Automation, AI offer rich promises

Automation and AI continued to log in multi-million dollar prospects for Indian IT companies, despite slower overall growth and visa concerns in an eventful 2019.

In a departure from the past, industry body Nasscom discontinued providing its annual growth forecast for the industry — an important tool to gauge the sentiment of the sector. For 2019, Nasscom said it was “cautiously optimistic” and cited rising global economic uncertainties arising out of trade wars and protectionism.

The industry is focussing on new-age technologies like robotics, artificial intelligence (AI) and machine leaning to not just help customers stay ahead in the game but also remain competitive themselves.

The advent of new technology paradigms like robotics, AI, blockchain and IoT is changing how companies and individuals consume technology and for the Indian businesses to remain successful, an update to the technology of tomorrow, today will be needed, Nasscom Senior VP and Chief Strategy Officer Sangeeta Gupta said.

With automation and artificial intelligence increasingly becoming an integral part of business, concerns around layoffs also continued to linger through the year.

At the end of October, US-based Cognizant said it planned to slash up to 7,000 jobs as part of cost-reduction efforts. Infosys too was reported to be mulling firing thousands but the company clarified that there were no planned layoffs.

However, industry leaders sought to allay apprehensions on job losses and maintained that industry continues to be a healthy net hirer.

The US continues to be an important market for the Indian IT services players, accounting for over 60 per cent of the export revenues. While Indian companies have ramped up local hiring in these markets, there continue to be challenges on the regulatory front in terms of visa-related issues.

Back home, certain provisions of the data protection bill has the industry experts up in arms. Apart from clauses that could impinge on privacy of Indian citizens, there are areas that could create challenges for businesses, experts rued.

Inclusive innovation at scale rather than scaling IT services today is the new moolah and core of IT services and in order to accelerate the technological growth, India needs to attract more foreign investment, offer tailored upskilling programmes, retain home-grown talent, as well as create a favourable regulatory environment. PTI