The IT industry is in a tizzy over a surge in salaries and the possibility of a pay hike.
Many employees in the software sector are also being asked to reconsider their jobs as there is a high demand for skilled developers, said Amit Kapoor, chief executive of KPMG India.
The salaries of software developers have risen by over 50% in the past five years.
This has impacted the quality of the software they produce and has been attributed to the fact that there is no clear incentive to develop software.
“As a result, software developers are losing their jobs,” Kapoor said.
He added that in the IT sector, there is an oversupply of skilled people, especially in the field of IT software development.
The IT sector employs over 7.3 lakh people and is the second largest contributor to the GDP behind the manufacturing sector, according to the Ministry of Commerce.
In 2017-18, the government set up the IT Skills Development Board (ITSDB) to provide training to people with IT skill in the country.
The board has a budget of about Rs 3,500 crore.
The government is yet to provide funding to IT Skill Development Boards, but Kapoor has suggested it could be done through a special fund.
“I think the government should consider giving some funding to this initiative.
It is a very timely move.
I believe this is a smart move,” he said.
Kapoor said the IT industry has seen a spike in demand for developers due to a shortage of skilled workers.
“If there is enough money available for such a project, there should be a fund for IT skills development.
I have not seen a proposal from the government for this so far.
I think this will be the first such initiative,” he added.
Kashmir’s IT industry also faces the challenges of a high number of IT jobs being created in the state.
There are about 2.4 lakh software developers in the province, according the latest data from the Ministry for Development, Innovation and Entrepreneurship (MDIE).
The IT industry in the district has also seen a sharp increase in demand as its population has grown by a whopping 1.5 lakh since 2007.
The growth in demand has meant that there has been a sharp rise in the number of vacancies in IT software projects, which are also the largest of the sectors in the area.
The IT software sector in the city has also witnessed a surge as there are more than 2,500 vacancies for software developers.