A report by consulting firm Zinnov says that the Internet of Things earns around $10 billion. The biggest attraction of IoT is that it reduces manpower and saves money for any organization. However, the downside is that it also cuts jobs and by 2021 it would make over 1 lakh jobs redundant.
Zinnov said that IT automation would have eaten up thousands of job, and unskilled and blue collar jobs will be most hit. Indian IT firms share in the segment for the services related to IoT is steadily increasing and today accounts for over 40% and by the next decade, it will increase to 44%. However, by coming decade more than 69000 jobs will be lost.
It is in addition to thousands of jobs in a labor-intensive sector which will be lost due to automation in IT. However, more than 25,000 jobs will be created, but it will require highly skilled labor. So value wise it will mean more income for the Indian companies but fewer jobs. Creating skill for employment in the IoT segment will also require a massive investment by corporations.
Internet of Thing or IoT is a process which uses chips and sensors to allow monitoring of machinery via the web. Jobs like office administration, support staff and those in maintenance will see their roles taken over by technology. Machinery is embedded with sensors and chips will allow for 24 hours monitoring via the internet. It reduces the requirement of manpower, reduces avenues for corruption and bending of procedures and rules. It impacts or reduces the need for job administration, back office staffs, supervision, installation, and maintenance.
The jobs which will be created include Product Managers, robot operators, programmers and network engineers. These new technologies will take over the blue collar jobs. The low-skilled jobs will be cut by 30%, while the highly skilled jobs will increase by 56%. The demand in the service industry for IoT players with intellectual property and platforms is growing steadily.
The Indian domestic market accounts for $1.6 billion to the overall market and will increase to $3.8 billion in the coming five years. Indian Corporate represents the majority of spending on IoT (around 80%). The government accounts for 20% of the domestic IoT segment. IoT is being used to reduce corruption and increasing transparency in many scams hit departments like RTO, Railway Reservation and the Revenue Department.