The Future of BFSI: Bridging the Skill Gap and Embracing Innovation in India

The BFSI sector's rapid expansion in India is highlighting an acute talent shortage and skill gap, leading to higher costs. Valued at $40-41 billion in 2023, it's set to grow significantly by 2032. Companies are urged to rethink workforce strategies and explore tier II cities for new talent.

The rapidly growing sector of banking, financial services, and insurance (BFSI) is facing a significant talent shortage, primarily in AI and data skills. This shortage is causing an increase in salary demands, as reported by Quess Corp on Thursday.

India's BFSI global capability centers (GCCs) were valued at $40-41 billion in 2023 and are projected to reach $125-135 billion by 2032, marking a compound annual growth rate (CAGR) of 12-13%. This growth is attributed to the transformation of these centers into innovation and resilience hubs.

The report highlights a shift towards investments in zero-trust architectures, advanced cryptography, and regulatory technology to combat intensified cyber threats. As a result, cybersecurity roles are in high demand, with professionals commanding salaries up to four times higher than traditional IT roles.

(With inputs from agencies.)