Deloitte Nasscom AI Skilling in India
Deloitte Nasscom AI Skilling in India
Deloitte Nasscom AI Skilling in India
1. AI as an integral part of IT
Over the past two decades, India's IT sector has
significantly contributed to the nation, constituting Major global companies today need AI services to
>7 percent of the GDP48 in FY23. Fuelled by a increase revenues, improve operational efficiency,
skilled labour force, entrepreneurial spirit and enhance innovation, achieve better customer
supportive government policies, the Indian experiences, build new-age capabilities, reduce
technology sector has achieved global excellence, cost and improve workforce efficiency and
becoming a driving force behind India's immense satisfaction.42
growth and development. The IT-BPM industry The AI software product market can be divided
stands out as a vital catalyst in India's export into the following archetypes:
expansion narrative, constituting more than ~50
percent of the nation’s total services exports, 1. AI applications: Collaborative content
amounting to ~US$200 billion48, 51. In addition, workflow and management, Enterprise
India's software product sector reached ~US$15.2 Resource Planning (ERP), supply chain
billion in FY2436, 48 and could touch US$100 billion management, production and operations,
by 2030,7, 8 driven by a higher penetration of deep engineering and Customer Relationship
tech in products such as AI/GenAI, Blockchain and Management (CRM) applications
AR/VR.7
2. AI platforms: Facilitate the development of AI
Taking a global view, the AI market, comprising AI models and applications, such as intelligent
services and products, reached US$120 billion in assistants
2023, with AI services accounting for 24%
3. AI systems infrastructure software:
(~US$29 billion).49 The AI market is expected to
Analytics, business intelligence software, data
grow to $500 bn by 2027 as per IDC. If Indian
management, integration, orchestration,
technology players capture a similar market share
application development, software quality, life-
for AI services as for traditional services (where
cycle software and application platforms
India accounts for ~20 percent of the global
services market), the estimated market potential 4. AI application development and
for AI services would be US$24-25 billion, even deployment: Analytics and business
with delayed growth of a few years compared with intelligence software, data management,
global peers.39, 40, 41 integration and orchestration, application
development, software quality and life-cycle
To understand the AI market, we need to review
software and application platforms
its components—AI services and AI products and
how these are growing and diversifying from As a major theme within the AI market, GenAI is
traditional services and products. growing aggressively and could reach 33 percent
of the global AI market in 2027.16 Due to this
AI services are typically categorised into the
emergence and other shifts towards AI, the
following traditional buckets with aspects of AI
industry is witnessing an escalating demand for
interspersed in them:
sophisticated AI software products and service
1. IT services: AI enabled IT consulting, solutions. This encompasses a range of advisory
implementation, application development and services and implementations of Large Language
management, outsourcing, deployment, Models (LLMs) for generative applications,
support and education/training including summarisation, content creation, video
analytics and knowledge assistance through
2. Business services: AI-enabled business advanced chatbot functionalities and complete
consulting and BPO services42 value chain transformations using AI.
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To use and capitalise on this growth opportunity, initiative, “Infosys Springboard,” to assist
the government launched the “IndiaAI Mission” academia in curriculum design.47
with a budget outlay of ~INR10,000 crore over the
next five years.17 As part of the mission, the Considering this, the Ministry of Electronics and
government will support in nurturing ecosystems Information Technology (MeitY) has envisioned
for AI development, including funding and multiple K12 and Graduate/Post Graduate level
providing resources for supercomputing capacity interventions to develop an AI-ready talent pool.
(around 10,000 GPUs), data availability, These interventions will focus on model curriculum
management, use cases, start-up funding and AI and technology, framework, ecosystem
guardrails. development, research for start-ups and MSMEs,
faculty training, career path mapping and building
The IndiaAI mission has planned a comprehensive an AI community.15 The Ministry of Skill
integrated framework focused on technology Development and Entrepreneurship has also
(algorithms, LLMs, etc.), infrastructure (GPUs, collaborated with tech companies for the
specialised accelerators, Cloud, HPC, etc.), ADVANTA(I)GE INDIA initiative to empower
applications (sectorial, domain, etc.), best India’s workforce with future-ready skills and
practices (ethical/responsible AI), talent (technical democratise access to AI skills nationwide.30
and non-technical training to develop/
understand/use/contribute to datasets), enhancing To ensure competitiveness in the global AI
general awareness (sectoral opportunities, threats, landscape, leading industry players47 are
etc.) and development of a collaborative AI reimagining a full stack of AI and tech skills across
ecosystem among academia, schools and three different levels. Ranging from basic to
