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What is Industry saying
    about talent today?




Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.   2
Employability of the skilled a challenge Availability of the skilled a challenge

                                                                                                                                 The crux of the labour problem – the
                 Only one in four                                                                                                poor employability of many young
                 engineering graduates                                                                                           people –is reflected in the paradox of
                 in India Is employable,                                                                                         high unemployment coupled with labour
                 based on their technical                                                                                        shortages. Despite the ostensibly
                                                                                                                                 favourable demographic trends,
                 skills, English fluency,
                                                                                                                                 companies complain of difficulties
                 teamwork and presentation                                                                                       recruiting and retaining qualified staff,
                 skills and of the 400000 odd                                                                                    whether civil engineers and software
                 Engineering graduates,                                                                                          developers or bricklayers, waiters and
                 who graduate each year,                                                                                         shop assistants. “We don’t have people
                 only about 20% is good                                                                                          to build bridges. We don’t have people to
                 enough for India Inc.                                                                                           build high-quality buildings. We are
                  - NASSCOM                                                                                                      bringing in architects and engineers
                                                                                                                                 from overseas,” Saurav Adhikari HCL

                                                                                               Financial Times October 6 2010
                                                                               SMEs are hardest hit by this
Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.           3
“There is a pronounced ‘skill gap’ both in terms of quality and
    quantity; current vocational education and training infrastructure
    is not geared to meet industry requirements” - CII Technopac Study
  “In the next four or five years, there is a higher probability that India’s
    growth machine will stop because of a lack of skills – because it
    can’t create the skills – rather than because it can’t create jobs. We
    are already seeing significant wage pressures building, and part of
    that is because there are serious skills shortages.         -Jahangir
    Aziz of JPMorgan Chase (FT 06 Oct 2010)
  “Indian labour costs have risen so rapidly…places like small town Ohio
    can compete with Bangalore for outsourcing. This is a telling story
    of the failure of India’s education system..” - HT 09 Sept 2010

Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.   4
Incidence of Formal In-Service Training in Manufacturing by Selected
                                                                                               Countries, Selected Years

                          China
                         Brazil
                           Peru
                   Guatemala
                  El Salvardor
                         Kenya
                      Malaysia
                      Tanzania
                        Algeria
                         Serbia
                  Montenegro
                     Sri Lanka
                       Zambia
                      Ethiopia
                  Bangladesh
                          India
                      Morocco
                  Phillippines
           Egypt, Arab Rep. of
                    Indonesia
                      Pakistan

                                             0%              10%              20%              30%              40%              50%              60%                70%   80%   90%   100%
                                                                                                          Percentage of surveyed firms


Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.                            5
What is Industry doing about it ?




Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.   6
• Hiring of skilled labor from outside the country e.g., DLF for its
       Projects, Reliance for its Refinery
     • In-house training facilities – large training facilities in Infosys,
       Bharti, Wipro etc as Cost Centers. Wipro spends 1% revenue on
       training freshers each year.
     • Corporate and Government Partnership – Opening Skill
       Development Centres on PPP Model, e.g, Toyota
     • Corporate and Academic Institution tie-up – ICICI Bank tie up with
       SMU
      Source - CII Data



Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.   7
CHALLENGE WITH VET PROVIDERS




Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.   8
S.N            Course/Program                             Institution                           Mode                 Duration                    Eligibility       Certification
      o.                                                        Offering the
                                                                Course/
                                                                Program
      1.             Plumbing System                            Indian Institute                      Face-                1 year/                     Bachelor in       Certified
                     Design                                     of Plumbing,                          to-Face              2                           Engineering       Plumbing
                     Certificate                                Pune                                                       semesters                                     Systems
                     Programme                                                                                                                                           Engineer
                                                                                                                                                                         (C.P.S.E.)
      2.             Plumbing                                   Indian Institute                      Face-                1 year/                     Contractors,      Certified
                     Construction                               of Plumbing,                          to-Face              2                           Construction      Plumbing
                     Management                                 Pune                                                       semesters                   Managers, and     Supervisors
                     Certificate                                                                                                                       Supervisors       (C.P.S.)
                     Programme                                                                                                                         (basic
                                                                                                                                                       education+
                                                                                                                                                       minimum five
                                                                                                                                                       yrs experience)
      3.             Plumbing                                   Indian Institute                      Face-                2 year/                     Successful        Certified Master
                     Technology                                 of Plumbing,                          to-Face              4                           completion of     Plumber
                     Certificate                                Pune                                                       semesters                   Secondary         (C.M.P.)
                     Programme                                                                                                                         School study
                                                                                                                                                       8th Std. pass
                                                            11 COURSES ON SAME SKILL WITH “INDUSTRY “
      4.             Certificate                                Industrial                            Face-                1 year                                        NCVT
                     Course                                  Training   to-Face                  Certificate in
                     in Plumber under                        Institutes                          Plumber
                     Craftsman
                     Training Scheme
                                                            INPUTS BUT LITTLE IN COMMON
      5.             Certificate                                Industrial                            Face-                6 months                    8th Std. pass     NCVT
                     Course in                                  Training                              to-Face                                                            Certificate in
                     Sanitary                                   Institutes                                                                                               Sanitary
                     Hardware Fitter                                                                                                                                     Hardware Fitter
                     under Craftsman
                     Training Scheme
      6.             Short Term                                 Private                               Face-                6 months                    SSC fail          Certificate in
                     Vocational                                 Institutions/NG                       to-Face                                                            Plumbing (from
                     Certificate                                Os                                                                                                       Board of
                     Course in                                                                                                                                           Intermediate
                     Plumbing                                                                                                                                            Education,
                                                                                                                                                                         Andhra Pradesh)

