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Challenges faced by the service industry due to lack of skilled professionals

Wednesday, November 30, 2011
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By Mr. Gurpreet Khanna
India has seen enormous growth in emigration of its citizens to other countries. Economic growth coupled with low mobility of the remaining labor force has exacerbated a growing shortage of qualified skilled professionals to perform needed local work. Companies are finding it more and more difficult to find qualified professionals and, in some cases, wages have skyrocketed up to 50% during the last year.
One of the critical things that organizations need [for them] to sustain business today is innovation. Companies cannot focus on innovation if they don't have adequate skills.
India's higher education system is choking, unable to keep up with the numbers of aspirants. The quality of teaching is also falling. Meanwhile, the government sets unnecessarily high eligibility criteria for jobs that don't need very high skills, hierarchies are rigid. The shortage of Indian knowledge professionals arises from low employability and competing demand from the domestic market as the economy grows.
One of the main reasons for lack of skilled professionals could be attributed to the mismatch between industry requirements and academic curricula of most of the professional colleges. For instance, approximately 2000 MBA students who graduate from any IIM and 10 other premier schools every year could be considered suitable for employment, while only half of the 84,000 graduates from the AICTE- approved Tier II business schools can be considered employable.
The success of an enterprise revolves around the entrepreneur and its employees, provided the employees are skilled and efficient. Inefficient human factor and unskilled manpower create innumerable problems for the survival of these industries. Non-availability of adequate skilled manpower in the rural sector poses problem to these industries.
Another cause for this situation is that the education system in India encourages institutes in imparting a theoretical education and by not emphasizing on the partaking a practical approach towards understanding of the industry in which the students are to be employed in future, the education system is where the amend is needed.
Understanding this very important need for change and contributing towards making this contemplation a possibility, Institute for Excellence in Services and Planning (IESP) is aimed at imparting skill education with its 360 degree approach. It has taken the initiative to impart training and education for different forte in such a way that it could benefit the industry by providing the talent and skilled professionals.
IESP has taken an effort towards turning the situation around and provide the participative students with an opportunity to explore the working mechanism of an industry inside out.
[Mr. Gurpreet Khanna, Director & CEO, Airawat Group]\

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