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.
Executive search firm Head Hunters India today said the job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years due to under-preparedness in adapting to newer technologies.
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 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.
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.
The government said IT industry has assured it that there will be no large scale job losses in the technology sector+ which continues to demonstrate 8-9 per cent growth.
IT Secretary Aruna Sundararajan said there could be some cases were contracts are not renewed as part of the regular annual appraisal cycle.
Besides, she said, the industry is also undergoing a shift in the job profile given the advent of cloud, big data and digital payments.
"Some of the companies which have been named (as undertaking job cuts) have clarified that there is nothing big this year," she said on the sidelines of Broadband India Forum event.
Sundararajan added: "As part of annual appraisals, they may not be renewing contract of some people but it is absolutely incorrect to assume that suddenly this year a large number of jobs are being shed."
So if you're an engineer in IT sector try to adopt to new technologies(cloud based mainly) or it is possible you'll be shown the door the very next day.
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