Indian Technology Workers Worry About a Job Threat: Technology … – New York Times

Posted: June 26, 2017 at 5:09 pm

But the global tech industry is increasingly relying on automation, robotics, big data analytics, machine learning and consulting technologies that threaten to bypass and even replace Indian workers. For example, automated processes may soon replace the kind of work Mr. Choudhari was performing for foreign clients, which involved maintaining software by occasionally plugging in simple code and analyzing data.

What were seeing is an acceleration in shedding for jobs in India and an adding of jobs onshore, said Sandra Notardonato, an analyst and research vice president for Gartner, a research and advisory company. Even if these companies dont have huge net losses, theres a person who will suffer, and thats a person with a limited skill set in India.

Such job losses could be politically damaging to the government of Prime Minister Narendra Modi, who won an electoral mandate in 2014 on the promise of development and employment for a bulging youth population. In January, near the three-year mark of his administration, an economic survey reported that job creation had stalled.

So far, the scale of the impact is not clear. T. V. Mohandas Pai, a longtime industry figure, estimates the cuts will encompass up to 2 percent of the work force by September, mainly from culling underperformers. A 2015 study released by the National Association of Software and Services Companies, the Indian technology industry trade group known as Nasscom, and McKinsey India found that 50 to 70 percent of workers skills would be irrelevant by 2020.

Of course, new technologies will create new jobs. The impact of automation and artificial intelligence still is not clear, and they could open up new areas that simply shift tech work rather than eliminate it.

But some in the Indian tech industry worry that many of the new jobs will be created outside India, in places like the United States, in part because President Trump has pledged to tighten visa laws that allowed many Indian nationals to go to that country to work. The subject is likely to pop up on Monday, when Mr. Modi is scheduled to visit the White House.

The Indian government has rushed to reassure the public that job losses will be minimal. Ravi Shankar Prasad, the Indian minister who oversees the technology industry, recently denied that major layoffs were occurring even as he encouraged the industry to speed up development.

The question of slackness in jobs is absolutely factually incorrect, he said. Obviously, those who dont perform will have to go.

Some tech employees who recently lost jobs disputed that they were underperformers.

It is not something that only the employee is responsible, Mr. Choudhari said of upgrading his skills. Employers, he said, are also responsible.

For India, where household income by one measure is one-twelfth that in the United States, such jobs have long been seen as a steppingstone. Small-town and rural youths who aspire to join the urban middle class enroll in four-year university engineering programs and graduate by the hundreds of thousands per year, many with the dream of a lifetime career at one of Indias outsourcing companies.

Competition is already fierce. Ashwin Kotnala graduated this year with a bachelors degree in technology from Graphic Era University, a private university in Dehradun in northern India. She has applied for more than 20 positions but has yet to get one.

Everyone wants to work with IT firms because of a good salary, Ms. Kotnala, 22, said. Ive not got placed, but if I get placed in I.T. company, then Ill do better and make my parents proud.

Finding a job can be even harder for experienced workers who need to refresh their skills.

Dinesh Shende, a 38-year-old developer at Tech Mahindra who said he was forced to resign in February, looked for work for months. Born to farmer parents in a village in Maharashtra, he earned about $37,000 a year.

Now employers say reskilling is needed it is your responsibility, he said. We are ready to reskill ourselves. But will the next company employ us?

He found a new job last week, at a start-up in Bangalore, meaning he would have to move and leave his wife and children behind in Pune. He declined to say whether he would take a pay cut.

The next employer will try to take benefit of the situation, Mr. Shende said. To other job searchers, he advised: Keep trying, keep trying, keep trying.

Tech Mahindra representatives did not respond to multiple requests for comment by either phone or email. With its profitability declining, the company has been reshuffling its operations and work force.

As you know, the talent factors are changing, the technology is changing, consumers are changing, C. P. Gurnani, Tech Mahindras chief executive, told investors in a May conference call, and we need to make sure that our people are changing with the time.

In some places, tech workers are showing early signs of organizing, which industry leaders say could lead to unions and then to government interference, which could hurt competitiveness. In Pune, 47 workers from Tech Mahindra and other India-focused employers, including the local arms of Cognizant Technology Solutions of the United States and Vodafone of Britain, have signed petitions alleging forced resignations and baseless firings to the local labor commissioner.

Cognizant said the allegations were totally unfounded, while Vodafone did not respond to requests for comment. R. Chandrashekhar, president of Nasscom, the industry group, said in May that the industry would remain a net hirer but that automation would eliminate some types of jobs.

Many of those who have lost their jobs have not given up.

Mr. Choudhari graduated in 1997 with a degree in engineering. He took out a loan for his apartment in 2006, payments that hell have to meet for 10 more years. With two months pay and a bonus for 10 years of service giving him about $3,200 upon leaving, he does not know how hell make them. So far, he has managed to secure just one unsuccessful job interview.

Basically Im from a poor family, he said. This is a profession where I thought I could do something good.

A version of this article appears in print on June 26, 2017, on Page B2 of the New York edition with the headline: Tech Jobs Cut in India. A Reason? Technology.

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Indian Technology Workers Worry About a Job Threat: Technology ... - New York Times

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