Back to the Drawing Board: Building India’s Tech Talent Ecosystem | Remadevi Thottathil | CHRO | Latent View Analytics
There is high demand and higher supply, yet the two don’t meet for the Indian tech industry. Last year, TCS reported 80,000 vacancies, but the majority of the 1.5 lakh engineering graduates who pass out annually did not suit the job. Similar is the contrast when it comes to the economics of the sector. While the revenue of IT companies has recorded steady growth, entry-level salaries have not kept pace with compensation starting at Rs4 lakh per annum.
How does this paradox persist in a country celebrated as a global IT powerhouse? The answer lies not in a lack of talent, but in a skills gap that continues to widen, threatening India’s competitive edge in the global tech landscape.
Both issues are tied down to our education system. From schools that place higher regard to marks than problem-solving to colleges with curriculums that provide no direction to real-world industry problems, the problem has been recurring. Over the years, efforts have been put in by IT giants to train students and the Union government has begun skilling programmes, but a lack of an integrated structure has left gaping holes, especially with the advent of emerging technologies (AI, automation, digitalisation) that is disrupting the job market. Reports show that only 45% of graduates meet industry standards at present.
Beyond the fear of humans being replaced, for knowledge workers, the immense AI potential of India is predicted to create 10 lakh jobs by 2027 to keep pace with the global AI race. While IITs and top-tier colleges have helped put India on the global map, sustained growth comes only when the full potential of graduates at all levels can be tapped into.
The Indian government has recognized the urgent need for upskilling and has launched several large-scale initiatives. In 2024, the government approved the Rs10,372 crore IndiaAI Mission aiming to integrate AI training into the existing engineering curriculum. Public-private partnerships and industry-led initiatives are also working to bridge the skill gap, ensuring that the workforce is ready for emerging opportunities. One of the recent collaborations is Oracle’s partnership with the National Skill Development Corporation to train 100,000 youth and professionals. While these efforts ensure that graduates enter the job market with industry-relevant skills, we need to begin change at a deeper level in schools and colleges, government policies, and industry mindset to put in
place a strong foundation of talent.
Pillars to Build a Talent Ecosystem
To get to the root of this problem and secure India’s position as a global tech powerhouse, we need to create a talent ecosystem that brings together industry, government, and academia. This ensures training time and costs invested in fresh graduates are efficiently used in imparting high quality that brings the workforce up to speed at a much faster pace. Here are four areas that need focused attention:
1. Education and Training
A future-ready workforce starts with an education system that balances technical proficiency with adaptability, creativity, and critical thinking. Curricula must evolve to integrate hands-on learning, industry exposure, and real-world problem-solving. But learning cannot stop in the classroom — continuous upskilling through online platforms, coding boot camps, and industry certifications is crucial for staying relevant in an AI-driven world.
Another aspect is choosing the right discipline for a student and providing them options of integrated learning that finds the best application in the real world. While core mathematics capabilities are in demand, not all disciplines stand their ground on their own. For instance, a BTech degree without hands-on experience is considered inadequate in an era where specializations in AI, ML, and IoT drive innovation. Subjects such as data analytics and data science have become foundational to these emerging technologies, enabling AI models to process vast datasets, improving automation, and refining predictive capabilities across industries. The demand today isn’t just for coders or circuit designers but for professionals who can bridge the gap between technology and application. Today data analytics, natural language processing, and augmented reality are becoming integral to industries ranging from healthcare to finance, requiring engineers to step beyond their core disciplines. As the boundaries between domains blur, interdisciplinary learning is the way forward to equip engineers to solve complex, real-world problems.
2. Industry-Academia Collaboration For a Competitive Edge
Tech companies and educational institutions must work together to align curricula with industry needs. Collaborative programmes like internships and mentorships can equip students with the skills and networks necessary to thrive, particularly in high-growth areas such as AI, data science, and automation. Industry leaders play a critical role in shaping this transition by offering guidance, access to emerging technologies, and real-world insights. As elite institutions show the way with specialised course structures and industry partnerships in research and development, the focus has to move to all engineering colleges in tier 2 and tier 3 cities, to raise the bar of learning.