research.15 advanced AI skills and domain-specific expertise,
including reimagined AI-enabled value chains and
2. Identifying essential AI skills processes within respective disciplines.
Additionally, foundational skills such as problem-
“India has a huge opportunity to be a global solving capabilities, critical thinking and social
leader in AI, and creating AI fluency at scale is skills such as teaming and mentorship support are
a critical step in that journey”—India Head, also emphasized across a three-dimensional lens
Global Tech Major of AI skills:
“India’s IT will be the "front-office’ of the • Level 1—Skills of the past: These skills are
world’s AI revolution”—Jensen Huang (CEO, relevant only for the next three-to-four years
Nvidia) but will not significantly propel career growth
(such as basic programming, data analysis
The Indian AI talent pool is expected to grow from and fundamentals of AI/ML).
600,000–650,000 to >1,250,000 over 2022-27.31
However, the AI market is expected to grow at a • Level 2—Skills relevant today: These AI
rate of 25–35 percent, potentially signalling a skills are pertinent in today’s environment
demand-supply gap in the talent pool.16, 49 (such as advanced ML and deep learning,
NLP, RPA and AI model deployment).
Most Indian IT companies have already started
training their workforce on AI and related • Level 3—Skills of tomorrow: These futuristic
technologies. During 2023–24, TCS trained AI skills will become prevalent in the next few
350,000 employees, while Wipro trained 220,000 years (such as AI ethics and compliance,
employees on AI. Microsoft has also agreed to autonomous systems, edge AI, training and
provide AI skilling opportunities to 2 million people fine-tuning AI models and quantum computing
in India by 2025 to empower India’s workforce with for AI).
future-ready skills.30 Infosys has initiated
customised and comprehensive in-house AI
training programmes to upskill its existing
workforce. They have also collaborated with
multiple institutions under their digital literacy
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i hly specialised research and development on deep learnin models e
robotics from scratch
trate y and oc s on ne ral networks parallel and ed e comp tin architect re hardware and AI researchers scientists
overnance facilities plannin chip fabrication and desi n al orithms on hardware and pecialised domain researchers
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rate in certain AI segments, such as question following are key themes and operating models for
answering, classification, recommender systems, each stakeholder:
computer vision, and Natural Language
Processing (NLP). These AI skills were adopted Industry
across industries such as technology, retail, 1. Skill identification and pathway
education, and financial services. development
Last year, about 43 percent of the overall Indian o Employers must identify current and
workforce across sectors encountered wide use of future AI skills requirements and
AI in their organisations. The rise in AI adoption anticipate tech-based gaps
has led about 60 percent of all workers and 71
percent of Gen Z professionals to recognise that o Develop comprehensive skilling
acquiring AI skills can enhance their career pathways that include foundational
prospects. Additionally, two of three Indians plan courses, advanced training, and
to learn at least one digital skill in 2023, with AI continuous learning opportunities
and Machine Learning being the most desired
2. National AI skilling Initiatives
skills. 21, 22
o Industry should lead national AI
A recent Deloitte survey reveals a significant gap
skilling initiatives, collaborating with
between using GenAI and the business measures
peers and academia
taken to support it. Globally, while 43 percent of
employees use GenAI for work, 29 percent are o Implement mass-scale programmes
unaware of their organisational initiatives in this and workshops to enhance AI
space—showcasing a disconnect in awareness and user proficiency
communication.50 Businesses need strategic and
proactive responses to the rapidly changing 3. Collaborative skill pipeline development
environment and critical “no-regret” moves. This o Work with academia to integrate
will help develop, implement and integrate a foundational AI coursework into
comprehensive GenAI strategy that empowers degree and diploma programmes
employees and integrates the necessary
infrastructure and policies. o Provide advanced training through
hackathons, internships, IP creation
3. Operating models to develop the programmes and AI training
requisite AI skills in India academies
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o Develop model curricula and establish o Facilitate collaborations between
Data and AI labs to provide advanced industry and academia to develop and
and industry-aligned training implement AI training programmes
3. Incentives and support o Establish a task force of industry
leaders, academics, and government
o Offer learning scholarships, research officials to oversee AI skill initiatives
fellowships and innovation grants to
incentivise AI skill development. Beyond these specific initiatives across three key
pillars, India also needs a major initiative in the
o Provide funding, mentorship, and form of a broader shift and pivot from AI Services
support to top STEM students to to AI Services + Products. While India is renowned
nurture top AI talent for world-class technology services and
Government engineering capabilities, it currently lacks globally
recognized tech product companies which are
1. Policy and framework development distinguished by their AI expertise. By enabling
this shift it wo ld not only enhance India’s
o Develop, implement and scale a
reputation in the global tech arena but also foster
national AI policy that outlines goals,
innovation, drive economic growth, and create
strategies and guidelines for AI skill
high-value jobs. Focusing on developing market-
development.
leading and cutting-edge AI products will enable
o Establish regulatory frameworks to India to harness its vast pool of talent and
support AI education and training resources and lead the way for a new wave of
initiatives startups and tech companies.
