Job crisis looms large in IT sector

India is possibly going to face its biggest job crisis in the services sector in 2017. It is believed nearly 1 lakh IT jobs will vanish by the end of 2017 as shrinking profits and a dramatically altered business environment have badly impacted IT services companies. Not only this, increased automation, skill standards and the ageing workforce will also play an important part in crisis.
  
If we look at the past, there is correlation between the revenues and net employee addition. If there is ten per cent growth in revenue, then the percentage of net employee addition will also be similar, but now it was considered that for every percentage point increase in revenue, the growth in net employee addition will be just half of the percentage .

People working in IT services companies need to maintain their skill standard as per the changing demands. The IT industry is all about the keeping skills updated and maintaining competitive edge over others, otherwise employees are at risk.

Another worrying aspect is the age factor, as an IT company will prefer to hire younger people and reskill them as they are cheaper. However, both the job losses and slower job additions will create an impact on other sectors of the economy as the IT sector accounts for around 9.3 per cent of GDP and it employee 3.9 million directly and over 10 million indirectly.