Bangladesh building capacity- e asia event- dec 2011-ver2


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Bangladesh building capacity- e asia event- dec 2011-ver2

  1. 1. Strategic Advisors for the Global Economy Building capacity: Building Skills for an IT-enabled Services Industry for the Global Marketplace: TVET, Finishing Schools, Industry Skills Development and Other Avenues
  2. 2. Avasant Background Objective is to share our knowledge about emerging economies… IAOP World’s Best - Avasant has also been the recipient of several awards for excellence in Management Consulting and Sourcing Advisory. Avasant has been designated among the “World’s Best Outsourcing Advisors” by the International Association of Outsourcing Professionals (IAOP) in 2009, 2010 and for 2011. Within Avasant’s primary disciplines: Enterprise Optimization, Sourcing Advisory and Globalization Advisory; are comprehensive solutions sets which have been hailed across the industry in recent years
  3. 3. Building Capacity in a holistic way is the key to developing the IT/ITES sector <ul><li>People Factor </li></ul><ul><ul><li>To improve their indicators on the people front, many countries are investing heavily on skill development. Programs typically include, providing grant for each hire, providing training grants, subsidizing skills development institutes, etc. Example: Moneytla program in South Africa </li></ul></ul><ul><li>Infrastructure Factor </li></ul><ul><ul><li>With many countries proactively building tech parks, the focus on infrastructure has been more than ever. Realizing that improving country’s overall infrastructure would be a challenge, countries are trying to build pockets of world class zones that can compete with the best on world </li></ul></ul><ul><li>Business Environment Factor </li></ul><ul><ul><li>To further provide impetus, countries are offering improved governance with focus on public private partnerships, better tax incentives and favorable policies. </li></ul></ul>Capacity Building means developing the country’s potential to take up IT/BPO as a leading industry sector and develop it to the point where it can become a strategic pillar in the country’s economy.
  4. 4. There is a huge difference in what the education system produces and what the industry requires even in mature BPO locations… As Per NASSCOM currently only about 25% of technical graduates and 10-15% of general college graduates in India are suitable for employment in the offshore IT and BPO industries respectively; Philippines has major concerns over sustainability of talent pool over long term <ul><li>Core Skills are missing or minimalistic </li></ul><ul><li>Only 10% to 20% have tangible skills </li></ul><ul><li>There is a shortage of management and professional skills required for middle and upper management </li></ul><ul><li>Current education systems including university and technical colleges needs updation </li></ul><ul><li>BPO & IT industry is ever evolving and the education system are slow to catch up </li></ul><ul><li>Very little investment and focus on Technical and Vocational Training Institutes </li></ul>Leads to
  5. 5. Training Companies Placement Companies Vocation Training Institute Universities Strengths • Presence –known Brand • Operational machinery • Tie ups with industry bodies and Universities Strengths • Relationships with employers • Operational machinery –database of students etc. Strengths • Starting with a open slate • Good infrastructure • Tie ups with Universities and industry bodies Strengths • Presence –known brand; acceptance with parents • Operational Machinery • Good infrastructure The Human Capital ecosystem in most developing economies face a key challenge of weak assessment systems and generality Key weakness indicates a one size fits all approach, a weak assessment system and a high focus towards certifications <ul><li>Common Weakness </li></ul><ul><li>Assessment process is not holistic –prime focus on innate intelligence </li></ul><ul><li>Push based -One size fits all ; minimal focus on the fact that adults learn differently from children </li></ul><ul><li>Facilitators- Low Industry Exposure </li></ul><ul><li>Poor integration of content with industry need </li></ul><ul><li>High focus on certification </li></ul><ul><li>Yesterday’s solution to today’s problem – Content upgradation inadequate </li></ul>
  6. 6. Building Capacity in Human Capital is a gradual process which leads to unlocking a huge potential; Proper planning and developing comprehensive strategy with the right interventions can significantly lower the lead time to build a ready talent pool A 360 Degree approach with a holistic review of the current state is required to adequately analyze gaps A Comprehensive Gap analysis will lead to identifying strategic areas of strengths and interventions required
  7. 7. A Comprehensive review of Skill Development is required to groom industry ready talent… Skill Assessment & Training Requirements Training & Curriculum Development Educational Institutions Curriculum Sourcing Trainer Profiling Service Providers Curriculum Creation Training Execution Government Incentives Channel Development Trainer, Facility & Student Certification Determination of program objectives, drivers and constraints Development of specific curriculum for all program stakeholders Training deployment and development of certification standards Trainer Skill Development Industry based training program for the talent pool is fundamental to success Accredition Committee and Matching Grants
