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Competitive analysis of assessments market in Indian IT sector
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Recruitments & assessment industry
1.
Recruitment of talent
pool and assessment industry in IT sector “Recruitment of Talent Pool and Assessment Industry in IT sector” A Short Project Report EXCLUSIVELY for Participating Sample Companies Post-Graduate Diploma in Management By RahuL KouL PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 1 | P a g e
2.
Recruitment of talent
pool and assessment industry in IT sector CHAPTER 1: RESEARCH PROBLEM & DESIGN PROBLEM STATEMENT Identifying ICSF ‘Industry Critical Success Factors’ for assessment industry in Bangalore and determining Need-Gap analysis, if any. STUDY OBJECTIVES The aim of the project is to: 1. Understand the approach of IT companies towards their recruitments and assessments imparted to the candidates. 2. Determine the IT market needs and their expectations from assessment companies. 3. Understand the assessment industry, its working and product offerings for IT companies. 4. Find out the need- gap analysis, if any, between IT sector needs and offerings of assessment companies. 5. Quantify the rankings of different assessment players based on the ‘Industry Critical Selection Factors’ identified by the IT companies recruitment heads. SAMPLE FRAME IT Companies Visited: 11 [ HP, Infosys, Sun Microsystems, Oracle, Mphasis, Mindtree, Perot, ITC Infotech, Rambus Technologies, Celstream and V Moksha Technologies.] Big Service companies Big Product IT Companies (can’t go everywhere, especially tier (Busy in R & D, just want to evaluate II & III colleges, they can do with candidate in a right manner & not their resource) waste time & their own resource) Infosys, Perot, Mphasis, HP, Oracle, Sun Microsystems. Mindtree, ITC InfoTech Small Service companies Small Product companies (Less range, less brand name). (Less range, Less brand name) Celstream, V Moksha Rambus Technologies Table- IT Firms Sample Categorization Assessment Companies Visited: 8 [ Careernet Consulting (Campus Connect), Eduquity, E-Litmus, MeritTrac, Meta-I, PAC, Thomas Assessments and SkillProfiler. ] PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 2 | P a g e
3.
Recruitment of talent
pool and assessment industry in IT sector CHAPTER 2: DATA ANALYSIS IT INDUTRY KEY SUCCESS FACTORS IDENTIFIED Total of six Industry Key Success Factors “IKSF” were determined - Content quality, Delivery, Data confidentiality, Detailed reports, Cost factor and Expertise. Total Rating after Multiplication Factor Rating Rating Rating Rating Rating Rating Net Weightage Parameter 1 2 3 4 5 6 Rating (= Rating/231) 1. Content 6 5 0 0 0 0 61 0.26 2. Expertise 0 0 2 2 1 6 22 0.10 3. Delivery 0 1 5 3 2 0 38 0.16 4. Confidentiality 4 2 1 2 1 1 47 0.20 5. Cost Factor 1 1 1 0 4 4 27 0.12 6. Detailed Reports 0 2 2 4 3 0 36 0.16 TOTAL 231 1 Table- Total Rating achieved by Parameters Now, if a parameter is rated 1 by a sample company, then it will be multiplied by its factor and a total score of a parameter is calculated. E.g. total score for delivery parameter will be calculated as 0*(6) + 1*(5) + 5*(4) + 3*(3) + 2*(2) + 0*(1) = 38. 'IT-IKSF' Industry Key Success Factors 0.3 0.26 0.25 0.20 0.2 Significance Level -----> 0.16 0.16 0.15 0.12 0.10 0.1 0.05 0 IKSF -----> Figure- Industry Key Success Factors and their Weightages/ Significance PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 3 | P a g e
4.
