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Job Challenge in IT Sector

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March 26, 2017

What is the issue?

Along with new raising challenges, automation and cloud computing has also drastically altered employment opportunities in the IT/ITeS sector.

What are the facts?

  • Indian IT/ITES companies are sharply pruning new hiring.
  • In 2016, the sector absorbed 100,000 new engineering graduates.
  • This year, it will make offers only to about 60,000 new engineers.
  • Within a few years, it could start shedding jobs.

What are the reasons?

  • Technology has led to a change in the profile for IT hires as well, and personnel needs have reduced in aggregate.
  • Putting services on the cloud, which is a network of remote servers hosted on the internet, has led to the demise of dedicated systems departments.
  • Automation has taken over a vast range of low-end tasks such as maintenance, and writing and testing code.
  • These can now be performed with minimal human intervention.
  • Artificial intelligence, coupled with the Internet of Things, also helps with the diagnosis and repair of mechanical devices and even with the repair and maintenance of smart roads and smart buildings.
  • It is now more about finding creative new ways to exploit and deploy promising new technologies.

What are the challenges?

  • Vast efforts are required to re-skill new engineers to do this.
  • It is a difficult task since India’s engineering courses are not renowned for their emphasis on developing creativity and original thought.
  • In addition to the technological challenges, there are also the stresses caused by Brexit and by fears that the USA might soon tighten visa requirements.
  • On the supply side, engineering colleges are churning out vast numbers of coders trained to perform tasks that no longer need large-scale human intervention.
  • On the demand side, the industry wants creative thinkers but those are scarce.
  • In addition to the mismatch, a slow global economy has led to low IT investments with clients reluctant to splurge.
  • It is hard to see what policymakers can do, beyond enabling and encouraging re-skilling efforts.

 

Source: Business Standard

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