Automation likely to drive out more employees from IT firms in Bengaluru

The industry which employs an estimated 35 lakh people maybe looking at downsizing as companies are looking at delegating many jobs to automated systems. 

Published: 21st March 2017 03:58 AM  |   Last Updated: 21st March 2017 03:58 AM   |  A+A-

Image for representation only.

Express News Service

BENGALURU: For better or worse, automation is the new buzzword in the IT industry. More and more companies are quietly reducing their workforce - especially the lower rung - as many of the processes are getting automated.

The IT and ITes industry which employs an estimated 35 lakh people maybe looking at a serious downsizing as companies are looking at delegating many of the repetitive jobs to automated systems.  

“Areas like testing and call centre management are undergoing rapid automation. A company like IBM for instance has 35,000 people maintaining their 200,000 servers. These things can be automated. For now, any skill that requires high order thinking or application of logical mind will require manual intervention, but automation for that may come in the future,” said Balakrishna Adiga, who is an advisor for several large companies and worked with IBM earlier.

 For companies, the move is welcome as it saves them cost, while boosting efficiency at the same time. The automation of course has hit entry-level workforce the hardest, but it is not as if senior and middle rung employees are spared either. “When a company gets a new project, senior level employees are immediately moved on to the project to put the best face forward in front of the client. But as time goes on, the revenues will not match up and they take the seniors out first as they cost more and bring in the freshers,” Adiga explained.

This is where senior employees take the hit. Many employees post 40 find themselves unemployable and have to be extremely good or equipped with a specific skill set to get a job. Otherwise, companies find it easier to hire three freshers for one tenth of the senior’s salary and willing to work 16 hours a day.
Mergers and acquisitions

The hard truth is that layoffs are inevitable during mergers and acquisitions. Whether a company is merged or bought by another, shedding of divisions, verticals are inevitable and employees along with it. Sometimes, companies are acquired for specific technologies leaving those working on other projects out in the cold.

Y2K, SAP, .com boom are some of the has-beens that anyone with basic idea of IT knows. Re-skilling has now become so necessary that anyone who does not acquire new skills on their job become quickly redundant. Cloud-based models, Internet of Things, Augmented Reality and Virtual Reality, 3D Printing are some of the areas that IT sector is moving towards. IT professionals agree that if employees do not re-skill, it becomes very difficult for the company to keep them on.

Stay up to date on all the latest Bengaluru news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp