Employability Gap In Indian IT Industry
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Employability Gap In Indian IT Industry

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This research report provides information on employability gap in Indian IT industry.

This research report provides information on employability gap in Indian IT industry.

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Employability Gap In Indian IT Industry Employability Gap In Indian IT Industry Document Transcript

  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES Industry Contents Heading 1 1  Heading 2  Heading 3Bridging the Employability Gap Heading 1 in Indian IT 2Industry by Effective Employability Training  Heading 2  Heading 3 - An Employability Report on IT & ITES Industry Heading 1 3  Heading 2  Heading 3 Heading 1 4  Heading 2  Heading 3 Heading 1 5  Heading 2  Heading 3 Presented By: IT Pathshala - Delhi / NCR | Chandigarh l Dehradun Email: info@itpathshala.com
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryIndexIntroduction: ........................................................................................................................................................................... 3IT Industry in India - An Overview: .......................................................................................................................................... 4Major Trends Impacting Skill Requirements for the IT Industry: ............................................................................................ 5Projected Industry Size: .......................................................................................................................................................... 6Projected Human Resource Requirements:............................................................................................................................ 6The majority of employment is expected in ITES export sector, IT & Software export followed by domestic market. ........ 6Expected Changes in Educational Profile of the Workforce: .................................................................................................. 6Why there is an Employability Gap in Indian IT Industry? ...................................................................................................... 7Skill Sets Required for Employability: ..................................................................................................................................... 8 Fundamental Skills: ............................................................................................................................................................. 8 Technical Skills: ................................................................................................................................................................... 8 Communication Skills: ......................................................................................................................................................... 8Solutions to Reduce the Employability Gap in Indian IT Industry:.......................................................................................... 9 Effective Collaboration between Industry & Academic Institutions:.................................................................................. 9 Employability Assessment to Identify the Employability Skills & Quotient: ....................................................................... 9 Employability Training: ....................................................................................................................................................... 9 Benefits / Broad Objectives of Employability Training: ................................................................................................ 10 Who Should Avail the Employability Training in IT Industry? ....................................................................................... 11 Where Employability Training can be Availed? ............................................................................................................ 11The Way Forward: ................................................................................................................................................................. 12About the Study: ................................................................................................................................................................... 13References: ........................................................................................................................................................................... 13Disclaimer:............................................................................................................................................................................. 13
