Employability Gap In Indian IT Industry

Bridging the Employability Gap in Indian IT Industry by Effective

Employability Training

- An Employability Report on IT & ITES Industry

Contents

1 Heading 1 3

Heading 2 4

Heading 3 5

2 Heading 1 3

Heading 2 4

Heading 3 5

3 Heading 1 3

Heading 2 4

Heading 3 5

4 Heading 1 3

Heading 2 4

Heading 3 5

5 Heading 1 3

Heading 2 4

Heading 3 5

Bridging the Employability Gap in Indian IT

Industry by Effective Employability Training


Presented By: IT Pathshala - Delhi / NCR | Chandigarh l Dehradun

Email: [email protected]




Index Introduction: ........................................................................................................................................................................... 3

IT Industry in India - An Overview: .......................................................................................................................................... 4

Major Trends Impacting Skill Requirements for the IT Industry: ............................................................................................ 5

Projected Industry Size: .......................................................................................................................................................... 6

Projected Human Resource Requirements: ............................................................................................................................ 6

The majority of employment is expected in ITES export sector, IT & Software export followed by domestic market. ........ 6

Expected Changes in Educational Profile of the Workforce: .................................................................................................. 6

Why there is an Employability Gap in Indian IT Industry? ...................................................................................................... 7

Skill Sets Required for Employability: ..................................................................................................................................... 8

Fundamental Skills: ............................................................................................................................................................. 8

Technical Skills: ................................................................................................................................................................... 8

Communication Skills: ......................................................................................................................................................... 8

Solutions 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? ............................................................................................................ 11

The Way Forward: ................................................................................................................................................................. 12

About the Study: ................................................................................................................................................................... 13

References: ........................................................................................................................................................................... 13

Disclaimer:............................................................................................................................................................................. 13




Introduction: According to one of the highest body that monitors human resource development, India is a country that has

highest human resource reserve. Certainly this is an advantage India has over other countries. Though, in the

same study few concerns have also been raised related to Un-employability in IT industry. Indian IT industry

has emerged as one of the most promising industries over the years and provides employment to large

number of talent pool. However, the industry is facing lot of challenges in hiring skilled work force who are

employable as per industry requirement. There is huge employability gap in the industry that needs to get

reduced 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.




IT Industry in India - An Overview: According to an estimate, the IT-BPO industry in India is expected to produce aggregate revenues of USD 88.1

billion in FY 2011, wherein the IT Software and IT Service sector (excluding hardware) would be contributing

USD 76.1 billion of revenues. The software product segment is estimated to touch the INR 157 billion with

growth rate of 14%. The domestic IT-BPO sector is expected to grow by 16% to reach USD 20 billion in FY

2012. According to NASSCOM, the IT service sector is one of the fastest growing segments across the Indian

domestic market and is estimated to grow by 16.8% to reach INR 501 billion. This clearly indicates that, there

is 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 with

required skill set will be the key factor and India’s youth population is going to be one of the prime driving

forces for the overall growth of Indian IT industry. The industry has much more potential in comparison to

estimated contribution in economic growth of country. However, shortage of skilled workforce is emerging

day by day and is considered as a significant challenge for the Indian IT industry. According to a research

conducted by NASSCOM, every year more than 3 million graduates and post-graduates are added to the

Indian human-resource and out of these, only 25% of IT graduates are considered employable by fast growing

IT & ITES industry.




Major 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 it requires skilled workforce as per industry needs. There are various factors could be taken into consideration that 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 the demand 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 process engineering, architecture development, process re-engineering, infrastructure management, application migration etc. IT services are gradually transforming into IT consulting services and this move would help companies to get the project of higher value and to expand the business and therefore the skilled workforce would 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, customized IT 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 is increased from other part of the world such as Europe, Latin America, Africa, UAE, Japan etc. This growth would open the door for new opportunities and to fulfill the distinct business requirements, industry would require skilled workforce.




Projected Industry Size: According to the estimation, the Indian IT industry is expected to record USD 220 billion from exports and USD 60 billion from domestic front by FY 2022 growing at a CAGR of 12.8%. There are various reasons such as increasing public sector spends, sustainable GDP growth, implementation of IT solutions in different industries, expansion of IT industry in tier-2 and tier-3 cities etc. would be considered the driving force of domestic market. In order to sustain the growth of IT industry, India would require rich pool of skilled workforce to provide integrated and end-to-end IT solutions with flexible business models and technology expertise.

Projected Human Resource

Requirements: As per the studies conducted, and keeping the growth of Indian IT industry into consideration it is estimated that industry would employ around 7.5 million of manpower by FY 2022 and around 2.3 million employees in the IT & ITES industry by FY 2015.

The majority of employment is expected in ITES

export sector, IT & Software export followed by

domestic market.

Expected Changes in Educational

Profile of the Workforce:

In Indian IT industry, the large pool of employed workforce is currently software engineers and MCA and their share is about 80%. It is estimated that the proportion of science and IT graduates who are engaged in software development would see significant increase from about 10% currently to 15%.




