NASSCOM survey on the impact of the new Haryana State Reservation Law March 2021

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NASSCOM survey on the impact of the new Haryana State Reservation Law March 2021

Yash_Singh

@Yash_Singh

March 15, 2021

Public Policy

257

NASSCOM recently conducted a survey to assess the impact of the New Haryana State Employment of Local Candidates Act, 2020. A total of 73 companies participated in the Survey and they have over 144,000 employees in Haryana. Overall, the 500 odd IT-ITeS companies in Haryana employ more than 400,000 people directly.

Some of the key findings of the survey are listed below-

Extrapolating to 4 lakh IT-ITES employees, the Act will overall impact about 1.5 lakh current jobs ( 37% of all the IT-ITeS jobs). Given that the Act applies to new hires, the impact is expected to be severe in 1-2 years as the industry sees a high attrition rate.
80% of the companies have stated that this will negatively impact their future business operations and investments plans, with majority of them expressing this will result in shifting/ growing their operations to other States and in other countries.
Majority of the companies have expressed concerns on the recruitment strategies as the law will significantly increase the compliance burden and will limit the industry ability to hire people at will, They also expressed such legislations will make it difficult to adopt and follow Diversity and Inclusion policies and initiatives and will make it difficult for them to adopt equal opportunity policies.
Major skill gap in Haryana where salaries are less than Rs. 50,000 pm include Communication –Spoken as well as written, AI and Machine Learning Skills, Analytical and Statistical skills, Finance and Accounting, Programming skills, Data Science, R&D skills, Engineering and technical skills.

The complete survey is available below. Please reach out to deepak@nasscom.in, if you have any queries relating to the survey.

#Policy

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