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Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Copyright © 2013 Accenture. All rights reserved. 2Source: Accenture Research
• The Talent Demand-Supply Analysis highlights qualitative and quantitative trends and insights to bridge the talent demand-supply requirements and impact policy, operational and decision making.
• In this report, we analyse the trends and analyses on Supply and Demand within the IT-BPM industry. IT-BPM industry will have a downstream impact on all other sectors as it touches upon all realms in the Indian economy.
The Talent Demand-Supply Analysis contributes to the larger vision of the National Skills Mission 2022 to make 567 million Indians employable.
Objective of the Talent Demand-Supply Analysis
Objectives of the Talent Demand-Supply Analysis
Outcome: The Talent Demand-Supply analysis will impact policy, operational and decision making
Scope and analysethe demand-supply ecosystem for the IT-BPM Industry
w.r.t. talent requirements-
present and future
Highlight trends and analytics on the demand side w.r.t. market trends, employment growth patterns and necessary quality
indicators
Provide analysis of the supply side w.r.t. academic outcomes
Highlight issues and recommend necessary steps to bridge the talent demand-supply situation
Copyright © 2013 Accenture. All rights reserved. 3Source: Accenture Research
A combination of Primary and Secondary sources was used for capturing qualitative and quantitative data for the Talent Demand-Supply report.
Approach and Methodology for Data Gathering
• On-line survey• Subject Matter
Experts(SME) Interviews
• Company websites
Primary sources
Identify the type of data required for the
analysis
Scan primary and secondary sources
of information to gather the relevant
data
Triangulate data and conduct
consistency checks to validate the gathered data
Refresh data periodically to ensure data
relevance and accuracy
• Research reports from:• MHRD• UGC• AICTE
• NASSCOM Research Team
Secondary sources
• Refresh secondary data annually / bi-annually as desired in coordination with Talent Demand and Supply side
• Companies should refresh OS every 2-3 years
Governance
Copyright © 2013 Accenture. All rights reserved. 4Source: Accenture Research
The dynamic nature of the IT-BPM Industry necessitates that this analysis be refreshed every year to track progress and ensure data relevance
Approach and Methodology for Data Maintenance on WorkForceMarket Information System (WFMIS)
Copyright © 2013 Accenture. All rights reserved. 5Source: Accenture Research
• What is the IT-BPM Industry?
• Where does the IT-BPM Industry currently stand?
• Where is it headed to?• Current and future skills
base
• What is the talent demand in the IT-BPM Industry?
• Current and Projected Requirement of Talent for Industry to support revenue growth
• Talent Base• Where is the Demand for
Talent coming from?• What is the available Talent supply in the IT-BPM
Industry• Where is the Supply for Talent come from?• What are the learning outcomes achieved by the Talent
supply Chain ?
• What is the current Talent Demand-Supply mismatch?
• How many of the annual graduate supply are actually employable?
• How Talent Supply (or the lack of it) may stunt Industry growth?
• What must happen to drive growth?
• How will it propel the Industry’s growth?
• What are the policy changes required?
• Who needs to make it happen?
Executive Summary
IT-BPM Industry
Dashboard
Recommendations
Talent Supply
Ecosystem
Talent Demand
Ecosystem
Talent Demand –
Supply Analysis
ITIndustry Industry
DashboardDashboard
RecommenRecommendationsdations
Talent
Talent Demand Demand
EcosystemEcosystem
Talent Demand ––
Supply AnalysisAnalysis
Structure of the Talent Demand-Supply Analysis report
Snapshot of Talent Demand-Supply Analysis report
Copyright © 2013 Accenture. All rights reserved. 6Source: Accenture Research 6
Appendix A: State Profiles Appendix B: Qualitative skill gaps by sub-
sector Appendix C:Analysis of Talent Demand-
Supply gaps by Regions Appendix D: Definitions used in the report
Objective and anticipated outcomes of the Study/Report
Growth Trends for revenue, headcount and hiring
Global Future Outlook Growth trends for Talent Supply Talent Demand-Supply Gap Situation Key Issues Identified Key Recommendations
Table of Contents
Copyright © 2013 Accenture. All rights reserved. Source: Accenture ResearchSource: Accenture Research
Appendix A: State Profiles Appendix B: Qualitative skill gaps by sub
sector Appendix C:Analysis of Talent Demand
Supply gaps by Regions Appendix D: Definitions used in the report
Objective and anticipated outcomes of the Study/Report
Growth hiring
Global Growth Talent Key Key
7.Talent Demand-Supply Analysis
1. Executive Summary
2. IT-BPM Industry Dashboard
3. Employment and Talent Demand in IT-BPM Industry
4. Talent Demand Ecosystem
5. Talent Supply Ecosystem
6. Analysis of Supply Chain w.r.t. Academic outcomes
9. Appendix
8. Recommendations
Copyright © 2013 Accenture. All rights reserved. 7Source: Accenture Research
1. Executive Summary- Slide 10• Growth Trends for revenue, headcount and hiring
• Global Future Outlook
• Growth trends for Talent Supply
• Talent Demand-Supply Gap Situation
• Key Issues Identified
• Key Recommendations
2. IT-BPM Industry Dashboard- Slide 32
• World IT-BPM Spend (2012) and Share of Indian IT Industry
• Indian IT Industry – Trends and Future Outlook
• Occupations in Demand – Present and Future
• Skills in Demand – Present and Future
• Generic Skill Gaps in IT Industry
3. Employment and Talent Demand in IT-BPM Industry- Slide 42
• Growth in Revenue and Employment
• Forecasting For Employee Growth
• Growth of Direct and Indirect Employment
• Hiring in IT-BPM Industry – Part, Present and Future
• Talent Demand and Preferred Courses
Detailed Table of Contents (1/3)
Copyright © 2013 Accenture. All rights reserved. 8Source: Accenture Research
4. Talent Demand Ecosystem- Slide 50