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryIntroduction:According to one of the highest body that monitors human resource development, India is a country that hashighest human resource reserve. Certainly this is an advantage India has over other countries. Though, in thesame study few concerns have also been raised related to Un-employability in IT industry. Indian IT industryhas emerged as one of the most promising industries over the years and provides employment to largenumber of talent pool. However, the industry is facing lot of challenges in hiring skilled work force who areemployable as per industry requirement. There is huge employability gap in the industry that needs to getreduced for the betterment of the Indian economy.The purpose of this report is to: 1. Provide an Overview of Projection and Trends in Indian IT Industry. 2. Highlight the Employability Gaps in Indian IT Industry. 3. Provide an Overview of Skills required for reducing the Employability Gaps in Indian IT Industry. 4. Put forward the possible Solutions to reduce the Employability Gaps in Indian IT Industry.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryIT Industry in India - An Overview:According to an estimate, the IT-BPO industry in India is expected to produce aggregate revenues of USD 88.1billion in FY 2011, wherein the IT Software and IT Service sector (excluding hardware) would be contributingUSD 76.1 billion of revenues. The software product segment is estimated to touch the INR 157 billion withgrowth rate of 14%. The domestic IT-BPO sector is expected to grow by 16% to reach USD 20 billion in FY2012. According to NASSCOM, the IT service sector is one of the fastest growing segments across the Indiandomestic market and is estimated to grow by 16.8% to reach INR 501 billion. This clearly indicates that, thereis huge demand of skilled and employable workforce across the country.In terms of estimated growth of Indian IT industry, the availability of human resource accompanied withrequired skill set will be the key factor and India’s youth population is going to be one of the prime drivingforces for the overall growth of Indian IT industry. The industry has much more potential in comparison toestimated contribution in economic growth of country. However, shortage of skilled workforce is emergingday by day and is considered as a significant challenge for the Indian IT industry. According to a researchconducted by NASSCOM, every year more than 3 million graduates and post-graduates are added to theIndian human-resource and out of these, only 25% of IT graduates are considered employable by fast growingIT & ITES industry.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryMajor Trends Impacting Skill Requirements for the IT Industry:The Indian IT industry is one of the top contributors in economic growth of the country and therefore itrequires skilled workforce as per industry needs. There are various factors could be taken into considerationthat would impact the skill requirements for the Indian IT industry. Some of them are mentioned below:The Continuous Demand of Skilled Workforce:Since the Indian IT industry would continue to take potential growth over the next years, therefore thedemand of skilled IT, Engineering and Science graduates is expected to be increased in rapid manner.Value Added Services:In Indian IT industry, there are varieties of value added services emerged in last few years such as processengineering, architecture development, process re-engineering, infrastructure management, applicationmigration etc. IT services are gradually transforming into IT consulting services and this move would helpcompanies to get the project of higher value and to expand the business and therefore the skilled workforcewould be required to fulfill the business requirements.IT Solutions targeting to Multiple Industries:In last few years the BFSI sector has maintained the dominant position and other industries such as Retail,Healthcare, Education, Telecom, Supply Chain etc. are going to be prominent industries for which, customizedIT solutions are available across the industry. This will result more requirement of skilled workforce.Opportunities in Cloud Computing & Green IT:In continuation of technological developments, Cloud Computing is going to be the potential vertical.Global Market Opportunities:In recent years, the Indian IT industry has seen prominent growth across the globe and the share of business isincreased from other part of the world such as Europe, Latin America, Africa, UAE, Japan etc. This growthwould open the door for new opportunities and to fulfill the distinct business requirements, industry wouldrequire skilled workforce.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryProjected Industry Size:According to the estimation, the Indian IT industry The majority of employment is expected in ITESis expected to record USD 220 billion from exports export sector, IT & Software export followed byand USD 60 billion from domestic front by FY 2022 domestic market.growing at a CAGR of 12.8%. There are variousreasons such as increasing public sector spends,sustainable GDP growth, implementation of ITsolutions in different industries, expansion of IT Expected Changes in Educationalindustry in tier-2 and tier-3 cities etc. would be Profile of the Workforce:considered the driving force of domestic market. In Indian IT industry, the large pool of employed workforce is currently software engineers and MCAIn order to sustain the growth of IT industry, India and their share is about 80%. It is estimated thatwould require rich pool of skilled workforce to the proportion of science and IT graduates who areprovide integrated and end-to-end IT solutions engaged in software development would seewith flexible business models and technology significant increase from about 10% currently toexpertise. 15%.Projected Human ResourceRequirements:As per the studies conducted, and keeping thegrowth of Indian IT industry into consideration it isestimated that industry would employ around 7.5million of manpower by FY 2022 and around 2.3million employees in the IT & ITES industry by FY2015.