3. Entrepreneurship and Innovation: Fostering a Risk-Taking Culture
India needs to empower young innovators who will in turn become job creators. Encouraging entrepreneurial thinking, providing startup incubation, and fostering a culture where risk-taking is celebrated will drive India’s next wave of tech-driven disruption, particularly in emerging fields like AI-driven automation and data analytics. With strong support from accelerators, investors, and academic institutions, students can transform ideas into scalable ventures.
4. Diversity and Inclusion: Broadening the Talent Pool
A thriving tech ecosystem must be diverse and inclusive. Underrepresented groups and underserved regions must have equitable access to opportunities in STEM. Proactive efforts such as scholarships and outreach initiatives will not only level the playing field but also drive better innovation and societal impact.
Building this holistic ecosystem requires a coordinated effort, integrated policies instead of one-off initiatives, and close monitoring of how well we can cultivate, nurture, and empower the next generation of talent. The National Education Policy, advocating for experiential learning, apprenticeships, and industry-driven training is a step in the right direction and a sustained effort that evaluates the impact of the programs would work well. South Indian states have led the way in creating and supporting tech talent and could serve as a learning for the rest of the country in emulating the strengths and identifying the chinks in the policies.
A Leaf out of the South India Model
South India has emerged as the leader in tech talent development. According to the Annual Digital Skills Report FY24 by Quess Corp, 68% of the country’s tech job postings or hiring demands come from South India, followed by the West (16%), North (8%), and East (2%). This dominance is no coincidence — it stems from decades of proactive policies, industry-driven education, and a strong innovation ecosystem.
Bengaluru, Hyderabad, and Chennai in particular, have been at the forefront of fostering industry-academia collaboration. Karnataka led the way in 1998 by establishing India’s first IT department and introducing the first IT policy, setting a benchmark for other states. The state has since pioneered sector-specific policies for electronics, semiconductor design, cybersecurity, and Global Capability Centers. Telangana’s TASK (Telangana Academy for Skill and Knowledge) and Tamil Nadu’s TNSDC (Tamil Nadu Skill Development Corporation) are prime examples of state-led skill enhancement programs in partnership with industry players. Additionally, Hyderabad and Chennai have strengthened their startup and innovation ecosystems by creating research parks and incubators. IIT Madras Research Park and IIIT Hyderabad’s AI Research Center have facilitated groundbreaking collaborations between academia and industry, providing students with hands-on exposure to cutting-edge technologies.
The Tamil Nadu government has announced the establishment of AI, robotics, and EV laboratories in engineering colleges across Coimbatore, Salem, and Bargur, with additional IoT and Additive Manufacturing labs planned in other regions. As these states upgrade their programmes that call for industry participation in education, the recent Karnataka government plans for 100 engineering colleges to be adopted by corporates by 2025 is a bold plan that puts greater accountability on all stakeholders to uplift the quality of talent.
Talent Pool to Tech-Powered Culture
Technology is the differentiator of advanced economies and integral to a better quality of life and healthcare. The speed-defying pace of digital transformation has meant a volley of challenges for established systems. To build a future-ready workforce, a strong foundational understanding of concepts with exposure to their practical applications is essential. The task at hand is to expand India’s capabilities by taking cutting-edge learning beyond elite institutions. For that to happen, academia must rethink learning by integrating experiential, interdisciplinary, and industry-aligned approaches. On the other hand, government policies across states should act as enablers, fostering innovation through skilling initiatives, research funding, and infrastructure support. Meanwhile, the industry must serve as a constant guide, ensuring that education remains relevant by actively collaborating with institutions, offering mentorship, and shaping curricula to meet evolving market demands. A seamless synergy between academia, government, and industry is crucial to equipping the next generation with the skills to drive India’s tech leadership forward.