Report on 3 million jobs losses incorrect, IT sector hired 1.38 lakh in FY21: NASSCOM

The explanation came from the Indian IT industry body NASSCOM after report that robotic process automation will lead to 30 percentage reduction in low-skilled jobs by IT outsourcing firms. The sector will continue to be a net hirer in 2022 and set to turn out to be $300-350 billion industry by 2025, the agency added.

Report on 3 million jobs losses incorrect, IT sector hired 1.38 lakh in FY21: NASSCOM

Indian IT-BPM sector remains a internet-hirer of skilled talent, clarifies IT industry body NASSCOM, after a report suggested that the sector could face 3 million job losses in 2022.

A recent report by Bank of America (BofA) Securities revealed that the Indian IT outsourcing companies may want to see 30 percent reduction in low-skilled jobs globally by 2022 due to robotic process automation upskilling. This, the report said, translates to 3 million jobs losses.

Read previous report: TCS, Infosys, Wipro, Cognizant, HCL, Tech Mahindra, Other IT Firms To Lay Off 30 Lakh Employees

In response, NASSCOM said in a statement, “With the evolution of technology and increasing automation, the nature of traditional IT jobs and roles will evolve overall leading to creation of newer jobs. The Industry continues to be a net hirer of skilled talent, adding 138,000 people in FY2021.”

The agency also said that the sector has upskilled 2.5 lakh employees in digital skills and hired 40,000 freshers. “With strong deal pipeline it is set to become $300-350 billion industry by 2025,” it said in the statement. Currently, IT-BPM sector revenue is about $194 billion.

In addition, NASSCOM said that automation and RPA has been maturing in the last 3 years and has led to a net creation of jobs for the BPM sector. "The addressable opportunity for BPM according to a NASSCOM-McKinsey Report is $180-220 billion, leaving significant headroom for growth and jobs," it added.