How has digital transformation changed the workforce?
Traditionally, tech firms in India set the tone for the hiring season by employing large numbers of graduates from engineering schools that are assigned to a pyramidal organizational structure. The first three layers of the pyramid, organized according to years of experience (1-3 years, 3-6 years, and 6-9 years), contributed to roughly 80 percent of the total headcount. However, from a budgetary perspective this number represented no more than 30 percent of the total non-executive wage bill. This organizational structure has changed significantly as pyramid designs were replaced with diamond architectures where some entry-level work is automated, improving margins and streamlining efficiencies by having mid-level engineers focus on building technical skills that will deliver value well in the future.
Tech jobs in roles such as IT support and project management are the first to be automated, resulting in decreased headcounts of more than 15 percent in some companies. Other tech fields are a mixed bag of increased or reduced headcounts based on experience levels. Tech jobs are being automated in the areas of remote infrastructure, software testing and release, and applications development. However, headcounts are increasing in data services, UI/UX, cloud computing, and solutions architectures that bring together domain/functional knowledge to create solutions for clients. In fact, jobs in these areas are increasing by more than 100 percent and help drive an organizations non-linear growth. Companies are also disrupting organizational structures by dipping into nontraditional talent pools such as freelancers, part-time/contingent works, crowdsourced talent and lesser-known coopetition models.