Transcript HR in India - Mohanlal Menon

Looking Beyond the Billion –
The Indian Context
Snapshot
• Demographics
• Talent Availability Vs Talent Acquisition
Myth
• India – Way Forward
Demographics
India Overview
Population (July 2006 est.)
1,095,351,995
Per Capita Income
US$ 800
Per Capita GDP
US$ 543
GDP % growth
Composition of GDP
8.6%
Services : 51.4 %
Industry : 28.1%
Agriculture:20.6%
Inflation % (CPI)
4.1 %
Foreign Exchange Reserves
US $1,51,622 million
Literacy
Total literate Population – 65.38 %
• Female – 54.16 %
• Male – 75.85 %
*Source: Census 2001
Multiple Indias
India #1 – Educated India
• 100 M adults
• Professionals, Business people, Govt. officers
• Mostly based in Urban areas
India #2 – Middle India
• 200 M adults
• Semi-educated; mostly living in urban areas
• Semi-skilled labor; Manufacturing technician;
Armed forces; Port workers
India #3 – Agricultural India
India #4 – Young India
• 300 M adults
• Mostly involved in farming;
• 50 M literate; 250 M illiterate
• Vote bank of India
• Heavy migration towards urban regions
• 300 M under the age of 18
• Youngest country in the world
• Have exposure to urban life and
education
• Huge potential to add to the bank of IT
professionals
Favorable age split of the population,
 60 % of India’s population between the ages 15-59, and
more than half below the age of 25
 In contrast, countries including the US, Europe, Japan
and China have a more aged population with
dependency ratios likely to increase over the same
period
Global Labour Shortages & Supply Sources
Potential surplus population in working age group (2020)
UK
Italy
-2 Mn
0Mn
Ireland
US
-17Mn
-3 Mn
France
5Mn
Russia and China
will compete in
specific segments
-2 Mn
Czech
Republic
Turkey
-1
Mn Iraq 2Mn
2Mn
Israel
Iran
0Mn
3Mn
4Mn
Russia
-6
Mn
China
Pakistan
19
Mn
-10
Mn
47
Mn
-9 Mn
7
Mn
Bangladesh
Egypt
Mexico(1)
Japan
5Mn
Philippines
4Mn
Vietnam
India
1Mn
Malaysia
3Mn
5Mn
Indonesia
Brazil
Note:Potential surplus is calculated keeping the ratio of working population (age group 15 – 59) to total population constant;
Source:U.S. Bureau of the Census International Data Base; BCG Analysis
Make India the largest opportunity
English-speaking graduates and postgraduates
Thousands PA
2,500
U.S.
2,000
India
Massive skilled
labour surplus
1,500
1,000
500
Philippines
China
Egypt
Mexico
Caribbean**
Malaysia
Ireland
0
0
5,000
Annual wage costs
US$ PA
10,000
15,000
20,000
25,000
Talent Availability vs
Talent Acquisition Myth
Despite Academic Infrastructure &....
As of March 2005
Availability of Hi-Tech students
343 institutes of higher
education
16,000 colleges
Enrollment of 9.3 million
441,000 technical graduates
2.3 million other graduates
300,000 post-graduates each
year
English being the accepted
medium of instruction, a large
proportion of the graduate pool
is proficient in English.
(Source: TaskForce on HRD in IT - Govt. of India, Dec
2000)
Tier I:
6 IITs, 2 IIITs,
6 IIMs, IISc
Tier II:
17 RECs, 33
others
Tier III:
191 Govt Funded
520 Self Financed
*According to data released by the Department of Secondary and Higher Education, Ministry of Human
Resource Development, and Government Of India
.....Indian Engineering Talent Growth
2003-04
2004-05
No of engineering
graduates
316,000
365,000
Degree (four years)
139,000
Diploma & MCA
(three years)
*No of IT
professionals
2005-06F
2006-07 F
2007-08 F
441,000
501,000
536,000
170,000
222,000
270,000
290,000
177,000
195,000
219,000
231,000
246,000
179,000
201,000
246,000
280,000
303,000
Engineering IT
graduates (degree)
84,000
102,000
133,000
162,000
180,000
Engineering IT
graduates
(diploma)
95,000
99,000
113,000
118,000
123,000
* IT professionals include Comp Science, Electronic and Telecom
professionals.
….Expected Skill & Competency Shortfall
• Number of qualified graduates not keeping pace
with booming demand.
• According to Nasscom just one in four of
technical professionals possess the skills
required for employment, while tech jobs are
expected to double to over 2 million by 2010.
• Nasscom projects a shortfall of a half-million
tech workers by 2010.
• Availability of Leaders, Managers, Leadership
and Management skills being keenly felt
Although India scores high on loyalty….
High Loyalty
54
44
46
Global
Americas
44
43
Asia Pacific
Europe&
West Asia
Regions
percentage
60
55
50
45
40
35
30
25
20
Low Disloyalty
India
36
34
32
30
28
26
24
22
20
35
35
35
31
29
Global
Americas
Asia Pacific
Europe&
West Asia
India
Regions
 Employees in India more likely to speak well of their companies and be
enthusiastic about their work
 Employees working for some of the world’s largest corporations are more
likely to be ambassadors.
…Attrition rates are high with rates varying from
10% to 60% in Technology and other High Growth Areas
India – The Way Forward
OPPORTUNITIES EVOLVING IN MULTIPLE DOMAINS
Latent
opportunities
Rapidly evolving
opportunities
Established
opportunities
Cust. interaction services
Finance and accounting serv.
Engineering and design
services
HR services
Animation
Translation, transcription
and localisation
Logistics management
Consulting services
Network
consulting and
management
Data search,
integration and
analysis
Market research
services
Website services
Remote education
Monitoring services
Legal advice
Distributed product
development
Secretarial services
India – The Way Forward
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India Business Entry Strategies to plan & operationalise these factors
Focus on Transfer of Knowledge Process, Patience in Execution
Investing in and Building local Leaders and Leadership competencies
Partnering Universities and Colleges in bridging demand shortfall wrt skills
and competencies
Partnering Local Government and other Industries in evolving sustainable
growth
Cultural Sensitisation of assigned staff
Remote Management Operationalisation/Optimisation
Risk Optimisation through Business Continuity planning
Creative Solutions (like home office etc)
Thank You