India may lose 6.4 lakh IT jobs by 2021

India, long considered as home to IT and business services, is set to lose its sweet spot in the global industry.

The country is projected to lose around 6,40,000 low-skilled positions during the next five years, says a report by US firm HfS Research.

India's $150 billion IT industry is said to employ about 10 million people.

The report attributes the likely job loss to a large number of non-customer facing roles at the low-skill level, with a significant amount of "back office" processing and IT support work likely to be automated and consolidated across a smaller number of workers.

It focuses on the true impact of Intelligent Automation on job creation and elimination in the global IT services and business process services industries.

Meanwhile, the report says the world's largest economy US is likely to lose 7,70,000 low-skilled positions by 2021.

However, the job loss on the lower levels is likely to be compansated by the additions to the workforce in the mid/high value skills segment. HfS forecasts that the UK will create 131,000 new services jobs (16% growth), India will add 160,000 (14% growth) and the US will lag with 7% expected growth (173,000 new jobs).

In terms of new job creation as a result of automation, HfS expects the Philippines to make the move higher up the mid/high value skills value chain (48% growth, albeit from a low base).

In addition, HfS forecasts that the UK will create 131,000 new services jobs (16% growth), India will add 160,000 (14% growth) and the US will lag with 7% expected growth (173,000 new jobs). These forecasts are based on the make up of the workforces, education levels and future anticipated IT/business services work for enterprises.