Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Nasscom Hr Summit Presentation Final 280710


Published on

This report talks about the impact of the IT-BPO industry on employment, and the role of IT-BPO HR to build future ready organizations

  • Be the first to comment

Nasscom Hr Summit Presentation Final 280710

  1. 1. Indian IT-BPO Industry: Building Future Ready Organizations Chennai, 28-29 July 2010
  2. 2. Key Topics • Past Decade – Employment Facts and Impact • HR’s four levers to build “Future Ready” Organizations • Sustained Investment in Training • Opportunities for Career Growth • Managing People Challenges effectively • Ensuring Cost Competitiveness • NASSCOM Initiatives
  3. 3. 6X increase in direct employment;3X increase in the share of organized private sector D rec t emp l oyees ('000) ~6x 2,300 2,500 430 i FY01 FY10 FY11P 45% of total incremental urban employment in the last decade By 2020 - Direct employment of 10 million; Indirect employment of 20 million
  4. 4. Employment opportunities for diverse sections of the society Employment  ~58% of the IT-BPO workforce is from tier 2/3 cities •Young demographics beyond Urban areas  ~ 56% employees are chief bread earners •Changing aspirations of India’s youth  ~37% women employees in FY09; account for Bridging the 45% of fresher intake gender divide  ~26% of the female employees are chief wage •Created high paying jobs earners •Setting new standards of  Industry average age-27 work environment Empowering the youth By 2020 Livelihood for  ~5% of the IT-BPO workforce from 5 mn women Economically economically backward sections employees backward 4 mn direct employees in  ~60% of companies provide employment to tier 2/3 Employing the Differently abled differently abled people locations *NASSCOM Evalueserve survey findings, 7500 participants pan India
  5. 5. Leading transformation in Tier 1 cities; extending impact to Tier 2/3 locations TIER 1 TIER 2/3 • Direct employment - 1.9 million • Direct employment- 1.7 lakh • Indirect employment - 7.3 million • Direct dependents supported- 4X Employment Generated • ~ 2X growth in FY05-09 in engineering • 1.7X growth in FY05-09 in engineering colleges and Enhancing colleges and technical graduates technical graduates the – 58% of the total engineering colleges – Number of engineering Education colleges- 985 system – 62% of the total intake of technical graduates – Number of technical graduates - 508,000 • Skill Development trainings in tier 2/3 locations By 2020: 4.1 mn incremental direct jobs in tier 1 locations; 3.8 mn incremental direct jobs in tier 2/3 locations
  6. 6. Global and Diversified workforce IT-BPO Exports revenue by Geography, FY2010 (nos) 2007 2008 2009 Countries of ~48 ~52 ~60 Operations Operating Centers 340 ~400 ~460 Finland Germany Hungary Netherlands Romania Sweden Canada Poland Russia UK & Ireland France USA Spain Italy China Japan Morocco Egypt S. Arabia India Taiwan Mexico Guatemala Philippines Sri Lanka Tanzania Brazil Australia Argentina South Africa New Zealand 2.2 million employees;~60 countries 35+ Languages; 5% Foreign Nationals * Illustrative list of countries represented above
  7. 7. NASSCOM TOP 20 IT-BPO EMPLOYERS in INDIA FY09-10 Rank Company Rank Company 1. Tata Consultancy Services 11. Capgemini Consulting India Pvt 2. Infosys Technologies Ltd Ltd. 3. Wipro Ltd 12. WNS Global Services (P) Ltd* 4. Cognizant Technology Solutions 13. Firstsource Solutions Ltd* India Pvt Ltd 14. CSC India Pvt Ltd 5. HCL Technologies Ltd 15. 3i Infotech Ltd 6. Genpact Limited 16. Hinduja Global Solutions Ltd* 7. MphasiS Ltd 17. L&T Infotech 8. Intelenet Global Services Ltd* 18. Patni Computer Systems Ltd 9. Tech Mahindra Ltd 19. Exl (India) Pvt Ltd* 10. Aegis Ltd 20. Aditya Birla Minacs Worldwide Ltd* Note: • This list is based on the India-based FTE headcount of firms with IT-BPO operations in India, as reported to NASSCOM in its annual survey. • Based on publicly available information, few other MNC's such as Accenture, Convergys, HP India and IBM would have also featured in this list. However, as they have not participated in the survey, we do not have all the required details and are unable to rank them. 7 • Most companies on this list are engaged in IT as well as BPO. Companies marked with an * indicate pure-play BPO firms.