• NASSCOM and Non-NASSCOM members
• Types of companies and their contribution to revenue and people employed
• Distribution of Employment among Companies
• Employment by Customer/Market segment and Sub-sector
• Hiring by Sub-sector
• Gender Diversity
• Demand Ecosystem
5. Talent Supply Ecosystem- Slide 59
• Where is the supply coming from
• Types of Institutions
• Enrolments at various level
• Growth in GER in the Past
• Growth in Talent Pool for the IT-BPM Industry
• Talent Supply Trends – Levels, Streams, Gender and States
6. Analysis of Supply Chain w.r.t. Academic outcomes- Slide 84
• Summary of Academic Outcomes
• Assessment Insights
• Summary of analysis of curricula
• Curricula Evaluation
Detailed Table of Contents (2/3)
Copyright © 2013 Accenture. All rights reserved. 9Source: Accenture Research
6. Analysis of Supply Chain w.r.t. Academic outcomes(contd..)• Analysis of curricula w.r.t. academic outcomes using Bloom’s Taxonomy
• Critical competencies for the IT-BPM Industry
• Learning outcomes identified by NBA
• Detailed note on Bloom’s Taxonomy of Learning Outcomes
7. Talent Demand-Supply Analysis- Slide 99
• Hiring and Talent Supply in IT-BPM Industry
• Employable Talent Supply
• Talent Demand-Supply Analysis- Entry level (0-2 yrs)
• Talent Demand-Supply Analysis- Experienced level (>2 yrs)
• Talent Demand-Supply Analysis by Region and State
8. Recommendations- Slide 115
9. Appendix- Slide 129
• Appendix A: State Profiles
• Appendix B: Qualitative skill gaps by sub-sector
• Appendix C:Analysis of Talent Demand-Supply gaps by Regions
• Appendix D: Definitions used in the report
Detailed Table of Contents (3/3)
Copyright © 2013 Accenture. All rights reserved. 10Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
ContentsExecutive Summary— Growth Trends for revenue, headcount and hiring— Global Future Outlook— Average age of the IT-BPM workforce in India— Growth trends for Talent Supply— Talent Demand-Supply Gap Situation— Employability Rates— Key Issues Identified— Key Recommendations
Copyright © 2013 Accenture. All rights reserved. 10
Copyright © 2013 Accenture. All rights reserved. 11Source: Accenture Research
Core markets will continue to remain strong; New markets like BRIC will add untapped revenue sources and some markets/business will see a stagnation/decline
Global Future Outlook (2020)New Geographies and Verticals
Core Markets
Large Enterprises
America, APAC & Europe
Mature Verticals (BFSI, Manufacturing, Telecom)
+New Markets
Small & Medium Enterprises (SMEs)
Domestic, BRICs
Emerging Verticals (public sector, healthcare, const. utilities)
+Declining Markets
Automation of jobs leading to job reduction(e.g. basic data entry, basic voice)
Industry consolidation
Productivity gains
-
; McKinsey, Gartner, IDC
Type of Companies (customer)
Geographies
Industry Verticals
Copyright © 2013 Accenture. All rights reserved. 12Source: Accenture Research
A detailed Occupational Analysis of the IT-BPM Industry shows the emergence of high-end specialised occupations and entry into newer verticals beyond BFSI and Retail (Ref: NASSCOM Occupational Analysis report)
Emerging Occupations and Verticals
Energy &
UtilitiesMediaGovernment Healthcare
Construction& Heavy
Engg.
Infrastructure Management Services(IMS)
Data Scientist
Web-services, e-commerce, e-business
Knowledge Services – KPO - Research, LPO, Health BPO
F&A - Complex
R&D
Product Marketing and Packaging
Education
ITS
BPM
ERD and SPD
Emerging Verticals
Emerging Occupations/Areas of specialization
Copyright © 2013 Accenture. All rights reserved. 13Source: Accenture Research
More and more organizations are looking to hire Non-Engineers, for technical areas like Infrastructure Services as well. A lot of this is attributed to the rising employment costs and improved process maturity
IT-BPM Industry Talent Employment Trends
Copyright © 2013 Accenture. All rights reserved. Source: Accenture Research
Alternative Talent Pool
Specialists for driving innovation
Copyright © 2013 Accenture. All rights reserved. 14Source: Accenture Research
The Industry is expected to grow at 13% to reach to 225 billion USD total revenues1 and employ 5.3 million people by 2020 creating an additional employment for 2.3 million people in the next 7 years
Indian IT-BPM Industry growth and future outlook
1 The revenues reported are for Export + Domestic where they are defined as:Exports = IT Services + BPM + Software Products (comprising Sale of own or resale of Software products + Packaged software + Offshore Product Development) + Engineering servicesDomestic = IT Services + BPM + Sale of own or resale of Software products + Packaged software; Engineering Services
3.0
5.3
0
50
100
150
200
250
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2013 2020
Rev
enue
(USD
Bill
ion)
Empl
oym
ent (
in m
illio
n)
Industry Outlook 2020
Employment (million)
Revenue (USD Billion)
CAGR of ~13%
; NASSCOM STR 2008-2013; NASSCOM Perspective 2020
Copyright © 2013 Accenture. All rights reserved. 15Source: Accenture Research
There has been a gradual increase in the average workforce in the IT-BPM Industry. It still however remains one of the youngest employed workforce in the Indian economy with an estimated average age of 26.5 years.
Average age of the Indian IT-BPM workforce
06 07 08 09 10E 11E 12E 13EAverage age-Fresher hires 22 22 22 22 22 22 22 22Average age-Lateral hires 26 25.6 25.3 25.2 25.7 26.3 26.4 26.5Average Experience of professionals 3.6 3.3 3.2 3.7 4.3 4.4 4.5 4.6
22 22 22 22 22 22 22 22
26 25.6 25.3 25.2 25.7 26.3 26.4 26.5
3.6 3.3 3.2 3.7 4.3 4.4 4.5 4.6
0
5
10
15
20
25
30
Year
sAverage age of the IT-BPM workforce in India
Source: NASSCOM, CLSA Asia-Pacific Markets
Copyright © 2013 Accenture. All rights reserved. 16Source: Accenture Research
An estimated 0.77 millions technically qualified graduates are expected to pass-out of the formal education space in 2013. Overall, ~5 millions graduates (across all streams) are expected to pass-out in 2013.
