The 150 billion dollar Indian industry is facing a threat right now. The reduce in fresher hiring which was prevalent during the recent years has taken a larger hit owing to the recent laws that Trump decides to implement, one which would force the American industries to hire more native Americans rather than other country people.
At the turn of the century, a boom in the IT sector led by companies such as TCS, Infosys and Wipro translated into the creation of thousands of white collar jobs in the country, and a relatively easy opportunity to work onsite in the mature markets of US and Europe. This has now moved on into a need for automation, most probably called as the 4th Industrial Revolution, which now forces the companies to move into a phase where they could hire lesser number of employees, depending more on machines.
Since these companies had their workforce in almost every services you name, they were recruiting employees in a large number. But no more says experts. Experts estimates that 80% of offshore IT jobs and 30%-40% of finance and accounting jobs in India will be eliminated by robotic process automation, which is the application of technology to process a transaction and carry out other tasks.
“Across almost every service, we see the impact as eliminating between 30% and 80% of the full time equivalent working in the Indian services industry. We believe that it will take at least 10 years for the industry to reach the upper bounds of this range, and this adoption will shrink existing legacy book of business 3% or more this year,” said Bendor-Samuel of Everest group.
According to a report automation endangers 7 out of 10 jobs in India. The focus the Industry had on hiring would now hopefully change to re-skilling. The entire industry is hiring lesser fresher every passing day and job at the bottom of the pyramid are getting endangered every passing day.
To second the statement Infosys has hired 5,719 people in the first nine months of this fiscal, down from 17,196 in the same period a year earlier.
In the third quarter, Infosys ‘released’ about 2,650 full-time employees’ worth of effort in application maintenance, package system maintenance, BPO, and infrastructure management, taking the total number to 9,000 in a year. Wipro targets to release about 4,500 by April.