Nasscom Expresses Concern Over Karnataka Employment Bill Impact on Tech Sector

The National Association of Software and Service Companies (NASSCOM) has voiced its disappointment and deep concern over the potential implications of the proposed Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024. This legislation, if enacted, would mandate private companies operating in the State to prioritize local hiring for Group C and D category positions.

NASSCOM has raised alarm at the negative impact this bill could have on the tech industry, citing risks to growth, job opportunities, and the overall global reputation of the state. With significant contributions to the state’s GDP and a substantial portion of the digital talent pool, including over 11,000 startups and 30% of the total Global Capability Centres (GCCs), NASSCOM emphasized the potential repercussions of local employment laws on the industry.

According to NASSCOM, the stringent provisions of the bill could lead to a reverse in the progress made by the tech sector, resulting in the possible relocation of companies and a hindrance to startup innovation. The organization highlighted the critical importance of attracting skilled talent for knowledge-led businesses and warned that scarcity of local skilled workers could drive firms away from the state.

While acknowledging the value of a strong local talent pool, NASSCOM proposed a dual strategy to nurture the tech sector, emphasizing the need for policies to attract top global talent in conjunction with investments in formal and vocational education to build a sustainable workforce. The organization stressed the urgency of addressing these concerns and requested an immediate meeting between industry representatives and state authorities to safeguard the state’s technological advancement.