The Human Resource Challenge For It & Ites

Case Study on:

Aditya Joshi Priyanka Chetiya Anurag Sharma Surajit Barman Anil Ajang Michi Bida Khoda Kaustoov Gopal Goswami

INTRODUCTION  Advances in IT and penetration of the internet have led to the evolution of the digital economy and business level world wide. As a result there has been an increase in demand world wide for IT skills.  India has established itself as the “services hub of the world” with over 24 % share of the global ,offshored IT enabled services.

Task Force Objectives and Approach Considering the need and potential of IT in existing as well as newer areas to place India as global R&D hub as well as most favored designations for BPO and control research , a task force on “Human Resource Development in IT” is constituted on the initiative of Hon’ble Minister for Communication &IT.the main objective of Task Force is to prepare a long term strategy

The Task Force will have the following composition • • • • • • •

Shri F.C Kohli Shri Pramod Bhasin Chairman (UGC) Chairman (AICTE) Prof. N Balakrishnan Shri Rajendra Singh Pawar Shri Pratik Kumar

Chairman Co-Chairman Member Member Member Member Member

FINDING OF VARIOUS SUBCOMMITTEES GLOBAL ITeS/IT market. Considering the following table It can be culminated that it registers a compound annual growth rate(CAGR) of 11% between 2003 and 2012. The size of the ITeS market would continue to be around twice that of the IT services market.The US and Europe,Mid East and Africa regions would comprise over 77% of the global market for ITeS/IT.

Global ITeS/IT market (USD Billion)

20022003 2006 2009 2012

IT

392 441 625 864 1193

ITeS

7921838 1213 1633 2198

TOTA 11841322 1838 2497 3391 L

INDIAS SHARE OF ITeS/IT MARKET.

Some of the world’s leading companies,across sectors,are using captive and third party service providers in India for their Ites/IT requirements. Based on initial success:India expected to achieve revenues of USD 62 billion by 2008-09 and USD 148 billion by 2012 in ITeS/IT,at a CAGR of 35%

PROSPECT OF MANPOWER IN IT •

From 2002’s 0.17 million manpower to million in IT.

•

2. In ITeS 2002’s 0.11 million to 2012’s projected 2.72 million

Possible gap in 2009 for ITeS and IT • •

IT manpower gap is 2.35 lakhs. ITeS manpower gap 2.62 lakhs.

2012’s projected 0.9

PRODUCTIVITY,EMPLOYMENT CONTRIBUTION ESTIMATES •

From 0.5 million of 2002 to 5 million. IT export service
•

Employment 2002’s 0.1% to 0.9% of 2012.

GDP 1. Off shoring 2002’s 1.9% to 2012’s 12.3%. 2. Contribution to GDP growth as 2003-2006 -8% to 20092012’s 31%.

Skills Testing and Certification • Efforts would be required to establish a common certification system for some of the standard skills. • A common agency should be there to handle the testing and certification at a national scale. • Attracting and deploying personnel for ITeS/IT

INDIA AS A GLOBAL HUB FOR R&D • • • • • • • • •

Specific opportunities within the ict Cryptography Digital watermarking Wireless technologies Systems software development System engineering Routing Smart cards Artificial intelligence

THE WAY FORWARD: Recommendations to meet the HR challenges for ITeS/IT Bridging the man power requirement gap for ITeS/IT requires specific actions across three broad areas. a. Growing the base of graduates and expanding the share of those entering the work force. b. Generating awareness and employment preference amongst working graduates even in tier II and smaller towns. c. Improving the recruitment conversion ratio through changes in the education system as well as counseling related to ITeS/IT employment opportunity.

Attracting resources into ITeS/IT 1. Create an ITeS/IT opportunity awareness fund with industry support. 2. Leverage universities/colleges and existing vocational counseling centers in tier II and smaller towns to provide career counseling on ITeS/IT opportunities. 3. Provide fiscal incentives to attract expatriate talent for highend work. 4. Introduce changes in telecom and customs/excise regulations to enable working from home for ITeS/IT industry.

Educating/Developing requisite skills for ITeS/IT

1. Change in the formal education system to support skill development for ITeS/IT Education System

Additional input required

Primary Education

Language skills & Computer Literacy)

(Basic skills of Mathematics,Language,

(Written and Spoken English, Basics of computer)

Social Sciences,General Awareness)

Higher Secondary

Customer Service orientation

(Advance level)

(Leadership, Team work, Time Management)

Graduation (Specialized in a particular stream)

Domain Specific training linked to international Development

Post-Graduation

(HR Practices, International Laws, Alternate

(Specialized and applied study in a

Languages)

particular subject of that stream)

2. Update curriculum under the formal education system more frequently to reflect industry development Revise curriculum under formal education at least once in two years with specific inputs from industries.

3. Change the evaluation system under formal education system to encourage creativity and learning memorizing, production directed towards examination towards concept application and continuous learning.

4. Develop specialized vocational courses in the formal and informal education system. Vocational courses provided by formal and informal system should be recognized by govt. agency. Formal education system help in spread of base of skill development. Non formal education system could supplement res-killing effort. ‘Master trainers’/’train the trainer’ 5. Establish and encourage global linkages and networks.

6. Emphasis and promote the uptake of foreign languages. 7. Revision of R&D funding norms for universities/institutes against current plan based system. 8. Networking of institute at graduate and post graduate level. 9. Easy access to IT system and internet facilities within formal education system.

10. Allocate specific funding support towards faculty training and development. 11. Impose greater discipline associated with information security. 12. Support alternative use of IT/ITeS facilities and infrastructure by industries for education and domestic service. 13. Extend tax incentives under section 12A to recognize vocational training institutes as well as companies focused on ITeS/IT.

Certifying Skill Levels of Resources for ITeS/IT  Development of on-line test for ITeS  Frame work of test  Categorization of applicants as employable, trainable or nontrainable  This would help developed a standard supply of pre-certified skills.

Provide partial funding support for IICT certification  Subsidization of IICT  This will help its accessibility to a grater extent.

Appoint a non-govt. Industry approved national body for IICT  Recognition of certification by govt.  In charge of the certification should be industry accepted body  NASSCOM, CII.

Design standards for the IICT based on industry requirements  Two levels of testing L1 and L2  Evaluation and revision of testing standards

Deploying trained/certified resources into ITeS/IT 1. Reforming labor laws to support part time and temporary working. 2. Providing exemption under income tax Act for expenditure on IT equipments and communication for employees working from home. 3. Set-up a database for trained and certified personnel and trainers for ITeS/IT industry.

Monitering and Guiding Efforts Related to ITeS /IT and R&D Using industry/institutional inputs to develop national technology plan on R&D focus areas

Mid term reviews and corrective actions

CONCLUSION  The ITeS/IT industry in India has the potential to make a significant contribution to the overall economic growth through edition of direct and indirect jobs by leveraging foreign investment  Recommendations to address be revisited and revised by a dedicated team every 2-3 years