BENGALURU: IT services sector is expected to cut jobs, as they shift business operation of their customers to the cloud resulting in more
automation, said Milind Govekar, Chief of
Gartner's Infrastructure & Operations Research.
The industry expert at the IT research firm Gartner said most of these services companies need to create a skills lifecycle management programme to manage the crisis of job losses and skill gap.
“In the short term there will be job cuts for sure…The whole outsourcing business were built around infrastructure. (Today) if a line of business decides to launch a new capability they do not necessarily wants to wait for six months. They want immediate launch and continuously improve. Then the underlying infrastructure needs to step up. That is going to cause a lot of disruption in the skills market,” Govekar told ET in an interview.
IT services companies such as TCS,
Infosys,
Capgemini,
Cognizant,
HCL Technologies and others see their customers increasingly move their services on the cloud and enabled digital technology-led services, driving automation. This is primarily aimed at reducing cost.
Govekar pointed out that these companies have to plan skills lifecycle management programme” to manage the skill gap and upskilling of talent. “If you look at most of these companies they invest a lot in technology strategy but they do not invest at all in talent strategy.”
He believes that in the long term there would be many new roles and people need to be upskilled to fit in.
“In the longer term there will be upstart to this. Half a million net new jobs in the next year and a half worldwide. But to fill those jobs you absolutely need reskilling and upskilling,” said Govekar.