An increasing switch to automobiles from IT

Declining IT Industry

Engineers are getting back to the good old brick and mortar automobile industry as the IT sector loses some of its allure. Top auto companies like Mahindra & Mahindra, Ashok Leyland and Maruti say that enquiries and CVs from engineers, many with IT experience, are on the rise. Potential Engineering graduates in addition to those with experience preferred the sector not only for the prospect of rising faster but also for the possibility of working abroad at the height of the IT boom. But with big IT companies benching staff and US visa rules getting tighter, the focus is back on manufacturing. For engineers with an IT background, the rising significance of big data and artificial intelligence in the automobile industry has made this segment interesting.

“Earlier mechanical engineers were going to the IT industry but now they’re coming back. There appears a reverse brain drain happening and suddenly we’re getting lots of applications from this segment, much more than in the last 3 years,” said Gopal Mahadevan, CFO, Ashok Leyland. Hiring is up in this segment with top gear demand pushing auto companies to expand capacity and crank out new product platforms


According to the Naukri Jobspeak data for March 2018, there has been significant hiring growth for the auto industry. The sector has witnessed a 33% growth in March 2018 compared to March 2017. Also, this sector has witnessed a healthy up growth throughout 2017, specifically from October onwards one can see a strong double-digit growth.

“The IT segment has almost reached a saturation point. Therefore pay growth is also not as good as it once was. So the attraction to join the auto industry is back,” said Rajan Wadhera, president-automotive division, Mahindra & Mahindra.

Having electric vehicles and incorporating self-driving cars into their system HR professionals see the shift as part of the industry undergoing tech transformation. “Product specialists are in demand and their experience levels are to the tune of 8 to 10 years or higher. A 30% increase in the hiring process has been recorded by the auto industry and IT has been a major contributor,” said Thammaiah BN, MD, Kelly Services.

The expected advent of technology

The next technology revolution in the automobile sector–autonomous or driverless vehicles–is likely to increase demand for engineers NSE -2.94 % and other tech specialists over the next three years. According to estimates by experts, including Nasscom, the sector is likely to employ about 110,000 engineers, up from about 70,000 now, by 2020, Most of the fresh hires would be for cutting-edge automated technology such as artificial intelligence, robotics, cognitive solutions and machine learning.

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