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Ensuring Sustainable Offshore Delivery : India’s Skills Development Model : Opportunities for India Australia Partnerships
25 th July 2012 Dilip Chenoy CEO & MD Melbourne, Australia
Agenda
Overview Government Initiatives in Skill Development in India NSDC Model: Encouraging Public Private Partnerships Areas of Collaborations and Key Recommendations Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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India: Land of World’s Largest Young Population
Age 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80+ 1991 25.6
21.3
17.3
13.3
9.4
6.3
4.2
1.8
0.8
2001 22.2
17.0
22.9
6.9
4.3
13.9
10.2
2.1
0.6
2011 5.0
8.2
14.4
11.6
2.4
0.8
19.6
18.7
19.5
2021 15.8
17.1
17.0
3.5
1.3
15.7
12.6
10.1
6.9
70% of the population will be in working age group by 2021
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Where the Population of rest of the world is relatively old, India has a great opportunity to harvest its ‘Demographic Dividend’
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Government’s policy to ensure that working population are skilled to meet requirements of the industries.
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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However, plagued by inadequately skilled manpower
1 High drop outs in the education space 3 Very low enrolments for VET 2 Employability of the skilled a challenge Skilling should Become a major Policy Focus going forward 4 In service training levels very low in India
Only one in four engineering graduates in India is employable, based on their technical skills, English fluency, teamwork and presentation skills and of the 4 lakh odd engineering graduates, who graduate each year, only about 20% is good enough for India Inc. - NASSCOM
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Industry requires 347 million skilled manpower over 10 years for sustaining it’s growth
Industry Building and Construction Industry Infrastructure Sector Real Estate Services Gems and Jewellery Leather and Leather Goods Organised Retail Textiles and Clothing Electronics and IT Hardware Auto and Auto Components IT and ITES Banking, Financial Services, and Insurance Furniture and Furnishings Incremental requirement (in million) 33.0
103.02
14.0
4.6
4.6
17.3
26.2
3.3
35.0
5.3
4.2
Industry Tourism and Hospitality services Construction Material and Building Hardware Chemicals and Pharmaceuticals Food Processing Healthcare Transportation and Logistics Media and Entertainment Education and Skill Development Services Select informal employment sectors (domestic help, beauticians, security guards) Incremental 3.4
Source: IMaCS analysis
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Incremental requirement (in million) 3.6
1.4
1.9
9.3
12.7
17.7
3.0
5.8
37.6
347
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The National Skills Policy 2009 targets skilling 500 million people through 4 pronged approach
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A framework for better coordination among various Ministries, States, industry and other stakeholders
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Approach adequately communicated and implemented
• • •
No discrimination between private or public delivery Importance on outcomes, users choice Competition among training providers Policy coordinati on and coherence High inclusivity
India needs to create 500
Choice,
million skilled
competition
workers by 2022
and accountability Dynamic & demand based system planning
• • • •
male/female rural/urban organized/unorgani zed employment traditional/contemp orary workplace
• •
Promote excellence Meet the requirements of knowledge economy. Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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New approach to addressing the gap
Social Appreciation of Skills As a Livelihood Asset Linking Education to Employability in the Global Knowledge Economy.
No One Solution. Every Region demands an innovative approach.
1.
Undertake fundamental reforms across the education system (primary, secondary and higher) to
•
improve overall quality / outcomes,
• •
increase retention and ensure seamless integration with vocational training 2.
Significantly enhance Government-driven vocational training efforts 3.
Increase scale of PPP initiatives to better utilize Government infrastructure 4.
Foster Private sector / Industry participation in skill development
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Government’s Co-ordinated Action in Skills Space
Multilateral , bilateral and private sector funding to NSDF Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Why the “ New” Partnership Model
• • • • • • • • •
For identifying the competencies and setting up standards as per Industry requirements For delivery of training, monitoring and evaluation For participation in examination and certification For participation in affiliation and accreditation process For facilitating training of trainers For facilitating employment of trained persons Skill demand analysis and curriculum development Sharing of work place experience, machinery and equipment Support by way of physical, financial and human resources Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Agenda
Overview Government Initiatives in Skill Development in India NSDC Model: Encouraging Public Private Partnerships Areas of Collaborations and Key Recommendations Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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NSDC – a unique model created with a well thought through underlying philosophy
Key elements of NSDC’s underlying philosophy 1 Create:
Proactively catalyze creation of large, quality vocational training institutions
2 Fund:
Reduce risk by providing patient capital Improve returns by providing viability gap funding
3 Enable:
Support systems required for skill development • • • • • Sector skill councils Quality Assurance Information system Train-the-trainer Set Standards
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Create :
Inviting Private Sector to Make it Sustainable and Scalable
• • • •
Response to Demand Develop a strategy Create a knowledge base Excite entrepreneurs by bringing out the opportunity
• • • • •
Share the risk Provide patient capital Develop non intrusive robust monitoring programmes Trust and transparency in the system Eco system to support the organization
• • •
Go beyond the training, address issues of the ecosystem Develop partnerships, move beyond a pure funding relationship Focus on outcomes Attracting Industry players:
Start ups, Social Entrepreneurs, NGOs, Medium Size Training Organizations and Large Corporates into Skill Development.