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4. Global examples of AI skilling around EUR 10 million dedicated to helping
workers acquire skills to prevent them from being
initiatives marginalised by AI advancements.
Europe: Artificial Intelligence Skills Alliance USA's AI Education Initiative27, 23
(ARISA)4
The US focuses on AI education through
The AI skills strategy for Europe aims to bridge the collaboration with educational institutions and
gap between the growing demand for AI skills and private companies. The government has also
the current workforce capabilities. It recognises established AI-focused research centres and
the transformative power of AI across industries institutes.
and the need for ethical and responsible
implementation. The strategy focuses on creating - The government established the National AI
a skilled AI workforce by: Research Resource Task Force to create a
shared research infrastructure that provides AI
- Identifying potential mismatches in skills and researchers and students across the country
recognising the necessity for ongoing with access to computational resources, high-
evaluation of the AI talent pool quality data and educational tools.
- Defining the most in-demand AI-related roles - The AI Opportunity Agenda published by
and skill requirements and adapting to the Google provides policy recommendations to
ever-changing market demands help AI benefit as many people as possible,
- Developing educational profiles, certification including initiatives to invest in AI
frameworks and accreditation processes to infrastructure and build an AI-ready workforce.
align educational offerings with industry - The AI Corps and AI Adjustment Assessment
requirements Programme give search results that mention
- Acknowledging the dynamic nature of the AI the potential for creating a global "AI Corps" to
sector and prioritising the development of build an AI-ready workforce by extending AI
modular AI skills learning programmes for training programmes and helping workers
adaptable training impacted by AI transition to new jobs.
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committed to educating at least 1 percent of its The SkillsFuture programme, a national re-
population. These courses are available in over 20 education initiative, reimburses Singaporean
languages and have been completed by 1 million citizens up to SGD 500 per year for taking
people worldwide. approved retraining courses, including those in
technology-related fields.
South Korea's AI education initiative24
China’ innovation action plan32
South Korea is investing heavily in preparing
students for a future with AI. By 2025, the country China is pursuing a multipronged approach to
aims to have AI coursework in its national build a world-leading AI talent pipeline. One
curriculum across all grade levels, starting with notable initiative is the establishment of the "AI
high school. The Korean Ministry of Ed cation’s Innovation Action Plan" by China's Ministry of
Keris unit is designing and piloting extensive Education, which aims to develop 100
teacher development around AI and other interdisciplinary majors in AI, publish world-class
technologies. AI textbooks, establish AI schools, research
centres and launch national-level open online AI
Singapore—AI for everyone and skills future courses. The Ministry of Education also plans to
programme24, 25, 27 train 5,000 students and 500 teachers in AI within
The programme's primary focus is to build skilled the next five years.
AI talent in Singapore. Such talent can be This initiative underscores China's commitment to
categorised into three groups—(i) creators who nurturing fresh AI talent and integrating AI
are top-tier talent engaged in novel and cutting- education into academic institutions to meet the
edge AI activities; (ii) practitioners that include growing demand for skilled professionals.
data and machine learning scientists and
engineers involved in the translation and Industry collaborations for AI skilling in the
development of AI solutions; and (iii) users of AI- Middle East
powered products and services.
Saudi Arabia signs MoUs with leading industry
To cultivate a pool of top-tier AI experts, the players like Microsoft and Huawei 33, 34
government plans to introduce a new AI visiting
professorship to attract world-class AI researchers This initiative focuses on training young Saudi
to collaborate with Singapore. Additionally, the engineers in AI skills and technologies, including
government is investing SGD 7 million into a new Azure OpenAI, to drive innovation and economic
AI Accelerated Masters Programme in growth in the region. The programme recruits top
collaboration with local universities to develop a talent through collaboration with leading
robust pipeline of Singaporean AI researchers. AI universities, emphasizing the importance of
Singapore has also initiated a national AI developing AI capabilities to support the
programme, managed by the government, to community’s development. The AI Centre of
teach individuals and organisations the skills Excellence is a platform for knowledge exchange
needed to use AI and machine learning for social and collaborative learning.
