Education, employable skills form major chunk of CSR spend by IT firms: Nasscom Foundation

A majority of information technology (IT) and financial service sector companies are investing in education and employable skills when it comes to the mandatory spend on corporate social responsibility (CSR), says a report by Nasscom Foundation.

“About half the companies (70) interviewed have spent more than 70 per cent of their CSR in education and employable skills initiatives,” said the report titled ‘Catalysing Change Through CSR’ , released here on Wednesday at the CSR Leadership Conference.

The survey featured firms such as Sonata Software, Hinduja Global Solutions, Wipro, HP Inc, Tech Mahindra, Cognizant Technologies, Mphasis, and Aricent.

“Education and employable skills are the key to most of India’s social problems. An industry, which has grown solely by investing into knowledge and key skills, realises the difference a skilled knowledge society can make and therefore, a major chunk of the CSR funds has been dedicated to education and employable skills,” Ganesh Natarajan, Chairman, Nasscom Foundation, said in a statement.

As per the report, 53 per cent of the surveyed companies based in Karnataka, Tamil Nadu, Maharahstra, Telangana and the National Capital Region, said they were now also investing in non-headquarter geographies.

The report, which maps the spending trend in the third year of operationalisation of the CSR mandate, also noted that companies were placing greater importance on monitoring the outcome by integrating technology.

“Companies have become increasingly aware of outcome assessment and close monitoring implementing agencies as evidenced by the growing frequency of report submissions from partner organisations, and greater on-ground frequency of CSR team,” the report added.

Among the roadblocks cited by a large number of companies was identification, selection and due diligence on non-government organisations and the absence of robust tracking process.