Nasscom releases key findings of Deloitte study Indian IT Industry: Impacting the Economy and Society

Mumbai: Nasscom has released key findings of the Nasscom-Deloitte study, Indian It Industry: Impacting the Economy and Society.
 
The research was conducted jointly by the Nasscom foundation, and Deloitte, and has revealed some key insights on how the IT industry has touched the lives of wider segments of the society.
 
The report will be released on 15 February, at the Nasscom India Leadership Forum that is being held at Mumbai from 13 - 15 February, 2008.
 
The report is a follow up from NASSCOM Foundation's annual research publications titled 'catalysing change', which highlights the state-of-play of corporate social responsibility (CSR) within the IT and ITES industries. This year, the report has looked beyond the boundaries of CSR initiatives, and has undertaken a more comprehensive study for identifying and assessing the overall social and economic contribution of the IT and ITES industry in India.
 
The study has been based on the responses received from participating companies, part of NASSCOM member companies, as well as analysis of facts and information from other secondary sources.
 
According to Saurabh Srivastava, chairman of NASSCOM Foundation, "While the IT / ITES industry has made a promising start, there is indeed a long way to go. With the encouragement and support of its member companies, the application of its best practices, innovative strategies and the entrepreneurial spirit, it is on track to set an example that would encourage others to emulate and help positively change the face of India."
 
Key findings of the report are below:
 
Direct contribution to the Indian economy

• Contribution to the country's GDP has been steadily increasing from a share of 1.2 per cent in FY98, to 5.2 per cent in FY07. 
  
• Export earnings in FY08 at $40 billion with a growth of 36 per cent. 
  
• Direct employment expected to be 2 million in FY08, growing at a compounded annual growth rate (CAGR) of 26 per cent in the last decade.

Indirect contribution to the Indian economy

• Indirect employment generated at the rate of 4 additional jobs created in the economy for every 1 job created in the sector, is socially relevant, as nearly 75 per cent of the workforce employed in those jobs are SSC / HSC or less educated. 
  
• The industry had a multiplier effect on other sectors of the economy, as an output multiplier of almost 2 through its non-wage operating expenses, capital expenditure, and consumption spending by professionals. 
  
• The sector has encouraged balanced regional development by gradually spreading business operations to smaller tier II and tier III cities, generating revenue and employment, and assisting in improving the supply of talent, development of physical and social infrastructure. 
  
• Fuelling the growth of PE / VC funding. 
  
• Spurring first generation entrepreneurship. 
  
• Emerging as a front runner in practising good corporate governance.

Diversity in employment

• Creating employment opportunities in smaller towns and cities. 
  
• Encouraging employment of differently-abled. 
  
• Opening opportunities for non-technical personnel 
  
• Promoting women empowerment. 
  
• Providing high growth opportunities for the youth, creating opportunities for 'out of the mainstream' candidates

Human resource development

• Training of workforce 
  
• Promoting higher education.