Talent Supply to the IT-BPM Industry
; Educational Statistics At A Glance 2011-12, MHRD
Copyright © 2013 Accenture. All rights reserved. 17Source: Accenture Research
7366722884
33141
28832
2726829211
(6427)
17654
51976
32527
16851
15783
Talent Demand-Supply Gap 2013
6678
Delhi:(15839)
Talent Demand-Supply Gap 2013 and 2020*Mismatch in Demand-Supply situation in various states
17841
8448229845
38199
31430
24947
35896
(46380)
2348
40742
24904
2020618913
Delhi:(47781)
Talent Demand-Supply Gap 2020
2421
Karnataka, Delhi(NCR) and Tamil Nadu have a negative gap, meaning there is dearth of quality talent vis-à-vis the employment opportunities available in the state. This gap is expected to increase further by 2020
Haryana: 23670Haryana: 34666
Total Demand:194,000Total Employable Talent Supply:606,664Gap: ~412,664
Total Demand:418,281Total Employable Talent Supply:759,090Gap:340809
*Supply numbers estimated using employability numbers based on dipstick assessment
Copyright © 2013 Accenture. All rights reserved. 18Source: Accenture Research
7
532974
74613
63573763
46065
29034
30526
27662
30
2388
Talent Supply Talent Demand2013
15198 8520
Delhi(NCR):32584
Talent Demand and Supply estimates – 2013Regional imbalances in Talent Demand
Karnataka, TN, AP and Maharashtra contribute to ~80 percent of Talent Demand and ~50 percent of Talent Supply. This imbalance has led to increasing manpower shortages and a consequent increase in manpower costs
Total Demand:194,000Total Supply:5.01 millionsTotal Employable Talent Supply:3.60 millions
23290
7419923858
33887
28846
3362532974
40179
46688
82502
60189
16881
18121
Average growth rate for Talent demand estimated to be 9 pcAvg growth rate for Talent Supply estimated to be 8.5 pc*Supply numbers estimated using employability numbers as derived using a dipstick assessment
Copyright © 2013 Accenture. All rights reserved. 19Source: Accenture Research
25479
6375725491
27451
18277
2662433908
36926
49960
80554
79233
14342
21197
94
11052022
1548
28
131997813
96760
60280
56321
57431
62
4854
2115817689
Delhi:13481 Delhi:67650
Talent Demand and Supply estimates - 2020Possibility of Talent shortage in quality and quantity
Average growth rate for Talent demand estimated to be 8.6 pcAvg growth rate for Talent Supply estimated to be 8.5 pc*Supply numbers estimated using employability numbers as quoted by Mckinseyreport. Details on slide 96
Talent Supply Talent Demand2020
The industry growing at 13% will put tremendous pressure on supply side as other high-growth industries (such as electronics, retails, telecom, healthcare, infrastructure) will attract and employ talent from the same supply pool
Copyright © 2013 Accenture. All rights reserved. 20Source: Accenture Research
A dipstick assessment was conducted with leading employers in the Indian IT-BPM Industry. Observed results estimate employability at 18% and 24% respectively for BPM and non-BPM sub-sectors
Employability1 rates in the IT-BPM Industry
1. Employability: Employability is defined as the proportion of people organizations are willing to make an offer to, out of a given number of applicants who are willing to work in the IT-BPM industry. This percentage has been derived in the next slide.• Boundary Conditions to the definition above: The boundary conditions that apply to this definition are:
a) demand is not a constraint ( actual demand could be fluctuating ) and
b) this definition holds true only in the case of export led IT-BPM industry
• Future Employability with NOS: NOS will lead to more trained and job-ready individuals. This will have a huge impact on improving the employability scenario of graduates in India.
This ratio defines the potential employability percentage, post the implementation of NOS
Ratio Non BPM BPM
Employability ~24% ~18%
Future Employability with NOS ~56% ~33%
Copyright © 2013 Accenture. All rights reserved. 21Source: Accenture Research
Talent Supply for Non-BPM sectorWith the implementation of NOS, we expect an approximate increase of 250% in the number of employable candidates
Copyright © 2013 Accenture. All rights reserved. 22Source: Accenture Research
Talent Supply for BPM sector (Scenario 1: Only Non Technical graduates)With the implementation of NOS, we expect an approximate increase of more than 200% in the number of employable candidates
* Employability is calculated as % of talent supply available after screening for academics, general & technical aptitude and soft skills out of total supply willing to work for IT-BPM industry.
Copyright © 2013 Accenture. All rights reserved. 23Source: Accenture Research
Talent Supply for BPM sector (Scenario 2: All graduates)With the implementation of NOS, we expect an approximate increase of more than 200% in the number of employable candidates
* Employability is calculated as % of talent supply available after screening for academics, general & technical aptitude and soft skills out of total supply willing to work for IT-BPM industry.