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Driving vocational training business models by providing patient capital
Elements Who gets funded?
What is the amount of funding?
Description
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Any organization with scalable, sustainable business model that ensures employability of the resources trained
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Including start ups
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Including Indian partnership with Australian Companies
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~Upto 75% of the project cost What is the form of funding ?
• • •
Debt at subsidized rates ; other features like moratorium built in depending upon nature of project Equity Grant funding (only in very select cases) Is there special focus?
•
NSDC is looking to fund businesses that seek to create employable people across all sections of the society Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Robust process designed to ensure rapid turnaround in the process
Board Representatives of key stakeholders – both government and private sector Proposal Approval Committee (PAC) Diverse representation from the Government, private equity, NGOs, industry Proposal Evaluation Committee (PEC) Due diligence partners NSDC team Active involvement of Government, Industry Leaders and leaders from Social Sector for approving projects, ensuring interest of all stakeholders.
Proposal Introduction and evaluation – test of responsiveness, technical, financial and legal due diligence Turnaround of < =3 months targeted for proposals Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Private partners from Industry, NGOs, Start Ups form NSDC Portfolio
Training providers In the education business Technable GOLS In unrelated businesses Total Ten Year projections of 67 Million Start ups Large established corporates Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Some early signs of success…
• •
Parameters Total Number of Partners' Approved Training Partners Sector Skill Councils Total Active Partners Total number of Centres Number of People Trained Number of People Placed Cumulative Placement Achieved Total Funds Committed (in US $) Total Sectors Covered As of June 2010 As of 31March 2011 0 3 0 $8.2 mn 6 25 3 12 82+484* 20,482 789 70.1% $120 mn 15 As of June 2012 65 52 13 28 619 + 3041* 212,664 165,896 78% $254mn 23 Note: * Pratham’s EFE centers.
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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1
Multiple initiatives being taken by NSDC to develop the skills ecosystem, 2011-12 (I)
2 Sector skill councils
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11 SSCs approved by NSDC
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9 proposals getting evaluated; pipeline of about 10 proposals
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Slow but sure interest by industry Knowledge Base
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District wise skill gap studies undertaken for the 8 NE states, Odhisa, Bihar, AP, Bihar, MP, Rajasthan, West Bengal and Karnataka
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In addition to 20 high priority sectors, sectors skill gap studies for infrastructure and sports sector
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A study on train the trainers conducted 3 Financing for vocational training
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Vocational Loan on a Pilot basis
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Loan would in the range of Rs.5000/- to Rs.1,50,000/-
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Operate through tripartite agreement amongst Student (Trainee), Training Provider and the Bank
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NSDC would stand as a guarantor for a certain percentage of the default 4 National Qualification Framework NSDC, IAMR and States have been involved by MHRD in evolving the NVEQF document from Dec 2010, and a Draft Note has now been prepared for Cabinet Approval.
Funding for a pilot in schools of Haryana and Bengal has been released. Four SSCs are engaged in this Pilot Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Multiple initiatives being taken by NSDC to develop the skills ecosystem , 2011-12 – (II)
5 World skills competition
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NSDC acted as nodal agency for the World Skills Competition hosted in London
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Results limited but good learnings
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Preparation underway for the 2013 competition 6 Business Plan competition
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“ Power to Empower” – India’s first Skills enterprise competition organised by NSDC and CII jointly
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71 educational institutions and over 3000 students participated in the competition 7 Media Campaign
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Work on- going on a media campaign to make skills aspirational 8 Work with international organisations Multiple international organizations being engaged with to leverage existing skills and knowledge base
• UKIERI • ILO • AIEC • UKCES • EU • DFID
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Sector Skill Councils : Ensuring Industry Involvement
TRAINING NEED ANALYSIS CURRICULUM DEVELOPMENT ROLLOUT OF TRAINING ASSESSMENT AND CERTIFICATION
• • • • Creation of Occupational Standards Towards National Vocational Qualification Framework Labour Market Information System Skill Development Plan • • • • Accreditation of Training Institutes Academics of Excellence Training of Trainers Guidelines and Participate in Assessments and Certification of Trainers and Trainees •
Sector Skill Councils (SSC) consists of representation from Industry Member, Government Bodies, Industry Associations, Business Leader and Training providers to ensure participation of all ecosystem members.
•
Till now 11 SSC have been approved in main high growth sectors such as Automotive, Retail, IT/ITES, BFSI, etc.
