Well, are you aware that the IT industry of India generates majority of employment opportunities? Yes, this $150 billion industry generates around 3.5 million jobs in India. However, owing to automation and rising competition, IT industry is struggling a lot.
Now as per a report from HfS Research, a research firm in US, it is said that owing to automation, around 6.4 lakh low-skilled jobs are on risk! Yes, this means that 1 out of every 5 jobs would be at risk in next 5 years. These are jobs in none other than India’s BPO and IT sector. Some jobs that are at biggest risks are repetitive or routine tasks in IT sector.
The IT industry is already experiencing automation. Now, for driving revenue growth, outsourcers no more depend on workforce. CEO and Chief Analyst of Hfs Research, Phil Fersht states
“India has enjoyed hyper-growth in its services industry for over two decades now, and this is the first time a decline is now setting in, in terms of worker numbers. Its leading service providers will maintain high margins for several years to come, but their growth through linear employee scale addition is on the slide,”
However, the firm also says that with these job losses owing to automation, new opportunities would be created in high-skilled segment. Now, the firm has made a prediction that around 1.6 lakh job opportunities would be created in BPO and IT sector which need medium and high value skills.
Mr. Fersht also adds that India has to focus on new avenues now for creating jobs in BPO and IT sectors. Further, he states “Engineering services in a bright spot, and so is analytics,”
Fersht asks “Moreover, India has a very strong competency for process and, automation capability. So why not become a leader in helping clients access better data from better automated processes?”
Even in other countries like UK and US, low-skilled jobs are pretty much at risk. While UK has 2 lakh jobs at risk, US has 7.7 lakh jobs at risk.
So guys, this is indeed a very bad news, isn’t it? Do let us know your thoughts in the comments section below.
