Tech companies are struggling to translate higher training investments into measurable outcomes. While nearly two-thirds of professionals are already enrolled in some form of upskilling program, firms cite instances of increasingly grappling with issues around effectiveness.
Experts pointed the recent layoffs in tech giants like Oracle, Amazon and Meta to not just automation, but the limits of current skilling models.
In essence, while India Inc is aggressively pushing towards workforce upskilling, industry executives said that the turbulence is no longer because of the willingness to upskill, but the ability to convert learning into measurable productivity gains.
Additionally, some firms Fe spoke to said that despite them being keen on increasing their skilling budgets, the implementation isn’t as smooth and rewarding.
Workforce Impact
While 69% of organisations have increased their learning and development budgets, the impact remains limited, with 62% of companies reporting that these programs reach less than half their workforce. At the same time, 27% of learners are already enrolled in courses and another 36% are actively exploring options, testifying strong participation but uneven outcomes, as per findings from the recent NIIT India Skill Survey Report.
There appears to be a similar spill over in the hiring trend, as employers face a shortage of deployment ready talent even within experienced cohorts.
Mid-Career Crunch
When hirings are evaluated, there seems to be a pressure point emerging in the mid-career segment. Professionals with 6-15 years of experience account for 47% of hiring demand but are also cited as the most constrained talent pool by most recruiters, Pankaj Jathar, CEO, NIIT Limited said.
This talent paradox prompts companies to recalibrate their hiring strategies with nearly half the companies planning a recruit a mix of entry-level and experienced talent, while others are accelerating internal upskilling to bridge capability gaps.
Meanwhile, as weaker and undifferentiated players struggle to demonstrate real value, the same pressure is starting to become visible within organisations, where roles that fail to translate skills into productivity are being rationalised.
“A small number of firms capture most revenues, while a long tail burns cash chasing differentiation that may not exist. History offers parallels in dotcom-era portals and apps,” Krupesh Bhat, Founder and CEO of Melento said.