With a whopping 85% of professionals planning to invest in upskilling for FY25, India stands at the cusp of what could be its most significant workforce evolution. This surge in upskilling initiatives comes at a critical time when artificial intelligence is reshaping traditional job roles across sectors.
“AI is becoming the new digital skill of the world,” Neeti Sharma, CEO of TeamLease Digital, told AIM, drawing a parallel to Microsoft Suite, which was once the benchmark for digital literacy.
The transformation is particularly evident in the way traditional roles are evolving. “Coding jobs now constitute only 30% of the market compared to 60% earlier,” noted Sharma, highlighting a fundamental shift in skill requirements. However, she emphasises that understanding software development remains crucial.
“You can’t just pick the code from here and put it into your development engine. You will have to understand, correlate, and align to what you want,” she said.
The Challenge of Innovation
One of India’s biggest challenges lies in its approach to innovation. “We haven’t focused on research and innovation as much as the developed nations have,” Sharma pointed out. This gap is particularly evident in AI development, where India has fewer than 2,000 senior software engineers capable of building AI products from scratch.
Vinay Kumar, co-founder of Arya.ai, hit the nail on the head. He noted that India’s engineering culture prioritises applied engineering over core research. “We have always been a user of it rather than a producer,” he said. This reliance on preexisting solutions limits India’s ability to lead in AI innovation, a gap that countries like China have aggressively filled over the past decade.
The statistics paint a compelling picture of urgency. Job retention confidence in India has plummeted to 62%, marking a nine-point decrease from the previous year. This decline is particularly pronounced among entry-level professionals, where only 29% express confidence in job security. The message is clear: adapt or risk obsolescence.
What makes this transformation particularly noteworthy is its scope. India’s installed talent base of 416,000 AI professionals is projected to surge to approximately 1 million by 2026. This growth isn’t merely about numbers – it represents a fundamental shift in how India positions itself in the global tech landscape.
The financial implications are significant. Workers with AI skills are expected to see salary hikes of over 54%, and IT professionals could potentially enjoy an increase of up to 65%.
However, the path to upskilling isn’t without hurdles. A staggering 79% of employers report difficulties in finding the AI talent they need, while 91% are clueless about how to implement an AI workforce training program.
Interestingly, this skills gap represents both a challenge and an opportunity for India’s workforce. The reality on the ground is equally complex. As a software professional shared on Reddit, “I am in the same dilemma. It’s so tough after a 10-hour work day. My eye hurts, and I still have to upskill to stay relevant”.
The Role of Education and Policy
The challenges begin early on, starting with India’s education system, where practical exposure to cutting-edge technologies remains limited. “Even though English has been integrated well into the curriculum throughout India, 30-40% of people still struggle with it. With AI, the number would be even worse,” Sharma explained.
Inadequate access to electricity and the internet in rural areas exacerbates this digital divide, further hindering upskilling efforts.
However, there are signs of progress. The New Education Policy (NEP) aims to integrate internships and apprenticeships into university curricula, providing students with hands-on experience. Advocating for this approach, Sharma said, “We need to implement the NEP effectively and bring industry experts into academia through programs like Professors of Practice.”
By bridging theoretical knowledge with practical application, these initiatives could help address the employability gap—currently estimated at 80-85% for fresh graduates.
How Teamlease Digital Comes into the Picture
TeamLease Digital has taken proactive steps to address these challenges through tailored upskilling programs.
“Every candidate we hire gets access to free programs on AI and generative AI,” said Sharma. These range from short workshops on prompt engineering—a skill described by a trainer as treating “GPT as your lowest denominator assistant”—to comprehensive three-month certification programs developed in collaboration with leading universities.
This focus on customisation extends to sector-specific training. For example, TeamLease Digital works with GCCs in industries like healthcare and BFSI to develop specialised talent pools. In one case, a US-based healthcare GCC sought candidates with experience in animal healthcare—a niche requirement that underscores the importance of domain-specific expertise.
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