IT Hiring – Disruption of Organisation Pyramid ?

IT Hiring – Disruption of Organisation Pyramid ?

800 371 Kamal Karanth

IT Hiring is eternally changing and every year brings a new dimension for engineers to become specialists

Indian IT industry over the last two decades has seen a predictable organogram. For every 10 software engineers there is a Team Leader, Then add a manager to look after these team leaders. Additionally, a General Manager for many managers and a VP for a business unit. This model worked to create a 150 billion $ export market. Recent years may well begin a change to this traditional organisational pyramid

Indian IT Industry has been a job spinner for over two decades and currently employs 4.2 million people.  The growth has however moderated over the past couple of years to 7-8 % and in the face of huge headwinds.  The industry which has withstood many headwinds so far at the heart of self-disruption. The Industry which automated much of the paper-driven organisations is now coming to terms with automation on itself.

 IT Hiring- organisation pyramid change

It used to take about 45,000 people about a decade back to generate $1 billion in revenue for an IT services company. But, now it just takes less than a third of the headcount to achieve the same level.  IT companies used to hire hordes of freshers from Engineering campuses and kept their cost base low. They built the mid layer with Managers to manage the scale.  Now, Artificial Intelligence (AI) and Robotic Process Automation (RPA) is offering the alternative to those 2 layers. AI & RPA are likely to manage routine transactions, applications and IT infrastructure. This in its full form is leading to a redundancy of mid-level managers who were earlier required on account of scale.  The layoffs that happened in the past implies the point that mid-level managers are finding it hard to hang on their jobs.

In the last 3 quarters top 6 Indian IT companies who employ 1.2 million people have reduced their net headcount. This is probably a first in the longest time for the IT Industry.

However, the silver lining is that it is not all bad news.  Whilst the scale of job creation is certainly proving to be a challenge. Some of these trends that have emerged in the technology Industry present newer opportunities.

Emergence of DevOps

It is not a new technology but a coined term to describe the full gamut of skills required to comprehend the role. In the agile software development environment, the developer needs to don multiple hats.  Besides coding, he/she needs to able to appreciate the business logic and understand the clients’ domain. S/he also should be able to work with data in order to build scalable IT solutions.  The developer role is tending to be broad-based to cover the full software development lifecycle. Design, development, testing and deployment all in one. In other words, the traditional software developers’ roles are taking on a more 360-degree approach to app development

Analytics growth

Since ‘data is king’ in the new world, huge opportunities galore for people with skills in statistics and ability to frame mathematical models.  A Data Scientist is a better statistician than a software engineer. It is expected that by 2020 there would be a need of 200,000 data analytics professionals in India.  2018 would see the augmentation of analytics further, this would then help in offsetting the decline in other IT jobs


With the greater adoption of cloud computing and digitisation, security is inherent. Therefore, creating a number of opportunities for cybersecurity professionals.  It is estimated that 1 million jobs would be created by 2025 in India. So, if you want to have job insurance for the next 10 years please start 2018 by training on cyber security.

Big demand for UI/UX

Digitisation is permeating every aspect of our life. Hence, designers serve a unique and important role in just about every industry.  Engagement revolves around the user and enhancing the customer experience.  This has led to a boom in the UX/UI Engineers.  UX is a short form for User Experience and UI for a User interface. This demand is only going to aggravate with disruptive technologies like social media, Virtual Reality (VR) and Augmented Reality (AR).

Nature of Jobs

Alongside the above trends, 2018 will also see the characteristics of the jobs transforming. Permanent jobs are set to become passé.  Lay-offs are going to be more frequent. 10 % of the jobs in the IT sector are already contractual in nature.  This is only going to accentuate with the extent of disruptions happening in this sector.  Millennials joining the workforce don’t have the permanent worker mindset. IT Organisations are better off providing them shorter meaningful assignments.

How does one to adapt to all these changes?  The following suggestions should help

  • Choose  IT as a career only if you are passionate about technology. There are many other exciting careers outside this sector.
  • Prepare to be a lifetime student if you want to thrive and stay employable
  • Getting laid off is a necessary evil in this Industry and not always your fault. Be ready to pivot your career.
  • Build foundational skills like Analytics, Communication and business domain

So, in case you already haven’t, please make astart start to become a specialist in your IT Career. This is no longer a domain of generalists.


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