Employees With Advanced Digital Skills Contribute $508 Bn To India’s Annual GDP: Report

Amazon Web Services (AWS) on Wednesday released new research that indicates workers in India who use advanced digital skills – including cloud architecture or software development – contribute an estimated USD 507.9 billion (Rs 10.9 trillion) to India’s annual gross domestic product (GDP).

This contribution is attributed to the 92 per cent higher salaries that these workers earn compared to those with a similar education who do not use digital skills at work.

The report found that advanced digital workers in India are benefitting from more than just a boost in their income. It said that 91 per cent of workers who use advanced digital skills express higher job satisfaction, compared to 74 per cent of workers with intermediate skills and 70 per cent of workers with basic digital skills.

Similarly, employers that rely heavily on advanced digitally-skilled workers, digital technology, and cloud technology reap higher business growth and innovation.

The study found that 21 per cent of Indian organisations that run most of their business on the cloud report a doubling of annual revenue or more, compared to 9 per cent of those that use the cloud for some or none of their business. Cloud-based organisations are also 15 percentage points more likely to have introduced a new or improved product within the last two years (95 per cent vs 80 per cent).

With many organisations now preparing for the challenges of a digital future, the Gallup study looked at 10 emerging technologies including AI, edge and quantum computing, blockchain, and cryptocurrency. 92 per cent of employers in India say at least one of these technologies is likely to become a standard part of their future business operations, with 5G ranking the highest at 78 per cent.

“People in India are increasingly going digital, from the way they work to the way they live. This research shows that digital skills provide immense economic value to India at the individual, organizational, and macroeconomic level,” said Dr. Jonathan Rothwell, Gallup Principal Economist. 

“As more organisations move their IT to the cloud over the next decade and new technologies emerge, digitisation is going to fuel a vast number of new jobs. The opportunity for India to be competitive in the digital economy depends on having a robust and highly skilled workforce to support current and future innovations,” he added.

The study also found that digital transformation of businesses and government agencies accelerating around the world, demand for advanced digital workers will remain strong in the coming years.

It said that 93 per cent of Indian employers surveyed reported they were seeking to fill openings that require digital skills, but 88 per cent said it is challenging to find the talent they need. A possible barrier is that 60 per cent of Indian organisations prefer a bachelor’s degree, even for entry-level IT staff. However, many are starting to recognise that accepting industry certifications can ease their hiring challenges. 91 per cent of employers say that digital certifications or training courses are acceptable substitutes for a bachelor’s degree.