Significant shift in technology is the main reason
Executive search firm Head Hunters India on Sunday said the job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years due to ‘under-preparedness’ in adapting to new technologies.
“Contrary to media reports of 56,000 IT professionals to lose jobs this year, the actual job cuts will be between 1.75 lakh and 2 lakh per year in next 3 years, due to under- preparedness in adapting to newer technologies,” Head Hunters India Founder and MD, K Lakshmikanth told PTI, analysing a February report submitted by McKinsey & Company.
McKinsey & Company report had said nearly half of the workforce in the IT services firms will be “irrelevant” over the next 3-4 years. The firm’s India managing director Noshir Kaka had also said the bigger challenge ahead for the industry would be to retrain 50%-60% of the workforce as there would be a significant shift in technologies. The industry employs 3.9 million people and a majority of them have to be retrained.
“So, the number of people who will become redundant in the next 3 years will be about 5 to 6 lakhs. This will workout to, on a average, between 1.75 lakh to 2 lakh per year for next 3 years,” Mr. Lakshmikanth said.