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryWhy there is an Employability In current scenario, educational institutions follow conventional approach where students have fewerGap in Indian IT Industry? opportunities to do interaction with industry;In last few years it has been seen that, the instead the expected approach is to provide asignificant Gap between Demand (driven by IT comprehensive platform to students where theyindustry) and Supply (driven by Academic can interact with industry experts and can get theInstitutions) is getting increased and further to this, practical exposure. Further to this, institutionsnot all graduates are employable as per industry need to create the pool of industry experts whorequirement. This huge Employability Gap has can work with academicians to produce thebecome one of the biggest challenges in Indian IT industry ready curriculum and training.industry. There are various reasons to this gap andis affected by different socio economic factors. How toAccording to a recent study, only 25% of IT I need soft skills choose right Which training to getgraduates are considered employable as per college that course can job, but myindustry standards, and only 17.85% are eligible for can provide helps me to college doesn’tthe job in IT service sector with 6 months training. industry ready get the job? provide it education &Quality of education and facilities at higher level training?are one of the most considered factors of skill gapamong students. Most of the engineering colleges I don’t haveand institutions are not producing the desired enoughresults when it comes to these two required practicalparameters. Further to this, Universities and exposureeducational institutions are unable to produceupdated curriculum and syllabi according tocurrent technology trends. As a result, the studentswho are passed out are not well equipped withrequired skill sets as per current industry trendsand therefore, companies are required to incuradditional cost to train these fresh graduates andnewly hired employees.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustrySkill Sets Required for most prominent skill sets required to increase theEmployability: employability quotient.There are multiple skills and competencies Interpersonal and Soft Skills: These are therequired to become worth employable in the IT basic and inherent skills which are required to act,industry which can be broadly categorized as to work and to perform in social and professionalbelow: environments. It includes variety of skill sets suchFundamental Skills: These are the basic and as leadership skills, time management skills, teaminherent skills and abilities which are required to building skills etc. Managing relationships at workperform a specific job. In general Aptitude, Logical is key requirement to perform and achieve theReasoning, Quantitative Abilities are considered as desired objective.Fundamental Skills that build foundation for acareer progression and development.Technical Skills: These are the skills andcompetencies which are acquired duringschool/college or professional education. These areconsidered as knowledge based skills that aretaught during various educational and professionalcourses to make an individual ready for a specificjob. Different skill sets are required for differentjobs and industry. In terms of IT industry, there arevarious types of domain skills are considered astechnical skills such as computer programming,web designing, project management etc. Thepractical application of domain knowledge is Aptitude, Logical Reasoning,essential to build higher employability factor. Fundamental Skills Quantitative Abilities etc.Communication Skills: These skills are .NET, C#, PHP, Java, SQL, HTML, Technical Skills CSS, MS Office, etc.required for effective communication includingboth verbal and written communication skills. It Verbal, Written (Language Skills,consists of primary skills like language skills, Communication Reading, Writing, Speaking, Skills Listening)reading, writing, speaking and listening to makeeffective two way communication. It is one of the Leadership, Time Management, Interpersonal Skills Team Building, Goal Setting etc.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustrySolutions to Reduce the Employability Gap in Indian IT Industry:Effective Collaboration between Industry & Academic Institutions:The way to reduce employability gap in IT sector in India should be attributed to public private partnership.Companies should impart practical training to fill the void in the supply and demand gap. Colleges andeducation institutions should work to improve the soft skills and personality development of the students.Quality faculty and sound infrastructure are also required to meet the expectations of IT companies in India. Itis required that industries should work with academicians with effective collaboration for meaningful researchand development. Only overall development other than IT skills can meet the vast potential of IT sector inIndia.Employability Assessment to Identify the Employability Skills & Quotient:Employability assessment and tests could help companies to identify employee’s right skill set that is requiredto perform a specific job. In last few years companies are gradually conducting the employability tests and findthese tests and assessments very useful to get the right candidate for the job. Through these tests andassessments candidates can know more about their employability quotient and to plan his or her career.Further to this, companies can ensure that the hired candidate possess the required skills and competencies.Employability Training:Employability Training is the methodology to fulfill the gaps and train himself to become “EMPLOYABLE”. SuchTrainings are helpful for all but are MORE helpful for Fresh Graduates who are not aware of the IndustryTrends and technologies required to boost their employability.