SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 182

HIGH PRIORITY MARKET - IT
INDIAN TALENT POOL READY TO TAKE IT SECTOR TO THE NEXT LEVEL
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Availability of skilled English speaking workforce has been a Graduates addition to talent pool in India ( in millions ) major reason behind India ’ s emergence as a global outsourcing hub
During FY08-15 , no of graduates addition to talent pool in India grew at a CAGR of 9.4 per cent
3.7
Graduates addition to talent pool in India ( in millions ) 5.8
5.3
4.7 4.4
4.0
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India added around 5.8 million graduates to the talent pool during FY15
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Growing talent pool of India has the ability to drive the R & D and innovation business in the IT-BPM space
FY2010
FY2011 FY2012 FY2013 FY2014
FY2015
Source : Nasscom , TechSci Research Note : Graduates includes both graduates and post graduates
INDIAN TALENT POOL READY TO TAKE IT SECTOR TO THE NEXT LEVEL
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About 2 per cent of the industry revenue is spent on training employees in the IT-BPM sector
USD1.6 billion is spent annually on training workforce and growing R & D spend
Forty per cent of total spend on training is spent on training new employees
Numerous firms have forged alliances with leading education institutions to train employees
Graduates addition to talent pool in India ( in millions )
Recruitment cost
Salaries for inhouse training staff
Employee welfare
External training ( existing employees )
Other costs
External training ( new recruits )
Source : TechSci Research
SEZ ' S TO DRIVE IT SECTOR ; TIER II CITIES EMERGE AS NEW CENTERS
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In FY15 , STPI operational units were spread across 53 Characteristics of STPI and SEZ in India locations , 46 are in Tier II and III cities
As of FY2014 , 3,676 STPI units were operational , while 3,335 units have exported IT services and products
IT-SEZs have been initiated with an aim to create zones that lead to infrastructural development , exports and employment
Source : Nasscom , TechSci Research , STPI ( Software Technology Parks of India )
Characteristics of STPI and SEZ in India Parameters STPI SEZ Team
Fiscal benefits
Location and size restrictions
• 10 years • 15 years
• 100 per cent tax holiday on export profits
• Exemption from excise duties and customs
• No location constraints
• 23 per cent STPI units in tier II and III cities
• 100 per cent tax holiday on exports for first five years
• Exemption from excise duties and customs
• Restricted to prescribed zones with a minimum area of 25 acres
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