World is transforming into a global village, where English is becoming a de facto standard for every conceivable form of communication. India has more English speaking people than U.K, but students passed out from English medium school mostly lack proper English communication.
A recent incident in Hyderabad, where students demanded for English than telegu, significantly denotes the aspirations of many, especially from the rural areas. What is painful is that English has always been taught as a subject, but never used in actual conversation, thereby annihilating the very purpose of learning a language.
IT companies are concerned of the English usage, everyone from managers to employees has to have good presentation and presentation skills, and sometime corporate trainings are provided to them.
For example, you are giving presentation to the client and your laptop stops working. What you will do then? If you are good at your verbal skill then you can continue the presentation without a hitch, otherwise you have to give an excuse to the problem.
Thus, language is an important role to attract MNCs to outsource their business operations to Indian BPOs and IT companies. Though there are competitors like China which also have a large pool of skilled workers but they don't have enough graduates who have command over English language.
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