36730121 NASSCOM HR Summit Presentation Final Event Ppt

8/8/2019 36730121 NASSCOM HR Summit Presentation Final Event Ppt

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Indian IT-BPO Industry: Building Future

Ready OrganizationsChennai, 28-29 July 2010


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Key Topics

Past Decade Significant Impact

HRs four levers to build Future Ready Organizations

Sustained Investment in Training

Opportunities for Career Growth

Managing People Challenges effectively

Ensuring Cost Competitiveness

NASSCOM Initiatives


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6X increase in direct employment;3Xincrease in the share of organized private sector

4 3 0

2 ,3 0 2 ,5 0

F Y 0 F Y 1 F Y 1 1

D i r e c t e m p l o y e e s ( ' 0 0 0 )

45%of total incremental urbanemployment in thelast decade

~6x

By 2020 - Direct employment of 10 million; Indirectemployment of 20 million


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Employment opportunities for diversesections of the society

Livelihood for Economicallybackward

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 fromeconomically backward sections

Industry average age-27

Industry average age-27

~37% women employees in FY09; account for 45% of fresher intake~26% of the female employees are chief wageearners

~37% women employees in FY09; account for 45% of fresher intake~26% of the female employees are chief wageearners

~58% of the IT-BPO workforce is from tier 2/3 cities

~ 56% employees are chief bread earners

~58% of the IT-BPO workforce is from tier

2/3 cities~ 56% employees are chief bread earners

~60% of companies provide employment todifferently abled people

~60% of companies provide employment todifferently abled people

Young demographics

Changing aspirations of Indias youth

Created high paying jobs

Setting new standards of work environment

By 20205 mn women

employees

*NASSCOM Evalueserve survey findings, 7500 participants pan India


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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

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 of technical 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

in tier 2/3 locations

TIER 1 TIER 2/3


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Morocco

SpainUSA

MexicoGuatemala

Building a global workforce(nos) 2007 2008 2009

Countries of Operations ~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


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NASSCOM TOP 20 IT-BPOEMPLOYERS in INDIA FY09-10

7

Rank Company1. Tata Consultancy Services

2. Infosys Technologies Ltd

3. Wipro Ltd

4. Cognizant Technology SolutionsIndia Pvt Ltd

5. HCL Technologies Ltd

6. Genpact Limited

7. MphasiS Ltd

8. Intelenet Global Services Ltd*

9. Tech Mahindra Ltd

10. Aegis Ltd

Rank Company

11. Capgemini Consulting India Pvt Ltd.

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 Ltd19. Exl Service.com (India) Pvt Ltd*

20. Aditya Birla Minacs Worldwide Ltd*

Note:

This list is basedontheIndia-basedFTEheadcount of firms withIT-BPOoperations inIndia, as reportedtoNASSCOMinits annual survey.Basedonpublicly availableinformation, fewother MNC's suchas Accenture, Convergys, HPIndiaandIBMwouldhavealsofeaturedinthis list. However, as they havenot


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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


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Key Topics

Past Decade Employment Facts and Impact

HRs four levers to build Future Ready Organizations

Sustained Investment in Training

Opportunities for Career Growth Managing People Challenges effectively

Ensuring Cost Competitiveness

NASSCOM Initiatives


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Industry supplementing theEducation system

Spend of USD 1.4 Billionon training activities inFY09

5% of total annualemployee time spent on

trainingAverage trainingperiod for new employees 14-16 weeks

Average training period for existing employees 2weeks

45% of training spend onnew employees- USD 630Million

Average amount spend ontraining new employees=USD 4350- 40% of cost of an 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 for existing employees 2weeks

45% of training spend on

new employees- USD 630Million

Average amount spend ontraining new employees=USD 4350- 40% of cost of an average engineeringcourse

Break-up of Human Capital Management costs

* Other Costs include training for existing employees, employee welfare, salaries for trainingstaff, training material costs


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EmploymentGeneration -

Urban andRural

Language,Process, S&M

skills,Research &

Analytics

Process andVertical

specialists

Emerging as a Skill Factory Introducing/upgrading new skills

Industry

Ready

Future

Ready

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,Dot net, J2EE, Open Systems,etc

Domain skills across sectors:BFSI, Healthcare, Retail,Telecom, etc.

Cross-platform skills: SAP,Oracle, Java

Technical skills: Mainframe,Dot net, 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


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Industry investing in vibrant career growth; retooling employee skill sets

MULTI SKILLING

DEFINEDCAREER PATH

Competency Frameworks

Expertise across end to endindustry value chains through

job rotations

Funding/reimbursement of further education; certificationprograms

Cross skilling/multi-skilling/up-skilling across technology /platforms / services

Competency Frameworks

Expertise across end to endindustry value chains through

job rotations

Funding/reimbursement of further 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 for

global integration

Cross cultural integrationand Best practice sharing

Joint training programs

Cross polarization of projectteams

Global compliance group for

global integration

BUILDINGLEADERSHIPPOOLS

Strong domain leadershipprograms to understandcore business functions

Ops, Finance, IT, HR,

Commercial LeadershipRigorous career andsuccession planningprocess

Global Leadership Cadreprogram; shadow boarding;accelerated career pathprogram

Strong domain leadershipprograms to understandcore business functions

Ops, Finance, IT, HR,

Commercial LeadershipRigorous career andsuccession planningprocess

Global Leadership Cadreprogram; shadow boarding;accelerated career pathprogram


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Industry taking significant measuresto manage challenges effectively

Monetary benefits : Retention bonus, rewarding meritocracy, ESOPs

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

High Attritionlevels

Attractingright talent

Leadershippipeline;trained middlemanagement


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Annual Incremental engineering fresher addition, 000, FY01-09

Cumulative fresher addition (FY01-09)

IT- 684,000

HR pivotal in maintaining Industryscost 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


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Industry Best Practices

Insist on Relieving Letters Ethical Hiring Campus Hiring in 8 th semester Support reference checks and mandate background checks Check on non-compete agreements from customer contracts Service Notice Period with previous employer Discourage frequent job-hoppers (less than 6 months) Partnership with Executive Recruiters Association to follow similar practices.


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Thank You

Documents

36730121 NASSCOM HR Summit Presentation Final Event Ppt