Edtech startups that offer skill-building courses address the core issue of making youth more employable
However, there have been a few hiccups in the edtech sector, as some of the industry's major names have either gone for a massive layoff or have decided to shut down their operations entirely
There is an urgent need for the country to establish a national skill development program that can bridge the skillset gap between available and existing workers
The country’s education and literacy coverage have improved significantly in recent years, thanks to the combined efforts of the government and private sectors. In addition to primary and secondary education, the country has shown a positive trend in higher and professional education coverage. Along with traditional educational processes, the rise of the edtech industry has ensured that knowledge and skill development will continue at an unprecedented rate.
However, there have been a few hiccups in the edtech sector, as some of the industry’s major names, particularly in the K-12 category, have either gone for a massive layoff or have decided to shut down their operations entirely. At the same time, one of the silver linings in a rather dire situation is that skill-transfer startups in the edtech industry have thrived. IT, coding, manufacturing, auto, and communications skills courses are in high demand, fueling the growth of edtech firms in the skilling, upskilling, and reskilling segment.
Here are some of the reasons why professional skill imparting startups have demonstrated stellar growth and will continue growing:
Addressing The Employability Crisis Of The Country
India, being one of the world’s youngest countries (in terms of population), with a median age of only 28.4 years and a large population between the ages of 18 and 35, promises a plethora of opportunities and growth for the economy as a whole. Despite a large number of young workers, there is a skill gap in the country, with a report indicating that only one in four management professionals, one in five engineers, and one in ten graduates are employable.
Edtech startups that offer skill-building courses address the core issue of making youth more employable. This is one competitive advantage that no other industry has. As a result, given the demand for such services and the lack of available alternatives, the future of such startups is extremely bright. Furthermore, the online courses are adaptable and accessible, ensuring that anyone can do it from a place of their choice.
Providing Vocational And Skill Development Training
The proportion of the employable population receiving vocational training is quite low, with only 7% of Indian males receiving vocational and skill development coaching in FY20 in the country’s urban areas (the percentage was only 3.1% in the rural areas). According to the Economic Survey of India, the situation of female recipients is even worse.
As a result, there is a clear gap in skill availability and demand that can be filled by startups offering a diverse range of courses tailored specifically to the needs of the young employable workforce. The demand for such courses will continue to rise along with the country’s economic development.
Imparting Tech-Based Professional Skills
Edtech companies use innovative and tech-driven processes to provide the highest level of knowledge and education. As a result, learning is easier and faster for professionals in various sectors and industries. Since the platforms provide a mix of interactive and pre-recorded classes, it gives the learners a lot of freedom.
For those who want to develop new skills, juggling work and learning new things is possible. These platforms, for instance, facilitate the delivery of advanced data and development courses such as machine learning, data science, web development, and android, among others.
Employment Assistance And Career Progression
Several platforms provide employment assistance to various professionals and bridge the gap between expected and current skills in critical industries such as IT and computing. Professionals can not only land a good job, but their chances of career growth and advancement improve significantly as a result of the upskilling opportunities provided by these platforms.
Summing Up
There is an urgent need for the country to establish a national skill development program that can bridge the skillset gap between available and existing workers. Startups in the edtech industry can be a critical stimulant in ensuring that the targets are met. As a result, it is expected that demand for such businesses will increase in the near future due to the organic market demand for skill and knowledge.
