The job market for India’s technology and IT-related sectors is currently the toughest in the world.
The country has an unemployment rate of 13.3 per cent and is currently ranked 119th out of 180 countries in the World Economic Forum’s Global Competitiveness Index.
According to a report published by the McKinsey Global Institute, India’s tech sector has a projected GDP growth rate of 6.5 per cent in 2020.
It is the largest in the subcontinent with a projected 6.3-7.6 per cent growth rate.
The report said that this will translate into an average salary of $40,800 per year for software developers.
There are several other factors that could potentially boost the tech sector’s prospects, such as strong domestic demand for software, the country’s low cost of living, and strong partnerships with foreign firms.
For instance, India has a growing talent pool, said Shailesh Kulkarni, partner at London-based consulting firm KKR, which has advised the government on tech investments.
“India is a fast-growing economy and has some of the world’s most talented engineers and engineers are increasingly coming from abroad,” Kulkhan said.
“So, India is an attractive place to do a tech job, and I think that will translate in the industry.”
A number of the companies listed in the McKinseys report, such for instance, the IT and IT Services company, have been incubating for some time.
According to the report, these companies will likely attract many foreign talent to India.
“There are opportunities for the IT industry to expand globally, which will further enhance its competitiveness,” KKR said.
India has also recently signed a deal with Tata Consultancy Services to set up an IT services company in the country.
In a recent interview with NDTV, Nandita Das, a former Google employee and CEO of NandIT, an IT consulting firm, said she believes that the country is currently at a competitive stage.
“We have seen a lot of companies grow in India, particularly in the IT space.
I think India has some big potential,” Das said.