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Mint
7 days ago
- Business
- Mint
After edtech crash, study-abroad was the bright spot. Now, it faces testing times
Bengaluru: Samarth G.S., 25, hasn't been to his hometown, in Karnataka, in nearly two years. But not for the usual reasons. Last year, he stayed back in the US to look for an internship. This year, even though he has one, he's hesitating because of tightening visa regulations. 'The situation is dicey here," said Samarth, who is studying for a masters degree. With only a brief window between the end of his internship and the start of the next academic term, he's worried that even a slight delay in returning could put his visa at risk. 'Even if I come back a day late, they might use it as an excuse to cancel my visa," he said, referring to US President's Donald Trump regime. Even when they are travelling within the US, universities are advising international students to carry their passports at all times. Since Trump returned to power, the US' immigration policies have become draconian. On 27 May, the administration ordered US embassies around the world to stop scheduling appointments for student visas. It even halted Harvard University's ability to enroll foreign students. Amid all this, several international students have faced deportation for minor infractions. While much of the attention around US visa restrictions has focused on students, the Big Brother approach in the US has made another group, India's study-abroad startups, anxious. Companies such as Leap Scholar, Leverage Edu, AdmitKard and upGrad, which promise smooth overseas admissions and counselling services, are now facing business uncertainty. Because it is not just the US, but key markets such as Canada, the UK, and Australia as well that have tightened rules for international student admissions, according to industry insiders. After the crash of mainstream edtech in India, the study-abroad industry had emerged as a bright spot. But populist politics across the globe threaten to shake the foundations of the business model. Can these startups weather the storm? The business Before 2016, most Indian students seeking to study abroad relied on a highly unorganized network of small, local consultants operating out of single-office setups in Tier I and Tier II cities. About 10 years ago, edtech platforms focused on helping students get admissions abroad started emerging. They include AdmitKard (2016), Leverage Edu (2017), Leap Scholar (2019). Upskilling platform and edtech unicorn upGrad also launched study-abroad services in 2021. These startups offered a range of services, helping students with university applications and counselling to scholarships, visa applications, accommodation and even loans to finance their education. Each operates with a slightly different proposition—while Leap Finance and Leverage Edu are full-service platforms offering end-to-end guidance and admission support to students, AdmitKard is mostly about counselling. upGrad's study-abroad programme focuses on hybrid or online-to-offline programmes in which students study online the first year and travel to the university campus the second year. Over the last few years, India's study-abroad market has been taking big strides, fuelled by a growing appetite for global education and rising disposable incomes. While the market saw a slump during the covid-19 pandemic years, it has bounced back since. According to Bengaluru-based consulting firm Redseer, about 2 million Indian students are projected to opt for overseas education by 2027. This number, according to the firm, stood at 0.7 million in 2019 and 0.9 million in 2022. The sector has also seen significant venture capital infusion during and after the pandemic years, 2023 being the year it attracted the highest funding ever, at about $562 million, according to data sourced from Tracxn. A temporary dip? Even other top markets, such as the UK, Canada and Australia, have tightened their immigrant rules of late. In May, the UK government released a whitepaper that proposed reducing the standard length of the graduate visa for international students to stay on and work in the UK from two years to 18 months, among other changes. Last week, Australia-based IDP Education, one of the world's largest international student placement firms, warned that its full-year revenue and earnings would take a hit due to visa crackdowns in key markets such as Australia and Canada, estimating student placement volumes to drop 28-30% during this financial year. The announcement led to its stock plummeting 50%, it's worst single-day drop ever, Canadian study-abroad startup ApplyBoard laid off about 150 employees last week due to policy changes at major study destinations. Last November, Canada ended its Student Direct Stream (SDS) programme, which expedited the processing of study permit applications for international students. India's edtech exporters, most of whom rely heavily on the US and UK, are now bracing for the impact of ongoing uncertainty. Industry experts acknowledge that a dip is likely if the situation persists, though they are cautiously optimistic that the downturn will be temporary. 'In our study-abroad business, about 70% of visa appointments were already taken care of. So, those haven't been affected. But 30% is halted because the visa appointments are on hold," Praneet Singh, associate vice president of university partnerships at upGrad Abroad, told Mint. A million students enter the US to study every year, so it impacts the country's economy as well, Singh noted. 