An inventory of skills helps in identifying gaps in competencies, and initiating remedial action.

Managing employee skills and competencies lays the foundation of any organisation, particularly so in the IT industry where technical skills form the core of the business. A skills inventory is essentially a checklist or database of organisational capabilities, that can help a company determine whether it can deliver a particular product on time or service the client efficiently. The difference between the existing and expected conditions determine the skills gap. It is the responsibility of line managers and the HR department to analyse the skills gap and provide the necessary training to bridge it. Alternately, they can also hire people with the requisite skill sets to build a skills inventory. It is the skills and competencies developed by the organisation that determines how it does its business and whether it will succeed.