AI, Machine Learning Will Create 5 Lakh New Jobs In 2019; Startups Will Take The Lead
Unemployment is a big issue in India and this news will definitely help find a way.
Yes, you heard it right! 2019 will see 5 lakh job openings for freshers by IT companies of India and startups.
Former Chief Financial Officer of IT major Infosys Ltd, T V Mohandas Pai addressed this issue elaborately on Wednesday. Mohandas Pai is also the Chairman of Manipal Global Education Services, and Aarin Capital, and a member of the Board of Directors of the National Stock Exchange of India Limited.
Unemployment is one of the biggest problems India faces. Fresh batches of educated youngsters pass out of colleges each year with no clear idea of any future in mind. This is a widely increasing problem and there was no hint of a solution in sight: but this is a ray of hope for many.
Hiring Has Improved in 2018
Pai said that IT companies have now started developing again, “growth is now coming back to the Indian IT service industry.” A lot of things happened in 2018, said Pai, the H1B visa situation grew tougher, Indian companies focused more on Japan and Southeast Asia, massive expansion of captives and buy-backs by big companies. Japan is now opening up along with Southeast Asia, therefore Indian companies are looking to expand their diameter vigorously in said parts.
Pai went on to say that hiring has measurably improved, “First time in seven years, hiring compensation (entry-level) has gone up by 20 percent. Fresher compensation is going up, after a long time. It’s good news.” Packages granted to freshers at entry level are now increased up to Rs. 4.5 lakh to Rs. 5 lakh per annum. According to Pai, Hyderabad has attracted many new companies owing to KTR (KT Ramarao)’s “very good marketing” and quality infrastructure.
Indian IT companies’ progress in America:
As per Pai’s opinion, Indian IT companies will progress greatly in America in 2019, the reasons being:
- Increased use of AI (Artificial Intelligence) and machine learning in enterprises.
- Greater usage of digitization.
- Increased spending by BFSI (Banking, Financial Services, Insurance) in America
He also stated the challenge that they will face in America: localization. “You must become more local in America, most of them (Indian companies) are trying to do. And they are finding that when you are local, cost actually is not increasing because you are going to smaller towns where costs are much less.”
Startups and Employment:
Startups have a total of 600,000 employees in India, and Pai estimated that they will hire about 200,000 more people. He said that startups are growing in India and when they hire people, they do not hire according to a particular category, e.g. engineers. On the other hand, service companies will hire more engineers for BPO (business process outsourcing).
The coming new year will probably help India reach new heights!