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Capgemini India chief says 65% of IT employees not trainable

Discussion in 'Internal Affairs' started by Levina, Feb 19, 2017.

  1. Levina

    Levina Guest

    Capgemini India chief says 65% of IT employees not trainable
    By PTI | Updated: 19 Feb, 2017, 12:55 hrs IST
    • Capgemini India's chief executive Srinivas Kandula said here over the weekend.

      The domestic arm of the French IT major employs nearly one lakh engineers in the country.
      "A large number of them cannot be trained. Probably, India will witness the largest unemployment in the middle level to senior level," he said at the annual Nasscom leadership summit here over the weekend.

      He also flagged concerns surrounding the quality of IT workforce, saying much of the 3.9 million IT employees come from low-grade engineering colleges which do not follow rigorous grading patterns for students in their zeal to maintain good records.

      The remarks come days after the industry lobby Nasscom said there is a need to re-train up to 1.5 million, or nearly half of its sectoral workforce. This is primarily on the back of a change in nature of work in newer, digital technologies.

      Kandula said the industry, driven by yield-seeking investors, has not invested enough to upgrade the skill-sets of its employees.

      He also said more number of students are now being hired from lower grade engineering colleges, which has ensured that the rise in wages has been negative by a huge margin.

      Kandula said as against offers of Rs 2.25 lakh per annum that used to go out for freshers two decades ago, they have risen only to Rs 3.5 lakh now, which suggests a massive decrease in real wages from an inflation-adjusted perspective.

      "For some unknown reasons, we call it a knowledge- driven industry. If you have that kind of talent, and then making them learn the existing technology itself is such a huge challenge," he said.

      The quality of the students who are coming in is so bad that many of them are not able to answer, when asked about the subjects taught to them when they were in the final semester of their engineering degrees, he said.

      The critical remarks come months after a study found out that as much as 80 per cent of engineering graduates are unemployable.

      Kandula had last week told PTI that his company would shift focus to hiring freshers from the laterals earlier due to the newer skill-sets which are required and the ease of training which the freshers offer. He, however, had maintained that the company will continue to hire.

    dray, Agent_47, anant_s and 2 others like this.

    PARIKRAMA Captain IDF NewBie

    Mar 24, 2016
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    Thanks @Levina for this wonderful topic.

    The world is moving towards the utilization of Artificial Intelligence and India has more so embarked on its way to digitization. The future of AI & Robotics will lead to certain changes which in no manner Indian market especially the Service industry can insulate itself with.

    The chief few points are
    1. The Services Industry will see a Churning in Human Capital
    2. There will be massive need of "Quick Re-skilling" to remain relevant and employable.
    3. The whole product development methodology will transform from low cost human resources deployment to limited resource high paying jobs.
    4. There will be new adoption of methodology pertaining to "maintenance aspect" of such rapid digitization, AI and Robotics
    Thus most of the services industry especially IT will see the following
    1. Large focus and resources being deployed for Innovation and Innovation led business plans
    2. There will be Re-Skilling of people and plum posts folks might find themselves out of the "new change" where they are mis fit and costly
    3. There will be Acquisition of new nascent companies, new technology startups and others in order to prolong the life of the company's product offerings and to stay ahead of the competition
    This will be quite a big challenge for India as its population is young and demands versus actual supply of new jobs is a huge mismatch. The excess supply of skilled folks who wish to be "re-skilled" will lead to a crash of salary for the new relevant job.

    Banking and Financial Industries will see massive operations downsizing with most of operations becoming rapid new grounds for automation, robotics and AI. So for some time , Indian IT industry can look at such domestic business for survival. But both these sector will see massive churning of Human Capital and employment in front office in Marketing , Sales and Investment will see an upswing in demand. That is where the salary bands will crash and performance based remuneration versus working for operations - mid office and back office based compensation with no sales pressure will create bigger hurdles.

    The only way it can be arrested is individuals and government focusing on cross functional skill creation instead of micro specialized ppl whose survival depends only on one skill.. For that investments by GOI for creating a industrialization boom is a must.

