Allocation for skill upgrade too late: IT industry

While the finance minister got kudos for allocating Rs 15,000 crore for skill development, the information technology (IT) players - one of the largest employers in the country - are not very excited.

Direct employment in the sector is expected to reach nearly 2 million - an increase of about 375,000 people - over FY07.

The IT services exports, BPO exports and domestic IT industry provide direct employment to 865,000, 704,000 and 427,000 professionals respectively.

The industry also creates a host of indirect employment opportunities.

However, according to a Nasscom report, the IT sector will face a shortage of 2.62 lakh people by 2009. So why this lack of excitement over a proposal which will create an "employable" workforce.

"The Indian IT industry will only experience a marginal impact of this proposal. It will be more beneficial for sectors such as manufacturing," said Mohandas Pai, head (human resources), Infosys Technologies. "These announcements will have an effect only after five years. So there is no sense of excitement for us," he added.

Pai's mellow reaction is shared by industry analysts too. Sivaramakrishnan, executive director, PricewaterhouseCoopers (PWC), said, "No one is enthused right now as the benefit will come way into the future, while the need for such measures is today. The Budget announcement has been made more with an eye on the election. Else, the problem should have been addressed long time back."