NEW DELHI: With IT firms like Infosys and Cognizant sounding alarm on the issue of oversupply of graduates, specially at the entry level, experts are keeping a close eye on the Budget to see whether finance minister P Chidambaram introduces measures to create jobs in other sectors of the economy.
In an interview with ET Now, S Gopalakrishnan, Co-Chairman, Infosys, said the IT sector is facing an oversupply of graduates.
“Even if the industry grows at around, let us say, 12% to 14% in 2013, an additional 1.7 to 2 lakh jobs will be created, and that is very significant. There are very few other sectors that are creating that many numbers of new jobs. I am actually optimistic. Having said that, of course we are about 7,00,000 to 8,00,000 graduates coming out, means that many of them will have to look for jobs in other sectors rather than just the IT sector,” Gopalakrishnan said.
“So there is some positive news in this, but it also means that the other sectors will also have to grow for the job scenario to improve. This is where I look at the overall growth of the Indian GDP. We need to get the growth back to 7-8%, which seems to be challenging right now. We all need to work together to see the growth goes back to 7-8%,” he added.
Similarly, Cognizant’s vice chairman Lakshmi Narayanan expressed his reservations on the stagnation of wages in the IT industry, especially at the entry level.
Talking about the hiring scenario, he said that there is an oversupply of talent from the education market. He reasoned that this oversupply will have to adjust in the next two to three years. Talking about a wage increase at the mid level, he said that it will either remain the same or will witness a subdued increase.
After a year of low-key hiring, January 2013 saw a 10% increase in employment levels compared to December 2012, according to an index by a job portal.
Hitesh Oberoi, CEO and MD, Info Edge India said in a release: “2013 will see an improvement in fresh and replacement hiring and there will be demand for skilled candidates. Improvement in government decision-making and buoyancy in financial markets may lead to a much better macro environment in the coming months. (Source: ET)
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