If you thought that pandemics and lockdowns were the real threat to IT jobs, then you will need to think again.
As per a high-profile report that has caused ripples across the IT industry, it has been estimated that the top IT firms in India and globally can fire up to 30 lakh employees in the next few months.
These IT firms include TCS, Infosys, Wipro, HCL, Cognizant, and others. The rise in automation has been attributed as the primary reason for this mass firing.
What’s happening here?
Automation Will Wipe Off 30 Lakh IT Jobs
Bank of American has released a report on the job prospects in the IT industry, and the outlook is bleak, at least for the employees.
As per the report, 30% of the low-end IT jobs can be wiped off due to the rise in automation. And every major IT company in India and globally will have to participate in the culling of jobs to save money. It seems it’s inevitable.
The report said, “TCS, Infosys, Wipro, HCL, Tech Mahindra and Cognizant and others appear to be planning for a 3 million reduction in low-skilled roles by 2022 because of RPA up-skilling. “
Which IT Jobs Will Be Terminated Due To Automation?
IT and ITeS industry employ roughly 1.6 crore employees in India. Out of this, 9 million are low-end, repetitive sort of jobs that can be automated easily. Hence, as per the report’s findings, 30% of these 9 million jobs are at risk as early as 2022.
Top IT companies such as TCS, Infosys, Cognizant, Wipro, HCL, and others can remove this 30% of the jobs from the low-end IT spectrum and deploy the Robot Process Automation process or RPA.
How Will IT Firms Benefit?
The report states that the IT companies can save a direct $100 billion in salaries, in case 30 lakh jobs are removed in the next few months.
Besides, $10 billion will be indirectly saved by the IT firms due to less no. of people working. $5 billion markets can be created from scratch for developing such robot-based automation software for other companies.
Note here that RPA or Robot Process Automation are bots or software that mimic what an employee manually does and processes it automatically. RPAs can work 24*7, and one bot can easily do the work of 10 employees.
We will keep you updated as more details come in.