Talent Gap in It Industry

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MASTERS DISSERTATION

Addressing the Talent Gap in the Indian Information Technology (IT) Industry: A study into increasing graduate employability

Examination Number: 7185047 MSc. International Business and Emerging Markets (2009-2010)

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ABSTRACT The story of the Indian IT industry is one that continues to baffle and impress many scholars and industry experts. This industry has grown and matured over the years, moving on from offering basic IT maintenance services to offering complex product development and innovation services. The journey has not however been without challenges. A recent concern has been the country’s dying talent pool – popularly known as the talent gap or the engineering gap. This looming shortage threatens to challenge the Indian IT industry’s competitive advantage with an inelastic supply of talented/skilled labour, rising wages and high attrition rates. The purpose of this study has been to investigate the cause, nature and scope of this talent/skill gap. This gap, apart from being a huge hurdle to IT companies all over the country, is also leaving many educated engineers unemployed for lack of employability skills. This paper has looked into efforts made by academia, industry as well as the government to improve the quality of engineering education and focus on developing employability skills in engineering graduates. It has also proposed an analytical framework that offers recommendations to build a cohesive ecosystem of talent development and management. This has been done with the intention of effectively minimizing the effects of the talent/skill gap on the Indian IT industry, here on.

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ACKNOWLEDGEMENTS Writing this paper has been an extremely rewarding and enriching experience. I’d like to take this opportunity to thank people without whom the completion of this paper would have been unthinkable. I like to begin by thanking my Supervisor, Dr. Kinder, who not only assisted me throughout the process of research but challenged my theories and pushed me to think critically and analytical. I will be forever indebted to him. I would like to thank my father, Mr.Parasnis, who helped me patiently with data collection and formulation of concrete ideas. Being from the Indian Software Industry, I was also fortunate to have access to his vast industry knowledge. I would also like to thank my mother for her constant reassurance and guidance. Data Analysis would have been impossible without the contribution of interview participants. I will be forever grateful to them for their time and participation. Finally, I’d like to thank my dearest friends, Tushar Menon, Nikolina Mijolovic and Kamelia Bayat, who were constant pillars of support and helped calm many estranged nerves. Thank you for making this journey so memorable. I hereby present to you, my paper: Addressing the Talent Shortage in the Indian Information Technology (IT) Industry: A study into increasing graduate employability.

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TABLE OF CONTENTS
1. INTRODUCTION………………………………………………… … 7- 11 1.1. 1.2. 1.3. Purpose and Scope Research Questions Dissertation Structure

2. METHODOLOGY……………………………………………………12-17 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. Purpose and Scope Method of Data Collection Triangulation Interview Participants Data Analysis Validity and Reliability Ethics

3. LITERATURE REVIEW……………………………………………..18 -29 3.1. 3.2. 3.3. 3.4. 3.5. Purpose and Scope Evolution of the Indian Information Technology ( IT) Industry Engineering Education and Skill Development Role of Industry in Skill Development In Summary

4. EMPIRICAL MATERIALS………………………………………….. 30-43 4.1. 4.2. 4.3. Purpose and Scope Secondary Data Primary Data

5. DATA ANALYSIS…………………………………………………….. 44-55 5.1. 5.2. 5.3. 5.4. Purpose and Scope Analytical Framework Developed Explanation Model as a Whole

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5.5.

Implications of the Model – Addressing Research Questions

6. CONCLUSION…………………………………………………… 56-61 6.1. 6.2. 6.3. 6.4. 6.5. Research Summary Answering...
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