'That gives me conviction that it's not going to last. It's going to be a couple of weeks or maybe a month or two. But it will eventually get lifted." Piyush Bhartiya, co-founder of study-abroad counselling startup AdmitKard, said there is a lot of uncertainty among students planning to go to the US. If their September intake is blocked and interviews don't open, then US sentiment will go from unsure to negative, he said. With all the key markets correcting at the same time, there will be some downturn, Bhartiya noted. 'The US issued about 80,000 visas last year from India. Now, if that 80,000 falls to 40,000, we don't know how many markets or how many countries it will take to absorb that other 40,000," said Bhartiya. Leap Finance, one of the larger startups in India's study abroad ecosystem, has refrained from commenting on the subject altogether. With market conditions in flux, investors are closely watching the sector, particularly how these businesses respond and pivot to sustain growth. While recent policy uncertainties in traditional destinations such as the US and UK have sparked some investor caution, the demand for overseas education remains structurally strong, according to Surabhi Sanyukta, vice president–Investments, BlackSoil, an investor in study-abroad platform Leverage Edu. 'The sector has seen consistent double-digit year-on-year growth over the past few years, and this demand is not diminishing; it is simply becoming more geographically distributed," she said. 'One of the key challenges the sector faces is its historical reliance on a few dominant geographies. Policy shifts, changing visa regimes, and economic volatility in these markets can significantly impact student flows. Startups that scaled primarily on the back of US or UK-bound student demand are now having to recalibrate their strategies," Sanyukta added. Expanding horizons The uncertainty around immigrant laws in various geographies has had a clear impact. Enrolments have gone down by 27% in top destination markets such as the US, the UK and Canada. This decline has affected study-abroad platforms as well, but sparked interest in other destinations. 'If we were getting about 6,000 closed leads in February for Germany, we're now getting about 9,500 leads a month for that country, which makes for 35% of our business. France has gone from 3% of our business to 8% of our total business at the moment. Finland has also gone from 3% to 6% of our business," said upGrad's Singh. The two really big winners have been Germany and Ireland, which have traditionally seen a smaller intake from India, said AdmitKard's Bhartiya. 'On our platform, we have seen almost five times more inquiries for Germany in the last two years. France and some of the Nordic countries are also gaining interest very rapidly," he said. AdmitKard is now focusing on getting accreditations in other countries as the non-US market sees a spike in interest. 'We are a very strong recruiter for the US market so we had focused on US accreditation. Now, we are focusing on other countries as well, and onboarding partners in countries like Japan, Finland, and Sweden," Bhartiya said. Many prominent schools in the US and UK are setting up offshore campuses in locations such as Dubai and Singapore. Study abroad platforms are now turning to these newer markets, capturing already existing demand and creating new demand. In the last six months, upGrad has focused on finding partners in Dubai. 'We've got Middlesex University, University of Birmingham, among others. We've just signed up with four schools in the UAE. The company is also trying to double down on Finland and expand to Singapore," Singh said, noting that India will also see a lot of campuses being set up. New Delhi-based Leverage Edu has also seen a sea-change in its student composition over the past 12 months. The company, which relied on India for 100% of its customers, is now seeing 40-45% of students coming from non-India regions—of that, 25% is from Africa, 15% is the rest of South Asia (Nepal, Bangladesh), with the rest from the Middle East and Southeast Asia, Akshay Chaturvedi, founder and CEO of the edtech startup, told Mint. Chaturvedi added that the UK used to be a dominant study location for the company till about two years back. The country still accounts for 50-60% of the business today, but the remaining 40-50% is mostly from the rest of Europe, particularly Germany, he said. The way forward Aside from admissions, most study-abroad platforms make money from test-prep, counselling, documentation, and application fees. These services have stable demand despite the shifts in study markets. For instance, 25% of Leverage Edu's business comes from services such as forex and loans, among other ancillaries. Last quarter, the company also launched a job portal, Leverage which the CEO believes will push the income from these non-core services up further. Value-added services contribute about 10% to Leap's revenue, with the majority coming from counseling and financing. upGrad's study-abroad vertical also offers International English Language Testing System (IELTS) prep programmes aside from online-to-offline learning, its core business. Ashish Bhatia, founder & CEO at India Accelerator, which has invested in edtech companies such as Imarticus Learning, Ingenium and Dhurina, noted that offering various services gives these startups the flexibility to adapt to the changing circumstances. 'Startups that proactively expand their offerings and limit their reliance on the US markets are most likely to come out of this situation unaffected," Bhatia said. As things stand, however, nobody knows when the situation will improve. Startups that pivot to accommodate the changing reality will be better placed to weather the storm.
