Direct employment in the industry peaks with over three lakh employees

The State crossed two significant milestones in the Information Technology industry during the year 2012.

IT turnover crossed the Rs. 50,000-crore mark for the first time and the direct employment in the industry peaked with over three lakh employees. According to IT and IT-enabled services Industry Association president V. Rajanna, the IT industry turnover reached a new high of Rs. 53,246 crore, crossing the magic mark of Rs. 50,000 crore.

Of this, exports contributed 76 per cent (Rs. 40,646 crore) and the balance 24 per cent (Rs. 12,600 crore) came from the domestic market. The industry’s growth rate at 16 per cent was on a par with the national average.

The IT sector was currently providing direct employment to 3.18 lakh persons and another 10.12 lakh people were dependent on the industry, indirectly employed though, taking the total employment figure to 13.3 lakh. In the process, the contribution of the State to national exports stood at 12 per cent, making it the fourth largest exporter.

On the State front, IT exports stood at 38 per cent of the total exports, making it one of the primary contributors to economic development. The industry, according to Mr. Rajanna, was extremely well positioned in terms of three fundamental requirements – infrastructure, talent and good business eco system – for achieving leadership and growth.

Good infrastructure

The State capital in particular had an “incredible infrastructure” in terms of connectivity, educational institutions and other requirements like shopping malls even as the Metro Rail was coming along rapidly. “It is not surprising to see that Hyderabad ranked third on the global scale as most affordable office locations after Surabaya in Indonesia and Qingdao in China,” he said.

Though the State had more than met the primary requirements, why was it not a leader in the industry as yet, Mr. Rajanna asked.

He pointed out that the increasing competition between various States to attract investments had mandated improved and forceful marketing and the need to pursue investment opportunities aggressively.