Even as technology and automation make their presence felt, hiring will continue across sectors this year, according to a joint study by the technology services industry body National Association of Software and Services Companies and commercial real estate services firm CBRE.
Among the respondents, almost 40 percent cited a 5-10 percent increase while 12 percent said there would be less than 5 percent increase in future employment needs.
This survey covered about 110 respondents during the June-August 2017 period which included companies from industries such as technology, banking/financial services, engineering, consulting, amongst others. Around 50 percent of the respondents were domestic companies while the remaining 50 percent were global. Majority of the companies were from the IT sector.
“More than 60 percent of domestic respondents indicated an increase in future hiring as compared to 44 percent of global respondents. Interestingly, almost a quarter of all respondents (including few Fortune 500 firms) were unwilling to comment on this politically sensitive issue (of hiring),” the survey noted.
The study, titled “Arrival of the Tech Age – Is India’s corporate real escape ready to embrace the change?”, looks at how the real estate landscape is changing along with corporate priorities moving beyond business solutions with the advent of technology in the sector.
The study also found the changing skill profile of IT professionals and the increasing acceptance of freelancers or “gig workers” in mainstream companies.
“Given the pressing need for hiring tech-equipped talent, gig workers as a concept is being widely adopted in India. This has resulted in changes in the way an optimum workforce mix is defined, as it now involves concocting the right mix of new recruits, gig workers and experienced professionals,” the study said.
Nasscom said more than half the respondents have already established tech-based teams and about 20 percent prefer hiring millennials since they are more digitally equipped.
The loss of jobs with increasing automation has been a recurring theme, especially in the IT services sector in India.
The study found that while majority of both IT and BFSI respondents cited an impact on mid-level management, the impact on low value-added employees was divergent. “Almost 80 percent of BFSI respondents felt that low level employees would be most impacted by tech, as compared to only 40 percent of IT respondents…the variation between these two could be due to select number of Indian IT companies slowing hiring processes,” the study said.
Predictably, a significant number of respondents—60 percent—said that IT professionals would be most impacted due to the wider adoption of technology.
This is likely to result in a higher demand for data centers, innovation/R&D labs, business campuses etc, the study said.
About 50-55 percent of respondents identified back-office and offshoring/outsourcing operations to change the most due to new tech, it added.
Traditional organisation patterns are changing as employees choose to be more mobile while working and impeding traffic necessitates choosing jobs based on preferred peripheral locations within a city.
Eventually, it is the millennials who are driving greater technology adoption across the board. “It is no wonder that almost 90 percent of respondents cited increasing employee mobility as the reason for adopting tech,” the study said.