Mint
07-06-2025
- Business
- Mint
Edtechs Simplilearn, UpGrad and Emeritus bank on B2B revenue as AI and GCC demand rises
As the edtech sector grapples with waning interest in its core, consumer-focused online learning courses post-pandemic, major edtech and upskilling companies like Simplilearn, upGrad, and Emeritus are strategically shifting gears towards enabling enterprise learning. Even as companies say that the conventional consumer model is still very much in vogue, they are working towards building their B2B (business to business) businesses, backed by corporations racing to upskill employees for the artificial intelligence (AI) age, and by the expansion of global capacity centres (GCCs) in India. The goals are lofty. Mumbai-based upGrad, a traditionally consumer-facing business, expects 30-35% of its business coming from B2B in the next few years, from 20% currently. Simplilearn, which has offices in the US, Singapore and Bengaluru, and offers courses ranging from AI to digital marketing, gets 30% of its revenue from its enterprise segment, and expects a 50:50 split in two to three years. And Bengaluru-based Scaler, which focuses on software development and data science courses and introduced a B2B vertical this year, expects it to contribute 10-20% of revenues in the first fiscal year (FY26). The details Let's start with Scaler. The startup, traditionally a direct-to-consumer player, is focusing its B2B business towards companies with a headcount of 2,000-20,000 employees and those that have set up a GCC in India. 'Most large enterprises outsource their software needs, and it lands in an Indian GCC," said Abhimanyu Saxena, co-founder of Scaler, identifying the training of GCC staff as a key revenue stream. 'In the first year, revenue from enterprise will be sizeable," Saxena said, adding that the company has already signed deals with a few Fortune 500 companies, but declined to share the names. Scaler closed FY24 with ₹384.5 crore in operating revenue, up from ₹316.6 crore in FY23, according to documents sourced from business insights provider Tofler. Scaler also slashed its losses in FY24 to ₹138.8 crore, down from ₹330.2 crore in FY23. Also Read | Staffing firms find it more profitable putting employees in GCCs than IT firms 'If edtechs are able to win contracts from GCCs, which have the potential to give big-ticket deals, they can end up becoming really profitable for companies," said Amit Nawka, technology deals partner at PwC India. Meanwhile, upGrad has been slowly building its muscle for enterprise-facing solutions through mergers and acquisitions over the past three years. While the edtech acquired Work Better and Centum Learning in 2022 to build its B2B segment, it was only in April 2024 that the company brought its B2B offerings under one banner, upGrad Enterprise, the company said. Srikanth Iyengar, chief executive officer of upGrad Enterprise, said B2B will help the company accelerate its growth in international markets through partnerships with global organisations. 'While consumer programmes typically allow individuals to learn at their own pace, enterprise learning is built on speed and precision–where organizations need their talent to acquire and apply skills to drive performance." upGrad clocked ₹1,875 crore in non-Indian Accounting Standards gross revenue in FY24, up ₹1,530 crore in the previous financial year, according to data shared by the company with Mint. It trimmed Ebitda (earnings before interest, tax, depreciation and amortization) losses to ₹79 crore,down from ₹500 crore in the previous fiscal. Some of upGrad's B2B vertical clients are Reliance Retail, Hexaware Technologies, HCL Technologies and Walmart Global Tech India, according to the company. Pivotal role As for Simplilearn, company founder Krishna Kumar told Mint In an interview last year that the company would focus on reskilling for professionals and its B2B segment. 