Indian software industry experienced a phenomenal growht throughout 1990s. In spite of worldwide recessionary trends in the software industry, Indian software industry is expected to play a much bigger role in the new millenium for the growht of Indian economy. In the light of the research findings that lack of soft skills is one of the key reasons for the high rate of failure of information systems projects, this study assesses the difficulties experienced by project leaders in executing projects and the need for learning soft skills. Through role diagnostic workshop of Indian software professionals and in-depth interviews of various stakeholders, the study identifies various soft skills required by software professionals in leadership position. They need to have self-related soft skills, leaadership and managerial skills, knowledge and skills related to business domain, customers, project and process management and organisational and role related. The findings are discussed in a larger context of why technical professionals are reluctant to occupy managerial positions and the impact of lack of soft skills in leaders and team members on project success.