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Technology Shifts and Workforce Priorities
July 2016
NASSCOM®
Copyright ©2016
NASSCOM®
International Youth Center, Teen Murti Marg, Chanakyapuri,
New Delhi – 110 021, India
Phone: 91-11-23010199, Fax: 91-11-23015452
E-mail: research@nasscom.in
2
TOPICS COVERED
Forces of Disruption
Future of Jobs
Digital Tech Impact on Work
Skills of the Future
Top 20 IT-BPM Employer Rankings-FY2016
2
Ageing of
the global
population
3
Power of
disruptive
technologies
4
Integrating
world
1
Rise of
emerging
markets
5
Return of
(geo)-
politics
Five forces changing the world at an unprecedented
pace and scale
Source: Perspective 2025 by NASSCOM-McKinsey
4
CHANGING NATURE OF JOBS
The nature of jobs and work undergoing complete
change
• Job displacements due to
automation
• Creation of new jobs due to
emerging tech
• Change in existing skills across
job functions-transition workforce
to new jobs
• Demand for Social skills -
persuasion, emotional
intelligence, teaching
CHANGING NATURE OF WORK
• Work style: tech centric,
productivity prioritised
• Work culture: flexibility, on-
demand work, remote work, etc.
• An always online, mobile-centric
millennials
• Data driven, analytics oriented
• Multi-sector partnerships,
collaboration
5
Source: NASSCOM
Advent of digital technologies will change skills in
demand
• Global enterprise tech spend will
grow at 3-4 per cent and touch USD
4 trillion by 2025.
• Composition of tech spending will
change-digital tech spend will
grow at 24 per cent annually, as a
result demand for digital skill
sets to rise exponentially
• Indian technology services
revenues projected to reach USD
350 billion by 2025, CAGR of 11 per
cent;
• Indian digital business to grow
4X faster than traditional IT
2014 2025 (E)
Digital Tech
Traditional Tech
10%
90%
60%
24%
2,757
4,000
Global Technology SpendUSD billion
-4.5%
40%
Indian IT-BPM RevenueUSD billion
FY2016 2025 (E)
Digital Tech
Traditional Tech
38%
5%
5%
95%
62%
38%
143
350
Source: Perspective 2025 by NASSCOM-McKinsey
6
Largest private sector employer 3.7
million
TALENT POOL
Net addition~2
lakhs
~3.5
lakhs
RISE OF TECHNOCRATS
tech talent in BPM
hires among end-users are tech
~30%
~5%
Hires are domain experts~10%
~4%
~9%
Increase in utilization in 5 years
Growth in revenue/employee in 5
years
Digitally skilled
Indian IT-BPM industry: Increasing diversity
HIRING MODELS
4-5%
~40%
Contract employees
Lateral hires
Nationalities employed>130+
Growth in client base in 5 years~35%
1: Data is based on four top listed IT-BPM firms
Source: NASSCOM
IMPROVING PERFORMANCE METRICS1
7
Industry transformation already on the way
PERFORMANCE MANAGEMENT
EMPLOYEE
PRODUCTIVITY
EMPLOYER BRANDING• Collaboration
• Social media, gamification – connect
with future employees
• Employer of Choice
• Zero Bench
• Chief Employee Experience
Office
TALENT MANAGEMENT• Higher recruitment via referrals–
greater stickiness
• Collaborate with in-house SMEs–lower
learning curve• R&R experiences
TECHNOLOGY
ADOPTION
• Re-think performance incentives – cash vs. kind
• HR functions vested with business leaders
• Look at performance management differently
• Internal social platforms–enhanced connects
• E-learning: Digital skills, just-in-time
training, etc.
• Social media for recruitment
8
Source: NASSCOM
Automation already upon us- future is man + machine
Of existing workforce will be
need to be re-skilled
People needed for the next
USD 100 billion revenue
Existing jobs may be
automated; transactional,
commoditized
30%
60-70%
1.2-2million
5-10%
IMPACT
Automation will trim 1.4 million global
services jobs by 2021
HFS Research
In the last two quarters, the power of
automation has led to us removing and saving
1,200 people from our ongoing projects, and
we have already seen up to 50 per cent of the
works that can be mechanised being replaced
by automation
Infosys
Experts speaks
Intelligent Automation: the essential new co-
worker for the digital age
Accenture
“
“
What we're finding is that any kind of
computational challenge that is sufficiently
well defined, we can build a machine that can
do better than man
University scientist9
Source: NASSCOM
Re-design
RolesFlatter Orgs
Skills of FutureInnovate, Technology,
Resilient, Analytical
Incentivize Self-
LearningStay Relevant
Amplify Value of Expertize:
Man + Machine
Performance
ManagementAppraisals, Policies
Workforce re-engineering – the need of the hour
10Source: NASSCOM
Source: NASSCOM
Digital
marketing
Payments
Design thinking
IoTArtificial Intelligence
Community
managers
Content
strategists
Data scientists
Entrepreneurial
skills
Critical thinkingCommunication
Collaboration
Creativity
Analytical skills
Social
learning
TECHNOLOGY DOMAIN
SOCIAL THINKING
To remain competitive, there is a dire need to create
skills of the future
User Experience
Design
Robotics
Finance
Reasoning skills
Hadoop
Logical thinking
Security Pharmacists
Healthcare
specialists
Economists
Information specialists
Business AnalystsSupply
Chain
11
Note: This list is based on the India-based FTE headcount of firms with IT-BPM operations in India, as reported to NASSCOM in its annual survey
Based on publicly available information, few other MNC's such as Accenture, HP India, Convergys and IBM would have also featured in this list.
However, as they have not participated in the survey, we are unable to rank them. Most firms on this list are engaged in IT as well as BPM services.
Firms marked with an * indicate pure-play BPM firms.
Rank Company
1 Tata Consultancy Services Ltd
2 Infosys Ltd
3 Cognizant Technology Solutions India Pvt Ltd
4 Wipro Ltd.
5 Capgemini India Pvt Ltd
6 HCL Technologies Ltd
7 Tech Mahindra Limited
8 Genpact Ltd.
9 Intelenet® Global Services*
10 Aegis Ltd
Rank Company
11 Hinduja Global Solutions Ltd*
12 CSC India
13 WNS Global Services (P) Ltd*
14 Syntel Ltd
15 Mphasis Ltd
16 EXL*
17 L&T Infotech
18 Firstsource Solutions Ltd*
19 MindTree Ltd
20 CGI
Top 20 firms account for ~1.34 million India based
employees
NASSCOM Top 20 IT-BPM Employers in India FY2016
Source: NASSCOM
12
NASSCOM initiating key projects to leverage this
disruption
Future of
Current Skills
Emerging Skills
in Future
Future of Jobs Future of
Work
Will technology
disrupt or create
jobs in India
across key
sector
Analyse what are
the future skills
in demand and
how do we build
content and
curriculum
Study how
existing skills will
be reshaped with
technology
disruption
How will
organisations
shape the
workplace and
new models of
collaboration
1 2 3 4
13Source: NASSCOM
To Summarize
Political, socio-economic and technological disruptions reshaping
the world
The definition of work, and how we do it is undergoing rapid
transformation
Technology displacing existing jobs, as well as creating new jobs-
there is a need to transition workforces to new jobs
Age of automation is upon us- man+machine the model of the
future
There is a dire need to master new skill sets in order to remain
competitive in this changing world
14
Source: NASSCOM
International Youth Centre, Teen Murti Marg, Chanakyapuri, New Delhi -110021
Phone: 91-11-23010199
www.nasscom.in
research@nasscom.in
NASSCOM®
Visit our e-community at https://community.nasscom.in
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