Recruitment of talent
pool and assessment industry in IT sector CHAPTER 3: ASSESSMENT PLAYERS & SEGMENTS CATERED FRESHERS LATERALS 1. Campus-Connect 1. Careernet 2. Eduquity 2. Eduquity 3. E Litmus 3. MeritTrac 4. MeritTrac 4. Meta-I IT 5. Meta-I 5. PAC 6. PAC 6. Skill Profiler 7. Skill Profiler --------------------------------- -------------------------------- 7. Thomas 8. Thomas 1. Campus Connect- KPO 1. Eduquity 2. Eduquity 2. MeritTrac 3. MeritTrac BPO 3. Meta-I 4. Meta-I 4. PAC 5. PAC 5. Skill Profiler 6. Skill Profiler ------------------------------ ------------------------------- 6. Thomas 7. Thomas Figure- IT/BPO Segments Catered by Assessment Companies Campus Connect Also into semi-conductor industry, to a little extent KPO Eduquity Focus on educational and more on behavioural assessments. E Litmus (PH test) For 0-2 years experience, also into semi-conductor industry. Meta-I Though their presence in all the segments, but their focus lies in educational domain. PAC New entrant. Also started catering to BPO segment from start of 2008. Skill Profiler Focus mainly on IT laterals and BPO. Thomas Very specialized in Behavioural assessments. Liqwid Krystal Mainly online learning solution provider. Just provides Prometric IC. MeritTrac Strong Presence that cuts across all the segments. PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 4 | P a g e
5.
Recruitment of talent
pool and assessment industry in IT sector CHAPTER 4: RESULTS & CONCLUSION GRADED SERVICE OFFERINGS COMPARISON Organization Focus Area* IT Recruitment Employee Non IT Organization BPO IC IT Training Education Niche F <2 L >2 <4 (Behavioural) Sector 1. Careernet * New! (KPO) --- --- --- --- --- --- 2. Eduquity * --- * --- 3. E-Litmus * --- --- --- --- --- --- --- --- 4. Liqwid Krystal --- --- --- --- --- --- --- --- 5. MeritTrac * 1/2 * --- 6. Meta-I --- --- --- * --- 7. PAC * New! --- --- --- --- --- 8. Skill Profiler * * --- --- 9. Thomas --- * --- --- --- --- --- Table- Graded Comparison Analysis of Service Offerings to Different Markets and Focus Area PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 5 | P a g e
6.
Recruitment of talent
pool and assessment industry in IT sector Divisions Description F <2 Assessments for fresher candidates. Mainly aptitude. L >2 <4 For laterals more than 2 years where focus is mainly on technology tests. BPO For BPO (Voice + Non-Voice) where focus is communication and domain knowledge. Employee Focus being post-recruitment tests like competency mapping, Leadership tests etc. IC Individual certification which once carried in the market. (Brand name important) IT Training Improvement in Skill and Knowledge after training the employee. Educational Assessments in educational sector like competitive examinations etc. Non-IT Sector How many non-IT/BPO sectors organization caters to? (Non-Aptitude tests is focus) Niche Very much niche tests like non violent tests, drug free nature * Focus area of the organization Table- Parameter Description Legend Description Exceptional. A classic or a classic in the making. Serves the needs best. Class leader. A standout in the crowd. Normal Joe. Average, run-of-the-mill effort. Below average. Worth considering when you're hampered by cost or company policy. Road kill. Just not worth it. New! New significant change. NR Not rated. Table- Legend Meaning COMPARISON ANALYSIS ON IT/BPO INDUSTRY ‘IKSF’ In previous chapters, six IT Industry Key Success Factors (IKSF) were identified. Out of these, two parameters, detailed report and cost factor, are not considered for developing the Comparison Analysis Array as necessary information for comparison is unavailable. The original weights of the remaining 4 parameters are incremented proportionately to make the total sum equal to 1. Every parameter is broken down into sections for easy, efficient and non-biased scoring. E.g. Delivery breaks into delivery mode, assessment centers or in-place partnerships, bandwidth (in terms of cities, numbers). Disclaimer: The ratings have been awarded by the researcher and the legends are rated based on his understanding obtained during the conducting project. PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 6 | P a g e
7.
