India’s tech sector faces skills shortage
Major IT firms like Tata Consultancy Services and Larsenand& Toubroneed struggle to fill tens of thousands of positions due to this skills gap, threatening their global competitiveness.
According to industry estimates, India‘s technology sector will need over 1 million engineers with advanced AI and other tech skills in the next 2-3 years. The demand highlights a considerable skills gap that current education and training systems must address. Sangeeta Gupta of the National Association of Software and Service Companies (NASSCOM) stressed the need for continuous reskilling, as new college graduates can only fill a quarter of these advanced roles.
The sector, employing around 5.4 million people and contributing significantly to India’s GDP, faces a critical challenge in matching workforce skills to job requirements. Major IT firms like Tata Consultancy Services and Larsen and Toubro are already struggling to fill thousands of positions due to this mismatch, which could disadvantage them against global competitors.
Why does this matter?
The issue’s root lies in India’s education system, which needs more practical skill development. NASSCOM predicts the digital talent gap will widen from 25% to 29% by 2028, exacerbating the problem. Prominent economists, including former central bank Governor Raghuram Rajan, warn that poor schooling could hinder the country’s growth prospects, especially with a predominantly young population.
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