Why there is an Employability

Gap in Indian IT Industry? In last few years it has been seen that, the significant Gap between Demand (driven by IT industry) and Supply (driven by Academic Institutions) is getting increased and further to this, not all graduates are employable as per industry requirement. This huge Employability Gap has become one of the biggest challenges in Indian IT industry. There are various reasons to this gap and is affected by different socio economic factors. According to a recent study, only 25% of IT graduates are considered employable as per industry standards, and only 17.85% are eligible for the job in IT service sector with 6 months training. Quality of education and facilities at higher level are one of the most considered factors of skill gap among students. Most of the engineering colleges and institutions are not producing the desired results when it comes to these two required parameters. Further to this, Universities and educational institutions are unable to produce updated curriculum and syllabi according to current technology trends. As a result, the students who are passed out are not well equipped with required skill sets as per current industry trends and therefore, companies are required to incur additional cost to train these fresh graduates and newly hired employees.

In current scenario, educational institutions follow conventional approach where students have fewer opportunities to do interaction with industry; instead the expected approach is to provide a comprehensive platform to students where they can interact with industry experts and can get the practical exposure. Further to this, institutions need to create the pool of industry experts who can work with academicians to produce the industry ready curriculum and training.

I don’t have

enough

practical

exposure

Which

course can

helps me to

get the job?

I need soft skills

training to get

job, but my

college doesn’t

provide it

How to

choose right

college that

can provide

industry ready

education &

training?




Skill Sets Required for

Employability: There are multiple skills and competencies

required to become worth employable in the IT

industry which can be broadly categorized as

below:

Fundamental Skills: These are the basic and

inherent skills and abilities which are required to

perform a specific job. In general Aptitude, Logical

Reasoning, Quantitative Abilities are considered as

Fundamental Skills that build foundation for a

career progression and development.

Technical Skills: These are the skills and

competencies which are acquired during

school/college or professional education. These are

considered as knowledge based skills that are

taught during various educational and professional

courses to make an individual ready for a specific

job. Different skill sets are required for different

jobs and industry. In terms of IT industry, there are

various types of domain skills are considered as

technical skills such as computer programming,

web designing, project management etc. The

practical application of domain knowledge is

essential to build higher employability factor.

Communication Skills: These skills are

required for effective communication including

both verbal and written communication skills. It

consists of primary skills like language skills,

reading, writing, speaking and listening to make

effective two way communication. It is one of the

most prominent skill sets required to increase the

employability quotient.

Interpersonal and Soft Skills: These are the

basic and inherent skills which are required to act,

to work and to perform in social and professional

environments. It includes variety of skill sets such

as leadership skills, time management skills, team

building skills etc. Managing relationships at work

is key requirement to perform and achieve the

desired objective.

Fundamental Skills

Aptitude, Logical Reasoning, Quantitative Abilities etc.

Technical Skills

.NET, C#, PHP, Java, SQL, HTML, CSS, MS Office, etc.

Communication Skills

Verbal, Written (Language Skills, Reading, Writing, Speaking, Listening)

Interpersonal Skills

Leadership, Time Management, Team Building, Goal Setting etc.




Solutions 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 and

education 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. It

is required that industries should work with academicians with effective collaboration for meaningful research

and development. Only overall development other than IT skills can meet the vast potential of IT sector in

India.

Employability Assessment to Identify the Employability Skills & Quotient: Employability assessment and tests could help companies to identify employee’s right skill set that is required

to perform a specific job. In last few years companies are gradually conducting the employability tests and find

these tests and assessments very useful to get the right candidate for the job. Through these tests and

assessments 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”. Such

Trainings are helpful for all but are MORE helpful for Fresh Graduates who are not aware of the Industry

Trends and technologies required to boost their employability.




Benefits / 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.




Who 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 of current human resource requirement and employability gaps in Indian IT industry, the employability training is MOSTLY required for Fresh IT Graduates and Entry Level IT Professionals having educational and professional qualifications 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 to get updated on current technology trends on frequent basis. Therefore, the Employability Training is also required for experienced IT professionals who are working on different domains such as software development, 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 and Professionals who are working on different domains such as software development, web designing, testing etc. 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




The 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 the students. Quality faculty and sound infrastructure are required to meet the expectations of IT companies in India. A comprehensive skill development of an IT student / professional including both the IT and Soft Skills can meet the vast potential of IT sector in India. It is widely acknowledged that knowledge, skills, and resourcefulness of people are critical to sustain the development of any industry and therefore to make the IT industry more strong it has become essential to bridge the Employability Gap in the industry and to prepare competent, talented and skilled workforce across the country.




About the Study: This report has been prepared by IT Pathshala Research Desk. The objective of the report is to highlight the primary causes of Employability Gap in current IT industry in India along with some recommendations like Employability Training. The report also consists of current market trends along with estimated market size and human resource requirement of Indian IT industry.

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.

IT Pathshala Email: [email protected]

Phone No.: +91-120- 463-5900

www.itpathshala.com

Delhi/NCR | Dehradun | Chandigarh

Contact Us

http://education.latestt.com/universities/

http://www.itpathshala.com/

Employability Gap In Indian IT Industry

Career

Transcript of Employability Gap In Indian IT Industry