nasscom hr summit presentation final 280710
DESCRIPTION
This report talks about the impact of the IT-BPO industry on employment, and the role of IT-BPO HR to build future ready organizationsTRANSCRIPT
Indian IT-BPO Industry: Building FutureReady Organizations
Chennai, 28-29 July 2010
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
6X increase in direct employment;3Xincrease in the share of organized private sector
430
2,300 2,500
FY01 FY10 FY11P
Dire
ct e
mp
l oye
es
('00
0)
45% of total incremental urban employment in the last decade
~6x
By 2020 - Direct employment of 10 million; Indirectemployment of 20 million
Employment opportunities for diversesections of the society
Livelihood forEconomicallybackward
Empowering theyouth
Bridging thegender divide
EmploymentbeyondUrban areas
Employing theDifferently abled
~5% of the IT-BPO workforce fromeconomically backward sections ~5% of the IT-BPO workforce from
economically backward sections
Industry average age-27 Industry average age-27
~37% women employees in FY09; account for45% of fresher intake ~26% of the female employees are chief wage
earners
~37% women employees in FY09; account for45% of fresher intake ~26% of the female employees are chief wage
earners
~58% of the IT-BPO workforce is from tier2/3 cities
~ 56% employees are chief bread earners
~58% of the IT-BPO workforce is from tier2/3 cities
~ 56% employees are chief bread earners
~60% of companies provide employment todifferently abled people ~60% of companies provide employment to
differently abled people
•Young demographics
•Changing aspirations ofIndia’s youth
•Created high paying jobs
•Setting new standards ofwork environment
By 20205 mn womenemployees4 mn directemployees intier 2/3locations
*NASSCOM Evalueserve survey findings, 7500 participants pan India
Leading transformation in Tier 1 cities;extending impact to Tier 2/3 locations
By 2020: 4.1 mn incremental direct jobs in tier 1 locations; 3.8 mnincremental direct jobs in tier 2/3 locations
EmploymentGenerated
EnhancingtheEducationsystem
• Direct employment - 1.9 million• Indirect employment - 7.3 million
• ~ 2X growth in FY05-09 in engineeringcolleges and technical graduates
–58% of the total engineeringcolleges
–62% of the total intake oftechnical graduates
• Direct employment- 1.7 lakh• Direct dependents supported- 4X
• 1.7X growth in FY05-09 inengineering colleges andtechnical graduates
–Number of engineeringcolleges- 985
–Number of technicalgraduates - 508,000
• Skill Development trainings intier 2/3 locations
TIER 1 TIER 2/3
Morocco
SpainUSA
MexicoGuatemala
Global and Diversified workforce(nos) 2007 2008 2009
Countries ofOperations
~48 ~52 ~60
Operating Centers 340 ~400 ~460
Poland
FinlandGermanyHungaryNetherlandsRomaniaSweden
South Africa
Philippines
2.2 million employees;~60 countries35+ Languages; 5% Foreign Nationals
IT-BPO Exports revenue by Geography, FY2010
Australia
Russia
Sri Lanka
France
Italy
Canada
China
New Zealand
Brazil Tanzania
Taiwan
UK & Ireland
Egypt S. Arabia
Japan
Argentina
* Illustrative list of countries represented above
India
NASSCOM TOP 20 IT-BPOEMPLOYERS in INDIA FY09-10
7
Rank Company1. Tata Consultancy Services2. Infosys Technologies Ltd
3. Wipro Ltd
4. Cognizant Technology SolutionsIndia Pvt Ltd
5. HCL Technologies Ltd6. Genpact Limited7. MphasiS Ltd8. Intelenet Global Services Ltd*9. Tech Mahindra Ltd
10. Aegis Ltd
Rank Company
11. Capgemini Consulting India PvtLtd.
12. WNS Global Services (P) Ltd*
13. Firstsource Solutions Ltd*
14. CSC India Pvt Ltd
15. 3i Infotech Ltd
16. Hinduja Global Solutions Ltd*
17. L&T Infotech
18. Patni Computer Systems Ltd
19. Exl Service.com (India) Pvt 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.• Most companies on this list are engaged in IT as well as BPO. Companies marked with an * indicate pure-play BPO firms.
