Training ESL students in soft skills and employability skills with the help of Web 2.0 technologies is the current trend in Indian educational institutions. Students, who aspire to grow to greater heights in the corporate world, have understood the importance of learning soft skills such as verbal and non-verbal communication as well as employability skills such as interpersonal, problem solving and organizational skills to secure placements in leading companies. To meet these demands, teachers are required to play the role of facilitators of learning, and use innovative training methods. They no longer depend totally on textual materials but use advanced technological tools to supplement their teaching. The curriculum is designed to accommodate these innovations. Thus one finds more and more teachers using Web 2.0 technologies like podcasts, mobile phones, Wikis, blogs and Skype. Research studies conducted on the use of these Web 2.0 technology tools have shown the possibility of creating a virtual classroom and promoting students’ participatory learning in a more effective manner.