  8. 8. Industry in the process of building high energy workforce focused on future aspirations Past decade Future Decade • Largely domestic workforce • Multicultural workforce, 15-20% foreign origin • Indian policies and processes • Global policies and processes • Tier I delivery focus in India • Tier 2/3 and rural opportunities • Delivery-centric management with • Multiple, specialized domain expertise limited career focus • “Generalist” Tier 1 focus in India • skill set • Domain-specific business knowledge • Tier II and rural opportunities • Talent pool focused on delivery • Talent pool with value add capability through innovation, analytics, ER&D
  9. 9. Key Topics • Past Decade – Employment Facts and Impact • HR’s four levers to build “Future Ready” Organizations • Sustained Investment in Training • Opportunities for Career Growth • Managing People Challenges effectively • Ensuring Cost Competitiveness • NASSCOM Initiatives
  10. 10. Sustained investment in training BPO IT Services MORE SPECIALIZA MORE NAC-TECH SPECIALIZATION INTENSIVE NAC INTENSIVE -TION College Efficiency -Analytics College Efficiency Within college and Post -F&A Post outside College Certification Certification -HR College -Engg, RIM, Testing Pre College -Insurance Pre College Investing in training through structured training programs; affiliation with academia; In-house universities
  11. 11. Industry supplementing the Education system Break-up of Human Capital Management costs  Spend of USD 1.4 Billion on training activities in 100%=USD1.4 FY09 Billion  5% of total annual employee time spent on trainingAverage training period for new employees – 14-16 weeks 45%  Average training period for existing employees – 2 55% weeks  45% of training spend on new employees- USD 630 Million  Average amount spend on training new employees New Hire Training Other Training* =USD 4350- 40% of cost of an average engineering course *Other Costs include training for existing employees, employee welfare, salaries for training staff, training material costs
  12. 12. Emerging as a “Skill Factory” – Introducing/upgrading new skills Language, Employment Process and Process, S&M Generation - Industry Future Vertical Ready skills, Ready Urban and specialists Research & Rural Analytics IT Services BPO ER&D  Domain skills across sectors:  Domain skills across sectors: BFSI, Healthcare, Retail,  Domain skills across sectors: BFSI, Healthcare, Retail, Telecom, Consulting (IFRS), Aerospace, Automobiles, Telecom, etc. etc. Energy, Telecom, etc  Cross-platform skills: SAP,  Customer facing skills: Client  Services: Plant engineering, Oracle, Java interaction, sales & marketing, Sustainability/Green, Energy, Infrastructure engineering, etc  Technical skills: Mainframe, Dot customer service, voice/accent net, J2EE, Open Systems, etc training, etc
  13. 13. Industry investing in vibrant career growth; retooling employee skill sets GLOBAL  Cross cultural integration DEFINED  Career Architecture maps CAREER PATH EXPOSURE and Best practice sharing  Internal job rotations  Joint training programs  Continuous improvement  Cross polarization of project projects teams  Best practice sharing  Global compliance group for global integration MULTI SKILLING  Competency Frameworks BUILDING  Strong domain leadership LEADERSHIP programs to understand  Expertise across end to end POOLS core business functions industry value chains through job rotations • Ops, Finance, IT, HR, Commercial Leadership  Funding/reimbursement of further education; certification  Rigorous career and programs succession planning process  Cross skilling/multi-skilling/up- skilling across technology /  Global Leadership Cadre platforms / services program; shadow boarding; accelerated career path program
