The Hindu Business Line : `Acute lack of good articulation, team work'

The soft-spoken president of Nasscom, (National Association of Software and Service Companies) Kiran Karnik, needs no introduction to the watchers of Indian technology. Here is his take on a few questions from eWorld on the building of IT skills.

Nasscom has been repeatedly highlighting the manpower crunch for IT (information technology). There used to be a time when computer-training institutes were ubiquitous. Not so now, it seems. Why is private sector education initiative not too evident?

The drop in global demand for IT professionals following the dotcom bust and the US economic slowdown in 2001 led to a shake-out in the computer training industry in India. As a result, many of the training institutes closed down, leading to a fall in the throughput capacity.

Meanwhile, the growth of the industry has led to a huge requirement of human power. The IT-BPO (business process outsourcing) industry will recruit about 3,00,000 persons this year, many times the requirement 10 years (or even five years) ago. Meeting this massive requirement is extremely difficult, despite the experience of the excellent work done by the training institutions in the mid-90s.

Not only the numbers, but needs too have changed, as have expectations. This combination - of large numbers, high quality, specific skills and high expectations - is not easy to satisfy, but private training institutions are beginning to gear up for this.

There is the additional factor caused by the mushrooming of too many fly-by-night training institutes in the boom years. Their inadequacies led to a dilution of standards and quality, resulting in serious credibility gap for all such diplomas and certificates. Of course, a small number have established their quality and credentials rather well, but their overall capacity will necessarily be inadequate.

As for the broader issue of more private sector initiatives in education, these are severely constrained by restrictive regulations and bureaucratic hassles. Given the inadequate resources available to the government, and the host of competing priorities, it is certainly not desirable (nor feasible) for the government to invest heavily in higher education. Therefore, it is necessary to encourage private investments in education, particularly in professional education.

When IT industry's demand is for the latest skills in IT, how can universities provide the same, constrained as they are by syllabus rigidities? Won't private sector computer training be able to march with the times better, offering the latest in software as training modules?

Universities need not become skill-based polytechnics; their purpose is broader and deeper. Students need to learn how to learn, not just how to memorise given answers. While it is necessary that the syllabus in universities be relevant and up-to-date, this will not be such an issue if the basics (foundation) are strong. For, with a strong fundamental understanding, it is possible to very quickly pick up all the topical needs.

The problem is, therefore, deeper than merely a question of updating syllabi. It pertains to the quality, motivation and pedagogic capabilities of the teachers, as much as it does to syllabi. Laboratories and infrastructure at the universities are also important, and presently inadequate. However, organisational mechanisms need to be urgently changed, so that alterations and additions to syllabi are easy (and quick) to accomplish.

The present highly bureaucratic structure and processes at the level of universities and at the central regulatory level are severe constraints and are contrary to the needs of the modern world. This is the reason why autonomous institutions (e.g. IITs and IIMs), not under the direct control of these bureaucracies, do well.

Private training institutions, outside the control of universities and UGC/AICTE, have complete flexibility and are, therefore, able to provide courses that are topical and relevant to industry's changing needs.

Where do universities score better than private computer institutes? Are IT companies looking for skills beyond software competencies?

Universities are inherently superior - potentially - to private training institutes because what they teach are not just narrow skills, but a much broader problem-solving capability. It is a question of developing a solid foundation of learning how to learn, of education as opposed to mere training. This is particularly important because companies are looking for competencies way beyond specific programming skills. This is why training institutions can never be expected to meet the full requirements of the industry.

Today, skills such as English language, communication, articulation, presentation, problem-solving, team work and inter-cultural understanding are all key to success. In fact, they have become necessities.

Is the onus for manpower training on software manufacturers?

With both the government and individual students making heavy investments in education, there is clearly a strong case for saying that it must be the responsibility of universities to produce employable graduates. Industry does already invest heavily in training. This is good, but cannot absolve the universities of their responsibility.

How far are DOEACC certification programmes relevant for the IT industry?

Certifications of any kind depend upon the perception of their credibility. While some carry considerable weight in the recruitment process, others are not seen in the same manner.

