According to a report from Nasscom, the IT industry in India employs over 3 million Indian citizens. It is one of the biggest private sectors in India in terms of jobs created and the market has seen a near-constant boom in the last few decades.
However, a slowdown is threatening the industry because of Covid19 and you may have to manage executing the projects with the available resources who may be ready to take on the new challenges ahead. A lot of the work that the IT industry can be automated through the invention of various technologies in robotics, artificial intelligence and process automation.
The recruitment processes of companies are getting sharper, leaner and based on data collected on how the candidates fare in the market according to their skillset. All because foreign companies are slowly getting disenchanted in the workforce of India. Although the workforce is cost-efficient, the skillset of the people is simply not on par with what companies expect.
A US-based advisory firm HFS Research predicts that at least half a million jobs will be obsolete, leading to a 14% reduction in the IT workforce in India.
The Challenge That Threatens the IT Industry
According to various news sources, the IT industry is struggling to find a talented workforce that could handle varied roles that need technical knowledge and the use of advanced software and tools.
As a matter of fact, the Indian IT industry has always fostered a mentality of quantity over quality to ensure that clients always saw enough workforce in the organization that would be capable of handling large or challenging projects. This has created the culture of a bench system, where millions of workers remain in waiting for new projects to come in the pipeline.
Yet, these workers are unable to handle the shift in the technology sector that has been widely focusing on artificial intelligence, Machine learning, blockchain and the internet of things in various sectors and projects.
Who Are In Danger Of This Crisis?
The middle-level employees in a company are particularly threatened because they have a convenient way of operating. The technology has massively overhauled as they have remained steady in their skillset and did not acquire certifications or training in any other technology.
As companies move away from older technologies, these jobs will slowly become redundant. These employees will be left behind in the wake of a technological revolution. These employees also remain one of the lower paying individuals in a company, with not the adequate skill set to match.
What Can The Industry Do?
Employees need to acquire the right skills to handle the challenges faced by their clients. Without that, businesses suffer the risk of stunted growth prospects. The industry is already seeing less and less demand in foreign markets.
A major source of income for companies have been sending experienced employees onsite, but with restrictions over visa issues, even that is becoming increasingly difficult. Profitability is being challenged by job cuts, as other markets compete to take away the jobs that Indian workers have been monopolising for so long.
Does India Lack of New Jobs Or Skill Set?
Experts in the industry, as well as analysts and various other technical gurus, have been long blowing the whistle on the industry about the shocking lack of skills. This remains the major culprit in catering to new jobs.
Industry expectation has gone beyond what the archaic curriculums of Indian technological institutes can handle. This is taking a toll on the Indian economy too. So the problem remains always entangled. The industry is not seeing the creation of new jobs due to what is lacking in the skillset. And the skillset stagnation is causing jobs to move away from the industry.
What Can A Company Do To Improve The Skill Set Of Employees?
Automation is also hitting the industry where it hurts. Major companies are looking into investing new technologies as automation makes many jobs obsolete. They need to be focusing on getting the next generation jobs in the bags with the talent pool they have available.
As the COVID pandemic ravages the world economy, non-essential jobs will be swiftly removed in the wake of an economic crisis where companies struggle to create new opportunities for themselves and their employees.
The hope remains in the hands of modern technologies that can assess the skills of a company’s existing pool of talents and create insights that companies can utilize in understanding the current workforce development needs and prepare them for the next wave of opportunities.
We at Litmus have created an AI Assisted workforce development solution that evaluates every single employee’s capabilities over 50+ different parameters to understand the role fitness of an employee for different project and job requirements. Now companies can understand their workforce better and plan development and training needs accordingly.
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