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65% of IT employees not trainable in new technologies, likely to lose jobs, says Capgemini CEO

Srinivas Kandula's remarks came only days after advisory firm McKinsey said in a report that half of India’s IT workforce risked becoming irrelevant in 3 years.

Capgemini India Chief Executive Officer Srinivas Kandula has said that 65% of employees in the country’s information technology industry are not trainable in new technologies, PTI reported on Sunday. At the National Association of Software and Services Companies annual conference in Mumbai, Kandula warned of high job losses at the middle and senior levels at domestic IT companies because of a change in the nature of work.

Kandula also raised concerns regarding the quality of the workforce, saying that many of the 3.9 million employees in the sector had been educated at sub-par engineering colleges which did not follow standard grading patterns. Companies had also not invested enough in upgrading their employees’ skill sets as they were answering to investors only seeking high returns, the CEO added.

“For some unknown reasons, we call it a knowledge-driven industry,” he said at the Nasscom conference. His remarks come after global advisory firm McKinsey & Company on Friday presented a report saying that half of India’s IT workforce risked becoming irrelevant in the next three years if companies did not invest in skill training for employees. The report suggested several ways for IT companies to help their businesses, including by developing new capabilities, merging traditional and digital services and acquisitions, according to Business Standard.

McKinsey India Managing Director Noshir Kaka had also noted that the biggest challenge for the industry was retraining nearly 60% of its workforce. Many IT companies, which are dealing with business uncertainty because of visa policies in the United States, are also considering share buybacks. While Infosys has dismissed rumours that it is considering a buyback worth Rs 12,000 crore, Tata Consultancy Services said that it would discuss the possibility of a buyback at a board meeting on February 20.

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