The expectations of the industrial sector and the deliverables of the academic sector are very different from each other. It takes a lot of money and effort to transform new engineers into professionals that are ready for the market. Additionally, students' learning is hampered by the gap between academic knowledge and its practical applications. System integration is one of the key concepts in Industry 4.0-enabled industries, where multiple IoT-enabled devices need to coordinate and communicate. Providing mere knowledge about different communication protocols and their architecture without relating that to the different devices existing in the industry won’t benefit the students much. Also, inculcating system integration skills among the mechatronics students helps them become new entrepreneurs, as system integration opportunities are greater in this Industry 4.0 era in India. The improvement in the affective and psychomotor behavior of students is greatly enhanced by their exposure to the configuration, programming, visualization, and troubleshooting of industrial servo drives used in industrial robots and CNC machines. The internal and terminal assessment comparisons of the system integration lab are done for 60 students of finalyear mechatronics for the years 2020, 2021, and 2022 using statistical analysis techniques. The statistical results indicate that students' learning behavior has improved 5 to 16% during the year 2021 and 8 to 18% during the year 2022 compared to the year 2020 due to the inclusion of industry-ready skills in outcome-based education.