'We should reach a 50-50 split between our consumer and enterprise business in the next two to three years," Kumar said. According to data from the company's FY24 revenue announcement release, Simplilearn clocked ₹773 crore in revenue and trimmed Ebitda losses by 75% to ₹51 crore. Most of Simplilearn's enterprise business comes from four segments: IT and ITES, GCCs, public sector undertakings (PSUs) and government institutions, and manufacturing and BFSI (banking, financial services, insurance). The startup's B2B clients include Indian IT firm Mphasis and Swiss technology company Temenos. 'At IT and ITES companies, they hire fresh graduates who can't be put on projects from day one," Kumar said. 'They need extensive training that is part of their onboarding programme and we work with them to make sure they can be deployed on projects." On the other hand, at GCCs, the focus shifts to upskilling and reskilling the workforce, Kumar added. Post-pandemic shifts To be sure, edtech's troubles started to grow in 2022 as the pandemic waned and students began to return to their classrooms. Startups in the sector faced slower growth and looked to pivot to more viable options. Additionally, Byju's collapse hurt the ecosystem, in terms of both valuations and investor faith in the space. Also Read | Byju's startup lesson: Don't get carried away with winner-takes-all dreams While several edtech companies switched to an offline model, others have turned to B2B for consistent revenue. Yet, companies told Mint their D2C business is still alive and kicking. 'If you look at the higher education segment, I don't see any downturn. Even if you look at the players in the upskilling and reskilling segment, I don't see any of the players struggling," said Simplilearn's Kumar. In fact, PhysicsWallah is among the few profitable edtechs that has stuck by its D2C business. Increasing AI demand The change in the edtech revenue mix comes as AI increasingly takes centre stage and enterprises look to plug holes in this space, from both an adoption and staffing perspective. 'AI can be adopted well into GCCs because they're highly process-driven organisations with specific turnaround times as well as predictability of work. In that regard, GCCs will be the torchbearers of AI adoption," said Nawka of PwC. upGrad Enterprises' Iyengar said that the division has seen 100% jump in enterprise sign-ups for AI-focused training in the past six months, across India, North America, Europe and the Middle East. 'What's encouraging is that this isn't just a top-down push–we're seeing equal enthusiasm from employees," he added. Also Read | GenAI may pile pricing pressure on customer support and maintenance work of IT services companies Popular courses upGrad Enterprises' most popular courses include generative AI for quality assurance/quality engineering teams and coding agents, and advanced GenAI courses for professionals working with large language models. At Simplilearn, AI and GenAI have become big themes across the four verticals that use its services. It's the same at Emeritus. 'Additionally, topics such as executive presence, communication, and negotiation & influence are in high demand across leadership levels," said Morarji. The increased focus on AI comes as organisations look to automate tasks, putting entry-level jobs at risk. The Future of Jobs report 2025 by the World Economic Forum points out that 85% of the employers surveyed plan to upskill their workforce, while 70% expect to hire staff with new skills. At the same time, 40% of employers are reducing staff as their skills become less relevant and 50% are planning to transition staff to growing roles. 'I can't see a better time for edtechs to target B2B as a segment because AI is disrupting everything and everyone wants to be on top of their game," PwC India's Nawka said.
