India industry
Global business leaders have warned that India’s information technology (IT) industry is heading towards a severe shortage of highly-skilled manpower. They say India will not be able to achieve its targeted growth rates if the issue is not tackled immediately.
Today most young engineers and college graduates lack necessary skills, a conference in the city of Hyderabad was told. Software industry body NASSCOM has warned that India faces a shortfall of half a million skilled workers by 2010. NASSCOM President Kiran Karnik told the conference that the availability of skilled engineers would be the biggest challenge for industry in the years to come. He said the IT industry in India needed something like 350,000 engineers per annum, but no more than 150,000 of the most highly-skilled engineers were available each year. This was creating severe shortages of talent, Mr Karnik said, and the industry was definitely concerned.
There was a huge number of graduates and engineers, but people with the technical and communications and team-working skills that were required by global companies were often lacking due to obsolete technological training and archaic education systems, he told the conference.
At present, the IT Outsourcing industries in India employ 1.3 million people. This year India’s software exports are expected to reach USD $60 billion while the domestic software business is likely to be worth $7 – 8 billion. India is planning to expand the business to other countries like Vietnam, Philippines, Malaysia by outsourcing the less important works there and keep the lucrative business home. Several India training firms are already active in countries that they have targeted to train workers there.
Intel (India) president Frank B Jones told the conference that it was becoming more and more difficult to find the required skills among school leavers and graduates in India. He said that firms hiring people with basic level skills from universities found that it took a very long training program to integrate them into the companies’ work culture. As a way out, companies like Intel had started relying on those skilled Indians who – having worked in the US for several years – now wanted to return home. Frank Jones said that about 10% of Intel’s work force had come back through that program but it is not enough so Intel may have to look for another countries with highly skilled people in the future.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
