Output - Employment trade-off in the growth of India's it and ites post reform scenarios

India has drawn worldwide attention as a globally competitive supplier of Information Technologies (IT) IT Enabled Services (ITES). It has been well documented in several research studies that the ‘software service’ sector not only contributes significantly to export earnings paper GDP but also acts as a major source of employment generation in the country. In this employmentwe have made an attempt to study the trade-off between the processoutput objectives of growth to identify the contributing factors responsible for the growth of employment in India's software industries. In order to do this Effect we have undertaken a decomposition framework where the total change in employment has been decomposed into four factors namely Productivity Change Effect Structural Change Effect Pure Growth Cross Effect. Our entire study period has been divided into four phases such as Phase-I (1993-94-1999-00) Phase-II (199900-2003-04) Phase-III (2003-04-2007-08) overall Phase (1993-94-200708). We observed a mismatch between the output concerned employment growth in all the phases under study where it seemed that output growth could not keep pace with the employment growth. As far as the decomposition results are we found that in phase-I(1993-94-1999-00) Phase-II (1999-00-2003-04) overall phase(1993-94-2007-08) Pure Growth Effect(size effect) Structural Change Effect mainly contributed to the employment growth in software industries but in phase-III(1993-94-2007-08) all the component forces worked together to increase the employment significantly.