India is rising in an unprecedented manner, but the growth in its IT sector has also been strangely marked with massive number of layoffs of late. For a decade or so, the country’s IT talent has kept the world’s database, computer systems and back offices running. However the arrival of new technologies are quickly overhauling the existing business model, and the country’s tech giants are making all the efforts to keep pace. For many years now, the India’s profitable business model was centric to the idea that if you are looking for a low-cost location, India is your destination.
According to an online resource, cost-efficient outsourced labour that followed the daily routine responsibilities at work is now struggling to stay relevant. The focus now has shifted towards disruptive technologies such as cloud computing, robotic process automation, big data analytics and artificial intelligence. Since these technologies entail more advanced skillsets to operate, the IT firms in India are either reskilling or replacing the current work force. Some industry experts believe a large porting will find it difficult and struggle to pick up new skills. While companies will find it difficult to retraining its employees, they will also undergo a fundament change in their business model and they make profit. Reportedly, this will not only be seen in the, but will be felt across the globe. Some experts also suggest, rather than a phenomenon it a makeshift process, which are taking place incrementally.
On the other hand, many of the Indian IT giants do not agree to any possibility of such mass layoffs and suggest that most are sackings are purely subjected to yearly performance reviews. But some believe that these company’s want to maintain their high profit margins and while doing this, they want to lower the dependency on labor. Further, startups are putting an added pressure on the traditional tech firms who are at a disadvantage as they are slow to adopt newer technologies. This problem has also been identified in several other globally leading technology companies based outside India, where the requirement for routine transactional workforce has diminished. The IT sector in India is unlikely to repeat its remarkable success as the world’s back office. Though the competition is fierce in the country’s IT firms, but it will be different ball game for them going forward.