According To A Report, Indian IT Firms Are Set To Cut 3 million Jobs By 2022

According to a survey, with automation happening at a considerably faster rate across industries, notably in the IT-sphere, domestic software enterprises with over 16 million employees are on track to cut headcounts by a colossal 3 million by 2022, saving them a large USD 100 billion in pay yearly.

The domestic IT sector employs over 16 million people, with roughly 9 million workings in low-skilled services and BPO roles. By 2022, 30 per cent of these 9 million low-skilled services and BPO jobs will be lost, roughly 3 million, owing to the influence of robot process automation, or RPA.

This will free up roughly $100 billion in annual salaries and associated expenses for corporations based on average fully-loaded employee costs of $25,000 per year for India-based resources and $50,000 for US-based resources.

"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."

RPA uses software rather than physical robots to execute routine, high-volume activities, allowing employees to focus on more specific jobs.

It differs from other software products. It imitates how employees operate rather than integrating a workflow into technology from the bottom up, cutting time to market and drastically lowering costs.

Another explanation for the employment losses caused by RPA is that many countries that had previously offshored their business are likely to return the jobs to their native markets. However, despite such colossal automation, big economies like Germany (26 per cent shortfall), China (7 per cent), India (5 per cent), Korea, Brazil, Thailand, Malaysia, and Russia will experience labor shortages, cautions the report.

India and China are the countries most at risk of losing their capabilities, while ASEAN, the Persian Gulf, and Japan are the least at risk. Because of the low-/mid-skilled character of sectors like manufacturing, perhaps the most concerning tendency is that emerging market employment are most at risk of automation.