New Report Predicts 6 Lakh IT Professionals Will Lose Jobs In 3 Years; But, Nasscom Denies

New reports have emerged, which is pegging an even more depressed state for IT professionals. Earlier, it was believed that around 56000 IT professionals will be asked to leave their jobs this year, but it seems it was just a fraction of what is about to hit the industry.

As per a study by McKinsey & Company, around 1.75 to 2 lakh techies would face terminations, per year, in the next 3 years. This means that close to 6 lakh IT experts would be out of their jobs in the next 36 months.

These recent numbers were shared by Head Hunters India Founder-Chairman and MD K Lakshmikanth, and as per him, McKinsey & Company had given these estimations while presenting a report at Nasscom India Leadership Forum on February 17.

He said, “Contrary to media reports of 56,000 IT professionals to lose jobs this year, the actual job cuts will be between 1.75 lakh and 2 lakh per year in next three years, due to under- preparedness in adapting to newer technologies”

McKinsey India Managing Director Noshir Kaka had said that due to newer delivery models, the onslaught of newer technologies and due to lack of training and re-skilling, almost half of the 3.9 million IT workforce is outdated, and tech companies will be required to terminate them.

Lakshmikanth said, “So, the number of people who will become redundant in the next three years will be about five to six lakhs. This will work out to, on an average, between 1.75 lakh to 2 lakh per year for next three years,”

Even IIT passouts, the crème de la crème of Indian education system, are facing the heat. As per data extracted from human resource development (HRD) ministry, out of 9,104 IIT student across 17 IITs, only 6,013 got jobs were able to grab a job this year. This means only 66% of IIT pass-outs will be able to land a job this year, compared to 79% last year, and 78% a year earlier.

If one out of three IIT pass-out is not able to secure a job, then something is terribly wrong here.

Nasscom: All Is Well

Meanwhil, Nasscom, the most powerful lobby of IT and ITeS companies, has said that the reports about mass layoffs is totally wrong, and the industry is infact growing at a healthy rate.

As per Nasscom officials, IT industry added around 1.5 lakh ‘net jobs’ last year, and they will continue to add more jobs to create a sustainable IT platform in India.

In a statement, Nasscom said, “Skilling and workforce realignment are essential to remain competitive in international markets..”, adding, “Such reports are incorrect. In fact the industry continues to be a net hirer with over 1.5 lakh people being employed on a net basis each year, though the focus is shifting from scale to skill.”

Earlier, we had presented 7 signs, which clearly shows that mass layoffs are happening all over IT industry. And the future is unpredictable.

We will keep you updated as receive more news in this matter.