Recruitment of talent
pool and assessment industry in IT sector RATING (Scale= 1 - 5; 1= Very Poor, 2= Poor, 3= Average, 4= Very Good, 5= Excellent; 0= Not Applicable) Original Incremented Campus Connect Eduquity Sectional IT/BPO KEY INDUSTRY SUCCESS FACTORS Obtained Weights Weights Weighted Weights (* 1.39) Rating Weighted Rating IP (in-house / licensed + Span of areas)- Aptitude Content + Technical + Domain + Behavioural + Niche 0.09 2 0.18 4 0.36 A/S for IT + BPO recruitment + Employee A/S + IC + IT Training + Educational assessments 0.26 0.36 0.09 1 0.09 4 0.36 Portfolio of tests / Depth of Service offerings 0.09 2 0.18 3 0.27 Candidate Evaluation Methodology 0.09 3 0.27 3 0.27 Data Confidentiality / Conflict of interest 0.20 0.28 0.28 0 0 5 1.4 Delivery Online Mode Bandwidth (Numbers + Cities + Tie Ups) 0.11 0 0 4 0.44 0.16 0.22 Offline Mode Bandwidth (Numbers + Cities) 0.11 4 0.44 4 0.44 Expertise Experience in IT sector / Assessments till date 0.028 4 0.112 4 0.112 Experience in BPO sector 0.028 2 0.056 4 0.112 Client List 0.10 0.14 0.028 4 0.112 4 0.112 Brand Recall 0.028 3 0.084 4 0.112 Non IT/BPO Sectors catered 0.028 0 0 3 0.084 TOTAL 1 1 25 1.524 46 4.072 E Litmus MeritTrac Meta-I PAC SkillProfiler Thomas Rating Weighted Rating Weighted Rating Weighted Rating Weighted Rating Weighted Rating Weighted 2 0.18 4 0.36 3 0.27 4 0.36 5 0.45 3 0.27 1 0.09 4 0.36 3 0.27 2 0.18 4 0.36 1 0.09 2 0.18 4 0.36 2 0.18 3 0.27 5 0.45 3 0.27 4 0.36 4 0.36 3 0.27 4 0.36 5 0.45 3 0.27 0 0 5 1.4 3 0.84 3 0.84 5 1.4 5 1.4 0 0 4 0.44 2 0.22 3 0.33 3 0.33 1 0.11 4 0.44 4 0.44 5 0.55 0 0 2 0.22 1 0.11 3 0.084 4 0.112 4 0.112 3 0.084 5 0.14 5 0.14 0 0 4 0.112 3 0.084 1 0.028 5 0.14 0 0 3 0.084 5 0.14 3 0.084 3 0.084 4 0.112 5 0.14 4 0.112 5 0.14 2 0.056 2 0.056 4 0.112 4 0.112 0 0 3 0.084 1 0.028 2 0.056 4 0.112 0 0 23 1.530 50 4.308 34 2.964 30 2.648 51 4.276 31 2.912 Table- Comparison mapping based on IKSF PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 7 | P a g e
8.
Recruitment of talent
pool and assessment industry in IT sector Rating Score 25 46 23 50 34 30 51 31 Series Number 1 2 3 4 5 6 7 8 Organization Campus Connect Eduquity Elitmus MeritTrac Meta-I PAC SkillProfiler Thomas Weighted Score 1.524 4.072 1.530 4.308 2.964 2.648 4.276 2.912 Ratings Chart Weighted Score Chart 60 5 50 51 4.308 4.276 46 4.072 50 4 40 34 2.964 2.912 30 31 3 2.648 30 25 23 20 2 1.524 1.530 10 1 0 0 Rating Score Weighted Score/ Perceived value Campus Connect Eduquity Elitmus Campus Connect Eduquity Elitmus MeritTrac MeritTrac Meta-I PAC Meta-I PAC SkillProfiler Thomas SkillProfiler Thomas Figure- Weighted Score Graphs CONTENT PARAMETER CONFIDENTIALITY PARAMETER Thomas Thomas SkillProfiler SkillProfiler PAC PAC Meta-I Meta-I MeritTrac MeritTrac Elitmus Elitmus Eduquity Eduquity Campus Connect Campus Connect 0 5 10 15 20 0 1 2 3 4 5 6 Max. Scor- 20 Max. Score- 5 DELIVERY PARAMETER EXPERTISE PARAMETER Thomas Thomas SkillProfiler SkillProfiler PAC PAC Meta-I Meta-I MeritTrac MeritTrac Elitmus Elitmus Eduquity Eduquity Campus Connect Campus Connect Max. Score- 10 0 2 4 6 8 10 Max. Score- 25 0 5 10 15 20 25 Figure- Figure Performance on Individual Parameters PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 8 | P a g e
9.