      7.             Short term                                 Society for Self                      Face-                4 months                    10th Std. pass    Certificate in
                     Certificate                                Employment,                           to-Face                                                            Plumbing
                     Course in                                  Govt. of NCT
                     Plumbing                                   of Delhi

              SOURCE – MHRD PAPER
Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.                          9
HOW DOES OUR SYSTEM OPERATE TODAY

                                                                                                                                          UNIVERSE OF
          UNIVERSE OF
                                                                                                                                          VET PROVIDERS FOR
          EMPLOYERS IN VARIOUS
                                                                                                                                          VARIOUS
          SECTORS OF ECONOMY
                                                                                                                                          SECTORS OF ECONOMY




                                                                                                                                                                     17 MINISTRIES, ALL STATE
                                                                                                                                                                     GOVTS, PRIVATE ENTITIES


          NEED TRAINED WORKERS                                                                                                                  RUNNING VET WITH
          AT ALL LEVELS                                                                                                                         ‘’INDUSTRY’ INPUTS




                                                                                                                                                MOST OF OUTPUT
             UNABLE TO SOURCE
                                                                                                                                                UNEMPLOYABLE
             TALENT FROM MARKET




Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.                          10
Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.   11
CREATE TRAINING CAPACITY
                                                                                          AS PER INDUSTRY NEEDS

    INPUTS FROM INDUSTRY ON                                                                                                                                           GOVT, NON GOVT VET
    REQUIREMENT OF TALENT BY                                                                                                                                          INSTITUTIONS
    JOB ROLE, GEOGRAPHY AND TIMELINES
                                                                                                                                                                         ACCREDITATION

                                                                    COMPETENCY FRAMEWORK
                                                                    FOR EACH JOB ROLE IN INDUSTRY                                                                    ACCREDITATION STANDARDS
                                                                                                                                                                     FOR VET INSTITUTIONS

          CERTIFICATION LEVELS                                                  CURRICULUM TO MATCH                                                                     CERTIFICATION FOR
          FOR EACH JOB ROLE                                                     COMPETENCIES AND                                                                        CURRICULUM
                                                                                CERTIFICATION LEVELS                                                                    AND ASSESSMENTS
            FORMALISE NVEQF
            FOR INDUSTRY
                                                                                      ASSESSMENTS TO MATCH                                                                        CERTIFICATION
                                                                                      COMPETENCIES AND                                                                            FOR TRAINEES
ALIGN VOCATIONAL CERTIFICATES                                                         CERTIFICATION LEVELS
TO EDUCATION QUALIFICATIONS
                                                                                                                                                                       CERTIFICATION FOR
                                                                                                                                                                       TRAINING OF TRAINERS
CREATE LIFELONG LEARNING
AND CAREER PROGRESSION FOR TALENT
Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.                             12
HOW WILL OUR SYSTEM OPERATE UNDER NVQF

                                                                                                                                          UNIVERSE OF
          UNIVERSE OF
                                                                                                                                          VET PROVIDERS FOR
          EMPLOYERS IN VARIOUS
                                                                                                                                          VARIOUS
          SECTORS OF ECONOMY
                                                                                                                                          SECTORS OF ECONOMY

