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Digitalisation and Development: Issues for India and Beyond Read chapter Read first chapter

2020 | OriginalPaper | Chapter

Technological Disruptions and the Indian IT Industry: Employment Concerns and Beyond

Authors : Hastimal Sagara, Keshab Das

Published in: Digitalisation and Development

Publisher: Springer Singapore

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Abstract

Internet of Things (IoT) industry is one of the most dynamic sectors in India. This US$ 150 billion-strong industry employs 3.8 million people and contributes more than 9% to Indian GDP. However, this largest private-sector employer has been experiencing stress due to fast-changing business models, increased competition from other countries, restrictive visa policies, upsurge in anti-outsourcing sentiments and, most importantly, technological disruptions. These disruptive technologies—captured in a moment in the history of technological transformations as the Fourth Industrial Revolution or Industrie 4.0—principally include such developments as cloud computing, big data and analytics, Internet of Things (IoTs), automation, robotics and blockchain. While Industrie 4.0 has rendered conventional engineering expertise and low-end IT services redundant, it has the potential of creating new employment opportunities in a host of sectors including administration, banks, retail trade and online marketing. Disruptive technologies have a strong chance of transforming the nature and composition of the Indian IT industry in a big way, including endangering India’s position as the software superpower in the world. Albeit, the Indian IT industry has historically proved itself to be extraordinarily resilient and fortified during turbulent shocks of the dotcom bubble, the sub-prime crisis and US visa restrictions. Based on secondary data, this paper aims at mapping the changing nature and composition of the Indian IT industry during recent years. It tries to identify contemporary challenges to employment and business opportunities in the Indian IT industry. The paper includes policy suggestions for enhancement of relevant technological and skill capabilities in the country.

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previous chapter ICT Investment and Economic Growth in India: An Industry Perspective
next chapter IT Enabling Indian Firms: The Importance of IT Outsourcing Companies
Footnotes
1
An impression about the nature and impact of such technological disruption may be had from the following example. “The Tesla Powerwall home battery is a household technology enabled by Li-ion battery storage and has the potential to be highly disruptive. The Powerwall is a battery module that enables large amounts of electricity to be stored at the user’s home. The battery can be charged using electricity from solar panels, or from the grid during non-peak energy use periods when rates are low. This stored electricity can then be used to power the home during peak hours” (Productivity Commission 2016: 208).
 
7
Drawn on information obtained from McKinsey Global Institute (2013).
 
10
This process is described thus: “Digital tools are creating a new informal “gig economy,” where workers can combine a number of disconnected tasks to earn their incomes. In many cases, these gig economy platforms have disrupted traditional markets in the ‘real world’ as well; for example, Uber has confronted taxi unions and regulators in a number of countries, while Airbnb (which allows someone to rent out their residence partly or in entirety) has challenged the hotel industry. Concerns about these platforms include the lack of price floors, little social safety nets, and difficulties in regulating the entry and behaviour of workers, customers, and the platforms themselves. Regulating these platforms has proven to be challenging” (World Bank Group 2015: 7).
 
11
Regarding the possibilities and limits of new technologies, as these unfold through growing applications, “Opportunities exist to leverage analytics, algorithms, and drones in the near future to protect and potentially expand markets. In the medium to long term, robots and driverless cars will also likely gain adoption although, as with any technology, how they will be deployed will likely evolve over time. Factors affecting the adoption of the new technologies and business models examined in this paper include business profitability; environmental considerations that may accelerate the use the technology that save carbon emission, customary safety and trust concerns regarding new technology, labour issues with crowdsourcing and other models; and regulations governing drones, robots, and driverless cars” (Standard Business Graduate School 2016: 13).
 
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Metadata
Title
Technological Disruptions and the Indian IT Industry: Employment Concerns and Beyond
Authors
Hastimal Sagara
Keshab Das
Copyright Year
2020
Publisher
Springer Singapore
Book
Digitalisation and Development

Print ISBN: 978-981-13-9995-4

Electronic ISBN: 978-981-13-9996-1

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-981-13-9996-1_4

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