Skip to main content

A shocker for parents? Rush for 'prestigious' varsity degrees to reduce; instead, industry may prefer skills

Recently, I had a conversation with a senior researcher working on a project for a consumer goods multinational corporation (MNC) at one of the top institutes abroad. Insightful and articulate, he holds a PhD from a prestigious university and has a remarkable ability to analyze social dynamics. I am withholding his name because our discussion took place informally during a friend’s lunchtime gathering.
What he shared with me could shock parents who are eager to push their children towards earning prestigious degrees from well-known colleges or universities after clearing competitive exams. For many of these parents, degrees from reputed institutions hold more value than acquiring practical knowledge or skills, which they believe can be gained later, once a job is secured. Colleges with better placement records are often preferred for admissions.
“Things are changing globally,” he told me. “Industry professionals no longer prioritize degree holders. Those with skills, even without degrees, often have better employment prospects, especially in technical roles.” I commented that such individuals might be paid less in comparison. He replied, “Not at all. In fact, skilled professionals are often paid more. For instance, a professor I know at a university earns $10,000 a month, but someone with comparable skills, but no degree, earns $15,000.”
Curious, I asked him about the prevalence of this trend in industries, particularly in Western countries and some wealthy Asian nations. He estimated, “This shift is happening in about 40% of cases, possibly more. Startups, in particular, prefer hiring skilled individuals over degree holders.” When I wondered if acquiring skills might be more expensive than obtaining a degree, he said, “Times are changing rapidly. People have countless affordable opportunities to acquire skills, especially with advancements in artificial intelligence (AI), which has made learning even cheaper.”
This conversation reminded me of an interaction I had with a senior physician from a renowned American hospital during an informal meeting at a hotel in Ahmedabad. An Indian settled in the U.S., he mentioned, “My searches on an AI platform reveal that the medical advice I give to my patients closely matches what AI provides. The day isn’t far when patients will receive expert advice directly from AI, reducing our importance.”
The researcher later shared links supporting his views. One of them was from LevelUP Human Capital Solutions, a New York-based hiring company. According to their blog, “The changing landscape of employment is reshaping how employers value and hire candidates. Recent years have witnessed a significant transformation in job roles, driven by remote work, technological advances, and the globalization of industries. Now more than ever, job roles demand adaptability, digital literacy, and specialized skills.” The blog emphasized, “Employers are now actively seeking candidates with precise, job-relevant skills, acknowledging that degrees, while valuable, may not consistently align with the rapidly changing demands of certain industries.”
Another reference was from Singapore Business Review, which stated, “7 in 10 professionals prioritize building skills over degrees.” Citing a LinkedIn report, it mentioned, “73% of professionals in Singapore now focus on skill-building rather than degrees for career advancement. More than half (62%) believe degrees are less significant for job eligibility compared to 20 years ago.” The report also highlighted that 79% of Singaporeans feel employers value diverse skill sets and experiences over specialization, and 39% of companies prioritize technical skills over formal education qualifications (8%).
A third source, Forbes, in an article titled "90% of Companies Make Better Hires Based on Skills Over Degrees" by Cynthia Pong, emphasized, “The shift to skills-based hiring is an economic necessity.” The article stated, “Rather than focusing on traditional credentials, companies are increasingly evaluating specific abilities and practical experience over academic qualifications or past job titles.” A McKinsey survey noted that 87% of companies face skill gaps, reinforcing this trend. Additionally, remote and distributed work models have accelerated the demand for skills such as independent work, digital literacy, and effective communication in hybrid teams.
The article further stressed that modern AI-powered talent management systems are transforming how organizations identify and develop skills within their workforce. These tools allow companies to adapt dynamically to market changes by focusing on precise tasks and the skills required to accomplish them.
After going through these articles and reflecting on my discussion with the researcher, I couldn’t help but wonder: What does the future hold for the numerous private universities in India, charging exorbitant fees for prestigious degrees? What about the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs)? The researcher remarked that there is already a noticeable “setback” in the demand for degree holders from India.