Copyright © 2013 Accenture. All rights reserved. 24Source: Accenture Research
• The analyzed curricula also lacked on the academic outcomes identified by NBA (National Board of Accreditation)
• This skill gap is one of the major reasons for the Talent Supply not being ‘job-ready’
• Typically organizations, spend around anywhere close to 20 weeks to impart the employable skillset to each fresh graduate
Primary data collected from over 300 employers combined with an analysis of course curricula identifies Communication, Innovation, Problem Solving and Attention to Detail as some of the most needed skills from the graduates
Shortage of Quality Talent = Potential Areas for Skill Development
Copyright © 2013 Accenture. All rights reserved. 25Source: Accenture Research
• All large organisations indicated that they hire from Institutes of National Importance (INIs) including the following:
• IITs- IIT Kanpur, Chennai, Powai, Delhi
• NITs- NIT Warangal, Rourkela, Tiruchirapalli
• IISc
• IIITs- IIIT Allahbad, Hyderabad, Delhi
• Amongst the State and Central Universities, the following were the most preferred by the sample set of employers:
• Anna University
• Delhi University
• Bangalore University
• Mumbai University
• University of Pune
Employers prefer to hire from Technical colleges and Universities such as INIs, State and Central Universities and Private Universities
Preferred Institutes for recruitment by Employers
0 50 100 150
Schools (9th -12th)
Others
Central and StateUniversities
Institutes of NationalImportance
Corporate TrainingInstitutes
Vocational TrainingInstitutes
Private Universities71 55.0%
30 23.3%
40 31.0%
60 46.5%
104 80.6%
10 7.8%
8 6.2%
Copyright © 2013 Accenture. All rights reserved. 26Source: Accenture Research
• Technical courses such as Engineering, Business/Management and BCA/MCA were highlighted as preferred courses for recruitment by the employers
• A detailed analysis of these courses w.r.t. learning outcomes indicates that these courses have a higher focus on Higher Order Thinking Skills (HOTS)
• It is also observed that the INIs and other premier institutes offer courses that have a higher focus on HOTS have higher placement rates, thus indicating that candidates passing out of these colleges are well equipped and more employable w.r.t. the industry needs
Engineering is clearly the course which is most preferred by the employers. One of the key reasons for the same is the enhanced focus it lays upon imparting Higher Order Thinking Skills (HOTS)
Preferred courses for recruitment by the Employers
0 20 40 60 80 100 120
B.TechM.Tech
MBAMCABCA
58 46%
82 65.1%
68 54%
68 54%
112 88.9%
Copyright © 2013 Accenture. All rights reserved. 27Source: Accenture Research
• The Industry recommends the following interventions to ensure that the students develop HOTS (Creating, Evaluating, Analysing):Use of technology to improve educational
infrastructure
Increase component of practical knowledge in educational courses
Increase practical exposure and experience in the form of internships and apprenticeships
Increase Industry participation in course design and formal and non-Formal education
While quantity of talent may be an issue in the future, quality of talent is presently posing as a key issue for the Industry. Industry needs candidates with HOTS as these have emerged to be the key for employability
Increasing need for and shortage of candidates with Higher Order Thinking Skills(HOTS)
This would mean that the Industry spends less time to make the candidates job-ready and the will create a pipeline of ready talent
Copyright © 2013 Accenture. All rights reserved. 28Source: Accenture Research
RTE has contributed a great deal to improve the education statistics but there is less focus on learning outcomes and quality of school education. Quality of School Education of the significant contributors to lack of HOTS in majority of Indian students
Challenges in Upper Primary & Secondary education in India (9th-12th grade)
Focus on wrong metrics - enrolment / attendance as opposed to learning outcomes
Course design and pedagogy-learning by rote, minimal focus on vocational education
Access to schools is low
Quality of Teaching is poor and attendance of teachers is dismal
Even though educational statistics are on the rise, they do not lead to an impact on skill development scenario
Students do not possess Innovation/Ideation skills, analytical thinking and practical exposure
Distance and infrastructure still remains a challenge to increase girl enrollments
Quality of students is directly proportional to quality of teachers
Issue Impact
Copyright © 2013 Accenture. All rights reserved. 29Source: Accenture Research
The detailed analysis in the subsequent sections highlights some interesting trends but also raises some key issuesThese must be addressed to ensure that the Industry meets its growth targets and the National Skills Mission meets its employability targets
Key Issues Identified in the report
Copyright © 2013 Accenture. All rights reserved. 30Source: Accenture Research
The report makes recommendations to resolve the key issues identified. Corrective actions and data-based policy making can ensure that the Industry comes out stronger and continues on the path of growth
Summary of Recommendations
Copyright © 2013 Accenture. All rights reserved. 31Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
IT-BPM Industry Dashboard— World IT-BPM Spend (2012) and Share of Indian IT Industry— Indian IT Industry – Trends and Future Outlook— Occupations in Demand – Present and Future— Skills in Demand – Present and Future— Generic Skill Gaps in IT Industry
Copyright © 2013 Accenture. All rights reserved. 31
Copyright © 2013 Accenture. All rights reserved. 32Source: Accenture Research
ITS, 56.3
BPM, 20.9
SPD, 6.7
ERD, 11.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
1
in U
SD B
illio
n
Indian IT industry Revenues (Sub-sector wise)
ERD and SPD sub-sector have huge potential to grow as India builds high-end capabilities
World IT-BPM Spend (2012) and Share of Indian IT Industry Across Sub-sectors: IT Services, BPM, ERD and SPD
ITS, 648
BPM, 164
SPD, 278
ERD, 1350
0
500
1000
1500
2000
2500
3000
1
in U
SD B
illio
n
World IT-BPM spend
In USD Billion In USD Billion
Share of world
1%
2%
13%
9%
; Forrester, Gartner, IDC; NASSCOM STR 2013
As the world focuses its spending on ERD and SPD, Indian IT industry should also look at developing more offerings and solutions to these two sub-sectors.
