A NASSCOM report highlights that only about 17.45% of engineering graduates of the year 2011 were employable. It showcased that over 75% of IT graduates are not ready for jobs and further brought into notice how India's $60 billion outsourcing industry is spending almost $1 billion a year training them to be fit for jobs.
To add to that, Companies struggle to get their manpower demand fulfilled by quality talent.
Industry figures estimate a total of 61.77% students require training in both soft-skills and problem-solving skills to be eligible for any job in the IT or ITeS sector.
A study investigated the percentage of candidates that would be employable at IT services companies if they did not run in-house trainings and rather, put candidates directly on projects, and the figures were optimistically estimated to be only 5.97%, posing a huge challenge for the industry to get the right skilled manpower.
Additionally, given that the ratio of the number of top 100 campuses to the rest is more than 10 times, we can conservatively estimate that more than 70- 80% employable students in IT and ITeS sectors are in the tier 2 campuses and according to current trends, IT and ITeS companies do not source from tier 2 campuses, which creates a large artificial dip in supply of eligible candidates.
The reason behind this trend is that, It is known to be at-least twice as hard (in cost and effort) to identify an employable graduate from a tier 2 campus as compared to a tier 1 campus, which from an economic perspective, makes it unattractive and inefficient for companies to hire students other than those from tier 1 campuses, making the major chunk of graduates ineligible to even called for a job interview.
There is often a gap between what college students learn in theory and what is actually practiced in the industry. This further attracts cost when industries conduct training programs internally to make their fresh talent “deployable”. Industries also struggle to maintain bottom-lines in a competitive environment and this ‘gap’ further creates a dent on profitability.
We have studied the talent supply-chain gap in the IT and ITeS industries in detail and attempt to tap this opportunity to partner with Educational Institutions, to help make their graduates employable and Industrial Institutions, by helping them cut HR and Training costs by directing trained, ‘job-ready’ professionals to them.