If you are working in an IT company in India, this may sound as a warning bells. It is high time to sharpen your skill set, failing to which you may end up losing your job.
Neatly 30 lakh IT professionals in India will lose their job by 2022 due to the increasing automation companies nowadays are bullish about. According to a recently published Nasscom report, companies across all sectors are actively upgrading themselves to optimise their operations to reduce their production cost and increase their profit margins. As result, automation is taking place at a much faster rate in India than expected earlier. Indian IT sector is no exception, and increasing adoption of RPA (Robot Process Automation) software will lead to massive layoffs in years to come.
Such automation is estimated to help software companies of India save an estimated $100 billion annually in terms of salaries and other expenses.
Job Loss in Indian IT Firms: Big Picture
- 1.6 crores people are employed by Indian IT firms. Nearly 90 lakh of those are employed in low-skilled and BPO roles.
- 30 lakh jobs in Indian IT firms would be slashed by 2022.
- These job losses will primary hit employees offering low-skilled services and the BPO sector.
- Robot process automation (RPA) will primary be the cause behind these job losses. RPA is the application of software, not physical robots, to perform routine, high-volume tasks, allowing companies to cut down the workforce or shift their focus on more differentiated work.
- RPA alone will replace nearly 7 lakh roles. The rest of the job loss would occur due to technological upgrades and upskilling by companies.
- The US would be the worst hit from the RPA, according to another report from Bank of America. 10 million job role would be faded off due to the aggressive implementation of RPA by the tech companies in the country.
- All the leading Indian IT firms are planning to reduce head counts that will help them save $100 billion in salary and other costs.
- On the other hand, it’s a $10 billion opportunity for companies offering RPA related services.
- As many developed countries are committed to local employment, increasing pressure on IT companies to bring back jobs to native countries is one such reason behind the massive job losses that Indian IT companies may face.
- To maintain the balance between increased expenses due to local employment and government push, companies are aggressively and actively turning towards automation and RPA will play a crucial role in that.
- Despite such job loss, there will be a huge gap between the demand and supply of labours in countries like India, China Germany, Korea, Brazil and Thailand.
- South Africa, Greece, Indonesia and the Philippines will have to deal with the problem of surplus labour for the next 5 years.
- Emerging economies India and China will go through technology-driven disruption which will impact 85% of jobs in Kenya and Bangladesh.
Food For Thought
The writing is on the wall for all professionals; it’s high time to sharpen your skillset and upskilling. As the market is becoming competitive companies are not shying away from opting for tools and processes that could reduce their dependency on humans.
Robots, be it hardware or software, are ready to eat up your job. The only way to survive and thrive is to make yourself prepared for a role that can’t be easily automated or replaced by machines of software tools.