Copyright © 2013 Accenture. All rights reserved. 33Source: Accenture Research
Government and Emerging Verticals such as Healthcare, Construction and Utilities will drive future growth of Indian IT industry
World IT-BPM Spend (2012) and Indian IT Industry revenuesAcross major verticals: BFSI, Telecom, Manufacturing, Emerging
21%
20%
10%16%
33%
World IT-BPM Spend - Across VerticalsBFSI Manufacturing Hi-Tech/TelecomGovernment Emerging/Others
41%
16%
18%
10%
15%
Contribution of verticals to Indian IT industry revenues
BFSI Manufacturing Hi-Tech/TelecomRetail Emerging/Others
; Forrester, Gartner, IDC; NASSCOM STR 2013
Copyright © 2013 Accenture. All rights reserved. 34Source: Accenture Research
300
63 69 7488 88
108
225
0
50
100
150
200
250
300
350
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2020
USD
Mill
ion
Total Revenue (2008-2020)
Optimistic
NASSCOM Perspective 2020
• Industry to most likely grow at 13% CAGR to USD 230 Billion• Domestic market will grow to USD 50 Billion
Indian IT Industry – Trends and Future OutlookTotal Revenue Projection - 2020
300 BillionCAGR – 16%
; NASSCOM STR 2008-2013; NASSCOM Perspective 2020
225 BillionCAGR – 11.5 %
Copyright © 2013 Accenture. All rights reserved. 35Source: Accenture Research
• Industry to most likely grow at 13% CAGR to USD 225 Billion • Domestic market will grow to USD 50 Billion
Indian IT Industry Revenue –Trends and Future Outlook Export and Domestic Markets
NASSCOM STR 2008-2013; NASSCOM Perspective 2020
Exports, 175000
Domestic, 50000
-
50,000
1,00,000
1,50,000
2,00,000
2,50,000
2008 2009 2010 2011 2012 2013 2020
Rev
enue
in U
SD M
illio
n
Export and Domestic Revenue (USD Million)
Copyright © 2013 Accenture. All rights reserved. 36Source: Accenture Research
SPD to grow three times present value by 2020
Indian IT Industry –Trends and Future Outlook Revenue by Sub-sector 2013-2020
; NASSCOM STR 2008-2013; NASSCOM Perspective 2020
56
130 21
50
11
25
7
18
-
50
100
150
200
250
2013 2020
Revenues by Sub-sector (2013-2020)
SPD ERD BPM ITS
Copyright © 2013 Accenture. All rights reserved. 37Source: Accenture Research
Application Development will continue to accounts for 1/3rd of total revenues; SOA, Web-services, e-commerce will grow fastest
Occupations in Demand (2013 – 2020)IT Services sub-sector
; NASSCOM STR 2008-2013; NASSCOM Perspective 2020
New services such as SOA, Web-services & e-commerce, Software deployment and support (also known as RIM) will record fastest growth rates which will lead to spurt in demand for skilled talent
3%
3%
37%
1%
7%
14%
17%
11%
6%
0%
1%
2%
3%
32%
1%
7%
0%
14%
20%
15%
0%
5%
IT consulting
Systems integration
Custom application development
Network consulting and integration
Software Testing
Application management
IS outsourcing
Others (SOA & Web Services + E-Business/E-Commerce)
Software deploy and support
Hardware deploy and support
IT education and training
Share of different occupations2020 2013
Copyright © 2013 Accenture. All rights reserved. 38Source: Accenture Research
Occupations in Demand (2013 – 2020)BPM sub-sectorShare of CIS will decrease; High-end services such as Knowledge Services and Vertical-specific BPO services will increase
41%
22%
2%
1%
18%
1%
14%
31%
23%
2%
1%
26%
1%
16%
Customer Interaction Services
Finance and Accounting
HR Admin
Procurement and Logistics
Knowledge Services
Other Horizontal Services
Vertical-specific BPO Services
Share of different occupations2020 2013
; NASSCOM STR 2008-2013; NASSCOM Perspective 2020
Copyright © 2013 Accenture. All rights reserved. 39Source: Accenture Research
0%
10%
20%
30%
40%
50%
60%
70%
JAVA
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More than 50% respondents say Java and Testing skills will continue to be most sought after, though Cloud Computing will replace .NET in Top 3 skills in demand
Technical Skills in Demand Today and Tomorrow
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SS
ASQ
MS
Pea
rlS
PSS
AR
IBA
Cap
tivat
e
Copyright © 2013 Accenture. All rights reserved. 40Source: Accenture Research
0%10%20%30%40%50%60%70%80%
More than 60% of organizations observe a need to improve communication and Problem solving skills of the workforce
Generic Skill Gaps in IT Industry
Attention needs to be given to soft skills development of the workforce apart from developing technical skills
Copyright © 2013 Accenture. All rights reserved. 41Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Employment and Talent Demand in IT-BPM Industry— Growth in Revenue and Employment— Forecasting For Employee Growth — Growth of Direct and Indirect Employment— Hiring in IT-BPM Industry – Part, Present and Future— Talent Demand and Preferred Courses
Copyright © 2013 Accenture. All rights reserved. 41
Copyright © 2013 Accenture. All rights reserved. 42Source: Accenture Research
Automation of various job roles such as software testing and call-centre operators has adversely affected the hiring growth hence total revenue has grown at a faster rate than rise in employment.
Growth in Revenue and Employment
; NASSCOM STR 2008-2013
Copyright © 2013 Accenture. All rights reserved. 43Source: Accenture Research
If revenue per employee increases as per the past trends, direct employment would double by 2020 adding 3 million jobs over the next 7 years
Scenario Based Forecasting For Employee Growth
Most Likely - Revenue USD 232 Billion
Optimistic – Revenue USD 300 Billion CAGR – 13%
CAGR – 9 %
2.0 2.2 2.3 2.5 2.8 3.0
6.8
2.0 2.2 2.3 2.5 2.8 3.0
5.3
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2020
Direct Employment (in Million)Optimistic Most Likely Trend
Copyright © 2013 Accenture. All rights reserved. 44Source: Accenture Research
75% of the total people employed in the IT-BPM industry are employed through the indirect route such as transportation services and caterers. This percentage, however, is reducing as the industry matures.
Growth of Direct and Indirect Employment
Ratio:3.6
Ratio:3.2
2.2 35.3
8
9.5
15.9
0
5
10
15
20
25
2011 2013 2020
Direct- Indirect employment
Indirect
Direct
Ratio:3.0
; NASSCOM STR 2008-2013;
Employment CAGR – 8.6%
Copyright © 2013 Accenture. All rights reserved. 45Source: Accenture Research
Net hiring will double by 2020 to more than 0.4 millions if the demand continues to grow at 9 per cent.
