Recent technological advancements in IT industry are reshaping
the whole industry. The march of automation will eliminate thousands of low
skill jobs in the sector in the years to come. Already growth has stalled in
most of the IT services businesses. Adapting to new measures becomes inevitable
for them. Do you remember how much buzz BPO companies were making ten years
ago? Observe how they got transformed over time. If not same, similar process
is underway for IT industry too. Hiring in big numbers will become a thing of
past. When the profitability gets hurt, industry consolidation begins, and that
would consume one of the top four IT services companies in India as mergers
gather pace. By then you would accept, IT has ceased to be a mass market. But
that is only one side of the story. The other part is very rosy.
Low skilled jobs will be automated and they will have to move to
other sectors and the pay outside IT is catching up too. Keep in mind seventh
pay commission amendments. And for the top talents, they need not line up
in front of US Consulate office for a visa, they will the get right job and the
pay here in India. Did you ever wonder who would buy those Rs. 2.5 Crores
villas and the Jaguar, Land Rovers? They will not be limited to CxO and NRI’s,
a new class is getting elevated. In the short term, it may look like they are
an island in an ocean of poverty but eventually the benefits will spillover as they
will take up the domestic economy too with them.
No comments:
Post a Comment