The service sector in India is likely to witness skills shortages during 2011, a report warns.

Compiled by the Associated Chambers of Commerce and Industry of India (Assocham), the study suggests rapid economic growth has pushed up demand for labor.

Services businesses are responsible for almost two-thirds of India's gross domestic product, with fields witnessing strong levels of growth including biotechnology, IT and academia.

The organization forecasts between ten and 15 million positions will be generated by 2011, with 75 per cent requiring vocational training.

If this is not achieved, Assocham advises, it could lead to an economic slowdown, as skilled workers are required in the IT, engineering, hospitality and insurance industries, among others.

Those seeking IT jobs in India may be interested to learn talent gaps could lead to salaries growing in the field by a par of 30 to 40 per cent in 2011, the report predicts.

Meanwhile, hospitality company Accor has announced plans to recruit 3,000 additional staff in India, expanding its workforce in 2011 from 2,000 to 5,000.

Posted by Kate Griffin