            1.EMPLOYERS GET TALENT OF RIGHT
              SKILLS IN RIGHT NUMBERS                                                                                                                                17 MINISTRIES, ALL STATE
                                                                                                                                                                     GOVTS, PRIVATE ENTITIES

            2.VET PROVIDERS RUN FOCUSSED VET
          NEED TRAINED WORKERS                                                                                                                  RUNNING VET WITH
          AT ALL LEVELS                                                                                                                         ‘’INDUSTRY’ INPUTS

              PROGRAMS
            3.INDIAN TALENT GET
              CHOICE, FOCUS, GROWTH                                                                                                             MOST OF OUTPUT EMPLOYABLE AND
             SET UP SSCs WHICH LAYS

            4.EVERYONE GROWS AND INDIA
             DOWN OCCUPATION
             STANDARDS FOR EACH
                                                                                                                                                ABSORBED BY INDUSTRY

             ROLE

              GROWS

Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved.                          13
Thank you
                             Contact Information:
                             Basab Banerjee
Website: www.nsdcindia.org   D-4, Clarion Collection
                             Shaheed Jeet Singh Marg.
MD & CEO
                             New Delhi-110016
Dilip Chenoy                 T: +91-11-46560412-16

Dilip.chenoy@nsdcindia.org   F: +91-11-46560417
                             M: 91-7838577785
                             Basab.banerjee@nsdcindia.org
                             Skype: basab.banerjee1

