Date:19/09/2006 URL: http://www.thehindubusinessline.com/2006/09/19/stories/2006091903140400.htm

Back `Labour productivity has increased'

Our Bureau

Chennai , Sept. 18

The IT sector in India currently employs about 1.2 million people and will provide employment for an additional 3,50,000 people in the following year, according to Mr Mohandas Pai, HR Director, Infosys.

Speaking at `Artha 2006', a symposium on the emerging Indian economy and business, organised by the Economics Association, Madras Christian College, Mr Pai said that this employment is provided at an average salary of $11,000 per annum (Rs 5.06 lakh) in IT services and $5,000 per annum (Rs 2.3 lakh) in BPO.

Participating in a session on "role of IT in economic development', he added that India has seen a labour productivity increase of 3 to 3.5 per cent per year over the last few years and the top ten companies have seen a capital productivity increase of 24 per cent, both of which are good signs.

Mr Lakshmi Narayanan, President & CEO, Cognizant, said that India invests about 35 per cent of its GDP in the economy as opposed to 27 to 30 per cent before liberalisation of the economy. This is because the savings as a nation has gone up and foreign direct investment is increasing year by year.

Mr Krishnakumar, Chief Executive Officer - IT Services, MindTree, added that apart from labour productivity and economic value creation, some aspects such as e-governance and citizen services would directly benefit the people