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View All NewsIndia – IT job growth set to slow
The Indian IT industry may not be able to sustain its rapid growth as technology improvement will de-couple revenue growth from headcount, according to a report by the National Association of Software and Service Companies (Nasscom), reports The Times of India.
The report, 'Perspective 2025', said that while three million jobs were generated by 2014. When the industry hit USD 100 billion in revenue; it would not be possible to both double industry wide revenue and create the same number of jobs.
"In the new digital environment, productivity is being driven by technology improvements, rather than labour growth, and this de-coupling of revenue from headcount is likely to continue," the report said.
The report said crucial factors leading to greater employee productivity will change drastically in the years to come. Digital service lines and greater level of automation are among key reasons.
"Digital service lines require a smaller staff to earn the same revenue because of the premiums they command," the report found.
On the increased levels of automation, it said 20% of the underlying processes could be automated, especially with migration to cloud-based services. "In BPM services, 50% of the processes could be automated as they become digitised and decisions are increasingly driven by analytics rather than rules enforced by individuals."
The report said that to meet the changing staffing trends, technology companies will need to hire specialists with expertise in digital technologies, including big data analytics, mobile application development, new user interfaces, social media, and cyber-security.