Majority of workforce in IT services firms will become irrelevant; 2 lakh IT engineers to lose jobs annually
May 15, 2017, 10:42 IST
The motto for the IT industry is to re-skill or sit at home. Newer advancements are being made in the technology field and majority of the companies are still unprepared for the same.
As companies are unable to adapt to new technology, this will result in a massive job cut in the IT sector.
As per an executive search firm Head Hunters India, the job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years.
"Contrary to media reports of 56,000 IT professionals to lose jobs this year, the actual job cuts will be between 1.75 lakh and 2 lakh per year in next three years, due to under- preparedness in adapting to newer technologies," Head Hunters India Founder-Chairman and MD K Lakshmikanth told PTI, analysing a report submitted by McKinsey & Company at the Nasscom India Leadership Forum on February 17.
McKinsey & Company report had said nearly half of the workforce in the IT services firms will be "irrelevant" over the next 3-4 years.
McKinsey India Managing Director Noshir Kaka had also said the bigger challenge ahead for the industry will be to retrain 50-60 per cent of the workforce as there will be a significant shift in technologies. The industry employs 3.9 million people and the majority of them have to be retrained.
However, the job cuts will not take place in major cities like Mumbai or Bengaluru, but cities like Coimbatore or a few remote places.
Lakshmikanth further said the IT services industry is passing through an uncertain time as the growth in digital technologies like cloud-based services is happening at a much faster pace and the companies are combining learning of some of the new technologies and reskilling.
"Because of the changing technology, the most affected will be the professionals aged 35 and above, for it would be very difficult for them to get jobs," Lakhsmikanth said.
Asked if it is fair to blame US President Donald Trump's policy for job cuts, Lakshmikanth said it is not fair because he has fulfilled the promise after winning the elections.
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As companies are unable to adapt to new technology, this will result in a massive job cut in the IT sector.
As per an executive search firm Head Hunters India, the job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years.
"Contrary to media reports of 56,000 IT professionals to lose jobs this year, the actual job cuts will be between 1.75 lakh and 2 lakh per year in next three years, due to under- preparedness in adapting to newer technologies," Head Hunters India Founder-Chairman and MD K Lakshmikanth told PTI, analysing a report submitted by McKinsey & Company at the Nasscom India Leadership Forum on February 17.
McKinsey & Company report had said nearly half of the workforce in the IT services firms will be "irrelevant" over the next 3-4 years.
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However, the job cuts will not take place in major cities like Mumbai or Bengaluru, but cities like Coimbatore or a few remote places.
Lakshmikanth further said the IT services industry is passing through an uncertain time as the growth in digital technologies like cloud-based services is happening at a much faster pace and the companies are combining learning of some of the new technologies and reskilling.
"Because of the changing technology, the most affected will be the professionals aged 35 and above, for it would be very difficult for them to get jobs," Lakhsmikanth said.
Asked if it is fair to blame US President Donald Trump's policy for job cuts, Lakshmikanth said it is not fair because he has fulfilled the promise after winning the elections.
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"How can we blame Trump, for he has fulfilled the election promise of giving jobs to local people including IT professionals by tightening H1-B visa norms, which were being misused by companies by paying less to foreign professionals working in US. It is for companies to tackle the situation, and such situation they have undergone in previous years. It is not new for them. They know to tide over it," he said.