The document outlines the growth and transformation of India's IT-BPO industry, highlighting a significant increase in employment and a diverse workforce over the past decade. Key initiatives focus on training and development, addressing people challenges, and ensuring organizations are future-ready through investments in skill enhancement and career growth opportunities. By 2020, the industry aims to create 10 million direct and 20 million indirect jobs, while promoting inclusivity by hiring from tier 2/3 cities and supporting the differently abled.

1. Indian IT-BPO Industry: Building Future
Ready Organizations
Chennai, 28-29 July 2010

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. 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. 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. 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. 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. 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 Service.com (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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Thank You

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