Indian Express
24-05-2025
- Business
- Indian Express
upGrad builds a smart Study Abroad Pathway with SUNY to Accelerate India's Global Student Mobility
It's a no-brainer that Indian students are embracing global education like never before – Indian students are embracing international education with unprecedented enthusiasm, from the Ivy leagues of the U.S. to the innovation hubs of Germany, the cultural melting pots of Australia to the research-rich campuses of Ireland. And 2025? It's shaping up to be a breakout year for outbound Indian learners. But we would also have to acknowledge the external ongoings that we see around – geopolitical instability is redrawing immigration policies overnight, AI is moving faster than most universities (and employers) can adapt, and Gen Z learning preferences are evolving toward modular, skill-first education. Micro-credentials, stackable degrees, and hybrid learning pathways are becoming the new normal. What's more interesting – the demand isn't just coming from India's top metros anymore. Students from Tier 2 and 3 cities, backed by rising disposable incomes and access to information, are now eyeing global education as a viable and sometimes essential – step to secure their future. Those belonging to this demography are usually 'price-conscious' and 'value-conscious' at the same time and therefore prefer affordable degrees that do not compromise on the quality of education. And this ambition isn't just anecdotal – it's backed by data. Beyond Migration: Why Indian Students are Opting to Study Abroad According to upGrad's Study Abroad Report from last year, which draws insights from over 25,000 respondents across India, the motivation to study overseas is shifting. Today's students aren't chasing passports, they're chasing possibilities. The top driver? Access to better job opportunities and future-forward careers, not just migration. This flips the traditional narrative. Far from being driven solely by wanderlust or cultural curiosity, Indian aspirants are prioritising global academic exposure, practical learning, and long-term career readiness. It's a pragmatic, ROI-focused mindset; where international education is seen less as a leap of faith, and more as a calculated investment. Interestingly, the data reveals that students from ISC and CBSE boards form the largest cohort of study abroad hopefuls, indicating strong academic intent and a high degree of readiness to take on global education ecosystems. A Smarter Way to the U.S. Without the Usual Barriers While destinations like Germany and France are steadily climbing the preference charts, the United States continues to hold its ground as the gold standard for global education – thanks to its world-class universities, unmatched research infrastructure, and deep integration with global employers across sectors. Yet, for many Indian families, the U.S. dream often comes with asterisks: soaring tuition fees, opaque admissions processes, and increasing concerns around post-study migration policies. Understandably, the apprehension still lingers. But here's the shift: The U.S. is evolving too and so are the pathways to get there From hybrid models that allow students to start their coursework affordably from India to universities offering flexible credit transfer systems and work-integrated programs, the barriers are coming down. The new approach is designed for scale, affordability, and certainty, making the American degree not just aspirational, but accessible. For Indian students looking to future-proof their careers while tapping into the world's most powerful knowledge economy, the U.S. remains not just relevant, but smarter than ever. Begin Your U.S. Degree in India, Graduate from SUNY in New York Building on the new-age approach, The State University of New York (SUNY) – America's largest public university system, has partnered with skilling major upGrad to offer a hybrid undergraduate pathway that allows you to begin your U.S. degree from India and transfer on-campus to any of SUNY's 64 campuses. SUNY's network includes prestigious names like Cornell University, Stony Brook University, University of Buffalo, University of Albany, and others, giving Indian students access to globally respected institutions through an affordable and flexible model. This pathway is delivered under SUNY's Global Academy, which is now accessible to Indian students through upGrad. This program enables students to start online in India through the SUNY curriculum and transition to the U.S. in the second year – resulting in significant savings on tuition and living expenses, while retaining the academic rigour and global credentials. For aspirational Indian learners, this is the future-forward way to access American education without compromising on quality or breaking the bank. Designed for Success – Academically and Globally Whether it's Computer Science, Engineering, Nursing, Business, Architecture, Law, Economics, or the Liberal Arts, upGrad learners can choose from over 4,000 majors spanning 17 disciplines, giving them the breadth and depth of a world-class education. This pathway stands out not just for its academics, but for its commitment