Major shortfall in IT workforce seen by 2008

The supply of IT and IT-enabled services (ITES) professionals will outstrip demand by 48,000 in 2008, according to a review of the industry by Nasscom.

As per the manpower projections for the Indian IT industry, the total demand for professionals is 1,120,000. The current pool of professionals stands at 568,000, and by 2008 there will be a new supply of 600,000, which add up to 1,168,000 professionals "" an excess of 48,000 professionals.

The major demand for IT professionals will come from IT services exports, estimated at around 460,000, while domestic markets and products and technology services will require 520,000 and 140,000 professionals, respectively.

As per the estimate, the greatest supply will come from engineering graduates. About 326,000 professionals will be sourced from engineering degree holders, while there will be an another 365,000 in 2005-06. There will be a total supply of 153,233 people in 2004-05 and another 160,152 in 2005-06.

The number of IT and ITES professionals employed in India has grown from 284,000 in 1999-2000 to an estimated 813,500 in 2003-04.

Over the last two years, ITES companies were the largest recruiters in the IT and ITES sectors. ITES companies recruited an estimated 74,500 professionals in 2003-04.

Companies in the IT software exports sector recruited an estimated 55,000 professionals in 2003-04, which was higher compared with 35,000 recruited in 2002-03.

The review points out that recruitment picked up for the IT services sector, while ITES companies were recruiting in large numbers through the year. It is estimated that the ITES sector hired 200 personnel every working day of the year.

It was estimated that 77 per cent of software professionals in the company were men whereas 23 per cent were women.

However, the ratio is likely to be 65:35 male to female by 2005. This ratio is reversed in the ITES sector where the ratio of males to females is 35:65.

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Yawning gap

• By 2008 there will be a new supply of 600,000 IT professionals, which add up to 1,168,000 professionals "" an excess of 48,000 professionals
• The major demand for IT professionals will come from IT services exports, estimated at around 460,000
• Domestic markets and products and technology services will require 520,000 and 140,000 professionals, respectively