Once 5G becomes a reality it will create jobs in the telecom sector: Paul Dupuis , MD&CEO Randstad India
There is a reinvention happening with telecom right now, I would not call it a crisis but an evolution in this sector.
According to data compiled by brokerage firm CLSA, FY18 turned out to be the slowest in terms of hiring in the last four fiscal years, while FY16 saw the best with growth of 4.2%. It is widely estimated by headhunter analysts the job market may see a slight growth by the end of the year but will be less than the FY16. It is also estimated that the job market in FY19 may see a growth of 4.1 %.
A recent report has suggested that telecom sector may let go of 60,000 plus employees at the end of this financial year. BW people speaks to Paul Dupuis, MD&CEO Randstad India on what this job slash means to the Indian economy, which sectors may get affected along and his vision on the future of jobs by 2020.
Edited Excerpts from his interview.
Q- As per a recent report, about 65,000 jobs are going to be slashed in the telecom sector at the end of this year. So what kind of crisis will this lead the Indian economy into?
I think we need to be very careful, while using the term crisis. Let us not be presumptuous about anything here. When you think about the current situation, this has been in the making for about 10 years. We saw it coming. In any industry, competitive markets thrive when there are 3, 4 players. And even when there is one it is very dangerous. It was the same thing when Indigo came in. There is a reinvention happening with telecom right now, I would not call it a crisis but an evolution in this sector.
Q- Which level of organisational structure you think these redundancies will have an impact in the long run?
I don’t think this will have too much of an effect in the long term. The major number of redundancies that will happen are going to be in the overlapping job roles. For Ex idea and Vodafone have merged. Hypothetically speaking now there is no need for them to have two stores in the same blocks. So basically, the customer facing roles will be the first one to be effected. The low-level jobs will get hit first. Most likely functions to be affected will be accounts, sales, front level marketing etc. So that 65,000 number is mostly at the bottom of the Pyramid. Expect a similar number next year too. Once 5 G becomes a reality that will start creation of jobs in the telecom sector.
Q- Which other sectors are going to follow the trail after telecom sector to lead to a job crisis?
In terms of decline, we are seeing a few things. I think BFSI (Banking and Financial Services Industry) is an interesting one. There is a bit of a consolidation there as well. That is tough margin business too.
Q- What will be the future of these employees who will face the repercussions of this massive job slash?
These 65,000 jobs that we talk about, we have to be very careful with this headline. These are not carefully crafted niche roles, that will be impacted. These roles that would get affected are actually quiet transferrable and generic roles. So a sales person in telecom can be a sales person in some other area as well.
Q- As a staffing company I think you can forsee the future a little bit for 2020? Which companies do you think are going to see maximum number of job creation?
If you look at India at the moment, it is a country that is growing. In terms of economy and also growing physically. In that way Infrastructure is a big market for job creation. There are huge opportunities in this sector. Energy is another sector that has magnificent growth potential. So if I was advising young people in India to look out for a career I would definitely suggest Energy and infrastructure. And if Indian puts into place some data protection laws, then absolutely it is the next big thing to go for. And also Retail let us not underestimate the potential of retail in India, it sure is huge.