We’ve heard a lot about layoffs in the IT sector and the impact of Artificial Intelligence taking over jobs that can be automated. Having said that it’s obvious for one to wonder if further job cuts in the IT sector are a harsh reality in future?
If you’ve got the same query then you’d be glad to know that we @SourcingAdda have conducted a discussion that addresses this very scenario. It was possible thanks to one of our Bangalore group members Karthik. Based on his suggestion the discussion was on, “Will further Job cuts in IT be a harsh reality in the future?†Apart from disclosing what was discussed we’ll also be highlighting the key take away pointers right after so here’s what we uncovered…
If you’re trying to find out more about what the job cuts in the IT sector and its harsh reality in future then you’ve come to the right place. If you’ve read this far then you’ll be delighted to learn that we’ll be highlighting the key take away pointers to improve your retention and test your memory. So be sure to check how much you’ve retained. Therefore here we go…
The scenario
- IT industry hasn’t matured, instead there are additions but employees aren’t retired because the IT Industry started in the 90’s.
- Considering the average of 35 yrs. for service for retirement these people will retire in another 5-10 yrs.
- Know that things will start stabilising by 2025
- No major impact in the Banking Finance Services & Insurance (BFSI) sector
- The wave of lay-offs will come after every 8 yrs. but it’s a paradigm shift
- Up-skilling will help you to get and retain jobs but only to a certain extent
Reasons for layoffs
There are several reasons for layoffs so here are some –
General reasons
- Lay-offs / Job Cuts are the way businesses react to market situations
- Mergers
- Acquisitions
- What happened with Satyam
- Dot-com bubble burst
- Multi Million / Billion Dollar scam
- The war for oil reserves
- Political situations in major markets (Trump / Brexit)
- Artificial Intelligence (AI)
Job Cuts in the Service Industry
- Budget constraints
- Migration
- Immobility issues
Job Cuts in the IT Industry
- Automation
- Robotics or AI
- H1b visa constrains
- Such developments affect all the functions in IT
Job Cuts in the Recruitment Industry
- The Recruitment field will experience job cuts in the future due to the ATS maintenance being automated.
Preparation for Recruiters
- Recruiters will still be required for personal touch but they will have to adapt to the change
- Recruiters will have to invest in re-skilling, refreshing skills, networking and cross-skilling to ensure they’re still in the competition to take your pick of the litter of the opportunities at hand
- Knowledge is the key hence constant learning is the need of the hour which should continue to 60 yrs. and beyond.
- Learn about python, shell script and Perl scripts to automate Manual Testing and Cofig jobs.
- The Key is to keep yourself abreast of the latest trends in your field of work.
- Networking (increasing and engaging contacts) is the most important part if you want to remain relevant for years to come
- Participating in group discussions like WhatsApp. is one way
- You might encounter many multi – talented candidatures so that’s something to look forward to
- Accept reality and equip yourselves with the skill sets that can’t be replaced by automation
- To minimize the lay – off wave you need to reduce the retirement age in the Indian industry to 55 yrs.
- If one can be very technical yet have team collaboration it minimises the chances of the person being laid-off.
- IT Job cuts is not a solution as it results in techie suicides
- Companies have to form policies that minimise the layoffs
- Governments should intervene and keep tabs on the number of hires and what’s their attrition and retention percentage since layoffs affect the whole family.
- The other Industries that can be affected are food, banking, real estate etc.
Future of IT sector
- IT industry is saturated and with many mid – level professionals waiting for Senior Level Assignments to crop up.
- Job cuts in the IT Industry will be harsh reality in the near future
- Automation may cut conventional jobs but it’ll open doors for new opportunities
- Engineers having customer knowledge and can improvise the product are needed
- There are 1 million jobs globally vacant in the Security software but there are no takers
- Jobs which have performance and scalability are also available but no takers
There you have all the information you’ll need to check how much you’ve retained?  If you’ve retained most of it then you’re half way there with your career preparations for the future. I’m sure that you would have found the information helpful and useful as well. If you’d like to learn more about the Best Unique HR Practices for Employee Benefit or Engagement in IT Sector  then here’s your chance. Simply, follow these 2 steps…
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