The Future of Work in India: What Should Your Organization Do in 2024?

The future of work is changing fast because of technology, culture, and new ideas about how to work effectively. In fact, India is expected to become a $1 trillion digital economy by 2026. What does the future of work hold for India, and how does it look from here? 

First, let's break it down to how it's changing in the past, present, and future:

The Past

In the past, work was primarily centered around agriculture and manufacturing. People mostly worked on farms or in factories, performing repetitive tasks. Each person had their own job, and workplaces were clearly organized with distinct departmental hierarchies.

The Present

The introduction of computers and the internet revolutionized work culture. Remote work became more prevalent, and short-term jobs or freelance work became viable alternatives to traditional employment. Companies began prioritizing skills over formal educational qualifications.

The Future

Looking ahead, technology like robots and artificial intelligence (AI) will likely handle many tasks traditionally done by humans. Work may continue to be done remotely or in a hybrid model. Companies will need to focus on employee well-being and continuous skill development. Jobs will increasingly be about making a difference and finding satisfaction rather than just earning money.

The Impact of Automation and Emerging Technologies

The debate around automation is intense. Some fear job loss and surveillance, while others see it as a path to progress and transformation. Automation involves a new relationship between workers and technology, creating new employment relations and opportunities.

In labor-abundant economies like India, the effects of automation could pose challenges for development. India's niche expertise in information technology and its struggle with structural inequalities make the adoption of emerging technologies complex.

Industry Changes in India

Manufacturing Industry

• Past: Heavily manual labor.
• Present: High-tech sectors like automobile and telecommunications are adopting automation, while labor-intensive industries like textiles still rely on low-cost labor.
• Future: Increased use of AI and IoT could revolutionize yields, but widespread adoption remains limited due to high capital costs.

Automation in manufacturing is driven by contractualization, where contract workers are hired to weaken the bargaining power of unionized employees and keep wage demands in check. While this increases employment, it often leads to poorer working conditions.

Agriculture Industry

• Past: Farmers used traditional methods.
• Present: Farmers use technology like drip irrigation and drones.
• Future: Farmers might use AI and IoT for better yields.

Despite its potential for automation, agriculture in India faces challenges like structural inequalities, poverty, and subsistence farming. The adoption of advanced technologies is limited due to low capital investment and small landholdings.

Construction Industry

• Past: Construction was fully done with hands.
• Present: Construction uses prefabricated materials and automation.
• Future: Construction might use sustainable materials and digital tech.

Payment and Finance Industry

• Past: Cash was common.
• Present: Digital payment, UPI, and mobile banking are popular.
• Future: Blockchain and digital currencies could be used.

Semiconductor Industry

• Past: India had a limited presence in making computer chips.
• Present: By focusing on local manufacturing, India is growing in this industry.
• Future: There will be more jobs in making computer chips for phones, computers, and other devices.

The semiconductor industry in India is projected to grow at a CAGR of 10.1% during the forecast period 2021-2026, according to a report by Mordor Intelligence.

Ammunition Industry (Defense)

• Past: India used to rely on other countries for weapons and ammunition.
• Present: India is now making more of its weapons and ammunition.
• Future: There will be more jobs in making weapons and ammunition for the military.

In recent years, both India and Western countries have witnessed significant changes in their semiconductor and defense industries. India, once totally reliant on foreign countries for semiconductor chips and defense equipment, has now shifted towards promoting domestic manufacturing and self-reliance.

This change has been possible because of government initiatives like "Make in India," which aim to create jobs, boost economic growth, and enhance opportunities for homogenous products. Similarly, Western countries, always leaders in these industries, continue to innovate and invest heavily in research and development to maintain their competitive edge.

Addressing Challenges and Embracing Opportunities

To adapt to these changes, it is essential to focus on:

• Skill Development: Training people for these new jobs. According to a survey by PwC, 79% of CEOs are concerned about the availability of key skills in their workforce.
• Collaboration: Working with other countries for technology and knowledge. Foreign countries are ahead in technology and innovations, and collaborating with them opens the door to learning a lot from them in this field.
• Innovation: Coming up with new ideas and ways to make things better. Let people openly participate in this field and contribute through their innovative ideas, as we all know that more people, more minds, more ideas.

Future IT Hiring Trends

The IT industry is expected to grow by 8% over the next 3-4 years, but this growth will vary across different segments. The first half of 2024 may see static hiring, but demand for generative AI, niche skills, and QA engineers will drive growth in the second half.

IT Hiring Strategies in 2024

• Backfilling: Hiring to fill open positions created by attrition or expansion.
• Support and Maintenance: Continued demand for IT professionals for system maintenance.
• Layoffs: Some companies may reduce their workforce due to economic pressures.
• Flexible Workers: Increasing reliance on freelance and contract workers to manage demand.

The IT industry is adopting flexible roles and staffing models. Hiring freelance or contract IT professionals for specialized projects is on the rise, and remote work is becoming more common. This is resulting in the expansion of their talent pool. The demand for Data Engineers, Cloud Architects, Devops, Data Scientists, AI/ML folks are seeing a hiring surge today. 

Conversely, the demand for core IT skills such as Java and .NET has declined. This shift has led to a more balanced 50:50 ratio between permanent and flexible roles, compared to the previous 80:20 model. 

Infrastructure and network engineers are still in demand owing to the growing complexity of IT infrastructure. The ITeS sector continues to play a crucial role in the Indian IT industry, providing essential support and services to businesses worldwide.

Key Takeaways

The future of work in India is advancing rapidly, offering both significant challenges and abundant opportunities. This transformation in work dynamics, fueled by technological advancements and shifting economic landscapes, demands that individuals equip themselves with a diverse skill set. This includes digital literacy, critical thinking, adaptability, effective communication, entrepreneurial acumen, and an unwavering commitment to continuous learning to thrive in the job market.

Organizations that proactively adjust to these trends will be better positioned to attract and retain quality talent, driving their success in the evolving job market. 

The future of work is not just about surviving the changes but thriving in a dynamic and competitive environment. Are you ready to embrace the future of work?