Reskilling, automation can fuel $1.4 tn in revenue and $282 bn in profit: Infosys

Companies can generate up to $1.4 trillion in revenue and $282 billion in profit through digital tools automation, diversifying talent pool, and improving skills development amongst employees, according to a new research report published on Thursday.    

The report titled ‘Future of Work 2023’ was based on a survey conducted by the Infosys Knowledge Institute (IKI), the research arm of Indian IT services company Infosys, and surveyed 2,500 senior executives and managers in large companies with more than $1 billion in annual revenue.    

The study emphasised that automation and modernisation of digital tools are set to become the top investment priority for firms in the next two years and expected to bring in up to $123 billion in profit. Almost two-thirds of senior executives practice remote working rather than in-office working and expect flexible or remote workspaces to grow in the future. Of them, nearly two-third or 65% of senior executives said that incorporating remote working resulted in better staff retention, it said.  

Respondents cited collaboration, change management, and a constant evolution of future of work approaches as the top challenges faced by companies in implementing workplace transformation strategies. The study, however, noted that those companies that incorporated wellness initiatives, home office stipends, and reskilling programs saw an increase in staff retention. Modernisation and automation of digital tools, compensation rise, and bring-your-own-device strategies were also impactful on retention, the study said.   

Not just Infosys, a number of other studies in recent times have highlighted how remote work, automation, and digital tools and technologies are shaping the future of work. As a PwC research study published in March 2020 predicted that virtual and augmented reality (VR & AR) have the potential to boost global gross domestic product (GDP) by $1.5 trillion by 2030.   

Companies across industries that are able to adapt and embrace these changes will be the ones to survive and thrive, it said. For example, in the healthcare industry, medical students can practice surgeries and procedures in a virtual environment, before performing a procedure on a real patient. Virtual simulations can be used to train employees in other industries, such as manufacturing, where workers can learn how to operate complex machinery much before they get acquainted with the real equipment.    

In a February 2022 report, market research firm Gartner predicted that by 2026, 25% of people will spend at least one hour a day in the metaverse for work, shopping, education, and entertainment. The metaverse is expected to be a substantial contributor in the future workplaces and can be leveraged to host virtual conferences, meetings, job fairs, recruitment drives, and even employee onboarding, the study said.   

That said, businesses that are likely to focus less on the employees’ work location and more on the mix of people working and how well they are supported will thrive in the future workplace, said the Infosys report.