Tuesday, July 29, 2008

Future of Training Outsourcing in India

In India the growth in services sector has been despite the formal education system, therefore the IT companies had to build huge captive capacities for IT skill development. In the absense of adequate supply of trained talent these played a very vital role.

N & A, the largest players in this segment had positioned them selves as being an IT training provider to non-engineers and its trainees were therfore not considered by the Tier 1 companies as being up to the standard. However, over the years while N has moved upwards and started to address the engineering segment in a big way, IT sector has also lower requirement to be seen as only employing IIT engineers and therfore it makes perfect sense for large IT companies to source talent from training providers such as N.

Some of the other emerging sectors which did not have such training capacities and either due to lower agency costs or due to urgent need to train people, have out sourced their training to N. More innovative amongst them have been quick to adopt new models.

But there was reluctance in IT companies. Imagine if you were leading the training dept at these IT companies what would you do. However, with large companies now hiring upto 3000 per month, training has become a CXO level problem as managing training at these levels needs a professional training organization.

It is only a matter of time before they board the ship too. and therefore, I believe that the future is bright for companies like N.

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