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Zoho’s Sridhar Vembu Warns: Education Without Skills Is Costly in Today’s Job Market
Zoho founder Sridhar Vembu emphasizes that education without practical skills is an expensive misstep for young professionals navigating today’s shifting job market.
Bengaluru, India — Sridhar Vembu, founder and CEO of Zoho Corporation, delivered a pointed message to young professionals worldwide: education without concrete skills is an expensive mistake in today’s evolving job market. Speaking in November 2025 during a panel on workforce readiness, Vembu stressed that the traditional education model, heavily reliant on theoretical knowledge, is increasingly out of sync with employer demands, especially in data science and technology sectors. Vembu’s comments coincide with mounting evidence that the global labor market is rapidly shifting toward practical, demonstrable skills over formal degrees. As automation and AI reshape job requirements, workers who fail to adapt risk obsolescence. His warning is especially relevant for young professionals seeking to navigate a turbulent employment landscape marked by accelerated technological change and economic uncertainty.
Why Skills, Not Just Degrees, Matter More Than Ever
Education systems worldwide have long prioritized degrees as credentials for career entry and advancement. However, Vembu argues this approach is becoming prohibitively expensive and inefficient without accompanying skills. "A degree without applicable skills is a liability, not an asset," he said, underscoring the mismatch between academic curricula and industry needs. According to a 2025 World Economic Forum report, industry estimates of all employees will require reskilling by 2027 to keep pace with new technologies[1]. This data aligns with Vembu’s stance that young professionals must focus on acquiring skills—coding, data analysis, problem-solving—rather than solely chasing diplomas. The cost of higher education, particularly in countries like the U.S. and India, has soared over the past decade. In the U.S., average student debt reached $37,000 per borrower in 2025[2], exacerbating the financial risks of education without clear job outcomes.
Global Job Market Context: Data Science and Beyond
The demand for data science and AI specialists exemplifies the skills-first trend. Markets in North America, Europe, and Asia-Pacific are experiencing acute talent shortages. LinkedIn’s 2025 Emerging Jobs Report highlights data science as one of the fastest-growing roles worldwide, with a industry estimates annual growth rate in job postings[3]. Yet many graduates lack the practical skills employers require, creating a gap that companies like Zoho aim to bridge through targeted training and upskilling programs. Zoho, headquartered in Chennai, India, has invested heavily in internal training and apprenticeship models that prioritize hands-on experience. Vembu advocates for similar approaches globally, encouraging institutions and employers to collaborate on curricula that blend theory with real-world application. This model not only reduces the cost burden on students but also improves job placement rates and career longevity.
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Read More →The OECD cautions that systemic reform is necessary to align education with future workforce needs, recommending stronger partnerships between governments, industry, and academia[4].
Educational Institutions Facing Pressure to Adapt
Universities and colleges are under increasing pressure to reform their programs. The rising cost of tuition and the growing disconnect between academic offerings and labor market demands have led to calls for more modular, skills-based education. Institutions such as the Massachusetts Institute of Technology (MIT) and the University of Cambridge have expanded micro-credential and certificate programs focused on data science, AI, and cloud computing. However, critics argue that these efforts remain fragmented and insufficient to meet the scale of change. The OECD cautions that systemic reform is necessary to align education with future workforce needs, recommending stronger partnerships between governments, industry, and academia[4]. Vembu’s perspective echoes this, urging stakeholders to rethink education’s role from credentialing to capability-building.
Industry Perspectives and the Role of Employers
Employers are increasingly adopting skills-first hiring practices. Companies like Google, Amazon, and IBM have introduced certifications and boot camps that bypass traditional degree requirements in favor of demonstrated competencies. This shift is partly driven by the urgent need to fill tech roles and partly by a desire to diversify talent pools. Zoho’s founder argues that businesses must also invest in continuous learning. He highlights Zoho’s own philosophy of lifelong education, where employees regularly update their skills through internal programs. This approach buffers against rapid technological disruption and enhances employee retention.
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Read More →Preparing for the Future: Strategies for Young Professionals
For career seekers, Vembu’s message is clear: prioritize skills acquisition alongside or even over formal education. This means engaging with online platforms like Coursera, edX, and Udacity, which offer industry-recognized certifications in data science, machine learning, and software development. Moreover, young professionals should seek apprenticeships, internships, and project-based learning to gain hands-on experience. The gig economy and remote work trends open new avenues for practical skill-building beyond traditional employment. As the job market continues to evolve, adaptability and continuous learning will be the most valuable assets. Policymakers and educators must support this transition by investing in accessible, affordable, and flexible education models. Failure to do so risks widening inequality and leaving a generation unprepared for the demands of a data-driven economy.
The era of education as a simple ticket to employment is fading. Sridhar Vembu’s warnings underscore a critical pivot: skills development is no longer optional but essential. For young professionals, embracing this reality will be key to thriving amid the uncertainties of the global job market in 2025 and beyond.