Hiring in IT-BPM Industry (2009 – 2020)
; NASSCOM STR 2008-2013;
Copyright © 2013 Accenture. All rights reserved. 46Source: Accenture Research
Contrary to the popular belief that mostly engineers are hired in the IT-BPM industry, only 1/3rd of people employed in the industry are Engineering graduates. Less than 50% are graduates other than engineers.
Talent Employed in IT-BPM industry
NASSCOM Strategic Review 2012 Estimates
Copyright © 2013 Accenture. All rights reserved. 47Source: Accenture Research
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%
100.0%
Close to 90% organizations prefer to hire from B.Tech courses. Less than 30% organizations prefer to hire from diploma and BSc courses.
Preferred Courses for Talent Sourcing
Copyright © 2013 Accenture. All rights reserved. 48Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Talent Demand Ecosystem— NASSCOM and Non-NASSCOM members— Types of companies and their contribution to revenue and people employed — Distribution of Employment among Companies— Employment by Customer/Market segment and Sub-sector— Hiring by Sub-sector— Gender Diversity— Demand Ecosystem
Copyright © 2013 Accenture. All rights reserved. 48
Copyright © 2013 Accenture. All rights reserved. 49Source: Accenture Research
• There are around 5000 companies in the IT-BPM industry; all major companies across IT Services, BPM, ER&D and SPD are members of NASSCOM
• Companies are heterogeneous mix of Indian Service Providers (ISPs), Multinational Companies (MNCs) and Global-in-house Companies (GICs)
1300+ NASSCOM Members contribute to almost 95% of industry revenues and employment
NASSCOM and Non-NASSCOM members
5%
95%
% contribution to Indian IT-BPM industry revenue
NASSCOMTCS, Infosys, Wipro, IBM, HCL, Cognizant, Accenture, GENPACT, Aegis, Mphasis, Dell, CSC, WNS, KPIT Cummins, Microsoft, Oracle, SAP
3500+ companies
70%
14%
16%
Total % of companies by type
ISPs
MNCs
GICs
1300+ companies
www.nasscom.in;
Non-NASSCOMINGRAM Micro
Copyright © 2013 Accenture. All rights reserved. 50Source: Accenture Research
Top 11 companies employ 1/3rd of the industry and contribute 50% of revenues
Types of companies % contribution to revenue and people employed
Copyright © 2013 Accenture. All rights reserved. 51Source: Accenture Research
• Top 4 companies contribute to more than 20% of industry headcount • Top 20 companies contribute to almost half of total headcount
Distribution of Employment among Companies
23%39%
48%57%
100%
0%
20%
40%
60%
80%
100%
120%
Top 4 Top 10 Top 20 Top 50 All 5000
% contribution to total headcount
Industry employment is fairly concentrated by Top 20 companies most of which employ people across all sub-sectors , therefore, more employment can be generated in companies other than the top 20.
Copyright © 2013 Accenture. All rights reserved. 52Source: Accenture Research
Distribution of Hiring among Top companies
• Top 4 companies contribute to almost half of the net hiring for entry-level• Top 10 companies contribute to 2/3rd of all net hiring
48%
79%92% 97% 100%
0%
20%
40%
60%
80%
100%
120%
Top 4 Top 10 Top 20 Top 50 All 5000
% contribution to net hiring
Copyright © 2013 Accenture. All rights reserved. 53Source: Accenture Research
Export market generates approximately 2/3rd of the Talent Demand
Employment by Customer/Market segment
Overall CAGR of 8.6%
Total ~3 mn
Total – ~2 mn
Total –~5.3 mn
; NASSCOM STR 2008-2013
0.9 1.0 1.0 1.2 1.3 1.4 1.5 1.6 1.8 1.9 2.1 2.2 2.4 0.6 0.7 0.8 0.8
0.9 0.9 1.0 1.1
1.1 1.2
1.3 1.4
1.5
0.5 0.5 0.5
0.6 0.6
0.6 0.7
0.8 0.9
1.0 1.1
1.2 1.4
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Total HeadcountIT Services and Software Exports (includes ER&D) BPO Exports Domestic Market
Copyright © 2013 Accenture. All rights reserved. 54Source: Accenture Research
More than 1/3rd of all hiring will be for domestic market by 2020
Hiring by Customer/Market segment
; NASSCOM STR 2008-2013
0.080.04
0.15 0.140.11 0.11 0.12 0.13 0.14 0.15 0.17 0.18
0.1
0.0
0.1 0.1
0.0 0.1 0.1 0.1
0.1 0.1
0.1 0.1
0.1
0.0
0.0 0.0
0.0
0.1 0.1
0.1 0.1
0.1 0.1
0.1
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Hiring (in millions)IT Services and Software Exports (includes ER&D) BPO Exports Domestic Market
Copyright © 2013 Accenture. All rights reserved. 55Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Talent Supply Ecosystem— Where is the supply coming from— Types of Institutions— Enrolments at various level — Growth in GER in the Past— Growth in Talent Pool for the IT-BPM Industry— Talent Supply Trends – Levels, Streams, Gender and States
Copyright © 2013 Accenture. All rights reserved. 55
Copyright © 2013 Accenture. All rights reserved. 56Source: Accenture Research
Where is the supply coming from? (1/2)UP and Rajasthan have the highest number of universities
CU: Central UniversitiesSU: State UniversitiesPU: Public UniversitiesDU: Deemed UniversitiesINI: Institutes of National Importance
