Human resources consultants say that at least one-third of Indian IT professionals, or about one million engineers, are not qualified to cope with the rapid development of software technology. Industry experts warn that unless engineers can improve skills, or they may find themselves unemployed. The most vulnerable part is middle-level employees, which, according to some estimates, account for about 20% of the total IT workforce of 3 million. According to industry experts, only a small percentage of the 600,000 employees have skills related to new technologies and advanced technologies. The rest are unlikely to be suitable for roles that require artificial intelligence, the Internet of Things (IoT), and network security knowledge.
Mr. Yeshab Giri, head of Randstad India, told FE and IT that companies are looking for layoffs, but at the same time, they want to be humane. Indeed, when the business has not yet flourished, in any case, many companies are laying off employees, and the first to go are those who can no longer be skilled. A Nasscom report estimates that in response to emerging trends such as AI, IoT, machine learning and blockchain, India must retrain 40% of its workforce over the next five years.
In 2018, the industry created 170,000 new jobs, and 600,000 people regained digital skills. IT companies are rebuilding their teams to adapt to emerging technologies. For example, it is reported that Infosys will cut about 2,200 senior executives, and Cognizant recently said it would lay off about 7,000. Infosys Chief Operating Officer Mr. Pravin Rao recently told analysts that the level of attrition for technical services is about 19.4%. Mr. Rao said: If you only consider voluntary, it is about 18%. This shows that involuntary attrition is about 1.4%. New technologies such as analytics, cloud computing, and the Internet of Things are contributing more and more to revenue, although the largest part still comes from areas such as application development, maintenance, and verification.