Why does the information technology sector in India throw jobs

India’s information technology sector gives jobs, and it raises difficult questions about what pays discounts. Although the slowdown of global demand is a major factor, analysts also monitor how artificial intelligence can reshape roles in an industry that has long been seen as a column of economic growth in the country.

Tata Consultance Services, which employs more than half a million information technology workers, the largest information technology services company, the largest information technology services company in the country, announced last month that it will reduce more than 12,000 jobs of medium and adult management levels often, equivalent to 2 % of the global workforce – what it will be The largest layoff yet.

The CEO of the company and the administrative director KRTHIVASAN attributed the transfer to “Limited Publishing and Skills Compatibility” Instead of artificial intelligence. But this was not suppressed by an increasing discomfort inside the country, He also saw a lot Workers’ layoff as a sign of broader and destructive changes in the IT sector, amplifying them with the increasing influence of Amnesty International.

TCS and its peers have long relied on a wide range of low -cost skilled workers to produce software services, and a model that is now under pressure where AI is assigned to automate repeated tasks, as global customers require higher levels of innovation.

The IT sector has always been searched after a large group of engineering graduates in India, which means that any slowdown will have ripples throughout the economy. India produces more than 1.5 million engineering graduates annually, according to Local media reports.

The sector contributed almost 7.5 % to GDP in India in the fiscal year 2023.

The last profits also drew a realistic picture of the sector’s performance, with specializations such as TCS, Infosys and Wipro Reporting Check growth on an annual basis.

Although this was largely due to the uncertainty about the definitions, which Weight weighing budget confidence to American clientsDerj Nim, economist and strategists in the field of foreign currencies at Anz Research, said that the recent signs of slowing down in the information technology sector in India may be just a “periodic change”, as it reduces services exports to the United States.

However, artificial intelligence will be “a direction that calculates its account in the coming years.”

New Delhi was striving to stimulate growth in Demand manufacturing sectors Such as electronics, textiles, shoes and games as part of its supply chain transfer strategy.

Workers’ demobilization also adds to the tense labor market already as the unemployment rate in the country has increased. Urban unemployment rate in India It rose to 7.1 % in June From 6.9 % in May and 6.5 % in April. The youth unemployment rate in urban areas, among those between the ages of 15 and 29, increased to about 19 % from 17.9 % in May, and 17.2 % in April, according to the Ministry of Statistics.

Anopotti Sahai, head of South Asia Research in South Asia in Standard Charterd, urged New Delhi to intensify efforts to create more salaries jobs that the labor market problem may last for a few years.

She pointed out that the largest part of the creation of job opportunities came so far from the sectors that work for their own account, where the wages tend to survive than they were in salaries.

New Delhi economists urged its efforts to compensate for its workforce and fill the skill gap to reduce the risk of job displacement. One in five young men in India participated in an artificial intelligence program, according to a report With the support of Google.org and the Asian Development Bank.

Varma of Nomura said artificial intelligence will replace some functions, but it also turns the nature of the current jobs through “continuous skill”.

The government has put forward Training program Younger adult skill aims with actual work experience.

NIM has acknowledged that artificial intelligence can pose a threat to jobs, but he suggested that whether it would increase job displacement will depend on the skill and labor movement in the skills chain.

Economists said that New Delhi should take advantage of services and innovation with higher added value rather than focusing on low routine work.

“If the economy is unable to adapt, this may lead to job losses, export of low services, and moderate urban consumption,” said Varma.

Pharma added: “India may risk stumbling in the intermediate income trap.”