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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13 SSCs approved and a strong pipeline – June 2012
20 of the high priority sectors covered, move towards large and informal sectors
Approved by NSDC (11 till now)
Auto Security Retail IT/ITES BFSI Media Healthcare Gems & Jewelry Rubber Leather Electronics Hardware Telecom Food Processing
SSC Proposals under Diligence with NSDC (10 SSC presently)
Domestic Workers Construction and Real Estate Foundry Agriculture Handicrafts Textiles Logistics & Transportation Plumbing
Priority Sectors Large Workforce Informal Sector SSC Proposals in Pipeline (9 SSC presently)
Mining Capital Goods Hospitality Pharmaceuticals Beauty & Wellness Steel Aviation Oil & Gas Education and skills
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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NSDC also receiving support from multiple international organizations in SSC incubation
Organization
International Network of Sector Skill Organizations AIEC UKIERI EU NSDC
Support
Seminar on Setting up SSCs held for all SSC leaders in May 2012 by 4 International Leaders of SSCs from UK & Australia Support to Retail SSC – CEO of Service Skills Australia provided 2 week on site support in May- June 2012. Key areas covered, stakeholder engagement, Standards, LMIS, SSC processes etc. Preliminary talks to support one more SSC.
1. Project Funding released by end April 2. Two SSCs, Agriculture & Media to be provided on site support 3. A second UKIERI fund provides for support to Food Processing SSC Project to support three SSCs in capacity building over three years. Year 1 focus on Auto SSC.
Workshop and Framework to 10 SSCs for creation of NOS in occupations covering 80% of workforce, by individual RFPs.
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Agenda
Overview Government Initiatives in Skill Development in India NSDC Model: Encouraging Public Private Partnerships Areas of Collaborations and Key Recommendations Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Current Collaborations with Australia:
Several MOUs Signed between Australia and India
•
MOU between XLT and Jaypee Group:
Training to focus on metals, construction, automotive and mining •
TAFE NSW- Sydney Institute and Heraud Inc :
MOU to provide services to proposed College, facilitating academic collaboration, professional development, study tours, student and teacher exchange, and international student recruitment.
•
Central Institute of Technology (Australia) and the Central Board of Secondary Education (CBSE):
To develop models of VET engagement to help students to complete school with both a secondary school certificate and job oriented and job linked skills. Pilot with delivery of 4 courses- Design, Retail, Music production and Beauty therapy.
•
Australian Vocational Training Employment Group (AVTEG) and JIS Group
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College of Innovation and Industry Skills (CIIS) and JIS Group
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Kangan Institute in Australia to support training of 425 ITI teachers in Karnataka and Maharastra.
Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Possible areas of collaboration
• • • • •
To set up skill development programmes in cooperation with NSDC or NSDC Partners Industry based curriculum development Training of Trainers including NSDC Partners Sharing of best practices in training particularly in sectors such as Mining, Construction, Retail, Healthcare, Hospitality etc.
Training in Agriculture: modules for India to learn.
Sharing International standard training Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Possible areas of collaboration: Sector Skill Councils
•
Capacity building and organizational support for Sector Skill Councils
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Sharing standards in development of Occupational Standards
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Development of Curriculum Framework
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Sharing best practices in assessments, certifications and accreditation.
•
Development of Labour Market Information System
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Development of Qualification Framework Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Multiple forms of interventions possible on the skill development space
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Build capacity to train and skill people Own capacity Build capacity Use expertise in certain areas to provide curriculum and training material in select areas Standards and Curriculum INTERVENTIONS Leverage existing capacity Leverage and consolidate existing capacity to deliver quality training Community based interventions Systematically focus on areas and create skill led community interventions Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Different business models can be built Illustrative : Single Entity with different Centre's
Option 1 Skills Centre Key activities Research and development of content Methodology Train the trainer Overall strategy and management COE for Sales Learning centre 1 COE for Sector 1 Learning centre 2 Corporate training for Sector 2 ….
Learning centre n Innovative models can be developed depending upon requirements of the secotr Sector specific centres of excellence Focus on sector requirements Regarded as best in class training centres for a particular sector/ function Learning centres (owned) dispersed all over the country for sector/ functional expertise Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Different business models can be built Illustrative : Multiple corporate / Training entities partnering
Option 2 Holding Entity : Lead player Key activities Research and development of content Methodology Train the trainer Overall strategy and management COE for Sales Entity 1 Learning centre 1 COE for Customer Service Entity 2 COE for Sector Entity 3…… ….
Learning centre 2 Learning centre n Innovative models can be developed depending upon requirements of the secotr Sector/ area specific centres of excellence led by different firms Focus on sector requirements Regarded as best in class training centres for a particular sector/ function Learning centres (owned) with different entities dispersed all over the country for sector/ functional expertise Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Take Charge Leaders!
A LEADER IS ONE WHO TAKES THE FIRST STEP TOWARDS A GOAL HE DEEPLY CARES ABOUT, IN WAYS THAT OTHERS WISH TO FOLLOW
Source: BCG Analysis Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
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Thank you
Contact Information: [email protected]