People may not be employed in that industry but many seek employment in it. Even when it pays much less than what would be considered reasonable, it’s more than what other professions pay. But yes it’s a dubious claim that IT is actually absorbing all that labor, more likely that IT industry has created an economic boom that has created non IT jobs in cities and not many younger Indians find the idea of being a coconut picker an attractive career.
This applies to other professions as well: education naturally makes families aware that they don’t need to continue in menial professions in villages so they send their kids to towns or cities.
I remember a bitch by someone that worked providing low income housing. What he said was one 'tech worker' whatever that tech is. Indirectly generates 2-3 support jobs. So for every tech worker you need to house 4 people.
In the case of India with a rising middle class for every family there are three other families providing services to them. No matter how shitty that work might be it's probably easier than harvesting coconuts.
I remember things my Mexican friend said about his family. In the 50's their grandfathers were seasonal farm workers in California. And then full time farm workers. The next two generations left farm work for things like working autobody shops, painting cars, making high end furniture. My friend and his brothers run and electronic assembly business. So moving up.
This applies to other professions as well: education naturally makes families aware that they don’t need to continue in menial professions in villages so they send their kids to towns or cities.