Top 5 states in the given map in terms of total number of universitiesNext 5 states in the given map in terms of total number of universitiesStates in the given map with the lowest total number of universities
CU: 1SU: 17PU: 33DU:8INI: 2
Delhi• CU: 5• SU: 5• DU:10• INI: 3
CU: 1SU: 17PU: 33DU:8INI: 2
CU: 2SU: 18PU: 11DU:3INI: 2
CU: 1SU: 20DU:21INI: 2
CU: 1SU: 23PU: 3DU:15INI: 2
CU: 3SU: 32DU:7INI: 2
CU: 2SU: 19DU:29INI: 3
CU: 1SU: 11DU:2INI: 3
CU: 2SU: 15DU:2INI: 3
CU: 1SU: 12PU: 2DU:2INI: 2
CU: 1SU: 12PU: 6INI: 1
CU: 1SU: 22PU: 14DU:2INI: 2
CU: 1SU: 10PU: 14DU: 6INI: 1
CU: 1SU: 20PU: 1DU:1INI: 3
Copyright © 2013 Accenture. All rights reserved. 57Source: Accenture Research
Top 10 states in India with the highest number of universities
Where is the supply coming from? (2/2)
Copyright © 2013 Accenture. All rights reserved. 58Source: Accenture Research
Talent Supply into the IT-BPM Industry covers a wide gamut of sources including Schools, Colleges, Universities, ITIs and Polytechnics
Talent Supply Ecosystem – Prominent Categories
Copyright © 2013 Accenture. All rights reserved. 59Source: Accenture Research
INIs were set up to promote research and innovation. In reality, students passing out of these institutes join same employers and perform similar jobs
Talent Supply Ecosystem (2010-11)
; Educational Statistics At A Glance 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 60Source: Accenture Research
• Number of enrollments at the PhD/M Phil. levels are extremely low• This is the talent pool that drives innovation and research
Enrolments at various level (2010-11) - Across different levels
; Educational Statistics At A Glance 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 61Source: Accenture Research
An analysis of the enrollments at the different stages in the Education Ecosystem shows that of every 10 candidates enrolled in a graduate course ~1 opts for higher Education while the remaining ~9 join the Industry
Drop-outs at different levels in the Talent Supply Chain
Copyright © 2013 Accenture. All rights reserved. 62Source: Accenture Research
• Gross Enrollment Ratio (GER) in higher education is extremely low at 18% • Although GER has increased by over 50% from 2006 to 2011
Growth in GER over last 5 years
; Educational Statistics At A Glance 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 63Source: Accenture Research
An estimated 0.78 millions technically1 qualified graduates are expected to pass-out of the formal education space in 2013. Overall, ~5 millionsgraduates(across all streams) are expected to pass-out in 2013.
Talent Supply to the IT-BPM Industry
; Educational Statistics At A Glance 2011-12, MHRD
FY 2011 FY 2012 FY 2013 FY 2020
42,55,931 46,14,831
50,13,571
81,46,973
Total Talent Pool
FY 2011 FY 2012 FY 2013 FY 2020
4,89,535 6,23,306
7,76,177
15,74,380
Engineer/ Technology/ Architecture/ Design
1. Technical = Engg Degree + Engg. Diploma (PG + Post-school) + MCA
Copyright © 2013 Accenture. All rights reserved. 64Source: Accenture Research
The proportion of Post Graduates in the Talent Supply is extremely low. This leads to reduced prospects for R&D and Education areas within each area
Talent Supply Trends (1/3)Split by Levels
8%
7%
7%
6%
Budget Allocation for HEIs especially PG Education should be increased to ensure more PG are produced every year. Private participation in PG Education must also be encouraged
; Educational Statistics At A Glance 2011-12, MHRD
3.57 3.90 4.26 4.58 4.93
7.06 0.120.12
0.120.13
0.13
0.15
0.340.35
0.370.38
0.40
0.52
0.020.02
0.020.03
0.03
0.06
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
2011 2012 2013 2014 2015 2020
Mill
ions
Graduates Post Graduates Diploma PhD
Copyright © 2013 Accenture. All rights reserved. 65Source: Accenture Research
Talent Supply Trends (2/3) - Split by Streams
; Educational Statistics At A Glance 2011-12, MHRD
Copyright © 2013 Accenture. All rights reserved. 66Source: Accenture Research
• Engineering / Technology is mostly dominated by boys• Arts & Medicine are almost balanced in terms of gender diversity
Talent Supply Trends (3/3) - Split by Gender Diversity
54% 60% 59%71%
52%
81%63%
50%71% 78%
59%
46% 40% 41%29%
48%
19%37%
50%29% 22%
41%
Stream Wise
Boy Girl
60%
40%
India
Women enrolments should be encouraged more and more in professional courses such as Engineering and Management
; Educational Statistics At A Glance 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 67Source: Accenture Research
4.8%
4.9%
5.1%
5.1%
5.8%
5.9%
9.2%
9.2%
14.1%
15.3%
20.4%
Uttar Pradesh
Rajasthan
Gujarat
Kerala
Odisha
Haryana
Tamil Nadu
Karnataka
Maharashtra
Others
Andhra Pradesh
0.0% 10.0% 20.0% 30.0%
Percentage of UG talent from each state
About 60% of India’s supply of Engineering Talent comes from five states only. This trend is in-line with Talent Demand as well.
