Teamlease Apprenticeship highlights the return on investment in apprenticeships and provides extensive insight into the people supply chain

TeamLease Degree Apprenticeship, India’s leading private apprenticeship program run by TeamLease Services, convened a unique event titled ‘Innovation in the People Supply Chain: Interpreting the ROI of Apprenticeship’ at ITC Narmada, Ahmedabad. The event aimed to address key talent acquisition challenges and learn about the significant returns on investment (ROI) from internships and work-based learning programs.

Gujarat has emerged as a major destination for domestic and international investment, ranking among India’s top three in terms of industrial FDI. The country is characterized by a high labor force participation rate, lower unemployment and an entrepreneurial spirit, which promotes economic growth and job creation. However, due to technological disruption and demographic diversity, organizations face challenges in attracting, engaging and developing talent. Strategies discussed include developing in-house talent, implementing managed training services and Hire, Train, Place models, and outsourcing apprenticeship management. Practices have demonstrated a 3x return on investment within three years, reducing talent acquisition costs by 50% and increasing company productivity by 20-25%.

The dialogue also addressed the need for structural reforms to increase the pace of skills development in India, highlighting the symbiotic relationship between functional skills and theoretical knowledge. Rather than treating skills development and education as separate entities, it was emphasized that a concerted effort to improve the employability of young people through education-based, work-based programs is necessary and can significantly increase the human capital dividend. Specific measures were carefully considered, such as a tripartite model involving academia, industry and youth as key stakeholders and providing lifelong learning opportunities for upskilling and reskilling through apprenticeships. Additionally, educational paths corresponding to extended apprenticeship programs were examined in detail. Such collaborative frameworks are essential to closing skills gaps and preparing the workforce for the future, especially in the face of rapid technological progress and significant economic transformation.

AR Ramesh, CEO, TeamLease Degree Apprenticeship, emphasized the urgent need to address the challenges of creating a robust talent pipeline. He highlighted the mismatch between required and available skills, rising employment and training costs, and rising employee turnover rates. Given that India will account for a quarter of the world’s new workforce over the next decade and that artificial intelligence will disrupt millions of jobs, developing a skilled workforce is crucial. Gujarat, despite being a top performer in terms of FDI and economic indicators, needs to increase apprenticeships to build a productive talent pool. Gujarat is currently one of the three states with the highest number of apprentice adoptions, over the last 4 years the apprentice adoption rate was only 16% per annum, well below the national average of 35-40% and well below other economic powerhouses (Maharashtra’s adoption rate was 63% over the same period, 65% in Tamil Nadu, 54% in Karnataka and 54% in UP. He also discussed the potential of managed training services and hiring, training and onboarding models to increase the productivity of trainees and new recruits.

Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship, highlighted the significant growth and investment in key Gujarat sectors such as Electric Vehicles, Semicon, Pharmaceuticals, Healthcare and GCC. Over the past three years, the state has seen a 700% increase in demand for electric vehicles and a significant expansion of charging infrastructure. Additionally, Gujarat accounts for almost 30% of India’s pharmaceutical exports. It is set to produce India’s first semiconductor chip this year, reflecting the maturity of the state’s semiconductor sector, with cumulative investments crossing ₹ 1.6 lakh crore last year. GIFT City in Ahmedabad is emerging as a key GCC hub in India with over 400 offices employing 26,000 people. However, talent availability and productivity have become major challenges. He stressed the need for greater use of apprenticeships as they offer a proven route to creating a sustainable talent supply chain. Gujarat’s industries can benefit significantly from talent development interventions such as internships, which can increase overall productivity and growth.

Dhriti Prasanna Mahanta, Business Director and Vice President, TeamLease Degree Apprenticeship, highlighted the key role of apprenticeships in driving organizational performance and talent management. These programs deliver significant savings by improving talent acquisition and retention processes, representing a strategic shift toward nurturing internal talent. Additionally, internships deliver a remarkable 3x ROI by optimizing costs, creating sustainable pipelines, and increasing productivity. The changing importance of different industries in Gujarat is evidenced by the changing proportions of apprentices employed in each industry. In 2019-20, BFSI accounted for 29%, life sciences 13%, retail 12% and gems and jewelry 10%. By 2023-24, automotive was 15%, management and entrepreneurship 11%, IT/ITeS 10% and chemistry 8%. Expanding apprenticeship programs in Gujarat is crucial for cost savings, increased productivity, expanding the skills ecosystem to drive industry growth and nurturing the entrepreneurial spirit in the state.

About apprenticeships at TeamLease:
TeamLease Degree Apprenticeship is India’s first and largest apprenticeship program offered through a public-private partnership with TeamLease Skills University (TLSU), Ministry of Education, Ministry of Skill Development and Entrepreneurship, CII and NSDC. The company has employed approximately 700,000 apprentices with over 1,000 employers. Approximately 98% of these apprentices progressed to formal employment, and almost 40% were employed within the same organization. Through its apprenticeship program, TeamLease is focused on increasing the employability rate of young people in our country and closing the skills gap. TeamLease Skills University (TLSU) is India’s first vocational skills university and India’s first NAAC certified university that offers multi-level, employment-oriented programs.