decrease, the total tech workforce is expected to reach 54.30 lakh employees.

Ghosh emphasized that the industry is undergoing a shift in hiring trends, focusing on roles in cutting-edge technologies such as artificial intelligence (AI), big data, cloud computing, and cybersecurity. "Frontier technologies are where we are seeing the demand growing right now," she stated, highlighting the industry's proactive approach in aligning workforce skills with emerging technological needs.

To meet the evolving demands of the industry, Nasscom has committed to investing 60-100 hours per year per employee on upskilling initiatives. Notably, generative AI training has seen a remarkable nine-fold increase year-on-year in 2023, with over 6.5 lakh employees being trained in this nascent technology.

Ghosh, however, expressed concerns about the widening gap between the pace of technological change and the industry's ability to skill its workforce accordingly. "That's going to be the biggest challenge that the industry will face - how to bridge this gap," she remarked. Despite the challenges, Ghosh remains optimistic about India weathering the storm better than most countries, with the nation being less impacted on a global scale.

Acknowledging the inevitable impact of AI on jobs, Ghosh stressed the need for a shift in focus. "AI will absolutely bring some displacement in jobs, but there will also be a lot of new jobs getting created," she stated. The first woman leader at the helm of Nasscom emphasized that the industry's primary focus should be on accelerating the skilling process for these new-age jobs, rather than fixating on potential job losses.

As the tech industry navigates the evolving landscape, the emphasis on upskilling and aligning the workforce with emerging technologies reflects a forward-looking approach.