good. This initiative includes AI courses and Further, Saudi Arabia's National Center for
workshops and funding and support for AI projects Artificial Intelligence has signed an MoU with
focused on social impact. Huawei to support the National AI Capability
The aim is to triple the number of AI practitioners Development Programme. This collaboration aims
to 15,000 over the next five years to meet the to train Saudi AI engineers and students, enhance
growing demand for AI professionals. The Arabic language AI capabilities, and explore
government will invest over US$20 million to creating an AI capability platform to localise
enhance AI practitioner training for students over technology solutions.
the next three years. This includes increasing the U ’ T me35
AI-related SG Digital Scholarships for
Singaporeans to pursue degree courses in AI and The "UAE Trusted Cloud" programme by Microsoft
related fields at top universities and facilitating has empowered over a quarter million people in
access to overseas internships in AI-related roles. the UAE to acquire digital skills. Started during the
pandemic, this initiative includes events such as
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Microsoft Build: AI Day in Dubai, UAE, where
developers and IT professionals can explore new
opportunities with AI and enhance their knowledge
and skills. Additionally, the programme highlights
the high demand for individuals with deep
technology skills in the UAE, particularly in AI.
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References 26. 4 ambitious government initiatives preparing
the workforce for a future of AI - Ross Dawson
1. Business Standard 27. Shockwaves & Innovations: How Nations
2. India to become third largest economy with Worldwide Are Dealing with AI in Education –
GDP of $5 trillion in three years: Finance The 74 (the74million.org)
Ministry - The Hindu 28. oo le’s 25 ro AI skill boost for rope
3. https://www.indiastat.com/Socio-Economic- unveiled (cointelegraph.com)
Voices/New-Foreign-Trade-Policy-2023-will- 29. https://www.ugc.gov.in/pdfnews/5732498_Rep
boost-India-exports-USD-trillion-by-2030 ort-on-NPAI-Skilling-Framework.pdf
4. European Digital SME Alliance 30. Microsoft launches new AI Skills Initiative and
5. Chart: Software & IT Services: The Backbone grant - Microsoft Stories India
of India's Economy | Statista 31. NASSCOM Report on State of Data Science &
6. https://www.investindia.gov.in/sector/it-bpm AI Skills in India published in February 2023
7. Indian-Software-Product-Ecosystem- 32. DP 265 Amit Kumar.pdf (ssc-
Accelerated-Growth.pdf (nasscom.in) globalthinkers.org)
8. Yourstory – Nasscom’s $100 Bn target 33. AI Skills: Microsoft launches AI Centre of
9. India's IT Industry: Growth, Trends, and Excellence dedicated to upskilling Saudi
Challenges in 2024 - Acara Solutions India engineering talent, ETHRWorldME
(indiatimes.com)
10. https://www.wto.org/english/res_e/booksp_e/tr
ade_outlook24_e.pdf 34. Saudi Arabia signs artificial intelligence
agreements - Power Technology (power-
11. ESC Statistical Yearbook 2023
technology.com)
12. Nasscom – Seizing the ER&D Advantage
35. Microsoft | UAE Trusted Cloud
13. Current trends in Indian IT Market | LinkedIn
36. Priming for a No normal Future – Nasscom
14. What Governments Need Now — Data and AI
37. Gartner Market Definitions
Skills - Government Executive (govexec.com)
38. IDC
15. India’s software ecosystem - Nasscom
39. Mphasis
16. India AI 2023
40. IDC
17. AI Powered Tech Services - Nasscom
41. IFC
18. Cabinet approves INR 10K Cr
42. IDC-Wipro
19. NPAI skilling framework
43. Nextplatform
20. https://nasscom.in/knowledge-
center/publications/technology-sector-india- 44. LiveMint
strategic-review-2024 45. Economic Times
21. India among top 5 countries with fastest- 46. Amazon and IIT Bombay announce AI-ML
growing AI talent: LinkedIn report partnership: What it means for you - Times of
(indiaai.gov.in) India (indiatimes.com)
22. India Among Top Five Countries With Fastest 47. Discussion with Infosys
Growing AI Talent: LinkedIn (inc42.com) 48. Nasscom Strategic Review 2024
23. Supercharging America's AI Workforce | 49. A Roadmap for Future Ready Firms -
Department of Energy Nasscom
24. AI initiatives la nched to plift in apore’s 50. Deloitte State of Gen AI Survey
economic potential (Factsheet)
51. MEITY IT BPM Exports
(smartnation.gov.sg)
25. AuroraAI: Finland's National Artificial
Intelligence Program
(interestingengineering.com)
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