By 2021, India could Lose in IT services!

This is artficially recess of Indian IT Sector

Indian IT companies have already begun scouting for talent locally in the US. TCS’ application for work visas in April 2016 was down by 30 per cent compared to the previous year. Experts say that given that there is shortage of skilled workforce in the US, there may not be any severe restrictions on issue of H-1B visas. A Nasscom report last year showed that 46 per cent of openings in STEM (Science, Technology, Engineering and Mathematics) jobs were vacant for more than a month in the US. But in view of the recent protectionist rhetoric in the US, Indian companies should try to make do with local manpower as much as possible.
Hit by automation: US dreams aside, finding an IT job here in India itself is going to be difficult for software engineers. In 2015-16, the Indian IT industry was expected to create 2.75 lakh jobs, but it created only 2 lakh jobs. In 2016-17, the number is expected to be even smaller — 1.7 lakh.
Slowing revenue growth alongside increasing pressure on profit margins is prompting tech companies to go slow on fresh hires. In the past five years, while IT exports have grown at an average 13.7 per cent annually, the headcount growth has only been 8 per cent. Companies have been able to do the same amount of work with less manpower, thanks to automation. A report from global outsourcing research company HfS Research says that by 2021, India could lose 6.4 lakh low-skilled positions in IT services and the BPO industry because of the automation of support and back-office processing work. Though this is a dampener for a job aspirant, it is a big positive for an industry whose survival is being challenged, as costs come down. Infosys, saved 2,650 full-time employees worth of effort in the December 2016 quarter by deploying automation tools in application maintenance, package systems maintenance, BPO and Infrastructure Management. Many other IT companies including Wipro and HCL Technologies also report use of automation platform. In 2015-16, Wipro says it freed up 4,300 employees because of its automation and AI (artificial intelligence) platform. For 2016-17, while the company targets releasing 4,500 employees, in the first half of the year itself it released 4,300 employees through use of robotic process automation.However, what you need to note here is that while on one side automation helps save costs, on the other side, it drags down revenue.