to building future-ready leaders through leaders through experiential learning and global exposure featuring Harvard Business Review case studies, structured leadership modules, research opportunities, and one-on-one academic mentorship with SUNY faculty. Beyond the books, students gain access to career advisory services and cultural readiness programs, ensuring they're not just prepared to earn U.S. credentials, but to thrive in a global workforce from day one. Second major takeaway – No SAT. Just a Smarter Entry Point That's right – no SAT required to apply. Instead, the focus shifts to what truly matters: This streamlined admissions process eliminates the stress (and cost) of months-long standardized test prep, making the dream of studying in the U.S. more accessible, more achievable, and definitely more student-friendly. Global Possibilities, Not Just the U.S. While this program is designed to help you earn a degree from a SUNY campus, it doesn't lock you into a single path. The credits you earn in Year 1 are fully transferable. That means if your goals evolve or you wish to explore new academic environments, you can pivot to other top partner universities in Germany, France, Ireland, or the UK through upGrad's global network – via its multi-geography articulation options. It's flexibility with a safety net—minimising financial risk while maximising global opportunity. The Value Proposition Ready for Fall 2025? Students scoring 70% or above in their Class 12 board exams now have a clear, cost-effective pathway to begin their global education without the academic pressure or financial intensity often associated with traditional U.S. admissions. With applications now open for Fall 2025, this hybrid model empowers aspirants to begin their academic journey in India before transitioning to world-class learning environments abroad. Whether it's the vibrant urban landscape of New York, the research-intensive campus at Buffalo, or the flexibility to explore other global destinations later, the program offers a credible, adaptable, and future-ready pathway. It's not just about admission -it's about starting strong, staying agile, and scaling globally. Read on to Learn more about the SUNY–upGrad Undergraduate Transfer Program to begin a global learning journey – that's truly immersive and balanced. Disclaimer: This content is sponsored and does not reflect the views or opinions of IE Online Media Services Pvt Ltd. No journalist is involved in creating sponsored material and it does not imply any endorsement whatsoever by the editorial team. IE Online Media Services takes no responsibility for the content that appears in sponsored articles and the consequences thereof, directly, indirectly or in any manner. Viewer discretion is advised.
Time of India
22-05-2025
- Business
- Time of India
Three in four employees only upskill when mandated, says upGrad Enterprise Report
ADVERTISEMENT Raising concerns about the efficacy of corporate skilling programs in keeping up with a rapidly evolving workplace, a new report by upGrad Enterprise , the corporate skilling division of learning company upGrad, has found that 75% of Indian employees only engage in training when it is made report, Skilling Smarter: A Strategic Guide to Training Across Generations, draws from the responses of over 12,300 professionals across industries. It points to a fundamental disconnect between what companies offer and what employees actually need, both in terms of content and growing awareness around the importance of upskilling, nearly half the workforce remained untrained in FY25, the study found. A similar proportion of workplaces continue to operate without a formal skilling strategy, leading to inconsistent access and widening capability gaps.'There's a serious skilling gap emerging,' said Srikanth Iyengar, chief executive of upGrad Enterprise. 'We see companies budgeting annually, but there's very little to no skilling provided to employees. Let's not forget that the pace of technology is outstripping organisational readiness and we are not ready for the ripples it's going to create very soon.'One of the more striking observations is the generational divide in learning preferences — and the lack of response to it. Gen X employees (born after 1965), for instance, prefer expert-led training, while Gen Z (born after 1997) leans towards immersive, on-demand modules. Yet, 63% of HR leaders reportedly do not tailor programmes to different generational also cite several barriers to upskilling--51% say current programs lack relevance, 43% report limited access, and 42% say they don't have enough time. The report suggests that while organisations invest primarily in technical and industry-specific training, employees are more inclined towards leadership development, soft skills, and strategic thinking.'Without personalised, real-time, and career-aligned learning, training becomes a checkbox activity — ineffective at best, costly at worst,' Iyengar findings also show a mismatch between investment and outcomes. Six in 10 HR leaders allocate less than 5% of their budgets to skilling, and over 60% of CHROs say they are unable to track any measurable impact.
