IT & BPO sector in India has been experiencing tremendous acceleration, which makes it dependent on hiring more people to generate and maintain bigger revenues. One of the issues companies are struggling with is training new entrants, which leads to investing heavily in training infrastructure for new graduates. Industry observers say the training costs for just top four Indian IT players could well surpass $500 million mark this year. Infosys for example spent $125 million last year on training. "We find college education is not geared up for immediate employability in the industry," said TV Mohandas Pai, director (HR) of Nasdaq-listed Infosys. On an average, every engineering graduate requires 14-16 weeks of training, with costs running as high as $5000 per person, say industry experts.
According to Mr Pai, while revising existing curriculum and attracting strong faculty could partly address the employability issue, a higher intake of students by colleges would play a critical role in meeting industry's demand pipeline. At present the student intake by large colleges is only about 800-1000 per year.
Selvan D, Wipro's senior vice president (talent transformation), says that the 65,000 professional IT services firm would be spending close to $100 million on training this year. "We are adding 2,500 training seats this year. The growth in training cost is in tune with the expanding operations of the industry, at a rate of 35-40%," he said. "We are focusing on recruiting entry-level professionals and putting them through a three-month intensive training. They get billable six months from the day they come on board and at that point, the per capita margins become high," said Satyam CFO Srinivas Vadlamani.
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