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Sridhar Vembu on Closing the Global Skills Gap: Education Alone Is No Longer Enough
Zoho founder Sridhar Vembu highlights the rising cost of education without skills amid a widening global skills gap. Learn why practical abilities now outweigh degrees and how professionals can adapt.
Bengaluru, India — Zoho Corporation's founder, Sridhar Vembu, has sharply criticized the current education system, emphasizing that education without practical skills has become an expensive misinvestment for young professionals worldwide. Speaking at the annual a startup founder Summit on November 23, 2025, Vembu stressed that the widening global skills gap demands urgent recalibration of both educational curricula and workforce training. Vembu’s message arrives amid mounting evidence that traditional degrees alone no longer guarantee employment or economic mobility. The World Economic Forum estimates that by 2027, over 40% of workers worldwide will require significant reskilling to keep pace with technological change[1]. Vembu’s critique shines a spotlight on the mismatch between formal education outputs and real-world job requirements—a gap that is costing economies billions annually and leaving millions of young workers underprepared.
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At the heart of Vembu's argument is the idea that education systems globally have failed to evolve beyond rote learning and theoretical knowledge. He points to Zoho’s own experience as a software company that prioritizes skill-based hiring over degrees. This approach has helped Zoho build a workforce adept at problem-solving and innovation, rather than mere credential accumulation. This focus aligns with recent data from LinkedIn’s 2025 Workforce Report, which shows that 67% of employers prioritize hands-on skills and demonstrable experience over formal qualifications when recruiting for tech roles[2]. The shift is driven by digital transformation accelerating across sectors, where practical coding, analytics, and communication skills are crucial. For young professionals, the implications are clear: investing heavily in traditional education without parallel skill development risks leaving them disadvantaged. Vembu advocates for integrated learning models that combine academics with apprenticeships, internships, and project-based work, thereby reducing the 'education without skills' gap.
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Read More →For young professionals, the implications are clear: investing heavily in traditional education without parallel skill development risks leaving them disadvantaged.
The Global Skills Gap: A Complex Challenge
The global skills gap is widening despite increased enrollment in higher education. UNESCO reports that 220 million youth are either unemployed or underemployed, many due to skills mismatches[3]. This phenomenon is particularly acute in emerging economies like India, where millions graduate yearly but only a fraction meet industry standards for employability. Technological disruption compounds the challenge. Automation and AI tools are reshaping job profiles faster than educational institutions can adapt curricula. The World Economic Forum’s Future of Jobs report predicts that by 2027, 50% of all employees will need reskilling due to automation[1]. Governments and companies alike are scrambling to bridge this divide with mixed success.
In this context, Vembu’s Zoho has pioneered a decentralized work and education model, employing rural talent through remote work hubs while providing continuous skill training. This approach not only taps into underutilized talent pools but also challenges the urban-centric education and employment paradigm.
Business and Education: Bridging the Divide
Corporate leaders increasingly recognize the need to partner with educational institutions to reshape curricula and training programs. Microsoft and IBM have launched global initiatives offering certification in cloud computing, AI, and cybersecurity, directly addressing employer skill demands. However, Vembu warns against overreliance on certifications without genuine skill mastery. He argues that skills must be embedded in problem-solving contexts, not just theoretical frameworks. Zoho’s own internal training emphasizes real-world projects and continuous learning over one-off certifications. Educators also face pressure to revise pedagogical approaches. The National Education Policy (NEP) 2020 in India, for example, promotes multidisciplinary learning and vocational education, aiming to close the skills gap by 2030. Yet implementation remains uneven, especially in rural areas where infrastructure and teacher training lag.
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Read More →Multiple Perspectives on Skills Development
Experts agree that closing the skills gap requires a multi-stakeholder approach. Rajiv Kumar, former Vice Chairman of NITI Aayog, highlights that government incentives for industry-education collaboration are vital. Public-private partnerships can create more apprenticeship opportunities and tailor curricula to evolving market needs. On the other hand, some educators caution against undervaluing foundational knowledge. Dr. Anita Desai, Dean of Education at Delhi University, notes that while skills are critical, disciplines like critical thinking and ethics remain essential for long-term adaptability and leadership roles. From a corporate stance, CEOs emphasize the need for lifelong learning cultures within organizations. Satya Nadella of Microsoft recently stated, "Continuous skill development is the only way to future-proof careers in an AI-driven world." This underscores the shift from static credentials to dynamic skill portfolios.
Preparing for the Future of Work
Looking ahead, young professionals must adopt a mindset of perpetual upskilling. Platforms like Coursera, Udemy, and Khan Academy are democratizing access to skill development, but discerning quality and relevance remains crucial. Policymakers should incentivize modular education frameworks that allow learners to stack skills and credentials aligned with industry needs. Meanwhile, employers must invest in reskilling employees to adapt to emerging technologies and business models. Ultimately, the future workforce will be defined by agility and practical expertise, not just academic pedigree. Sridhar Vembu’s call to reimagine education as a skill-centric, inclusive ecosystem offers a blueprint for bridging the global skills gap and empowering the next generation of professionals.
