Kerala to attain huge growth in IT-BPM sector says Nasscom-Accenture

IT-BPM industry still remains one of the youngest employed workforce in the Indian economy with an estimated average age of 26.5 years.

According to Nasscom-Accenture report on demand and supply for the IT-Business Process Management, Kerala is on par with rest of the country in creating quality talent and employability in the IT-BPM sector.

The report says that by the year 2020 India’s IT-BPM industry will grow 13% to reach 225$ billion and will  employ around 5.3 million people.  The report further states that Kerala’s demand-supply gap will be reduced from 6,678 in 2013 to 2,421 in 2020.

Delhi’s demand-supply gap will increase from 15,839 currently to 47,791 in 2020. Other states like Karnataka and Tamil Nadu too will have a negative gap over the next 6 years. These states have a “dearth of quality talent vis-a-vis their employment opportunities” meaning there is a lack of quality talent with regard to the employment opportunities available in these states.

States like Tamil Nadu, Andhra Pradesh, Karnataka and Maharashtra create 80% of talent demand while contributing 50% of talent supply. This imbalance has led to increasing manpower shortage and a consequent increase in manpower costs. The industry will face difficulty on talent supply side as other high-growth industries such as electronics, retail and telecom employ talent from the same supply pool.

For the IT-BPM industry to reach its targets certain issues must be addressed such as low graduate employability ratio, insufficient academic infrastructure, increasing manpower costs in Tier-1 cities etc.

IT-BPM industry still remains one of the youngest employed workforce in the Indian economy with an estimated average age of 26.5 years.

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