Studies by Stanford Research Institute and the Carnegie Mellon Foundation among Fortune 500 CEOs found that 75% of long term job success depended on people skills and only 25% on technical skills.
This is true at other levels as well. For effective performance in the workplace, companies need their employees to have not only domain knowledge, technical and analytical skills, but also the skills to deal with the external world of clients, customers, vendors, the government and public; and to work in a collaborative manner with their colleagues. The annual rankings of MBA colleges often place communication and interpersonal skills as the most critical skills needed for success in the corporate world.
Noted academic Prof. Henry Mintzberg while speaking on the importance of soft skills for MBAs, refers to the crucial "soft" skills - leadership, teamwork, communication, and the ability to think “outside the box” of a discipline - that separate the best from the rest in the management world.” Companies in India are finding that they have to promote people faster than ever before to meet their growth needs. At the same time, they are finding that the candidates do not have the necessary skills to make the transition from a technical or functional specialist to a team leader, supervisor or manager. Companies in the IT, BPO, KPO, Biotech, and Pharmaceuticals industries have found that their people need soft skills to work effectively in cross-functional or project teams, local teams or global teams.