Industry in the process of buildinghigh energy workforce focused on future aspirations
• Tier 1 focus in India • Tier II and rural opportunities
• Largely domestic workforce • Multicultural workforce, 15-20% foreignorigin
• Indian policies and processes • Global policies and processes
• Delivery-centric management withlimited career focus
• Multiple, specialized domain expertise
• “Generalist” skill set • Domain-specific business knowledge
• Talent pool focused on delivery • Talent pool with value add capabilitythrough innovation, analytics, ER&D
Future Decade
• Tier I delivery focus in India • Tier 2/3 and rural opportunities
Past decade
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
Sustained investment in training
BPO IT Services
CollegePostCollegePre College
Efficiency
Certification
-Analytics
-F&A
-HR
-Insurance
MOREINTENSIVE NAC SPECIALIZA
-TIONMOREINTENSIVE
NAC-TECH SPECIALIZATION
College
Post
College
Pre College
Efficiency
Certification
Within college andoutside-Engg, RIM, Testing
Investing in training through structured training programs;affiliation with academia; In-house universities
Industry supplementing theEducation system
Spend of USD 1.4 Billionon training activities inFY09
5% of total annualemployee time spent ontrainingAverage trainingperiod for new employees –14-16 weeks
Average training period forexisting employees – 2weeks
45% of training spend onnew employees- USD 630Million
Average amount spend ontraining new employees=USD 4350- 40% of cost ofan average engineeringcourse
Spend of USD 1.4 Billionon training activities inFY09
5% of total annualemployee time spent ontrainingAverage trainingperiod for new employees –14-16 weeks
Average training period forexisting employees – 2weeks
45% of training spend onnew employees- USD 630Million
Average amount spend ontraining new employees=USD 4350- 40% of cost ofan average engineeringcourse
Break-up of Human Capital Management costs
* Other Costs include training for existing employees, employee welfare, salaries for trainingstaff, training material costs
45%
55%
New Hire Training Other Training*
100%=USD1.4Billion
EmploymentGeneration -Urban andRural
Language,Process, S&M
skills,Research &Analytics
Process andVertical
specialists
Emerging as a “Skill Factory” –Introducing/upgrading new skills
IndustryReady
FutureReady
Domain skills across sectors:BFSI, Healthcare, Retail,Telecom, Consulting (IFRS),etc.
Customer facing skills: Clientinteraction, sales & marketing,customer service, voice/accenttraining, etc
Domain skills across sectors:BFSI, Healthcare, Retail,Telecom, Consulting (IFRS),etc.
Customer facing skills: Clientinteraction, sales & marketing,customer service, voice/accenttraining, etc
Domain skills across sectors:BFSI, Healthcare, Retail,Telecom, etc.
Cross-platform skills: SAP,Oracle, Java
Technical skills: Mainframe, Dotnet, J2EE, Open Systems, etc
Domain skills across sectors:BFSI, Healthcare, Retail,Telecom, etc.
Cross-platform skills: SAP,Oracle, Java
Technical skills: Mainframe, Dotnet, J2EE, Open Systems, etc
Domain skills across sectors:Aerospace, Automobiles,Energy, Telecom, etc
Services: Plant engineering,Sustainability/Green, Energy,Infrastructure engineering, etc
Domain skills across sectors:Aerospace, Automobiles,Energy, Telecom, etc
Services: Plant engineering,Sustainability/Green, Energy,Infrastructure engineering, etc
IT ServicesIT Services BPOBPO ER&DER&D
Industry investing in vibrant careergrowth; retooling employee skill sets
MULTI SKILLING
DEFINEDCAREER PATH
Competency Frameworks
Expertise across end to endindustry value chains throughjob rotations
Funding/reimbursement offurther education; certificationprograms
Cross skilling/multi-skilling/up-skilling across technology /platforms / services
Competency Frameworks
Expertise across end to endindustry value chains throughjob rotations
Funding/reimbursement offurther education; certificationprograms
Cross skilling/multi-skilling/up-skilling across technology /platforms / services
Career Architecture maps
Internal job rotations
Continuous improvementprojects
Best practice sharing
Career Architecture maps
Internal job rotations
Continuous improvementprojects
Best practice sharing
GLOBALEXPOSURE
Cross cultural integrationand Best practice sharing
Joint training programs
Cross polarization of projectteams
Global compliance group forglobal integration
Cross cultural integrationand Best practice sharing
