Tough times seem to be ahead for India’s engineering graduates as automation is making many jobs redundant in information technology (IT) companies.
Tough times seem to be ahead for India’s engineering graduates as automation is making many jobs redundant in information technology (IT) companies. According to Nasscom, of the 16 lakh engineering graduates who pass out every year, only 2 lakh are likely to be hired by established IT firms this year, the lowest since 2009. To cater to the changing needs, companies are reducing bench strength, adopting automation and re-skilling employees. Instead of the current one-time training scheme, IT companies are expected to over time adopt an ongoing training scheme while incentivising self-learning. Over the next decade, 5-10% of the jobs would be automated. While technology will displace some jobs, it will also create some new jobs in the areas of biotech, nanotech and smart technologies.
Though the Indian IT industry is the biggest employer with 3.7 million employees, it would need 1.2-2 million more heads to achieve the revenue target of $100 billion by 2025. But, it estimates that between 60-70% of the workforce would need re-skilling by 2025. Nasscom believes that there are five forces at play. This includes: rise of emerging markets, ageing global population, power of disruptive technologies, integrating world and the return of geo-politics. There is currently no panic in the industry over the emergence of Donald Trump as a US presidential candidate. It’s a case of wait and watch.