As a result employment creation in manufacturing is likely to stagnate. Furthermore, jobs are also lost when existing distribution channels, which were a significant source of employment, are replaced by electronic distribution. In contrast, now-flourishing platform businesses, by virtue of being easily scalable, will not be hiring too many workers even if they grow rapidly in terms of sales.
The rapid degree of product and feature obsolescence in the IT industry is a formidable challenge for banks. Such obsolescence needs to be tackled in a systematic and proactive manner for mutual benefit of the banks and their customers.