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Information technology (IT) companies in India began providing services, in the 1970s, in software programming but now provide varied services such as business consultancy and also business process re-engineering. This paper looks into the scenario faced by such information technology (it) companies which face a shortage of skilled human resources availability from academic institutions. Therefore it is very imperative that such companies collaborate with academic institutions in various ways of industry institution interaction (III) such as joint research and development, faculty development programs, technical workshops for students, etc. which goes a long way to bridge the gaps in the academic curriculum. We take a look at how these IIIs help to make such students of engineering more employable when they graduate. This plays a very significant part in the IT success story of India.