Recruitment of talent
pool and assessment industry in IT sector CONCLUSION & INFERENCES Companies that meet the Industry needs and expectations (rank-wise): RANK NAME OF ORGANIZATION OBTAINED SCORE (SCALE=5) 1 MeritTrac Services Pvt. Ltd 4.308 2 SkillProfiler Analytics 4.276 3 Eduquity 4.072 4 Meta-I 2.964 5 Thomas Assessments 2.912 6 Professional Aptitude Council (PAC) 2.648 7 E Litmus 1.530 8 Campus Connect 1.524 Table- Weighted Score of Assessment Players Overall MeritTrac, Skillprofiler, and Eduquity are the top 3 players that meet the IT/BPO need in a best manner with a narrow gap in the scores received by the companies. Disclaimer: It is very important to understand that all the analysis and results are done, keeping in mind to determine the player who meets the needs and expectations of the IT/BPO industry the best. Disclaimer: The comparison of the assessment players is done using Weighted Comparison Mapping, by rating them on different Industry Key Success Factors on the basis of the researcher understanding. Though, utmost care had been taken to obtain a neutral mapping. PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 9 | P a g e
10.
Recruitment of talent
pool and assessment industry in IT sector CHAPTER-6: RECOMMENDATIONS RESEARCH RECOMMENDATIONS 1. Enhancing the Experience of Candidates taking any Assessment. Provide ‘Short-Cut Keys’. Option of pressing number key 1, 2, 3, 4, for the right answer, along with the normal mouse selecting option. This can be very effective to enhance time spent on paper, rather than on navigation. Introduction of ‘Rectangular Lozenges’ answer sheet in place of currently used ‘Bubble Marks’ answer sheet. These are convenient for candidates to mark and could be introduced first time in Indian assessment. (Annexure) Use Visual Aids and Make Questions Appealing. The whole point of this recommendation is that whenever any candidate leaves after assessment, the thought of “yet another test” should not exist. (Sample questions are attached in annexure) 2. Start using ‘Partner’ or ‘Partner Company’ or ‘Client Partner’ instead of Currently Used ‘Client’. The rationale behind this recommendation is to help prove that assessment companies care for its clients and is just not any assessment organization. 3. Introduction of Regular Feedback Mechanism from the Partner Companies. The feedback may include parameters on client’s experience about the event, perceived quality of the assessments delivered etc. It must be emphasized that the feedback on the performance of the candidates recruited by a partner company, after a certain period of time shall help in designing better assessments with higher degree of reliability. Regular feedback will also help turn client into an assessment partner. 4. Increasing the Number of Choices from 4 to 5 in all question. This will straightaway reduce the probability of guesswork from 0.25 to 0.20. 5. Implementation of OMR for Assessment Correction, if financially feasible. This will reduce the manual error in addition to reducing turn-around time significantly. PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 10 | P a g e
11.
Recruitment of talent
pool and assessment industry in IT sector CHAPTER-7 ANNEXURE ANNEXURE- RECTANGULAR LOZENGES ANSWER SHEET PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 11 | P a g e
12.
Recruitment of talent
pool and assessment industry in IT sector ANNEXURE- VISUAL AIDS- SAMPLE QUESTIONS PRIVATE & CONFIDENTIAL – CORPORATE REPORT © 2008 SIP 12 | P a g e