Automation Is Taking Its Toll: Top 5 IT Firms Have Hired 24% Less Employees in 2015
We had predicted the trend and had announced the future of automation: Less humans and more Robots at work. WEF has already predicted that 5.1 million jobs would be lost due to automation, robotics and tech by 2020
But for the first time, clear numbers have come in which clearly confirms our point of view when it comes to automation in IT industry; and the results aren’t good for the IT worker in India.
A scintillating report by Mumbai-based brokerage firm Centrum Broking has said that due to automation, top 5 IT companies in India have hired 24% less employees in 2015, compared to previous years.
These top 5 IT firms have combined strength of 1.34 million employees, and average revenue per employee is around $45,000 to $52,000 which is way lower than global average for these firms. Hence, automation is now being increasingly used to improve productivity and basically increase profits.
Interestingly, US listed and Chennai based Cognizant Technologies is the #1 IT firm which has been impacted by automation as they hired only 10,200 which is 74.6% less employees in 2015, while HCL Technologies hired 3465, which is 71% less compared to 2014.
Infosys hired 23,745 employees, which was an increase of 111% in hiring; and due to this, the overall percentage of reduced hiring averaged around 24%, which can be if we remove Infosys from the list.
The report clearly said that 2016 would be ‘inflection point’ for automation in IT industry. As per the report: “We see rapid scope for vendors improving efficiencies through expanding automation across multiple projects and service lines owing to sheer competitive pressure. The result is that these five companies have net added 24 per cent fewer employees in 2015,”
CEO of Infosys, Vishal Sikka has already declared that automation would be their focus in coming days, as they are aiming to increase per employee revenue to $80,000. As of now, 9000 employees in Infosys are sitting in bench, and if they wish to make their company worth $20 billion by 2020, then automation would be their primary focus.
As a matter of fact, NASSCOM had predicted last year that 50% of all IT jobs would be wiped out due to automation; and the prophecy is slowly but gradually turning true.
Last year, we had reported that 1,00,000 jobs have been destroyed in Infosys, TCS and Wipro; and it seems that the trend has just started with full force.
If you are working in an IT firm, then have you experienced automation influencing your job security? Do let us know by commenting right here.
Also, watch this 10 minute documentary, if you have already not seen it.. “Humans Need Not Apply”