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Follow UsNEW DELHI: India's booming software sector will face a shortage of software
professionals by 2008 as demand outstrips supply and larger numbers migrate to
more lucrative overseas jobs, securities firm Cazenove & Co said.
In a research report dated January 10 and released to Reuters on Tuesday, the
firm said the total requirement of software professionals in India will rise to
2.1 million in 2008 while supply would be 10.5 per cent less at 1.9 million.
The securities firm said demand for software professionals will grow at an
annual compounded rate of 36 per cent in the next five years while supply would
expand by only 25 per cent.
The firm said its demand estimates hinged on India's software services sector
growing to $70 billion by 2008 from $7.5 billion in 2001.
India's information technology sector has been expanding at a scorching pace
in a global boom, leading to fears of a shortage of skilled personnel over the
next few years.
Thousands of Indian software professionals are migrating to the United Sates,
Germany, Japan, Britain and Australia which have been wooing the country's
information technology talent with higher wages.
Many multinational firms have set up software development centers in India to
take advantage of its low-cost software personnel, considered among the best in
the world.
The total requirement of software professionals will reach 421,000 in 2002
while the number available will be 528,000, Cazenove said.
The company estimated that India's engineering and technical institutions
produced approximately 90,000 information technology professionals each year.
"In the short term, we are more concerned about the quality of software
professionals, mainly because a large proportion of the new professionals will
be coming from private training institutes," it said.
In the long term, the shortage will become a hurdle in the way of achieving
revenue targets unless productivity improved or the government took steps to
improve supply of skilled personnel.
(C) Reuters Limited 2001.