    @anant_s @Nilgiri @Rain Man @MilSpec - would love to hear your views on this..
    thesolar65, dray, anant_s and 2 others like this.
  3. Nilgiri

    Nilgiri Lieutenant IDF NewBie

    Oct 16, 2016
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    Yah this is why India must as soon as it can (preferably many years ago) do two things:

    a) Focus on a few top notch RnD sectors. The ones I feel are the highest job making ones are located within: Energy, Transport, Electronics. You cannot run any economy (no matter how much automation you have) without a huge number of jobs in these areas that employ people for things machines will always have significant lag with (same reason why I believe there will never be a fully automated, 0 real job future economy). You can gamble and hedge within these three sectors appropriately with private industrial and scientific consultation. Think India 3-step thorium cycle but for many many more things regarding these three sectors. Functional services and MSME chains can then organically evolve around whichever industries take off in the future. The country to study deeply regading this is post WW2 Japan.

    b) Create centres of excellence with private industry participation for skilling/training at vocational level. This ties with your functional cross skilling very strongly. This is absolute crucial to always be the country (along with China) that provides the bottom dollar for manufacturing any forseeable thing (with specific additional training added as needed by the industries as they evolve) for both large domestic and international market. The country of focus here to study would be post WW2 + cold war Germany (esp. their Mittelstadt companies and the time it takes to nurture such to be so insulated in USP by their quality output).

    Everything else would rely on scaling up what parts of this work, and making best use and learning from what doesn't work....but the path must be trodden upon to gain enough broadband, diverse experience in it (through all the companies big and small involved in the journey). But the key thing is not to eternally be a consumption based follower. India must strike a better balance in having leading cutting edge elements within its economy.

    The good news is our current PM realises this, I feel most of the heavy lifting regarding this will be in his 2nd term, thats why I hope such manifests.
    dray, PARIKRAMA, Levina and 1 other person like this.
  4. anant_s

    anant_s Encyclopedia REGISTERED

    Oct 30, 2016
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    i too am sensing this particularly after 2008/9. I'm required to take some induction classes for new engineers that join my organization and although i'm not a trained management person, i'm now able to make out intellectual capabilities of a person (from a limited perspective). & i'm not impressed with what i see these days.

    Quality of education provided by engineering colleges is steadily declining or so it seems from quality of graduates they award degrees every year. The basic problem i sense is that a set pattern seems to be followed which is aligned with now changing IT service market. The idea of producing graduates who have mathematical skills and can do a repeated job quickly started back in mid/late 90s and this coupled with huge requirement of coding skill in IT industry gave rise to mushrooming colleges. When i went for my graduation at DEI Dayalbagh Agra, the city had only 1 engineering college, by the time i finished in 2001, there were 7. Similar pattern emerged in other cities.
    Such a capacity addition puts a huge demand for teaching staff and that is our achilles heel. There simply aren't enough trained teachers for these students.
    Unfortunately the market demands donot require lakhs of engineers that join IT & BPO industry any specific skills topmost of which is analysis and in this setup engineers are no different that Gulag labor (albeit that they are paid reasonably well), doing a mindless routine job which would otherwise cost hell lot more in other countries.

    However things are changing now. With automation, the requirement of this workforce will come down and there simply won't be as many opportunities and capacity to absorb such large number of fresh graduates. With time these colleges too will start to feel pressure. There already are large number of seats that go undemanded every year.

    There is one more problem which the above article mentions. Lower level of skills will prevent these engineers to grow vertically especially when it come to mid level or higher level management. So a company would really need to sieve through literally thousands of person to find one elusive team leader. this is indeed worrying.

    i do hope sincerely that current government's mission of vocational skill development and promotion of startups is successful, for it provides a far more sustainable employment ecosystem, than the current rapidly ageing one.

    PS: @PARIKRAMA the current background / theme looks very good, don't change it for a while
    thesolar65, Nilgiri, dray and 2 others like this.
  5. Agent_47

    Agent_47 Admin - Blog IDF NewBie

    Aug 3, 2011
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    Priority should be reforming higher education. Re-skilling is only plan B. Modi govt has been a failure in this department.
    Demographic dividend nahi Time-bomb ! :suicide2:

    I have made a separate thread on the topic before ->
    Indian Higher Education Reforms, A closer look
  6. MilSpec

    MilSpec Mod MODERATOR

    Jun 30, 2011
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    One of the questions I have always had is the level of corporate engagement in strengthening the educational system. Long time ago I had suggested a pilot project for large PSU's to collaborate with the universities to review and redesign the course contents and grading to ensure that employable talent goes into the market.
    anant_s, Nilgiri and PARIKRAMA like this.
  7. thesolar65

    thesolar65 2nd Lieutant FULL MEMBER

    Feb 25, 2013
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    You didn't ask my views?:mrgreen:

    Well, I am a businessman in education and hotel sector. Previously in real estate and Brick manufacturing)

    All I can say here is that those will survive who have saved and invested wisely and other simply will face high BP, sugar and all related diseases.

    Be in service or in business, when it will hit you, however rich you are, you don't know. If you are young you may not know, there was an advertisement in Doordarshan regarding one Saree (Garden Silk). You can find it on net. The company was worth 6000 crore at that time. Now the owner is living in a 2BHK Apartment somewhere in Mumbai!!

    Even a failed kidney can drain your entire saving even if it is a couple of crore.
    Levina likes this.

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