In a rapidly evolving global economy, the services sector has emerged as a significant player, contributing 53% of India’s Gross Value Added (GVA) versus the 28% of the industry sector. This dominance, of services, is also evident in employment distribution — 31% of employment is generated in the services sector versus 25% in industries. This massive growth is fuelling the demand for entry-level employees across the spectrum of the services sector. This growth is not just limited to IT services, but is more broad based. The organised Indian service sector, that comprises retail, telecom, consulting, hospitality, banking and health care, has been growing consistently. Further, for each of these sectors, India is also the offshore hub, delivering these services for the entire world through captive and third party shared services and Global Business Services (GBS).
The market reality
This massive service industry needs continuous supply of skilled manpower which is being fulfilled from a rather unusual education stream — engineering. According to Statistica, only 57% of engineering graduates are employable. An All India Council for Technical Education commissioned report highlighted that less than 60% of available engineering seats have enrolment. Another industry report claims that about 80% of graduate engineers end up in a non-technical job which is unrelated to their field of education.
