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

1. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
Contents
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Bridging the Employability Gap Heading 1
in Indian IT
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Industry by Effective Employability Training
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- An Employability Report on IT & ITES Industry
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Presented By:
IT Pathshala - Delhi / NCR | Chandigarh l Dehradun
Email: info@itpathshala.com

2. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
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

3. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
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.

4. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES 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.

5. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on 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.

6. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
Projected Industry Size:
According to the estimation, the Indian IT industry The majority of employment is expected in ITES
is expected to record USD 220 billion from exports export sector, IT & Software export followed by
and USD 60 billion from domestic front by FY 2022 domestic market.
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
Expected Changes in Educational
industry 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 MCA
In order to sustain the growth of IT industry, India
and their share is about 80%. It is estimated that
would require rich pool of skilled workforce to
the proportion of science and IT graduates who are
provide integrated and end-to-end IT solutions
engaged in software development would see
with flexible business models and technology
significant increase from about 10% currently to
expertise.
15%.
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.

7. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
Why there is an Employability In current scenario, educational institutions follow
conventional approach where students have fewer
Gap 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 a
significant Gap between Demand (driven by IT comprehensive platform to students where they
industry) and Supply (driven by Academic can interact with industry experts and can get the
Institutions) is getting increased and further to this, practical exposure. Further to this, institutions
not all graduates are employable as per industry need to create the pool of industry experts who
requirement. This huge Employability Gap has can work with academicians to produce the
become one of the biggest challenges in Indian IT industry ready curriculum and training.
industry. There are various reasons to this gap and
is affected by different socio economic factors.
How to
According to a recent study, only 25% of IT I need soft skills
choose right
Which training to get
graduates are considered employable as per college that
course can job, but my
industry standards, and only 17.85% are eligible for can provide
helps me to college doesn’t
the 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 gap
among students. Most of the engineering colleges I don’t have
and institutions are not producing the desired enough
results when it comes to these two required practical
parameters. Further to this, Universities and exposure
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.

8. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
Skill Sets Required for most prominent skill sets required to increase the
Employability: employability quotient.
There are multiple skills and competencies
Interpersonal and Soft Skills: These are the
required 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 professional
below:
environments. It includes variety of skill sets such
Fundamental Skills: These are the basic and as leadership skills, time management skills, team
inherent skills and abilities which are required to building skills etc. Managing relationships at work
perform a specific job. In general Aptitude, Logical is key requirement to perform and achieve the
Reasoning, Quantitative Abilities are considered as desired objective.
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 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 including
both 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 make
effective two way communication. It is one of the Leadership, Time Management,
Interpersonal Skills Team Building, Goal Setting etc.

9. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
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.

10. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
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.

11. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
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

12. Bridging the Employability Gap in Indian IT Industry by Effective
Employability Training
- An Employability Report on IT & ITES Industry
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.

13. 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 to
IT Pathshala highlight the primary causes of Employability Gap
Email: info@itpathshala.com in current IT industry in India along with some
recommendations like Employability Training. The
Phone No.: +91-120- 463-5900
report also consists of current market trends along
with estimated market size and human resource
www.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.