Two months ago, Sun Vision Technologies, Goregaon-based company, roped in a skill development company to give its fresh recruits a 45-day training course for domain knowledge and soft skills.
"Earlier, we would hire mechanical engineers from Mumbai campuses and then struggle to train them on the job. Now, the skill development company saves us a lot of time and money and makes new recruits job-ready," said Ashish Potdar, chief operating officer of the three-and-a-half year-old company.
The growth of skill development companies, which make fresh recruits job-ready, has led to many companies outsourcing the in-house training programmes.
"Last year, there was tremendous growth in the skill development sector for graduates and postgraduates. We received eight proposals for such companies last year. While a revamp of the education system is required and is in progress at various levels, the industry need is immediate. So, creating such companies have become a good business opportunity," said Dilip Chenoy, managing director and chief operating officer of the National Skill Development Corporation (NSDC).
The NSDC, a public-private partnership created by the ministry of finance in 2008, funds private sector initiatives in skill development programmes.
"While earlier training was required only in the IT sector, skill development has now grown to other sectors including BPOs, retail, banking and finance," said Chenoy.
One such initiative that has tied up with the NSDC is the TMI e2E Academy Pvt Ltd that was launched two months ago. "We realised that graduate un-employability is going to become a larger problem in time. While we are currently producing 20 lakh graduates every year, initiatives such as the Right to Education (RTE) Act will raise that to 30 lakh every year and of these only 15% will be employable," said T Muralidharan, head of the company which is head-quartered in Hyderabad and has its Mumbai office in Juhu.
At a recent discussion on higher education in the city, Anil Kakodkar, former head of atomic energy commission, said, "Skill development companies seem to be training students more for industry than the universities. Maybe, universities should look at tying up with them to attach specific skills to each stream."
But how are these skill development companies different from the scores of finishing schools that have come up in the past decade? "While finishing schools focus on general soft skills development, we do sector-specific training," said Pravir Kumar from Global Talent Track, a Pune-based skill development company.