India’s IT Sector: Importance of Upskilling for Future Success

Tech Skills Key to India’s Future Economic Growth

New Delhi: As India solidifies its position as a global IT outsourcing hub and a hotbed for technology startups, the importance of acquiring specialized skills to meet employer demands has never been more crucial, according to a recent report.

Data indicates that by 2025, Artificial Intelligence (AI) is projected to contribute up to $500 billion to India’s GDP, with the potential to reach $967 billion by 2035.

Sachin Alug, CEO of NLB Services, a technology and digital talent solutions provider, highlighted popular upskilling areas including data analytics, machine learning, cybersecurity, banking and wealth management, digital marketing, robotics, AI, and cloud computing.

“These programs can result in a salary increase of 20-30% in metro cities and 15-20% in Tier 2 and 3 cities,” Alug stated.

Driven by the necessity to remain competitive, widespread internet access, and the proliferation of e-learning platforms, a growing number of fresh talent from tier 2 and 3 cities are enrolling in upskilling courses.

Bengaluru and Chennai are leading in upskilling initiatives, with Mumbai, Delhi, and Hyderabad following suit.

A recent report revealed that only 29% of Indian fresh graduates in white-collar jobs feel secure about retaining their positions in FY25. Professionals in the IT, telecom, and tech sectors, particularly those with engineering degrees, view upskilling as essential for their careers.

The report also shed light on gender diversity in upskilling, noting that around 20-25% of women in IT are actively engaged in upskilling programs. However, 30-35% feel underconfident due to a lack of training in advanced technologies like generative AI, robotics, and cloud computing.

Furthermore, the report highlighted the anticipated job market shifts, with the manufacturing sector expected to create 5 million new AI-related jobs by 2030. In contrast, the retail sector may lose 850,000 jobs by 2025 but gain 4 million new AI-centric roles.

The report emphasized the need for policymakers to implement strategic initiatives to address these evolving demands.

“To thrive in the AI-driven future, a proactive approach to continuous learning and upskilling is imperative; otherwise, India may face instability due to inadequate upskilling in the IT sector, particularly in AI,” the report stated.

The ‘India Skills Report 2024’ predicts that AI will generate 1.6 million new jobs in healthcare by 2030, while the finance sector may witness 1 million job displacements but also gain 1.5 million new AI-skilled positions.

Published on Jul 15, 2024, at 01:35 PM IST, this report underscores the critical role of tech skills in shaping India’s future economic growth.