JOIN USNo job loss in IT sector, top 5 firms to hire 96,000 in FY22, says Nasscom
The National Association of Software and Services Companies (Nasscom) on Thursday allayed fears of job losses in the IT industry and stated that there will be more job creation by the top IT services companies.
The IT sector will continue to be a net hirer of skilled talent and the top 5 IT services companies are planning to add over 96,000 employees during the current financial year, the IT industry body said in response to a report on massive job losses in the sector this year.
Bank of America in a report on Wednesday said with automation taking place at a much faster pace across industries, domestic software firms are set to slash jobs by a massive 3 million by 2022. Currently, the Indian IT sector employs around 1.6 crore workers. In FY21, the industry added 1.38 lakh people.
"With the evolution of technology and increasing automation, the nature of traditional IT jobs and roles will evolve overall leading to creation of newer jobs," Nasscom said in a statement.
With one of the strongest deal in the pipeline and a strong business outlook, the industry is on track to meet its vision of achieving $300-350 billion revenue by 2025. The industry is committed to people-centric innovation, relentless talent focus, and delivering a superior transformative customer experience, Nasscom said.
The industry is upskilling more than 2.5 lakh employees in digital skills and has hired more than 40,000 fresh digitally trained talent, indicating its commitment and investment towards rapid enhancement of workforce capabilities, Nasscom said.
The BPM sector in India, which has been called out as the sector ripe for automation, employs over 14 lakh people (excluding domestic and in-house) and not 9 million as the report suggests.
The IT-BPM sector overall employs 45 lakh people as of March 2021. Around 33 per cent of the total jobs in the BPM sector are related to customer interaction services (call centre work including mail, chat etc). Most of the customer work from India is now being done in an omnichannel model and involves higher-end expertise with technology and automation already built into the processes.
Automation and RPA have been maturing in the last 3 years and have led to a net creation of jobs for the BPM sector. The addressable opportunity for BPM according to a NASSCOM-McKinsey Report is $180-220 billion, leaving significant headroom for growth and jobs.