The rapid expansion of cities into Information Technology (I.T.) hubs has undeniably ushered in a new era of employment opportunities, revolutionizing the global job market. This transformative shift has seen a surge in demand for skilled professionals in various technological domains, leading to the emergence of bustling tech-centric urban centers. However, this exponential growth has not been without its challenges, as it concurrently spawns a host of issues that demand attention and strategic solutions. One of the primary advantages of cities evolving into I.T. hubs is the creation of numerous job openings in software development, data analytics, artificial intelligence, and related fields. For instance, Silicon Valley in the United States and Bangalore in India have become synonymous with innovation and job creation, attracting talent from around the world. The proliferation of start-ups and tech giants in these regions has contributed significantly to economic growth.
Tag: Geography.
Decoding the Question:
- In Introduction, try to write about the IT industry.
- Discuss the role of the IT industry in generating employment.
- Write some problems associated with IT industries.
- In Conclusion, write its overall importance of IT industries.
Answer:
The Information Technology (IT) industry is an essential component of the technology-driven knowledge economy of the 21st century. In fact, globally India has been recognised as a knowledge economy due to its impressive growth. It is instrumental in creating infrastructure to store, process and exchange information for important business operations and other organisations. This industry has a conspicuous impact in improving the productivity of almost every other sector of the economy, it also has huge potential for further accelerating the growth and economic development.
Role of IT Industry in Generating Employment:
- Job Creation: the industry continues to grow, it creates a wide range of job roles, including software developers, data analysts, system administrators, IT support specialists, and project managers.
Example: The IT-BPM (Business Process Management) industry in India employed around 4.4 million professionals in 2020, and it is estimated to provide employment to over 5 million people by 2022.
- Employment Diversity: The IT industry offers opportunities for a diverse workforce, including fresh graduates, experienced professionals, and women returning to the workforce after career breaks.
Example: As of 2022, the percentage of women employees in the Indian IT-BPM industry was around 35%, indicating ongoing efforts to enhance gender representation.
- Skill Development: The IT industry plays a crucial role in upskilling and reskilling the workforce to meet the demands of a rapidly evolving digital landscape. According to a report by NASSCOM, India’s IT industry invested over $1 billion in employee training and skill development in 2020.
Example: Companies like Tata Consultancy Services (TCS), Infosys, and Wipro have established training centres to develop the skills of fresh graduates before joining the workforce.
- Supporting Small and Medium Enterprises (SMEs): The IT industry in India supports a vast ecosystem of small and medium-sized enterprises that provide services and products to the IT companies.
Example: In 2020, the Indian IT industry spent approximately $3.1 billion on hardware and software purchases from local SMEs.
- Global Presence: This global outreach creates job opportunities not only within India but also in overseas locations where companies set up delivery centres and offices. The export revenue of India’s IT-BPM industry was approximately $180 billion in 2022, making it a major player in the global IT services market.
Example: Indian IT companies Tata , Infosys etc., provide offshore IT services to global clients, allowing them to access cost-effective and skilled IT talent.
Problems Associated with IT Industries:
- Job Insecurity: There is a constant fear of job insecurity among IT professionals due to the possibility of their roles being replaced by automated systems or artificial intelligence.A study by the World Economic Forum estimates that by 2025, automation and artificial intelligence may displace around 85 million jobs globally, affecting various industries, including IT.
- Skill Gap: The IT industry demands highly skilled and specialised professionals. However, there is often a gap between the skills required by the industry and the skills possessed by the available workforce. According to a survey by the Global Knowledge IT Skills and Salary Report, 80% of IT decision-makers reported a skills gap in their teams in 2022, indicating a persistent challenge in finding employees with the required expertise.
- Employee Burnout: The demanding nature of the IT industry can lead to employee burnout. Continuous work stress and tight project schedules can result in physical and mental exhaustion, impacting productivity and creativity.A survey by Blind, an anonymous professional network, revealed that 56% of IT workers reported working more than 40 hours per week, indicating the prevalence of long working hours in the industry.
- Outsourcing and Offshoring: Many IT companies opt for outsourcing and offshoring to reduce costs, leading to job losses in developed countries and concerns about job quality and ethical considerations in the outsourcing destinations.A report by the International Labour Organization estimated that around 4 million IT jobs were lost due to offshoring between 2020 and 2022, primarily impacting workers in developed countries.
- Data Privacy and Security Concerns: The IT industry deals with a vast amount of sensitive data, raising concerns about data privacy and security breaches.According to the Identity Theft Resource Center, there were 1,108 data breaches in the United States alone in 2022, exposing over 300 million sensitive records.
Incentive taken in IT Industries: In India, the government has implemented several schemes and acts to promote and incentivize the IT industry. These initiatives aim to boost technology adoption, innovation, and job creation in the sector. Here are some prominent schemes and acts:
- Software Technology Parks of India (STPI):It aims to encourage IT and IT-enabled services (ITES) companies to set up operations in designated STPI centres. As of March 2021, there were 60 STPI centres across India, supporting over 10,500 IT and ITES companies and generating employment for around 6.5 lakh professionals.
- Electronics and IT Hardware Manufacturing (MSIPS): It offers benefits such as capital subsidy and reimbursement of expenses for setting up manufacturing units. The MSIPS has contributed to a significant increase in domestic electronic production. In 2022-2023, India produced electronic goods worth USD 86.31 billion, compared to USD 29 billion in 2014-2015.
- Startup India:It provides various benefits such as tax exemptions, faster patent processing, and funding support through the Fund of Funds for Startups (FFS). As of March 2023, over 61,000 startups were recognized under the Startup India initiative. The government has also allocated funds to the FFS to support startups with a corpus of INR 15,000 crore (approximately USD 2.0 billion).
Conclusion:
Hence, With over half the world population now living in cities, mass transport and renewable energy are becoming even more important, as are the growth of new industries and information and communication technologies. Promoting sustainable industries and investing in scientific research and innovation are all important ways to facilitate sustainable development. So, the only way forward here is to practise sustainable development goals (SDG 9) while growing IT hubs.
In case you still have your doubts, contact us on 9811333901.
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
