Information technology is playing an important role in India today and has transformed India’s image from a slow moving bureaucratic economy to a land of innovative. The IT sector in India is generating more than 2.5 million direct employments. India is now one of the biggest IT capitals of the modern world and all the major players in the world IT sector are present in the country.
But in this sector, there are few shocks that the employees had to face during their job period. Now as per a report from HfS Research, a research firm in the US, it is said that owing to automation, around 6.4 lakh low-skilled jobs are at risk! While estimating, 1 out of 5 jobs would be at risk in coming few years. All these jobs are in India’s BPO and IT sector.
CEO and Chief Analyst of HFS’s 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.”
Here the good news is that ‘the firm also says that with these job losses owing to automation, new opportunities would be created in high-skilled segment.’ It also predicted that around 1.6 lakh job opportunities would be created which need medium and high-value skills.
Mr. Fersht says that “India has to focus on new avenues now for creating jobs in BPO and IT sectors. Engineering services in a bright spot, and so is analytics.” This situation occurs not only in India but also in other countries like UK and US. While the UK has 2 lakh jobs at risk, US has 7.7 lakh jobs at risk.