Current Scenario of Tech skill talent supply in India*
In 2022-23, India had one of the world’s largest annual supplies of STEM graduates, at 2.5 million, also achieving a globally leading female diversity ratio of 43-48%. Tier 2/3 cities contribute to around 60% of India’s recent graduates from engineering, arts, and science colleges.
The AI & NLP talent pool has significantly expanded approximately 1.5X since June 2021. However, the talent demand-supply gap persists, as the introduction of generative AI technology in 2022 has triggered a notable surge in demand for AI talent, which was already high across the tech industry.
In case of cloud computing skills like Hybrid and multi-cloud expertise, Infrastructure as Code (IaC) proficiency, and Containerization are currently experiencing an exceptional surge in market demand, reflecting the evolving needs of organizations in this dynamic digital era.
Demand forecast for Tech talent in India till the year 2028*
Digital tech talent demand supply gap is expected to increase from 0.5 million in 2023 to 1.4 million in 2028 driven by a push in demand for digital roles across technologies such as AI, Big Data Analytics, IoT, and Cloud computing.
However, the fresher talent output can only address 16-18% of demand, making reskilling and upskilling the key strategies to meet the growing demand and supply for digital talent by 2028.
In addition, the upcoming workforce lacks awareness and exposure to different fields and opportunities in the job market, along with competent career guidance. Even if some students do have a view of opportunities, they do not have the clarity as to how to build skills required to proceed with career path. All this result in many students not developing appropriate skills, which ultimately leads to incorrect career choices, lower levels of motivations amongst the students, and thereby leading to lower employability.
*Key Insights from “India Tech Industry Digital Talent Demand and Supply Analysis 2023” by NASSCOM, November 2023.
