Where Have All the Jobs Gone?

바카라�Across India, more than 30,000 emp­loyees have been retrenched so far this year,바카라� says Raja, alleging that IT companies don바카라�t always reveal the number of people who have been handed the pink slip as part of the downsizing move. In many cases, a different modus operandi is being employed by several IT companies, including Indian biggies and MNCs. 바카라�Now they are changing the mode of rem­oving the employees,바카라� says Raja, who works with a multinational company. 바카라�For example, an employee is first transferred from the administration or fin­ance department to a third-party vendor and then eased out from there.바카라� In many cases, the affected professionals have all­eged 바카라�pressure to voluntarily quit바카라� after a non-transparent assessment pro­cess. This, in some cases, involves emp­loyees who have been awarded in the previous years for exemplary work.

While recruitment age­ncies peg the number of expected job losses in the IT sector over the next three years at 1.5-2 lakh, FITE fears that the two-lakh mark may well be crossed this year alone. In fact, the trend may well continue for the next two or three years, with an average of two lakh jobs being axed every year, fears the forum, which is seeing an expansion of its base largely through social media and personal outreach to help IT professionals. FITE바카라�s fears may be exaggerated, but they do seem to have some substance.

Ankit Agarwala, director of Michael Page India, a leading professional rec­ruitment consultancy, says most job losses have been in service-based IT companies, which had largely foreign clientele. 바카라�We have not seen any significant job cuts in product- or technology-based IT companies, which usually have a dive­rse clientele,바카라� says Agarwala. 바카라�Technology companies continue to innovate and grow in India, especially in the areas of artificial intelligence (AI) and cloud-­­based technologies.바카라�

Even though in percentage terms, according to Agarwala, IT sector job losses are comparable to other sectors, but the impact is more visible in the IT sector as it employs a vast working pop­ulation in India. Not every job under risk has gone away yet. The process has just started, warn experts.

Hastimal Sagara, assistant professor of economics at GLS University, Ahm­edabad, says the estimated job losses in the IT industry in India would be far greater in 2016-17 and after, compared to the past 25 years. 바카라�Most important reasons behind this unprecedented dev­elopment are the governments of the US, the UK and Australia imposing visa res­trictions on high-skilled immigrants, Britain바카라�s exit from the European Union, slowdown in the Western economies and technological disruptions. These new developments have resulted in red­uced demand for IT exports from India,바카라� says Sagara, who is doing his doctoral thesis on the IT industry.

Sangeeta Gupta, senior vice-president, NASSCOM, strikes a contrary note. She feels fears of job losses are exaggerated as 바카라�the industry continues to be a net hirer with talent acquisition continuing across sectors바카라�. She points out that in FY2017, the industry added 1.7 lakh new jobs (six lakh in the past three years) and today it boasts of a total emp­loyee base of 39 lakh (including 95,000-1 lakh in start-ups and 50,000-60,000 in eCommerce).

바카라�The sector is still one of the largest employers in the country. While there is a gentle deceleration in the net hiring growth rate due to shifting focus towards innovation, lower attrition and enhanced efficiencies, the sector continues to hire fresh as well as lateral employees in equal proportion. This indicates opportunities for employment at the entry as well as the mid-management level,바카라� says Gupta, adding that the industry has been going through a phase of transition with the focus shifting from scale to skill and proficiency levels.

Industry lobbyists claim that dependence on a few geographies like the US is giving way to IT companies exploring new markets to diversify. They say new regions are being tapped to increase the possible market size. As companies ­re-a­l­ign and re-adjust themselves to the changing business scenarios, a lot of low-skill jobs are being axed, while high-skilled new jobs are coming up in cyber security, mobile app development, new user interfaces, soc­ial media, data science and platform engineering, along with new skills like big data analytics, cloud computing, service delivery automation, robotics, AI, machine learning, and NLP (natural language processing) among others바카라�all sub-domains of the digital economy.

Mohan Lakhamraju, founder and CEO of Great Learning, describes the job churn in the IT sector as part of the 바카라�fourth industrial revolution바카라� that we are witnessing (the first being the invention of steam engine; the second, the introduction of assembly line production that revolutionised manufacturing; and third being the advent of computers, which now pervades every aspect of life).

바카라�The fourth industrial revolution is being created essentially by data and intelligence. It is happening not because just computing devices but any device around us is now increasingly becoming able to communicate, compute and store data,바카라� says Lakhamraju. 바카라�As a result, any job that inv­olved routine processes, where it is about processing of data gathered, using a set of instructions, can now be completely automated by putting in place software with the requisite instructions. For example, there is a lot of automation happening in the BPO (business process outsourcing) sector, which is referred to as the Robotic Process Automation. BPO, as we know it, is going to disappear. Similarly, in the IT sector, those who were doing manual testing of software are soon going to become obsolete as testing is going to become automated.바카라�

The increasing shift to automation in financial audit of companies or banks to track discrepancies and fraud, also by the Indian government, in tracking irr­egularities in bank deposits post dem­onetisation is a reality. Similarly, the $150 billion Indian IT sector is in the process of reinventing itself to remain relevant with more focus on technology products. 바카라�At the altar of this goal, it is willing to sacrifice much of its existing workforce instead of investing in reskilling them and is instead focusing on rec­ruiting young people with little or no work experience at lower salaries,바카라� all­eges R. Vasumathi, president of FITE.

Corroborating the fears of the forum, Sagara says that due to disruptions ­created by newer technologies, the ­ret­renchment rate would far exceed the recruitment rate at least in the time to come. Unless IT professionals are ­ret­­rained, reskilled and repooled as per the demand in the industry, many among the existing workforce would continue facing the real danger of job losses in the near future.