Wouldn't it be risky for students if engineering colleges were to focus only on IT at the cost of other disciplines?

Certainly. IT is only one of the things that students need to pick up. The IT industry itself is interestingly focusing on domain skills - e.g. in automobile or aeronautical engineering. The candidates are falling short on skills such as communication, teamwork - to name a few, which are not specific to the IT sector. These are basic soft skills, which are needed for a candidate in any sector. The fact that the students are not equipped with these highlights a serious gap in our education system, and teaching methodology.

Traditionally, education in the Indian context has meant keeping your eyes and ears open and mouth shut. Today's innovation-driven market of knowledge economy does not need answers to questions; in fact it is questioning the answers that leads to innovation and to achieve this, there is an urgent need to re-look at the conventional Indian education system so as to be able to create high levels of innovation.

These measures, if implemented will be beneficial to the economy as a whole - and not only to the IT sector.

Has Nasscom identified the key skills that are in short supply vis-à-vis IT industry demand? If yes, are there any numbers as to the percentage of shortfall, so that we know the skills with the biggest gaps between demand and supply. Can we, then, think of a multi-pronged approach so that each skill is catered to by a different agency or certification programme?

The Nasscom-McKinsey Report 2005 projects that - at the current pace and quality of talent generation and education — India will need an additional 5,00,000 professionals just to maintain its share of the global IT and BPO industries. This assumes that the suitability of engineers for IT jobs and graduates for BPO jobs remains 25 per cent and 10-15 per cent, respectively, for the next five years and that India continues to increase output in higher education at the current rate of 6.5 per cent per annum.

It also assumes that 80 per cent of engineers will be willing to work in IT jobs, and 50 per cent of graduates to work in BPO. This also assumes the attrition out of the BPO industry will be matched by an inflow from other industries.

While 80 per cent of the graduates passing out of colleges do not have the skills that the IT-BPO industry needs, there is, in particular, an acute lack of soft skills such as good articulation and teamwork. Thus, this shortage of human resources is due to inadequate quantity of the required quality of fresh graduates in India. The problem of the demand-supply mismatch is due to our traditional education infrastructure, which has not evolved with the changing needs of today's innovation led economy.

However, in the long term, it is essential to re-invent our education system, which may otherwise become dysfunctional and the private sector will have to take up the task of equipping students with required skills. Human resources, in terms of quality and quantity, are India's biggest asset.

A favourable demographic structure (with about 50 per cent of the population below 25 years of age) adds to this advantage. However, to capitalise fully on this opportunity and not face the possibility of a skills-shortage, it is essential to gear up the education system through innovative initiatives.

Nasscom has already, with the support of the IT industry, been working on an IT Workforce Development initiative, to engage academia on a sustained basis through faculty development programmes, mentorship of colleges, curriculum updates and regular industry-academia interface.

Faculty members are invited by companies to understand the industry's outlook, needs and technologies so that they could, in turn, sensitise the students to these developments.

Another important area that industry aims to address through such initiatives is the development of soft skills — especially in communication and presentation. Nasscom has signed MoUs with UGC and AICTE to take forward these initiatives.

As a short-term measure, 2-3 month courses in a `finishing school' for IT professionals are being explored. This will add 20-25 per cent people to the `employable' pool. This is in an advanced stage of discussion and we expect it to be rolling by early next year. Nasscom has been in discussion with the industry for coming together to address this issue. Through a common industry Nasscom has been exploring, we have agreed on the business model for this, which is quite self sustaining. To begin with, we will look at a pilot in 4-5 cities, and further extend it eventually.

Meanwhile, there is already BPO certification available for entry-level employees (Nasscom Assessment of Competence, or NAC). The objective of this is to test candidates on seven identified basic skills required of BPO employees. These include keyboard, communication, articulation and presentation, in addition to teamwork. The NAC has been rolled out nationally as of November 2006. The test will shorten the recruitment process. More importantly, it will provide feedback and thus enable candidates to improve in areas where their score indicates inadequacies.

It will also enable aspirants from all over the country to appear for the test, thereby enlarging opportunities for individuals, and the recruitment-universe for companies.