Mint
21-05-2025
- Business
- Mint
Indian companies lag in workforce upskilling amid AI disruption, job cuts
MUMBAI : Amid mounting fears of artificial intelligence (AI) replacing humans in generic roles, Indian companies remain significantly underinvested in workforce upskilling, highlighting a growing gap between technological disruption and employee preparedness. A new report by upskilling platform upGrad, shared exclusively with Mint, reveals that only 50% of 12,000 respondents received any form of training at their workplaces in 2024-25. Only 16% said they undergo quarterly training. 'On one side, organisations are talking about investing in their people. But if one out of every two employees is unaware of any training opportunities, there's clearly a gap. Access to skilling needs to be improved," said Srikanth Iyengar, chief executive, upGrad Enterprise. Also Read: Jumping jobs? A Supreme Court judgement just made it tough, especially for freshers This comes as skill requirements are changing fast. Employers are prioritising talent skilled in AI over traditional coding roles, while jobs in project management, data analysis, and content marketing are seeing reduced demand, Mint reported earlier in May. 'The net effect is changing skill requirements, not necessarily fewer jobs," said Hitesh Oberoi, CEO of acknowledging that while some roles will be automated, new ones will emerge in a post on the social media platform X on 19 May. 'With the global shortage of AI specialists and India's strong foundation in technical education, we can position ourselves as a global AI talent hub—if we evolve our skilling ecosystem quickly," he said. Too little, and it's getting late For now, the impact appears to be hitting the current workforce and job seekers alike. Many startups, focused on profitability or planning to go public, have slowed hiring as they determine how AI will affect their operations. Major tech-driven firms like Zomato, Cars24, and Gupshup have laid off employees in recent months, Mint reported. When it comes to training existing talent, 60% of companies surveyed by upGrad allocate less than 5% of their human resources (HR) budgets to upskilling. Moreover, 61.5% of chief human resources officers (CHROs) reported no measurable impact from training initiatives, according to the report. Also Read: Demand for work under rural jobs scheme rising amid slowing economic growth 'Enterprise upskilling in India remains underpenetrated because most firms treat it as a discretionary HR expense—already a cost centre," Iyengar said. 'But it's as essential as payroll. Without the right people, a business isn't scalable or sustainable." Experts say relying on firing employees and hiring pre-skilled talent rather than training existing staff is a short-sighted strategy. 'A hire-and-fire model undermines India's long-term talent advantage. Unlike ageing Western economies, India's edge lies in its youthful population. To preserve that edge, we need to invest in developing talent, not just replacing it," said Jawahir Morarji, president-enterprise business at upskilling firm Emeritus. A shortcut is certainly not the best route The Economic Survey 2024-25 pegs India's median age at 28. Layoffs and job replacements aimed at short-term cost-cutting could weaken this demographic advantage. Also Read: Without upskilling, AI may put people out of jobs for long: Economic Survey 2025 Moreover, bringing in new talent is expensive and time-consuming. 'In high-speed sectors like information technology (IT) and fintech, new hires can take 3-6 months to become fully productive," said Ritesh Malhotra, enterprise head at Great Learning. 'As technology evolves rapidly, even 'pre-skilled' hires may require role-specific training after joining." The upGrad report also found that 75% of employees engage in learning only when it is mandated. At first glance, this may suggest a lack of interest from the workforce itself. However, experts argue that employees often struggle to identify which specific skills they need to develop, leading to poor training outcomes and wasted resources. In many cases, programmes aren't customised to suit the needs of different teams or roles. For example, Gen X workers prefer expert-led sessions, Gen Y favours flexible yet structured formats, and Gen Z leans towards immersive, on-demand learning. Still, 63% of HR leaders do not tailor learning initiatives by generation, the survey showed. Of the 12,000 employees surveyed, close to 40% were CHROs, management-level or C-suite executives. HR leaders from 1000+ companies participated in the survey.
