11/3/06

Skill shortage could kill Indian design Industry.

An ISA (India Semiconductor Association) study concludes that lack of skilled engineers is bound to slow down the growth of India’s VLSI design business. This is brought on by the fact that there are no specialized institutes or technical courses per se for VLSI design engineers. 

Lesser number of VLSI design engineers, or less qualified engineers pose a two fold danger to the Indian design industry. 

As the demand outstrips supply, the qualified engineers will demand and get more compensation. This will reduce the attractiveness of India as a destination for new design centres. 

The other danger is design centres in China, Israel, Europe or West Asia can easily take up this slack and run away with it. 

But as they say all is not lost. The study concludes that this skilled engineer shortage will be resolved in the next three years as India’s engineering workforce grows and indications are there that this segment will grow and more business will get outsourced to India, from the telecom and consumer electronics segment..