A couple of months back we talked about a report by industry analyst firm HFS that reveals that artificial intelligence and automation could cost a whopping 7,50,000 jobs in the next five years, in India.
Now according to a latest research by tech analysts like Gartner, Forrester and McKinsey Automation is expected to gain further steam in 2018, killing nearly 70 percent of the Indian Jobs.
The research point out that this will impact future hiring in India, where around 65 percent of the global IT offshored work and 40 percent business process work is done.
According to D D Mishra, Research Director at Gartner — due to automation the ongoing reductions of headcount in outsourced businesses will eventually result in a scenario where only 30 per cent of the workforce will remain relevant.
All this will happen because of the very fact that as automation adoption increases, 70 percent of the workload can be handled by machines, without the need for humans to intervene.
One of the key factors driving automation in the companies, and particularly in IT sector, is that clients in developed markets are asking their outsourcing partners to adopt automation more as it helps them increase scale and competitiveness.
“Overseas clients of the software services industry are asking their Indian offshore vendors to invest on automation tools. In some cases, clients are willing to fund as they seek a 5-10 per cent cost reduction on a yearly basis,” said Kris Lakshmikanth, CEO, HeadHunters India, to Business Line.
India’s $155-billion IT sector employs around 3.9 million people in the country, and McKinsey estimates that half of the existing workforce will be irrelevant as they are not skilled to stay tuned to the changing market needs.
To recall, in June this year, an international survey found out that there is a 50% chance that Artificial Intelligence (AI) will surpass human intelligence in all areas within a period of about 45 years. The study was conducted by researcher Katja Grace at the University of Oxford’s Future of Humanity Institute and it involved surveying a total of 1,634 artificial intelligence researchers from all around the world.