Nearshore Americas

Hiring Rates Surge in India as BPO Industry Marches Forward

The IT services and BPO industries in India saw an 18% hiring increase in July, apparently driven by the expanding global economy, particularly in the United States.

All key industries and job roles showed a major upswing in talent demand, with second tier cities, such as Indore and Chandigarh, seeing a particular upsurge, according to TimesJobs RecruiteX.

Barely a week after the report emerged, the country’s eastern state of Andhra Pradesh announced that 17 IT companies had begun operations at its newly inaugurated software park in Vishakapatnam, including American IT provider Conduent and Nueve Solutions LLC.

The growth in the sector was reflected in financial reports from the country’s major IT services companies. TCS, for example, reported a net profit of 73.40 billion rupees (US$1.07 billion) for the quarter to June 30, compared with 59.45 billion rupees (US$845 million) a year earlier.

Home to about 500 IT and BPO providers, India accounted for 55% of the global outsourcing services industry in 2014, according to PwC.

Lured by tax-breaks and other incentives, several BPO providers are expanding operations to under-developed Northeastern states. The federal government has also been making efforts to push low-paying BPO jobs to low-cost rural areas or second or third-tier cities.

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Meanwhile, Software Technology Parks of India (STPI) has announced a new BPO promotion program aiming to create another 48,300 new jobs. Under the program, the government will provide financial support in exchange for the creation of jobs for local talent. The agency has set aside US$70 million for the program.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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