India’s IT sector has contributed 9.5% to India’s GDP and has added around 5.8 million graduates in FY15. Our talent pool of technical graduates is one of the largest in the world and is available at a cost saving of 60% -70% to source countries. This large pool of qualified skilled workforce has enabled Indian IT companies to help clients to save US$ 200 billion in the last five years. It is estimated to expand at a CAGR of 9.5% to US$ 300 billion by 2020.
In order to better engage and motivate workforce to strengthen this growth story one needs to understand the current talent related challenges faced by the IT sector.
Addressing employability concerns
As per NASSCOM reports the sector faces huge employability challenges. A recent study by Aspiring Minds (an employability evaluation and certification company) has suggested that around 80% of engineering graduates are unemployable. Entry level engineers are facing challenges in technical skills, soft skills and cognitive skills. Even though there is a basic expectation of these skills amongst them, it is still a challenge to find enough good talent. Organizations in this sector thus need to have strong induction and training programs to bridge this gap.
Managing workforce expectations
IT sector has a very young workforce who have very different work expectations vis-à-vis Generation X. The millennial generation expects meaningful work, flexibility in their work schedules, development opportunities and career growth to be engaged in their work. This calls for creating a more development focused, empowering and challenging work culture.
Developing maturity in a young workforce
The young workforce has a casual attitude towards life and work as they have less work experience. Organizations needs to build a sense of ownership and purpose in them. Providing meaning of their work beyond immediate deliverables and timelines, sharing the impact of their work, increasing team work and collaboration will aid this endeavor.
Rapid changes in technology require constant skilling, reskilling and upskilling of the workforce. While on the job learning, instructor led training and e-learning are the popular modes of learning, organizations should also explore gamified learning, massive open online courses etc. Learning programs should be aligned to business and learner needs. Byte sized approach of training makes assimilation easier and is the way to go.
Building leadership pipeline
Building managerial capabilities is equally important if not more. Developing coaching abilities in managers, building successor pipeline, developing high potential employees will strengthen the foundation of these organizations.
Of course there will be some unique challenges in each organization but overcoming these sector level challenges will make technology organizations more productive and future ready.