Going forward on the lines of progress, the Indian IT small and medium enterprises (SME) sector has evolved as the largest private-sector employer in the country with 3.1 million direct jobs. Analysing the growth of technology sector, NASSCOM has conducted a study to emphasise on the growth cycle of IT SMEs.
NASSCOM has cited that the IT sector of India will witness gradual hiring activity at a moderate rate of 6% this year. In the Annual HR Survey 2014, NASSCOM has mentioned that Indian IT sector will experience a higher attrition rate and wage increase accounting from 8% to 11% in financial year (FY) 2014-15. According to the report, this era will be the golden period for the IT based SMEs, as the headcount growth would be faster at a rate of 7% to 8% in comparison to 5.6% during the last year.
R Chandrashekhar, President, NASSCOM addressed the fact that the SME and startup sectors are seeing a higher hiring rate by adding 170,000-180,000 employees this year in comparison to that of the bigger companies. He further added, “The total turnover was $118 billion; this year, our projections are 13% to 15%, which is a slight increase over the last year.”
He further said, “We are seeing a decreasing relationship between the turnover and the number of employees. In part, this is because of greater productivity, and in part it is because of some reduction in bench strength .Also, in products business, the relationship is different.”
The actual reported growth of IT sector during the last year was 13.2%, which was more than what NASSCOM had predicted in 2013-14.
Following the in-trend practice, now the startups are also focusing on building solutions and products to enhance HR processes within their company. With technology overpowering the market, almost 58% of the companies are going to adopt the niche technology skills and domain expertise.