Why in News: The Indian IT/ITES sector is slowing down due to AI, global economic pressures, and changing skill demands, causing layoffs and shrinking job opportunities.
Introduction
- Past Reality: Since the 1990s, the IT industry absorbed millions of engineering and technology graduates, often offering them stable jobs, good salaries, and a gateway into the middle class.
- Current Scenario: Rapid advances in artificial intelligence (AI), global economic uncertainty, and shifts in hiring priorities are now shrinking opportunities — threatening the dreams of new graduates.
Impacts on Graduates
1. Shrinking Job Opportunities
- Layoffs in major IT firms (TCS, Microsoft, IBM, Google).
- Entry-level positions most affected; hiring down ~30%.
2. High Competition & Saturation
- Even top-college graduates face tough job market.
- Smaller firms or startups are often the only options.
3. Pressure to Stand Out
- Immediate production-ready contribution expected.
- Generalists preferred over single-skill specialists.
4. Impact of AI & Automation
- Traditional IT roles shrinking; AI adoption accelerates change.
- Economic uncertainties also reduce hiring.
5. Financial & Career Strain
- Delayed onboarding, low-paying jobs, and job insecurity.
- Limited upward mobility compared to earlier years.
6. Need for Upskilling & Lifelong Learning
- Focus on AI, web development, soft skills, and adaptability.
- Government and private initiatives aim to reskill workforce.
7. Age-related Challenges
- Careers limited after ~40 years; higher risk of layoffs.
Causes of IT/ITES Job Crisis
1. Technological Disruption: AI and automation reducing demand for routine IT roles; need for generalists over specialists.
2. Economic Factors: Global slowdowns and trade tensions causing companies to cut hiring.
3. Industry Layoffs: Major firms like TCS, Microsoft, IBM, and Google reducing workforce, especially entry-level.
4. Educational Gaps: Graduates often lack industry-ready skills; tier-3 colleges have weak placement networks.
5. Career Limitations: IT jobs becoming short-lived; employees need continuous upskilling.
6. Oversupply: High competition due to saturation in popular tech fields.
Solutions for IT/ITES Job Challenges
- Upskilling & Reskilling: Programs like Nipuna Karnataka to enhance employability.
- Industry-Aligned Education: Colleges should match curricula with market needs.
- Diversified Skills: Learn multiple tech areas, AI, web development, plus soft skills.
- Lifelong Learning: Stay adaptable; specialization alone isn’t enough.
- Government & Industry Support: Promote AI education, encourage non-IT firms to hire tech talent.
- Career Flexibility: Consider startups or smaller firms if large companies reduce hiring.
UPSC Relevance
GS Paper 3: Indian Economy – Employment trends, impact of AI and technology.
Mains Practice Question:
Q. Examine the challenges faced by India’s IT/ITES sector in the wake of technological disruptions and global economic changes. Suggest measures to sustain employment in this sector.