Hyderabad: Even as many countries are moving towards the trend of protectionism, experts opine that there is a need for highly skilled workforce in every country. Reiterating this view, National Association of Software and Services Companies is of the opinion that there are huge technological shifts taking place in the IT sector and there is a change towards hiring of mixed skilled people.
Speaking on the sidelines of the Nasscom Global In-House Centers (GIC) conference, Nasscom President R Chandrasekhar said, “Every country wants high-skilled workforce and that is why they are looking at their own people rather than being dependent on migrants. The IT sector in particular is facing not only the issue of immigration but also low availability of skilled workforce. Thus it is important to focus more on skilling of people for higher skillsets.”
Explaining further, Chandrasekhar also opined that if the United States wants to do protectionism then it should be done fully and it should not single out only Indian IT companies. “A study has found that 70 per cent of the visas issued in US go to Indians but out of this Indian IT companies account for only 20 per cent of the visas. And this differentiation is not being recognised by US legislatures and policy makers,” he added.
He also opined that more than migrant workforce, technology has led to 21 million job losses in the US and also 23 million jobs were created in the higher skillsets. And this needs to be understood by the American government, he opined.
GIC in India
Giving insights on the Global In-House Centers in India, Nasscom President said that India accounts for 45 per cent of GICs are in India with revenue of $21 billion. One new GIC is coming up in the country every fortnight and it is accelerating the entire segment. GICs are offshore centers of large global organisations that perform designated functions such as R&D, IT, analytics etc.
India houses about 800,000 employees directly in the GIC space and about 70,000 people are added every year. “GICs are now integral part of the transformation of large MNCs. And as part of the Indian startups, GICs are vocal supporters,” Chandrasekhar said.
The conference saw about 700 participants from 160 GICs from across the globe, which is a 30 per cent increase from last year’s event.
A report by Bain & Company on Indian GICs pointed out that digital disruption is impacting every industry and changing global CXO priorities. This has led to organisations now spending 45 per cent of their IT budgets on growing their business, compared with only 20 per cent previously, which is creating a unique window of opportunity for GICs.
The report also pointed out that Indian GICs need to invest in six key areas to become GICs of the future: analytics, traditional IT, digital-age IT, domain expertise, leadership quality and cost savings.
“GICs have experienced a significant paradigm shift from being offshore service delivery centers to strategic enablers that support the growth, differentiation and innovation agenda of global enterprises,” said K S Viswanathan, vice-president (industry initiatives) Nasscom.