  14. 14. Industry taking significant measures to manage challenges effectively • Monetary benefits: Retention bonus, rewarding meritocracy, ESOP’s High Attrition levels • Non-monetary benefits: Continuous skill development; innovation culture; accelerated growth track, job rotation • Pre hire orientation, Buddy program, Rigorous One-on-One, Family Connect Employee program, Townhall, Attrition tracker retention  Significant employee engagement - Rewards & Recognition, effective communication (company newsletters, social media, internal blogs), CSR • Industry consistently features high in work/employee satisfaction surveys Attracting right talent • Employee referrals Leadership • Build/expand capacity to lead cross-functional initiatives and projects pipeline; trained middle • Succession planning process management
  15. 15. HR pivotal in maintaining Industry’s cost competitiveness Annual Incremental engineering fresher addition, ‘000, FY01-09 •Hiring Fresher's • Average Fresher IT fresher addition to lateral ratio – 168 70:30 156 106 •Just-in-time hiring 73 •Build vs Buy 45 45 28 30 34 •Hiring from Tier 2/3 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 cities IT fresher addition •Alternative talent pools – increasing • Cumulative fresher addition (FY01-09) ratio of non-  IT- 684,000 engineers
  16. 16. Key Topics • Past Decade – Employment Facts and Impact • HR’s four levers to build “Future Ready” Organizations • Sustained Investment in Training • Opportunities for Career Growth • Managing People Challenges effectively • Ensuring Cost Competitiveness • NASSCOM Initiatives
  17. 17. NASSOM initiatives – broad based and aligned to Industry aspirations Short Term Medium Term Long Term (0-12 months) (12-24 months) (24 months onwards) • Finishing Schools: Focus on • Finishing Schools, • Establishing New IIIT- STUDENTS soft skills and domain Establishing New IIIT - Phase I Phase II competencies and • Vocational Skill Development • Scaling up PhD program certifications and • NAC, NAC-Tech • Vocational Skill assessments Development • NAC, NAC-Tech • NAC, NAC-Tech • Industry-Academia Faculty • National Faculty Development • National Faculty FACULTY mentorship programs (CSR) Program Development Program • Industry-Academia Faculty mentorship programs (CSR) • Education Web of • Education Web of • Education Web of Collaboration Collaboration Collaboration • Research Study • Participation in Key • Participation in Key OTHERS • Participation in Key Government policy Initiatives Government policy Government policy Initiatives Initiatives (NKC) & (NSDM) etc • Events (Forums, IT Seminars, Summits)
  18. 18. Thank You
  19. 19. Industry initiatives to build a future ready organisation Infosys’ Technical EXL Insurance Academy – Mphasis’ AARAMBH – New University - Continuous Experts from insurance industry Joinee trained all aspects of a training to employees in India, U.S. and U.K. department • Foundation programs for • Certification programs for An HR employee spends 3 engineers and non-engineers beginner, intermediary and months each working on • Project Management CoE advanced every aspect of HR–improves • Higher education scheme • Specialized trainings like productivity and multi tasking through distance learning Workers’ Compensation, abilities programs or certification Premium Audit, etc. L&T’s Career Innovation at Mahindra Genpact’s “Storefronts” Development Framework - Satyam – Ideate – Innovate – - Retail hiring in tier 2/3 cities Seven career tracks with Productize - Innovation for detailed job descriptions Excellence Award • Employees design their • Organization wide Innovation • Spread across 20 cities in development plans based on contest to generate novel India individual aspirations & ideas • Candidates walk in directly opportunities available • Investment Council evaluates for interviews; suitable ones • Mobility across inter/intra and invests in new ideas are hired on the spot tracks • Oversees/monitors progress • Candidates also get to know • Competency development on approved investments about Genpact’s business