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Nsdc Ficci Stds 160911

  • 2. What is Industry saying about talent today? Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 2
  • 3. Employability of the skilled a challenge Availability of the skilled a challenge The crux of the labour problem – the Only one in four poor employability of many young engineering graduates people –is reflected in the paradox of in India Is employable, high unemployment coupled with labour based on their technical shortages. Despite the ostensibly favourable demographic trends, skills, English fluency, companies complain of difficulties teamwork and presentation recruiting and retaining qualified staff, skills and of the 400000 odd whether civil engineers and software Engineering graduates, developers or bricklayers, waiters and who graduate each year, shop assistants. “We don’t have people only about 20% is good to build bridges. We don’t have people to enough for India Inc. build high-quality buildings. We are - NASSCOM bringing in architects and engineers from overseas,” Saurav Adhikari HCL Financial Times October 6 2010 SMEs are hardest hit by this Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 3
  • 4. “There is a pronounced ‘skill gap’ both in terms of quality and quantity; current vocational education and training infrastructure is not geared to meet industry requirements” - CII Technopac Study “In the next four or five years, there is a higher probability that India’s growth machine will stop because of a lack of skills – because it can’t create the skills – rather than because it can’t create jobs. We are already seeing significant wage pressures building, and part of that is because there are serious skills shortages. -Jahangir Aziz of JPMorgan Chase (FT 06 Oct 2010) “Indian labour costs have risen so rapidly…places like small town Ohio can compete with Bangalore for outsourcing. This is a telling story of the failure of India’s education system..” - HT 09 Sept 2010 Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 4
  • 5. Incidence of Formal In-Service Training in Manufacturing by Selected Countries, Selected Years China Brazil Peru Guatemala El Salvardor Kenya Malaysia Tanzania Algeria Serbia Montenegro Sri Lanka Zambia Ethiopia Bangladesh India Morocco Phillippines Egypt, Arab Rep. of Indonesia Pakistan 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of surveyed firms Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 5
  • 6. What is Industry doing about it ? Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 6
  • 7. • Hiring of skilled labor from outside the country e.g., DLF for its Projects, Reliance for its Refinery • In-house training facilities – large training facilities in Infosys, Bharti, Wipro etc as Cost Centers. Wipro spends 1% revenue on training freshers each year. • Corporate and Government Partnership – Opening Skill Development Centres on PPP Model, e.g, Toyota • Corporate and Academic Institution tie-up – ICICI Bank tie up with SMU Source - CII Data Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 7
  • 8. CHALLENGE WITH VET PROVIDERS Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 8
  • 9. S.N Course/Program Institution Mode Duration Eligibility Certification o. Offering the Course/ Program 1. Plumbing System Indian Institute Face- 1 year/ Bachelor in Certified Design of Plumbing, to-Face 2 Engineering Plumbing Certificate Pune semesters Systems Programme Engineer (C.P.S.E.) 2. Plumbing Indian Institute Face- 1 year/ Contractors, Certified Construction of Plumbing, to-Face 2 Construction Plumbing Management Pune semesters Managers, and Supervisors Certificate Supervisors (C.P.S.) Programme (basic education+ minimum five yrs experience) 3. Plumbing Indian Institute Face- 2 year/ Successful Certified Master Technology of Plumbing, to-Face 4 completion of Plumber Certificate Pune semesters Secondary (C.M.P.) Programme School study 8th Std. pass 11 COURSES ON SAME SKILL WITH “INDUSTRY “ 4. Certificate Industrial Face- 1 year NCVT Course Training to-Face Certificate in in Plumber under Institutes Plumber Craftsman Training Scheme INPUTS BUT LITTLE IN COMMON 5. Certificate Industrial Face- 6 months 8th Std. pass NCVT Course in Training to-Face Certificate in Sanitary Institutes Sanitary Hardware Fitter Hardware Fitter under Craftsman Training Scheme 6. Short Term Private Face- 6 months SSC fail Certificate in Vocational Institutions/NG to-Face Plumbing (from Certificate Os Board of Course in Intermediate Plumbing Education, Andhra Pradesh) 7. Short term Society for Self Face- 4 months 10th Std. pass Certificate in Certificate Employment, to-Face Plumbing Course in Govt. of NCT Plumbing of Delhi SOURCE – MHRD PAPER Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 9
  • 10. HOW DOES OUR SYSTEM OPERATE TODAY UNIVERSE OF UNIVERSE OF VET PROVIDERS FOR EMPLOYERS IN VARIOUS VARIOUS SECTORS OF ECONOMY SECTORS OF ECONOMY 17 MINISTRIES, ALL STATE GOVTS, PRIVATE ENTITIES NEED TRAINED WORKERS RUNNING VET WITH AT ALL LEVELS ‘’INDUSTRY’ INPUTS MOST OF OUTPUT UNABLE TO SOURCE UNEMPLOYABLE TALENT FROM MARKET Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 10
  • 11. Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 11
  • 12. CREATE TRAINING CAPACITY AS PER INDUSTRY NEEDS INPUTS FROM INDUSTRY ON GOVT, NON GOVT VET REQUIREMENT OF TALENT BY INSTITUTIONS JOB ROLE, GEOGRAPHY AND TIMELINES ACCREDITATION COMPETENCY FRAMEWORK FOR EACH JOB ROLE IN INDUSTRY ACCREDITATION STANDARDS FOR VET INSTITUTIONS CERTIFICATION LEVELS CURRICULUM TO MATCH CERTIFICATION FOR FOR EACH JOB ROLE COMPETENCIES AND CURRICULUM CERTIFICATION LEVELS AND ASSESSMENTS FORMALISE NVEQF FOR INDUSTRY ASSESSMENTS TO MATCH CERTIFICATION COMPETENCIES AND FOR TRAINEES ALIGN VOCATIONAL CERTIFICATES CERTIFICATION LEVELS TO EDUCATION QUALIFICATIONS CERTIFICATION FOR TRAINING OF TRAINERS CREATE LIFELONG LEARNING AND CAREER PROGRESSION FOR TALENT Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 12
  • 13. HOW WILL OUR SYSTEM OPERATE UNDER NVQF UNIVERSE OF UNIVERSE OF VET PROVIDERS FOR EMPLOYERS IN VARIOUS VARIOUS SECTORS OF ECONOMY SECTORS OF ECONOMY 1.EMPLOYERS GET TALENT OF RIGHT SKILLS IN RIGHT NUMBERS 17 MINISTRIES, ALL STATE GOVTS, PRIVATE ENTITIES 2.VET PROVIDERS RUN FOCUSSED VET NEED TRAINED WORKERS RUNNING VET WITH AT ALL LEVELS ‘’INDUSTRY’ INPUTS PROGRAMS 3.INDIAN TALENT GET CHOICE, FOCUS, GROWTH MOST OF OUTPUT EMPLOYABLE AND SET UP SSCs WHICH LAYS 4.EVERYONE GROWS AND INDIA DOWN OCCUPATION STANDARDS FOR EACH ABSORBED BY INDUSTRY ROLE GROWS Proprietary and confidential. This information does not represent, and should not be construed as, legal or professional advice. © 2009 NSDC. All Rights Reserved. 13
  • 14. Thank you Contact Information: Basab Banerjee Website: www.nsdcindia.org D-4, Clarion Collection Shaheed Jeet Singh Marg. MD & CEO New Delhi-110016 Dilip Chenoy T: +91-11-46560412-16 Dilip.chenoy@nsdcindia.org F: +91-11-46560417 M: 91-7838577785 Basab.banerjee@nsdcindia.org Skype: basab.banerjee1