3 Million IT Jobs To Be Reduced By 2022, To Save $100B Costs.
- ByStartupStory | June 17, 2021
Domestic software Firms that have employees over 16 million will reduce the number by 3 million by 2022, which will help them to reserve a whooping USD $100 billion mostly in terms of salaries annually. According to Nasscom, the domestic IT sector employs around 16 million, of which around 9 million are employed in low-skilled services and BPO roles. However, out of these 9 million low-skilled services and BPO roles, 30 percent or around 3 million will be lost by 2022, principally driven by the impact of robot process automation (RPA). Around 0.7 million jobs are expected to be replaced by RPA alone and the rest due to other technological upgrades and upskilling by the domestic IT players, while the RPA will have the worst impact in the US with a loss of almost 1 million jobs, according to a Bank of America report on Wednesday.
TCS, Wipro, Infosys, Tech Mahindra, HCL, and Cognizant, and others appear to plan to reduce 3 million low-skilled roles by 2022 because of RPA up-skilling. Robot process automation (RPA) is the application of software, not physical robots, to perform routine, high-volume tasks, allowing employees to focus on more differentiated work. It differs from ordinary software applications as it mimics how the employee has worked instead of building a workflow into technology from the ground up and thus minimizing time to market and greatly reducing cost over the more traditional software-led approaches.
Many countries that had offshored their work in other countries are likely to bring it to their home country thus leading to Another key reason for the RPA-driven job losses. Developed countries will likely significantly bring back offshored IT jobs and either use native IT workers or domestic software robots like RPA to safeguard their digital supply chain and ensure the future resiliency of their national technology infrastructure.
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