Kolkata has started facing the domino effect of the global meltdown as new jobs in the information technology companies here are likely to be halved this fiscal.
Debesh Das, minister of the department of information technology of the state, said: “We estimated 20,000 new jobs to be created this fiscal. But so far there has been a creation of 5,000-10,000 new jobs. The scenario will be clear after March this year.” He said that no retrenchment of jobs is expected from the companies here.
While 5,000 new jobs were created in the IT sector in 2007-08, almost 11,000 were created during the period in ITeS and business process outsourcing sector.
“So far there has not been any slowdown in the existing projects. More projects would come but we are not clear about the number of new jobs they would generate,” Das said.
According to state IT department officials, the construction work is on for creating more than 20 million square feet of additional IT space by 2010-11. “That would mean creation of about 2 lakh jobs during the 11 th Five-year plan period,” said a state IT department official.
The city, which has recorded a growth rate of 70% during the period 2000-2005 and is way ahead of its next competitor Chennai (46% for the period), houses more than 250 global and domestic IT companies. The companies employ more than 55,000 professionals.
According to Das, the growth rate for the IT industry in the state would come down this fiscal from 46% in 2007-08. “So far 30 companies have registered with the STPI as against 33 last fiscal,” he said.
The state IT department had earlier projected that the demand for manpower in the IT industry alone is likely to go up by 12,000 this year and 27,000 by 2012. The consolidated demand including ITes & business process outsourcing companies is likely to climb up to 80,000 by 2012.
“Multi national companies are on a cost-cutting mode and capital will flow into countries or states which provide low cost solutions,” Das said. Kolkata stands lowest, at 421, regarding the consumer price index among the IT destinations in the country. Moreover, attrition rate in the city is around 15-20% compared with 30-40% in other IT destinations in India.
“IT companies have an advantage here as the city offers low cost solutions,” Das said at a three-day seminar and exhibition on IT in Kolkata.
On a different note, he said the country’s first semiconductor hub, India Design Centre, is likely to be raised to 24 stories from 18 proposed earlier. “We are waiting for necessary approvals,” he said.