Automation Unlikely To Affect High-skilled Jobs

Automation is most certain to take up almost one-third of 'low-skilled' jobs, about 7 lakh, in the Indian IT industry by 2022, finds a US-based research firm HfS Research.

However, the report also predicts the number of 'medium-skilled' and 'high-skilled' jobs to go up by 1 lakh and 1.9 lakh, respectively. Across the globe, HfS Research said the IT industry would see a net decrease of 7.5 percent in headcount by 2022, with countries like the US, UK and India taking a hit.

Nearly 35 percent of low skilled IT/BPO staff has 50 percent likelihood of automation in the next 4 years with underlying growth at -1.5 percent for this category. 15 percent of medium skilled IT/BPO staff has 50 percent likelihood of automation in the next 5 years. Underlying growth is 5 percent for this category. FIve percent of high skilled IT/BPO staff has 40 percent likelihood of automation in the next five years with latent growth at 10 percent for this category.

The research firm cites the aggressive uptake of RPA (Robotic Process Automation) and AI as the primary reasons for the reduction in headcount. It adds that RPA is merely accelerating the elimination of rote jobs while increasing the need of high-skilled jobs by 57 percent.

The report said, "Companies are taking time to build the impact of RPA into service contracts. Time is on our side to manage the transition and train staff for the future. The next five years we can manage, it's the five after that when the impact on labor becomes much more challenging."

The firm has increased the predicted low-skilled job loss numbers from 6.4 lakh at the end of 2021 in a report published last year to 7 lakhs by 2022 in the latest report. In this scenario, the report predicts that 20 percent of the total workforce needs to be re-skilled to be employable.

Rajguru Tandon

BW Reporters The author is a correspondent with BW Businessworld with keen interest in HR and employee welfare.