Bengaluru, India — Sridhar Vembu, founder and CEO of Zoho Corporation, delivered a stark warning to young professionals globally: education without practical skills is becoming prohibitively expensive. Speaking at the Global Skills Summit in Bengaluru on November 23, 2025, Vembu underscored that academic credentials alone no longer guarantee career success amid rapid technological change. Vembu’s critique taps into a growing debate about the disconnect between higher education and workplace readiness. With automation and artificial intelligence reshaping industries, employers increasingly demand measurable skills over diplomas. For young professionals, this means investing in skill acquisition is not optional — it’s essential to avoid costly career detours and underemployment.

The Rising Cost of Education Without Skills
Vembu’s comments come amid mounting evidence that traditional degrees have diminishing returns in a fast-evolving job market. According to the World Economic Forum’s Future of Jobs Report 2025, 50% of all employees will need reskilling by 2027 due to technological advancements, with digital literacy and problem-solving skills topping employer wish lists[1]. Yet, the cost of formal education continues to rise globally. In the U.S., student loan debt surpassed $1.8 trillion in 2025, while average tuition fees have increased by 35% over the past decade, outpacing inflation[2]. In India, where Zoho is headquartered, the number of graduates entering the workforce is growing rapidly, but many lack employable skills, leading to an employability rate below 50%, according to the National Employability Report 2024[3].

<img width="940" height="627" src="https://careeraheadonline.com/wp-content/uploads/2025/11/5257456.jpg" class="aligncenter" alt="Sridhar Vembu Warns: Education Without Skills Is Too Costly for young professionals” loading=”lazy” />

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Skills Over Credentials: A Shift in Employer Demands
Global corporations are recalibrating recruitment strategies to prioritize skills. Google, IBM, and Amazon have all expanded certificate programs and internal training initiatives that circumvent traditional degree requirements. IBM’s Pathways program, for instance, has reskilled over 200,000 workers since 2020, emphasizing cloud computing, AI, and cybersecurity[4]. Vembu advocates a similar model for India’s youth. He argues that young professionals should focus on acquiring tangible skills in software development, data analytics, and digital marketing to stay competitive. “Education is not just about degrees; it’s about building capabilities that create value,” he told the summit audience. This perspective challenges entrenched societal norms that equate academic degrees with success.

He argues that young professionals should focus on acquiring tangible skills in software development, data analytics, and digital marketing to stay competitive.

Bridging the Gap: Education Systems Under Pressure
Traditional education systems worldwide face mounting pressure to evolve. Most universities still emphasize theoretical knowledge over applied skills, a mismatch that leaves students ill-prepared for real-world challenges. The Organisation for Economic Co-operation and Development (OECD) has recommended integrating work-based learning and digital skills into curricula to address this gap. In India, government initiatives like the National Skills Qualification Framework (NSQF) aim to standardize vocational training and link it to formal education. However, implementation remains uneven, and many students continue to graduate without market-relevant skills, perpetuating the cycle of unemployability.

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Industry Perspectives: Balancing Skillsets and Soft Skills
While technical skills are crucial, experts caution against undervaluing soft skills such as communication, adaptability, and critical thinking. McKinsey’s 2025 Workforce Report highlights that 70% of employers rank these competencies as equally important for long-term career success. Zoho’s Vembu echoes this holistic approach, emphasizing that skills training must include problem-solving and innovation mindset. “The future workforce needs to be agile learners, able to adapt to new technologies and business models,” he said. Employers increasingly look for candidates who can navigate complex environments, not just execute predefined tasks.

Looking Ahead: Preparing for a Dynamic Career Landscape
For young professionals, Vembu’s message is clear: continuous learning and skills development are non-negotiable in 2025 and beyond. As AI and automation reshape job roles, those who invest in both technical and interpersonal skills will command a competitive edge. Educational institutions, policymakers, and industry leaders must collaborate to redesign learning pathways that align with market realities. This includes expanding apprenticeships, micro-credential programs, and lifelong learning platforms to democratize access to skills training. Ultimately, the cost of education must be measured not just in tuition fees but in the relevance and applicability of what is learned. Young professionals equipped with the right skills will navigate career challenges more effectively, contributing to innovation and economic growth worldwide.

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