The risk of job loss for people working in the field of information technology is increasing as automation in industries grows (IT). According to a recent Bank of America analysis, domestic software companies, which employ 16 million people today, are planning to lay off three million workers by 2022. They will be able to save $100 billion every year as a result of this.
According to Nasscom, the domestic IT sector employs over 16 million people, with approximately nine million, working in low-skilled and BPO jobs. Robotic process automation, or RPA, will put 30 percent of these 9 million low-skilled services and BPOs out of work by 2022, or around 3 million workers.
According to the survey, firms including TCS, Infosys, Wipro, HCL, Tech Mahindra, and Cognizant, among others, plan to up-skill 3 million low-skilled workers by 2022. According to the survey, India-based resources cost 25,000 dollars per year, whereas US resources cost 50,000 dollars per year. Companies will save around $100 billion in salaries and corporate expenses as a result of the layoffs.
India and China would be the hardest hit by skill disruption. While ASEAN, the Persian Gulf, and Japan are all at risk, perhaps the most concerning trend is that jobs in emerging nations are the most vulnerable to automation due to the low / mid-skilled nature of fields such as manufacturing.
What Are the Benefits for IT Companies?
According to the estimate, if 30 lakh jobs are eliminated in the next few months, IT companies will save $100 billion in pay.
Furthermore, IT companies will save $10 billion in the long run by employing less staff. For building such robot-based automation software for other enterprises, a $5 billion market can be formed from scratch.
RPA, or Robot Process Automation, is a type of bot or software that mimics what an employee performs manually and automates the process. RPAs can work 24 hours a day, seven days a week, and one bot can easily replace ten employees.
Is Work from home acting as a Catalyst?
Experts believe work from home has made companies realize their true employees and has enabled the companies to make better business decisions as they see a sharp rise in performance improvement and less absenteeism, this has led to discussions among the senior management to utilize less but more reliable manpower in the upcoming days.
Stay tuned to get more updates!