The Undeniable Engine of Growth
India's Information Technology and Business Process Management (IT-BPM) sector has long been a cornerstone of its economic story, but its relevance has only intensified. According to industry body NASSCOM, the sector's revenue is projected to cross the $315
billion mark in fiscal year 2026, with some estimates suggesting it could reach $350 billion and contribute up to 10% of the nation's GDP by then. This is not just growth; it's a testament to the industry's resilience and its pivotal role in a post-pandemic world hungry for digital transformation. Employing over 5.4 million people, the sector is a significant generator of high-skill jobs and a major contributor to India's foreign exchange earnings, with exports accounting for a substantial portion of its revenue. This expansion is increasingly powered by emerging technologies like Artificial Intelligence, which is moving from experimental phases to widespread commercial application, creating new revenue streams and reshaping service delivery.
What Is High-Frequency Tracking?
For decades, understanding India's massive labour market relied on large-scale surveys conducted annually or even less frequently. While comprehensive, these methods were slow, offering a dated snapshot of a dynamic economy. The headline's mention of "high-frequency tracking" refers to a paradigm shift in how we measure economic activity, particularly formal employment. Instead of waiting for survey results, policymakers and analysts now use administrative data that is updated monthly. The most prominent of these are payroll records from schemes like the Employees' Provident Fund Organisation (EPFO). Every new employee added to the EPFO system is counted, providing a near real-time indicator of formal job additions. This allows for a more immediate and granular view of employment trends, capturing shifts in the job market as they happen rather than months or years later.
Connecting Data to Urban Jobs
When you apply high-frequency data to urban India, a clear picture emerges: a steady formalisation of the workforce, driven heavily by the services sector. A 2025 National Statistics Office (NSO) report revealed that in India's largest cities, regular salaried positions now account for nearly 59% of all employment, a significantly higher rate than in smaller urban areas. This shift towards more structured, secure work is a direct consequence of the growth in sectors like IT, finance, and professional services. While EPFO data is sometimes debated—as it tracks formalisation which can include existing jobs moving from informal to formal, not just new job creation—it undeniably points to a growing number of workers gaining access to social security and other benefits. This trend is most pronounced in urban centres, which are the primary hubs for corporate and IT-related employment.
Productivity, AI, and the Future of Hiring
However, the story is not one of straightforward, exponential job growth. A key trend emerging from recent industry analysis is the 'decoupling' of revenue growth from headcount. In other words, companies are becoming more productive, generating more revenue per employee. This is largely driven by the adoption of automation and AI. While the IT sector continues to hire, the rate of net job additions is moderating. For FY26, NASSCOM projected a net addition of around 135,000 jobs—a modest number relative to the industry's massive revenue growth. This signals a structural shift in the industry. The focus is moving from hiring in large volumes to acquiring specialised skills, particularly in areas like AI, cloud computing, and cybersecurity. Future job creation will likely be more about quality than sheer quantity, rewarding professionals who can work alongside intelligent systems to drive value.