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryBenefits / Broad Objectives of Employability Training:Effective employability training helps to sharpen employability skills that consist of fundamental, technical,communication and soft skills an employee possess.  Fresh IT Graduates / Prospective Employees can take employability assessment tests to understand their own skill sets and area of improvements.  The employability training is a way to integrate all employability skills one can possess.  Fresh IT Graduates / Prospective Employees can enhance their fundamental, technical, communication and interpersonal skills and become more employable as per industry standards.  It increases the competency standard of a prospective employee, since one can get Industry ready training and environment during the training duration.  It provides a platform to work upon Live Projects based upon different industries and domains. One can work with real life scenarios and situations.  Under employability training programs once can work upon latest technologies and tools with practical implementation.  Fresh IT Graduates / Prospective Employees can interact with industry experts and discuss the latest industry developments.  Effective employability training helps to acquire skill development along with real corporate exposure.  It helps to explore the right career path.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryWho Should Avail the Employability Training in IT Industry?In General Employability training can be taken by any IT Graduate/Post Graduate. However, in the context ofcurrent human resource requirement and employability gaps in Indian IT industry, the employability training isMOSTLY required for Fresh IT Graduates and Entry Level IT Professionals having educational and professionalqualifications in Computer Science like- B.Tech, B.E, MCA, BCA, M.Sc., B.Sc etc.However, considering the dynamic nature of industry and technology a person working in IT industry needs toget updated on current technology trends on frequent basis. Therefore, the Employability Training is alsorequired for experienced IT professionals who are working on different domains such as softwaredevelopment, web designing, testing & quality control etc. to upgrade their employability skills.Where Employability Training can be Availed?Training providers such as IT Pathshala provides Employability Training to Fresh IT Graduates andProfessionals who are working on different domains such as software development, web designing, testingetc.Some Salient Features of Training:  Excellent Placement Record and Assistance  An IT company with Live Projects NOT a Training Institute  Industry Ready Training  Live Projects covering the whole SDLC process with Real Projects  Learn & Adapt International Standards of Coding and Development  Marketable candidates with a. Resume Building b. Mock Interviews c. Soft Skills Training  Real Time Corporate Exposure  Interaction with Industry Experts  Free Online Employability Test  State-of-the-Art Infrastructure
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES IndustryThe Way Forward:The way to meet the employability gap in IT sector in India should be attributed to public private partnership.Companies should impart practical training to fill the void in the supply and demand gap. Colleges &Educational Institutions in India should work to improve the soft skills and personality development of thestudents. Quality faculty and sound infrastructure are required to meet the expectations of IT companies inIndia. A comprehensive skill development of an IT student / professional including both the IT and Soft Skillscan meet the vast potential of IT sector in India.It is widely acknowledged that knowledge, skills, and resourcefulness of people are critical to sustain thedevelopment of any industry and therefore to make the IT industry more strong it has become essential tobridge the Employability Gap in the industry and to prepare competent, talented and skilled workforce acrossthe country.
  • Bridging the Employability Gap in Indian IT Industry by Effective Employability Training - An Employability Report on IT & ITES Industry Contact Us About the Study: This report has been prepared by IT Pathshala Research Desk. The objective of the report is toIT Pathshala highlight the primary causes of Employability GapEmail: info@itpathshala.com in current IT industry in India along with some recommendations like Employability Training. ThePhone No.: +91-120- 463-5900 report also consists of current market trends along with estimated market size and human resourcewww.itpathshala.com requirement of Indian IT industry.Delhi/NCR | Dehradun | Chandigarh References: 1. Trends and Insights by www.nasscom.in 2. NASSCOM 2020 Perspective and IMaCS Analysis. 3. Report on Human Resource and Skill Requirements in IT and ITES Sector by National Skill Development Corporation. Disclaimer: The report has been prepared with reference to secondary data available through various sources spread across the web. The purpose of the report is solely to provide information to its readers. Our research team has taken the caution while preparation of the report and the information covered in study could be useful for readers as per their requirement. All rights and trademarks are reserved for their respective owners. However, if you come across any error or discrepancy, do let us know about it.