Low-skilled IT jobs ‘grounded’ as firms look for ‘cloud’ professionals

Software vendors will hire fewer low-skilled employees in offshore and near shore locations as increased deployment of cloud-based services by clients is driving demand for cloud computing skills.

Employee growth continues to decelerate among large software vendors as cloud adoption moves beyond the proof-of-concept phase. Vendors are leveraging Intellectual Property and automation to accelerate delivery of cloud infrastructure to clients, according to Bozhidar Hristov, lead analyst with the US-based Technology Business Research.

Cloud-as-a-service stretches from managing hardware infrastructure to providing software by vendors on a subscription basis. Depending on the service, the cost saving could range from 20 to 40 per cent. This means, professionals with cloud-related skills will manage offshore clients’ requirements and replace lower skilled employees onsite, said an industry source.

As companies shift hiring to attract and retain higher-value employees, they are reshuffling existing internal resources to support market niches such as analytics and mobility, Hristov said. The shift was noticeable at companies such as HP, Dell, IBM GS, CSC and T-Systems that shed headcount to align resources more closely to market demands, he added.

The global cloud computing services market is likely to reach $127 billion by 2017, according to Global Industry Analysts.

The accelerated adoption of cloud will force Indian software vendors to transform business delivery models and they are, and will be recruiting local laterals (in various geographies) with vertical specific expertise and skills in application modernisation. This, paired with the expanded onshore consulting footprint, will allow them to climb up the value chain and shift their brand from low-cost outsourcers to business solutions vendors, Hristov told Business Line .

Moorthy K Uppaluri, CEO, Randstad India, an HR firm, said one in four new IT jobs will be related to cloud computing and its allied services and products in the next couple of years. As adoption of cloud computing increases in India, especially with the small and medium enterprises segment, the market size for cloud computing professionals will increase substantially.

Cloud computing will impact delivery of IT services in the future. But this trend is still at a nascent stage and facing concerns around security, data control and access-related issues. Most companies are taking a cautious approach in cloud adoption, mainly for business critical applications. It is expected to evolve over the next decade with gradual adoption before cloud computing becomes mainstream and disrupts the overall IT ecosystem, he said.

According to Mohit Gupta, Director and Co-founder, TeamLease Services, a recruitment firm, investing in cloud computing skills and knowledge seems to be a good bet today, and a wise career move. Many IT administrators will seek cloud skills and knowledge through training and certification programs, he said.

There is an explosion in both the use of cloud computing and the demand for people to assist in the mass migration to cloud.