<p align="justify">The fine print of the latest Economic Survey states that a shortage of skilled digital talent may threaten up to 2 lakh jobs per year in the IT sector and suggested the government to address infrastructure issues in smaller cities and towns.<br /><br />“The job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years due to under-preparedness in adapting to newer technologies,” the survey said, quoting executive search firm Head Hunters India. It said the growth in digital technologies like cloud-based services is happening at a much faster pace and the companies have to learn the new technologies and re-skill.</p>.<p align="justify"><br />As per a World Bank report, automation threatens 69% jobs in India, while it threatens 77% in China and 85% in Ethiopia.<br /><br />The survey is, however, less pessimistic than an earlier McKinsey report which had said nearly half of the workforce in the IT firms will be “irrelevant” over the next 3-4 years and the bigger challenge ahead for the industry will be to re-train 50% to 60% of the workforce as there will be a significant shift in technologies.<br /><br />Poor infrastructure<br />The survey, authored by Chief Economic Adviser Arvind Subramanian, said underdeveloped infrastructure in tier II and III cities were some of the hindrances in developing digital skill talent.<br />It also sought easing of restrictions on startups for better skill development.</p>.<p align="justify"><br />Many firms have set up dedicated programs to re-skill their existing employees. In 2016-17, around 1.7 lakh jobs were created.<br /><br />There was a gross hiring of over 50,000 by the top 5 companies, the mid-year survey said quoting Nasscom.<br /><br />However, the Labour Bureau of India data indicates that changes in employment in IT-BPO sector during April-December 2016 was only 0.22 lakh.</p>
<p align="justify">The fine print of the latest Economic Survey states that a shortage of skilled digital talent may threaten up to 2 lakh jobs per year in the IT sector and suggested the government to address infrastructure issues in smaller cities and towns.<br /><br />“The job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years due to under-preparedness in adapting to newer technologies,” the survey said, quoting executive search firm Head Hunters India. It said the growth in digital technologies like cloud-based services is happening at a much faster pace and the companies have to learn the new technologies and re-skill.</p>.<p align="justify"><br />As per a World Bank report, automation threatens 69% jobs in India, while it threatens 77% in China and 85% in Ethiopia.<br /><br />The survey is, however, less pessimistic than an earlier McKinsey report which had said nearly half of the workforce in the IT firms will be “irrelevant” over the next 3-4 years and the bigger challenge ahead for the industry will be to re-train 50% to 60% of the workforce as there will be a significant shift in technologies.<br /><br />Poor infrastructure<br />The survey, authored by Chief Economic Adviser Arvind Subramanian, said underdeveloped infrastructure in tier II and III cities were some of the hindrances in developing digital skill talent.<br />It also sought easing of restrictions on startups for better skill development.</p>.<p align="justify"><br />Many firms have set up dedicated programs to re-skill their existing employees. In 2016-17, around 1.7 lakh jobs were created.<br /><br />There was a gross hiring of over 50,000 by the top 5 companies, the mid-year survey said quoting Nasscom.<br /><br />However, the Labour Bureau of India data indicates that changes in employment in IT-BPO sector during April-December 2016 was only 0.22 lakh.</p>