Over the last two decades, India has become a global hub for software development and offshoring of innovative back-office services. However, Indian institutes and educational systems, with a few exceptions, remain incapable of producing talents in the quality needed to keep these innovation specialties going. So companies that need the talents are developing their own innovative ways to overcome this.

Take IBM as an example. IBM has been known for the last 100 years to be one of the most innovative companies in the world. India’s institutional shortcomings notwithstanding, here is the headcount profile of IBM employees:

                                         2003                            2010                            2012

Worldwide                 310,000                       400,000                       433,000

USA-based                 135,000                       105,000                         98,000

India-based                    9,000                         75,000                       150,000

Other countries          166,000                       220,000                       185,000

Source:  Nirmalya Kumar on TED Talks.