Nasscom McKinsey Report 2005

As per the Nasscom McKinsey report, the skills and quality of the workforce need to be improved, since only 25 per cent of technical graduates and 10-15 per cent of general college graduates are suitable for employment in the offshore IT and BPO industries respectively.

Industry employee base estimated at 1.3 million in FY06.

IT software and services added over 120,000 to touch 878,000

ITES-BPO added around 100,000 to touch 415,000

Indirect employment attributed to IT-ITES was 3 million

The total direct employment in Indian IT-ITES has grown approximately by a million, from 284,000 in FY 1999-2000 to 1,293,000 in FY 2005-06

In addition to the nearly 1.3 million-strong workforce employed directly in the industry, Indian IT-ITES has helped create an additional 3 million job opportunities through indirect and induced employment. Indirect employment includes expenditure on vendors including telecom, power, construction, facility management, IT, transportation, catering and other services. Induced employment is driven by consumption expenditure of employees on food, clothing, utilities, recreation, health and other services.

Economic Survey of 2003-04

Literacy and Education

Literacy rates increased from 18.3 per cent in 1951 to 64.8 per cent in 2001.

Faster growth in female literacy 14.9 per cent compared to 11.7 per cent in males in last decade.

Rural literacy increased by 7 per cent, thereby reducing the rural-urban gap from 28.4 per cent in 1991 to 20.9 per cent in 2002.

Number of primary school increased from 6.39 lakh in 2000-2001 to 6.64 lakh in 2001-02

Number of upper primary schools increased from 2.06 lakh to 2.19 lakh in the same period.

Of the estimated population of 193 million in the age group of 6-14 years in 2001-02, nearly 82.2 per cent were enrolled in schools

The number of Secondary and Senior Secondary Schools during 2001-02 was 1.33 lakh with an enrolment of 30.5 million

The National Common Minimum Program announced an increase in public spending on education to 6 percent of GDP from 2003-04 (BE) level of 3.1 per cent in a phased manner.

Investments in Education

Expenditure on education in India : 3.8 per cent of GDP (1998)

Ninth Five Year Plan allocation for education: Rs. 24,908 crore

This is against an expenditure of Rs. 8,522 crore in the Eighth Plan

The total governmental (both central and state) expenditure on elementary education (classes I through VIII) = Rs 21,850 crore per annum. Over 95 per cent of this money is used for teachers' salaries.

The estimated cost of additional financial resources for universalisation of elementary education is Rs 1,40,000 crore over the next ten years.

Rs. 3609 crore provided for elementary education

Rs 350 crore provided for Sarva Shiksha Abhiyan to implement Universalisation of Elementary Education in a mission mode by 2003.

Rs 969 crore provided for District Primary Education Project.

Rs 120 crore provided for Adult Education.

Rs 400 crore provided for Operational Black Board.

Source: http://www.indianngos.com/issue/education/statistics/index.html

Others

Public expenditure on education in India as a share of the GDP in 2002-04 was 3.3 per cent, which is lower than developing countries such as Brazil and South Africa.

As per the Pratham report, around 7 per cent of children between 6-14 do not attend school; more worryingly, the drop-out rate in primary schools hovers around 31 per cent. Predictably the southern states do much better with enrolment at 97 per cent and above, and the BIMARU states lag way behind. In higher education, the figures are no better. Only 8 per cent of the relevant age group in India go to college as compared to between 20 and 25 per cent in many developing countries. Data collected in the 60th round of NSS shows that only 3 per cent of rural and 6 per cent of urban youth have had vocational training of any kind.

Sarva Shiksha Abhiyan, too, has been chipping away at India's dismal literacy statistics. The number of out-of-school children has come down from 23 million in 2003 to 80 lakh in 2004.

MuraliDe@gmail.com

More Stories on : Interview | Human Resources | IT Training | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Delivering news - and satisfaction

Following - up...

Too stretched, by far?

Booting trouble

`Acute lack of good articulation, team work'

Talking with SAP - beyond ERP

Looking into 2007

Say it in your own lingo

Quiz

IT infrastructure is like an elephant...

Cartoon