IT sector, startups expected to hire 500000 people in 2019: Mohandas Pai

IT sector, startups expected to hire 500000 people in 2019: Mohandas Pai
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Hyderabad, Dec 26: India’s information technology (IT) services sector and startups together are expected to hire up to 500,000 people in 2019 as demand for freshers is on the upswing, an industry veteran said Wednesday.
Former Chief Financial Officer of IT major Infosys Ltd, T V Mohandas Pai said entry-level packages in the industry went up by as much as 20 per cent in 2018, after stagnation in salaries for the past seven years.
“Growth is coming back to the Indian IT services industry,” he said, talking about industry highlights in 2018 and prospects in the coming calendar year.
Pai said 2018 saw “H1B visa situation getting tougher,” Indian companies focusing more on Japan and southeast Asia, massive expansion of captives and buy-backs by big companies.
Hyderabad has become a hot destination, with many new age companies coming to the Telangana capital, thanks to good infrastructure, and “very good marketing” by KTR (K T Rama Rao, who served as IT Minister in the previous TRS government), according to him.
He also said Indian companies were now trying to expand in markets in Asia much more vigorously, particularly Japan which is “opening up” and southeast Asia.
Reskilling of employees in IT services companies has redoubled, Pai said. “More than half the people have been reskilled in all the IT companies in India. Digital income is growing in double digits for all the companies. 2018 has been a good year”.
Hiring has gone up, he said. “First time in seven years, hiring compensation (entry-level) has gone up by 20 per cent. Fresher compensation is going up, after a long time. It’s a good news”. Entry level packages are now pegged at Rs 450,000 to Rs 500,000 per annum, as companies are beginning to pay more to attact “higher quality”.
“For many years, entry-level compensation packages had not gone up, demoralising people. In fact, delivery boys in cities make Rs 50,000 a month, much more than software engineers. It’s ridiculous,” Pai said.
He listed greater use artificial intelligence and machine learning in enterprises, greater thrust on digitisation, bigger spending by BFSI (banking, financial services, insurance) in America, as being growth opportunities for Indian IT companies in 2019, which will also see them look for greater penetration into Europe and Asia.