Hyderabad Firms Adopt Apprenticeship Model

Hyderabad: Hyderabad is emerging as a major hub for apprenticeship, reflecting a nationwide shift towards skill-based hiring. The latest Apprenticeship Outlook Report (January-March 2024-25) revealed a record-high Net Apprenticeship Outlook (NAO) of 76 per cent, signalling growing employer interest in structured skill development.

This marks an eight per cent increase from the previous quarter, driven by sunrise industries such as drones, EVs, and healthcare.

With its expanding technology sector, Hyderabad has joined Bengaluru, Chennai, Pune, Indore, and Nagpur in leading apprenticeship adoption. Nagpur, in particular, has seen a sharp jump from 76 per cent to 91 per cent NAO, fuelled by investments in green energy, mobility, and manufacturing. Indore follows with an increase from 64 per cent to 81 per cent, reflecting the impact of business-friendly policies and infrastructure growth.

Hyderabad’s apprenticeship growth is linked to its thriving IT and BPM industry, along with expanding opportunities in electronics, healthcare, and advanced manufacturing. The city has become a preferred destination for companies leveraging apprenticeships to scale operations, enhance productivity, and bridge skill shortages, the report, said

Industries are turning to apprenticeship to address skill gaps, lower hiring costs, and build a future-ready workforce. The report showed that 75 per cent of employers now absorb apprentices into full-time roles, the effectiveness of hands-on training.

Speaking to Deccan Chronicle, Sumit Kumar, chief strategy officer at TeamLease Degree Apprenticeship, attributed this growth to evolving business strategies. “The rise in apprenticeship adoption is driven by structured workforce planning, cost-efficient hiring, and increasing gender diversity,” he said.

“With large enterprises at 85 per cent and medium-sized businesses at 77 per cent, apprenticeships are becoming a key talent strategy.”

The drone sector leads the way with an 86 per cent NAO, followed by Global Capability Centres (79 per cent) and EV & Mobility (75 per cent), demonstrating how technology-driven industries are embracing apprenticeships.

“Apprenticeships are no longer just for traditional trades,” said Dhriti Prasanna Mahanta, vice-president at TeamLease Degree Apprenticeship. “We are seeing rapid adoption in emerging sectors like drones, biotech, and semiconductors. The shift towards industry-academia collaboration is also key to sustaining this momentum.”

Government initiatives such as Make in India, Production Linked Incentive (PLI) schemes, and state-led skilling programmes are said to have further accelerated this trend.

The report also showed a nine per cent increase in businesses partnering with Third-Party Aggregators (TPAs), which streamline apprenticeship implementation. The percentage of companies operating without TPA support has dropped significantly, from 70 per cent to just 23 per cent.

With apprenticeships evolving into a mainstream workforce solution, experts believe more businesses must integrate them into long-term hiring strategies, expanding partnerships with educational institutions, investing in mentorship programmes, and promoting gender-inclusive apprenticeships are key to sustaining growth.

Apprenticeship adoption

1. Nagpur tops the list of cities which are keen on adopting apprenticeship with a net apprenticeship outlook soaring to 91%

2. Indore stands at the second slot with an adopting rate of 81 per cent.

3. Hyderabad recorded an apprenticeship adoption rate of 76 per cent

4. Other cities leading the list are Bengaluru, Chennai, and Pune.

Conversion of apprenticeships into full-time jobs is dependent on:

· Learning agility (79%)

· On-the-job training (66%)

· Industry-academia collaboration (51%)

· Structured mentorship (49%)