IT Sector in India to Lose Up to 6 Lakh Low Skilled Jobs to AI and Robots by 2025

Technology

The progression of Artificial Intelligence and Robots is partly responsible for the loss of jobs in India. A developing country which still needs to improve its job opportunities is undergoing turmoil thanks to automation.

The easiest way to kick out poverty is exercising manufacturing units. India has seen steep decline of 30% to 40% in manufacturing over the past couple of years. When “Make in India” campaign initiated by Prime Minister Narendra Modi is expected to help to generate more jobs, the ground reality is something different. Government is planning to fuel the tech development and innovation but it is not about creating more jobs.

Currently, IT-BPO industry employs over 3.7 million workers and the automation will impact adversely on those working in infrastructure management and BPO industries. The campaigns like “Digital India” and “Make in India” are focused on creating robust technologies which may replace low-skilled jobs. Every month, the country generates over 1 million job seekers but only 0.01% of them succeed in getting a job. If it continues, India will have over 100 million youth unemployed by 2025.

Along with tech and IT, automation will also impact heavily on manufacturing industry. For traditional IT jobs, the integration of automation will take whopping 30% bite from the workforce. Adding AI and automation to the traditional IT solutions will cost the loss of over 600,000 jobs for the professionals.

Some of the top IT companies like Infosys, Wipro, Cognizant, and TCS have started cutting the number of job positions in the country. Due to the strict H-1B rules, IT sector is forced to assign the talent in the US only. The startup which once forced white and blue-collared positions is now adopting robots and AI in their units in Gurgaon. These robots are programmed to stack and lift boxes. There are 200 robots in e-commerce warehouses in Gurgaon.

The digital economy is going to show difficult time to the nation. On one side, it will develop highly advanced payment gateway and banking interface. While on the other side, it will cause the loss of millions of jobs. If the per capita income increases, it is very important to create job opportunities in manufacturing for a large number of unemployed citizens.

According to HfS Research, IT industry is going to see the 9% of net loss in headcount by 2021, which accounts for over 1.4 million jobs, with nations like the United Kingdom, the Philippines, and the US.

 

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