Let me write my perspective on this on going topic (wastage of human resource in CSE preparation)
According to me, there are three types of UPSC CSE aspirants:
A-type: Highly qualified, dedicated, hardworking people ( such individuals would not be more than 5K, i think)
B-type: Average kind but trying their best (~ 20-30K people)
C-type: Crowd
B-type people always keep backup in mind and due to knowledge gained through CSE preparation they are mostly able to secure good back-up job as well. So CSE preparation is giving them good ROI.
C-type people does not deserve any discussion as far as CSE is concerned. They are just doing time-pass and fooling their families.
Now, let's come to A-type people, these aspirants sacrifice their "तन -मन -धन " for CSE preparation. It is also seen in their progress in Exam. Most of the A-type aspirants qualify pre many times and at least give 1 Interview during their CSE preparation. Some of them qualify (high ROI) but many can not even after giving 3-4 interviews (seems very less or zero ROI).
Most of these A-type people have already left very good career for the CSE preparation. So they do not give importance to other govt jobs for back-up. And due to incremental success in various stages of exam (pre-mains-interview), they keep on giving attempts after attempts and the loop continues until their last attempt.
These A-type failed aspirants are the real concern about wastage of excellent human resource. Govt/UPSC has already taken some steps to accommodate interview-failed candidates(for ex- SAI, IFSCA etc) - good for last attempters. UPSC has also started the practice of publicly disclosing the details of interview-failed candidates. Though these steps have not yielded desired results yet and there is a need to accommodate most of the A-typers in the Governance process. But let me assure you these A-typers can easily (or with some effort) go back to corporate. Or those who just want a career in public service, have very good expertise to excel in the fields such as Politics, NGOs, Social entrepreneurship etc. Or if there is no ego issue, can certainly crack state psc exams. So in the end these A-typers also get some ROI out of CSE preparation.
Above write-up is not for those A-typers who are genius, convent-educated, who had planned their preparation from school times etc (they will mostly succeed). This write-up is for the A-typers who have vulnerabilities but there is no lack of "patience", "dedication" and "perseverance" in their entire CSE preparation.
@Inselberg Thanks for your comment. Here is the rationale behind writing that statement:
I firmly believe that UPSC CSE process is highly tilted towards certain sections. People with very good schooling background has lots of advantage in Essay, Ethics and Interview/Personality Test. Schooling plays a very important role in developing writing skills and grooming your personality. Over and above, most of these people attend good college/university for their graduation which further hones their personality/skills. That's why, I THINK, such people (if they are dedicated and hardworking as well) can excel in CSE ("mostly").
Just FYI, I had gone to vernacular govt school (till 12th) and passed out from a top NIT and had a work-ex of ~3.5 years in a US-based MNC. With my Hinglish background(Hindi in schooling, English in College/job), i opted for English medium for CSE. Even after putting so much hard work, i struggled a lot in writing good essay and articulating effectively in Interview. I have already missed final selection 2 times with single digit margin. All thanks to Essay, Ethics and Interview. This has FORCED me to realise the importance of good schooling with respect to CSE.
But, i think, UPSC provides enough attempts to rectify the previous disadvantages.