Comments

Anonymous said…
A strong “wake up call” for our education system as well as structure !

TRENDING

60 crore in Mahakumbh? It's all hype with an eye on UP polls, asserts keen BJP supporter in Amit Shah's constituency

As the Mahakumbh drew to a close, during my daily walk, I met a veteran BJP supporter—a neighbor with whom we would often share dinner in a group. An amicable person, the first thing he asked me, as he was about to take the lift to his flat, was, "How many people do you think must have participated in the holy dip?" He then stopped by to talk—which we did for a full half-hour, cutting into my walk time.

Morari Bapu echoes misleading figures to support the BJP's anti-conversion agenda

A senior Gujarat activist phoned me today to inform me that the well-known storyteller on Lord Ram, Morari Bapu, has made an "unsubstantiated" and "preposterous" statement in Songadh town, located in the tribal-dominated Tapi district. He claimed that while the Gujarat government wants the Bhagavad Gita to be taught in schools, the "problem is" that 75% of government teachers "are Christians who do not let this happen" and are “involved in religious conversions.”

Breaking news? Top Hindu builder ties up with Muslim investor for a huge minority housing society in Ahmedabad

There is a flutter in Ahmedabad's Vejalpur area, derogatorily referred to as the "border" because, on its eastern side, there is a sprawling minority area called Juhapura, where around five lakh Muslims live. The segregation is so stark that virtually no Muslim lives in Vejalpur, populated by around four lakh Hindus, and no Hindu lives in Juhapura.

An untold story? Still elusive: Gujarati language studies on social history of Gujarat's caste and class evolution

This is a follow-up to my earlier blog , where I mentioned that veteran scholar Prof. Ghanshyam Shah has just completed a book for publication on a topic no academic seems to have dealt with—caste and class relations in Gujarat’s social history. He forwarded me a chapter of the book, published as an "Economic & Political Weekly" article last year, which deals with the 2015 Patidar agitation in the context of how this now-powerful caste originated in the Middle Ages and how it has evolved in the post-independence era.

Justifying social divisions? 'Dogs too have caste system like we humans, it's natural'

I have never had any pets, nor am I very comfortable with them. Frankly, I don't know how to play with a pet dog. I just sit quietly whenever I visit someone and see their pet dog trying to lick my feet. While I am told not to worry, I still choose to be a little careful, avoiding touching the pet.

Caste, class, and Patidar agitation: Veteran academic 'unearths' Gujarat’s social history

Recently, I was talking with a veteran Gujarat-based academic who is the author of several books, including "Social Movements in India: A Review of Literature", "Untouchability in Rural India", "Public Health and Urban Development: The Study of Surat Plague", and "Dalit Identity and Politics", apart from many erudite articles and papers in research and popular journals.

New York-based digital company traces Modi's meteoric rise to global Hindutva ecosystem over several decades

A recent document, released by the Polis Project Inc.—a New York-based digital magazine and hybrid research and journalism organization—even as seeking to highlight the alleged rise of authoritarianism in India, has sought to trace Prime Minister Narendra Modi's meteoric rise since 2014 to the ever-expanding global Hindutva ecosystem over the last several decades.

Socialist utopia challenging feudal and Brahminical systems: Kanwal Bharti on Sant Raidas’ vision of Begumpura

In a controversial claim, well-known Dalit writer and columnist Kanwal Bharti has asserted that a clever Brahminical move appears to be behind the Guru Granth Sahib changing the name of the 15th-16th century mystic poet-saint of the Bhakti movement, Sant Raidas, to Sant Ravidas.

A conman, a demolition man: How 'prominent' scribes are defending Pritish Nandy

How to defend Pritish Nandy? That’s the big question some of his so-called fans seem to ponder, especially amidst sharp criticism of his alleged insensitivity during his journalistic career. One such incident involved the theft and publication of the birth certificate of Masaba Gupta, daughter of actor Neena Gupta, in the Illustrated Weekly of India, which Nandy was editing at the time. He reportedly did this to uncover the identity of Masaba’s father.