IT, BPO employees need to be re-skilled due to automation: Nasscom

Employees working in IT and BPO industry in India will need to be re-skilled due to rapidly changing digital technology, which is likely to displace some jobs as a result of automation, said an industry body Nasscom. 

Nasscom in a report titled 'Technology Shifts and Workforce Priorities' released on the sidelines of its 13th edition of 'HR Summit 2016' held in Chennai on July 21 highlighted the changes in the ecosystem and how companies and employees need to evolve.

The country's IT and Business Process Management (BPM) industry at present employs 3.7 million employees, cited Nasscom its latest findings.It continues to maintain its leadership position in the global technology area with over 2 lakh net additions and 3.5 lakh digitally skilled employees. 

"To continue this momentum of growth the report suggests that the industry will require 1.2 -2 million employees to meet the next $100 billion of revenues," said an industry body National Association of Software and Services Companies (Nasscom) in its latest findings in the report.  

Global enterprise technology spend will grow at 3% to 4% and touch $4 trillion by 2025, it noted.

Nasscom said that due to changing technology and skill sets in demand, there will be a gradual shift of the industry towards automation and around 5% to 10% of existing jobs may be automated in the next 10 years. This, in turn, will result in significant change in existing skills across jobs functions, it added. 

Though technology will displace some jobs, it will also lead to creation of some new jobs in areas such as biotech, nanotech, smart technologies, among others, the report said. 

"The report estimates that 60% to 70% of the existing workforce will be need to be re-skilled in technology, domain, social and thinking," cited Nasscom its report.