  8. 8. Globally various initiatives have been taken up to build capacity, Case study of the Monyetla Program… The Monyetla Work Readiness Program in South Africa aims at developing the unemployed youth in South Africa to successfully enter the BPO sector School Pass-outs Bridge this Gap Unemployed Youth Work Ready BPO Sector <ul><li>Success Stories </li></ul><ul><li>95% of allocated learners employed </li></ul><ul><li>3350 learners across 94 waves to be trained and employed by 27 consortia across 4 provinces in less than 12 months </li></ul><ul><li>Majority of consortia on target to achieve > 70% employment of allocated learners </li></ul><ul><li>New training models observed that could offer solutions to skills issues we currently phase in Urban and rural areas </li></ul><ul><li>Objectives of the Program </li></ul><ul><li>To equip unemployed South Africans from the National Skills Development Strategy target groups with the skills required to enter employment in the BPO sector. </li></ul><ul><li>To implement an employer-led consortium model to optimize employment. </li></ul><ul><li>To ensure the placement of at least 70% of learners in employment on completion. </li></ul><ul><li>To ensure the development of home-grown supervisors and managers. </li></ul><ul><li>To encourage skills program learners to enter into certificated learnerships to complete the remaining 68credits. </li></ul>Employer Recruiter Learner Trainer The Consortium Model Developed with a focus on contracts and SLAs
  9. 9. Roadmap- Phased Approach Phases Activities I Research and Analysis (BPO‐ITES Skill Gap Analysis) analyzes the marketing strategy and undertakes the skill gap analysis in the BPO‐ITES industry . This also outlines the priority skill development areas within the BPO‐ITES industry.Has to dovetail into the overall Marketing Strategy II Design and Development (BPO‐ITES Skill Set Standards) presents the Global Skill Set Standards for the BPO‐ITES functions and services in Country including a comprehensive Skill Set Dictionary and a database of job role. III Design and Development (BPO‐ITES Curriculum Design Guidelines) presents a streamlined BPO‐ITES Training Curriculum aligned with skill requirement in the BPO‐ITES industry in country. IV Design and Development (Program Accreditation Mechanism ) presents the Accreditation Mechanism for the BPO‐ITES training industry with specific guidelines for a qualitative system of review, evaluation, accreditation, and monitoring of BPO‐ITES training programs. V Design and Development (Training Matching Grants) presents the Training Matching Grants process, technical and eligibility specifications, and key guidelines to be used by the Fund Manager for disbursing the BPO‐ITES training matching grant. VI Release of Final Report (Project Implementation Plan ) presents the implementation plan for the project specifically highlighting the next steps to be taken by MoC on Training Content Development, Program Accreditation, and Training Matching Grants
  10. 10. To summarize skill development must cover all aspects and be aligned & timely Aligned To A Strategy Timing Linked to IP Strategy
  11. 11. <ul><li>Create Demand </li></ul><ul><li>Create Anchor Demand </li></ul><ul><ul><li>Outsource government work </li></ul></ul><ul><ul><li>Incentivize domestic outsourcing to IS </li></ul></ul><ul><ul><li>Donor Organizations can outsource internal tasks </li></ul></ul><ul><li>Investment Promotion </li></ul><ul><ul><li>Provide Financial Incentives for Foreign investment in backward regions </li></ul></ul><ul><ul><li>Spearhead investment promotion initiatives like holding events, marketing and sales support to IS sector </li></ul></ul>The Role of Government Leveraging Public Private Partnership Governments needs to adopt a two pronged approach to enhance the Skill Development Ecosystem Support Demand Creation & Build Capacity to Enhance Supply The government would be able to achieve this through an effective Public Private Partnership Model <ul><li>Enhance Supply </li></ul><ul><li>Human Capital Development </li></ul><ul><ul><li>Invest in skill development and training </li></ul></ul><ul><ul><li>Donor Organizations can act as funding agents for training initiatives </li></ul></ul><ul><li>Infrastructure Development </li></ul><ul><ul><li>Enhance Broadband Penetrations </li></ul></ul><ul><ul><li>Develop ICT infrastructure in rural areas </li></ul></ul><ul><ul><li>Develop business and technology parks </li></ul></ul><ul><ul><li>Develop training facilities </li></ul></ul><ul><li>Public Private Partnership has worked well in many countries ensuring a balanced investment. Major areas where the PPP model has been the most effective are </li></ul><ul><li>Skill development initiatives – Brining the academicians and industry requirements closer </li></ul><ul><li>Infrastructure development – Funded by the government but operated by the private sector has worked very well with infrastructure projects such as Business Parks, Roadways etc. </li></ul><ul><li>Investment Promotion – The right framework for policies and incentives along with an approach to increase investment in a region can only be successfully implemented through a public private partnership </li></ul>Capacity Build
  12. 12. Strategic Advisors for the Global Economy For More Information, Please Contact: Dr. Pradeep Mukherji President & Managing Partner +91-98210-80841 +1-646-403-9743 [email_address]