Joint training programs
Cross polarization of projectteams
Global compliance group forglobal integration
BUILDINGLEADERSHIPPOOLS
Strong domain leadershipprograms to understandcore business functions
• Ops, Finance, IT, HR,Commercial Leadership
Rigorous career andsuccession planningprocess
Global Leadership Cadreprogram; shadow boarding;accelerated career pathprogram
Strong domain leadershipprograms to understandcore business functions
• Ops, Finance, IT, HR,Commercial Leadership
Rigorous career andsuccession planningprocess
Global Leadership Cadreprogram; shadow boarding;accelerated career pathprogram
Industry taking significant measuresto manage challenges effectively
• Monetary benefits: Retention bonus, rewarding meritocracy, ESOP’s
• Non-monetary benefits: Continuous skill development; innovation culture; accelerated
growth track, job rotation
•Build/expand capacity to lead cross-functional initiatives and projects
•Succession planning process
Employeeretention
• Pre hire orientation, Buddy program, Rigorous One-on-One, Family Connect
program, Townhall, Attrition tracker Significant employee engagement - Rewards & Recognition, effective communication
(company newsletters, social media, internal blogs), CSR
• Industry consistently features high in work/employee satisfaction surveys
• Employee referrals
High Attritionlevels
Attractingright talent
Leadershippipeline;trained middlemanagement
Annual Incremental engineering fresher addition, ‘000, FY01-09Annual Incremental engineering fresher addition, ‘000, FY01-09
• Cumulative fresher addition (FY01-09)
IT- 684,000
HR pivotal in maintaining Industry’scost competitiveness
•Hiring Fresher's
• Average Fresher
to lateral ratio –
70:30
•Just-in-time hiring
•Build vs Buy
•Hiring from Tier 2/3
cities
•Alternative talent
pools – increasing
ratio of non-
engineers
2845
3045
34
106
156168
73
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
IT fresher addition
IT fresher addition
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
Short Term(0-12 months)
Medium Term(12-24 months)
Long Term(24 months onwards)
• Finishing Schools: Focus onsoft skills and domaincompetencies andcertifications andassessments
• NAC, NAC-Tech
• Finishing Schools,Establishing New IIIT - Phase I
• Vocational Skill Development• NAC, NAC-Tech
• Establishing New IIIT-Phase II
• Scaling up PhD program• Vocational Skill
Development• NAC, NAC-Tech
• Industry-Academia Facultymentorship programs (CSR)
• National Faculty DevelopmentProgram
• Industry-Academia Facultymentorship programs (CSR)
• National FacultyDevelopment Program
• Education Web ofCollaboration
• Research Study• Participation in Key
Government policy Initiatives(NKC) & (NSDM) etc
• Events (Forums, IT Seminars,Summits)
• Education Web ofCollaboration
• Participation in KeyGovernment policy Initiatives
• Education Web ofCollaboration
• Participation in KeyGovernment policyInitiatives
STUD
ENTS
FACU
LTYO
THER
S
NASSOM initiatives – broad based andaligned to Industry aspirations
Thank You
Industry initiatives to build a futureready organisation
Infosys’ TechnicalUniversity - Continuoustraining to employees
• Foundation programs forengineers and non-engineers
• Project Management CoE• Higher education scheme
through distance learningprograms or certification
EXL Insurance Academy –Experts from insurance industryin India, U.S. and U.K.
• Certification programs forbeginner, intermediary andadvanced
• Specialized trainings likeWorkers’ Compensation,Premium Audit, etc.
L&T’s CareerDevelopment Framework -Seven career tracks withdetailed job descriptions
• Employees design theirdevelopment plans based onindividual aspirations &opportunities available
• Mobility across inter/intratracks
• Competency development
Mphasis’ AARAMBH – NewJoinee trained all aspects of adepartment
An HR employee spends 3months each working onevery aspect of HR–improvesproductivity and multi taskingabilities
Innovation at MahindraSatyam – Ideate – Innovate –Productize - Innovation forExcellence Award
• Organization wide Innovationcontest to generate novelideas
• Investment Council evaluatesand invests in new ideas
• Oversees/monitors progresson approved investments
Genpact’s “Storefronts”- Retail hiring in tier 2/3 cities
• Spread across 20 cities inIndia
• Candidates walk in directlyfor interviews; suitable onesare hired on the spot
• Candidates also get to knowabout Genpact’s business