For decades, talent has been a dynamic concept, shaped by the skills demanded by the times. While qualifications held sway in the past, the 21st century has witnessed a fundamental shift, in today’s information age, skills are the cornerstone of talent, shaping the workforce of both present and future.
From the dot-com boom’s IT prowess to the automation wave’s technical expertise, talent has consistently mirrored the prevailing technological landscape. But a crucial turning point came in the 1990s, marking a shift from valuing tangible assets such as degrees to the intangible prowess of individuals – their expertise, creativity, problem-solving, and interpersonal skills.
“The dot-com era saw a demand for programming and internet skills,” observes Sunil Ranjhan, reflecting on the past. “Now, data analysis will be paramount.”
Sunil Ranjan, senior advisor-HR, LG Electronics
“The initial focus was on technology,” emphasises Emmanuel David, “but businesses realised that it was their workforce’s skills that truly set them apart.” With technology becoming ubiquitous, customer service – heavily reliant on people skills – emerged as a key differentiator.
Looking ahead, experts predict a new era dominated by artificial intelligence (AI) integration, making data-centric skills the new currency of talent. “The dot-com era saw a demand for programming and internet skills,” observes Sunil Ranjhan, reflecting on the past. “Now, data analysis will be paramount.”
As industries progressed, the proportion of people costs within operational expenses also rose. In IT services, where they reached 30-35 per cent, the significance of skills as currency became even more pronounced.
Tracing the trajectory of skill requirements, Kamal Karanth, talent specialist and founder of XPheno, highlights the constant evolution: “From Java and Cobalt to cloud, mobile, full stack, back-end, data science, and cybersecurity – the skill wave keeps changing.”
“People who can make meaning and work with newer skills will continue to be in demand.”
Kamal Karanth, talent specialist and founder, XPheno
This shift is further accelerated by the evolving nature of work itself. The hybrid model has brought flexibility and remote collaboration, demanding new skills alongside technological advancements. AI and big data are no longer confined to specific roles; they permeate every facet of a company, from HR and production to marketing and sales. This necessitates a workforce that is not just tech-savvy but also proficient in data analysis.
Even creative fields like story writing are not immune. Ranjhan believes, “AI will soon generate multiple story ideas, and those who can effectively use technology to derive insights will lead in crafting compelling narratives.”
Trends in skill requirements mirror the ebb and flow of technology, with those who navigate this dynamic landscape with proficiency becoming highly sought-after. However, Karanth cautions, “ERP skills such as SAP and Oracle remain relevant for maintaining large-scale applications.”
Beyond technical expertise, David points to a shift towards leadership skills and, currently, a strong emphasis on people skills. “Collaboration, responsiveness, and initiative are now crucial differentiators,” he adds.
“The initial focus was on technology, but businesses realised that it was their workforce’s skills that truly set them apart.”
Emmanuel David, senior HR leader
Ranjhan foresees a future where “the only differentiator will be the ability to use technology to derive insights from data.” Traditional roles based on set rules will give way to individuals who can harness technology to extract meaningful information from vast data sets. Legal and accounting professions, once rooted in interpreting laws and regulations, will transform with AI guiding professionals on optimal courses of action. However, the ability to apply new technologies ethically and within privacy guidelines will be paramount.
Karanth agrees, “People who can make meaning and work with newer skills will continue to be in demand.” He notes that the value of certain skills is tied to their scarcity, highlighting the evolving nature of the industry where skills are not only prerequisites but also markers of value.
However, he acknowledges the Indian context, where a large pool of graduating engineers keeps educational qualifications on a pedestal. “Most companies still prefer a well-qualified person over a highly skilled one,” he asserts. In this landscape, skills augment rather than replace qualifications, underlining the enduring importance of education even as skills take centre stage.
The future of talent is undoubtedly data-driven, demanding a workforce equipped with the skills to navigate the ever-evolving technological landscape. While qualifications remain relevant, it is the ability to learn, adapt, and extract insights from data that will truly define the successful workers of tomorrow.