30 lakh people to lose jobs by 2022 in Indian IT firms: Bank of America report
The jobs sector in India will continue to bear the brunt as 30 lakh workers in the IT sector across India are set to lose their jobs by 2022. The reason for this is advancement in tech space points, according to Bank of America's report.
Bad news for IT sector employees awaits in 2022 as about 30 lakh may be sacked from different domestic IT firms.
The Robot Processing Automation will replace human resources to a large extent and this will have a cascading impact on low-skilled workers in BPO's as the domestic players are also going for upskilling.
As per reports, among 16 million workers in domestic IT circuits, 9 million fall under the category out of which 30% that is 30 lakh low-skilled workers will lose jobs by 2022.
According to Bank of America report, America alone will lose 1 lakh jobs due to RPA.
"Based on average fully-loaded employee costs of USD 25,000 per annum for India-based resources and USD 50,000 for US resources, this will release around USD 100 billion in annual salaries and associated expenses for corporates," a report attributing to Bank of America said.
This move will help companies all together save 100 million which is being paid as salaries.
"This is a USD 100-billion in reduced salary and other costs, but on the flipside, it offers a likely a USD 10 billion boon for IT companies that successfully implement RPA, and another a USD5 billion opportunity from a vibrant new software niche by 2022," the Bank of America's report was quoted as saying.
As per the report, corporate giants like Wipro, TCS, Infosys, HCL, Cognizant, Tech Mahindra and others are reportedly contemplating 3 million reductions in low-skilled roles by 2022 because of RPA up-skilling.
What is RPA?
It is a software application that makes it easy to build, deploy, and manage software robots that mimic human actions interacting with digital systems. This application does not require any breaks like humans and can perform a wide range of activities including reading the monitor screen, navigating systems, extracting the data and more. With this task by software robots, and helps in existing human resources to focus more on differentiated work.
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