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

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Phone: 91-11-23010199

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research@nasscom.in

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