Talent Supply Trends – Analysis of States by Stream (1/13)Stream – Engineering / Technology / Architecture
2.9%
3.9%
3.9%
4.4%
8.5%
8.8%
9.1%
9.2%
10.3%
13.4%
25.5%
Kerala
Andhra Pradesh
Uttar Pradesh
Karnataka
Punjab
Delhi
West Bengal
Gujarat
Maharashtra
Others
Tamil Nadu
0.0% 10.0% 20.0% 30.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 68Source: Accenture Research
3.4%
4.8%
5.8%
6.1%
6.9%
7.9%
9.2%
9.4%
9.8%
17.7%
19.0%
Bihar
West Bengal
Delhi
Tamil Nadu
Gujarat
Madhya Pradesh
Karnataka
Uttar Pradesh
Andhra Pradesh
Others
Maharashtra
0.0% 5.0% 10.0% 15.0% 20.0%
Percentage of UG talent from each state
Maharashtra is the largest supplier of talent for Commerce stream both for Under Graduate (UG) and Post Graduate (PG) programs
Talent Supply Trends – Analysis of States by Stream (2/13)Stream - Commerce
2.4%
2.5%
2.7%
8.4%
9.8%
11.5%
13.7%
14.7%
34.3%
Chhattisgarh
Jharkhand
Andhra Pradesh
Uttar Pradesh
Tamil Nadu
Madhya Pradesh
Others
Gujarat
Maharashtra
0.0% 10.0% 20.0% 30.0% 40.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 69Source: Accenture Research
3.1%
3.2%
4.2%
6.1%
6.9%
10.3%
11.3%
11.3%
12.9%
13.1%
17.7%
Gujarat
Kerala
Karnataka
West Bengal
Bihar
Madhya Pradesh
Maharashtra
Tamil Nadu
Andhra Pradesh
Uttar Pradesh
Others
0.0% 10.0% 20.0%
Percentage of UG talent from each state
More than 60% of Science stream talent comes from 5 states : Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Tamil Nadu and Maharashtra
Talent Supply Trends – Analysis of States by Stream (3/13)Stream - Science
8.2%
1.3%
1.9%
2.0%
2.1%
2.3%
3.8%
3.8%
9.9%
11.9%
14.7%
18.6%
19.4%
Others
Chhattisgarh
Kerala
Bihar
Punjab
Gujarat
Rajasthan
West Bengal
Uttar Pradesh
Maharashtra
Tamil Nadu
Andhra Pradesh
Madhya Pradesh
0.0% 10.0% 20.0% 30.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 70Source: Accenture Research
2.7%
3.3%
3.6%
3.9%
4.2%
4.4%
4.6%
5.5%
9.1%
9.3%
10.2%
18.0%
21.2%
Gujarat
Delhi
Chhattisgarh
Tamil Nadu
Rajasthan
Madhya Pradesh
Uttarakhand
Karnataka
Bihar
West Bengal
Maharashtra
Others
Uttar Pradesh
0.0% 10.0% 20.0% 30.0%
Percentage of UG talent from each state
Almost 1/4th of Art stream talent supply comes from state of Uttar Pradesh
Talent Supply Trends – Analysis of States by Stream (4/13)Stream - Arts
11.7%
2.0%
3.6%
3.6%
4.2%
4.5%
4.8%
5.8%
6.1%
8.8%
9.5%
12.2%
23.1%
Others
Jammu & Kashmir
Andhra Pradesh
Rajasthan
Tamil Nadu
Uttarakhand
Bihar
Gujarat
West Bengal
Chhattisgarh
Madhya Pradesh
Maharashtra
Uttar Pradesh
0.0% 10.0% 20.0% 30.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 71Source: Accenture Research
14.5%
3.1%
3.2%
3.7%
3.8%
4.1%
4.7%
5.3%
8.1%
8.2%
8.4%
13.1%
19.9%
Others
Uttar Pradesh
Bihar
Rajasthan
Andhra Pradesh
West Bengal
Madhya Pradesh
Kerala
Gujarat
Maharashtra
Odisha
Tamil Nadu
Karnataka
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Percentage of UG talent from each state
Top supplier for Medical Talent are Karnataka, Gujarat, Maharashtra, Odisha & Tamil Nadu
Talent Supply Trends – Analysis of States by Stream (5/13)Stream - Medicine
7.1%
1.6%
2.2%
3.5%
3.6%
3.8%
5.4%
5.7%
7.0%
7.0%
14.0%
18.9%
20.1%
Others
West Bengal
Odisha
Madhya Pradesh
Delhi
Kerala
Rajasthan
Uttar Pradesh
Tamil Nadu
Maharashtra
Punjab
Karnataka
Gujarat
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 72Source: Accenture Research
10.5%
1.3%
1.4%
1.7%
3.4%
3.9%
4.5%
6.5%
14.0%
25.7%
27.0%
Others
Delhi
Madhya Pradesh
Bihar
Gujarat
Rajasthan
Karnataka
Andhra Pradesh
Maharashtra
Uttar Pradesh
West Bengal
0.0% 10.0% 20.0% 30.0%
Percentage of UG talent from each state
More than 50% of talent for Agriculture and Allied Streams come from Uttar Pradesh, Maharashtra & West Bengal
Talent Supply Trends – Analysis of States by Stream (6/13)Stream - Agriculture & Allied Stream
14.2%
2.5%
2.5%
3.4%
4.5%
5.2%
5.2%
5.2%
6.4%
9.1%
10.0%
14.2%
17.7%
Others
Himachal Pradesh
Haryana
Tamil Nadu
Rajasthan
Punjab
West Bengal
Andhra Pradesh
Gujarat
Karnataka
Madhya Pradesh
Maharashtra
Uttar Pradesh
0.0% 5.0% 10.0% 15.0% 20.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 73Source: Accenture Research
10.4%
2.0%
2.3%
3.1%
4.0%
4.0%
5.2%
5.6%
7.6%
14.4%
14.7%
26.7%
Others
Bihar
Delhi
West Bengal
Odisha
Karnataka
Maharashtra
Punjab
Haryana
Madhya Pradesh
Gujarat
Tamil Nadu
0.0% 10.0% 20.0% 30.0%
Percentage of UG talent from each state
• 27% of Under Graduate (UG) talent comes from Tamil Nadu• 20% of Post Graduate (PG) talent comes from Andhra Pradesh
Talent Supply Trends – Analysis of States by Stream (7/13)Stream – Management / Hotel / Travel / Tourism Stream
4.5%
1.5%
3.0%
4.1%
5.0%
5.3%
7.1%
7.6%
8.5%
8.5%
9.1%
16.2%
19.6%
Others
Delhi
Odisha
West Bengal
Punjab
Rajasthan
Haryana
Gujarat
Madhya Pradesh
Uttar Pradesh
Tamil Nadu
Maharashtra
Andhra Pradesh
0.0% 10.0% 20.0% 30.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 74Source: Accenture Research
13.9%
7.2%
8.3%
9.0%
10.2%
12.2%
12.6%
12.6%
13.9%
Others
Jammu & Kashmir
Andhra Pradesh
Rajasthan
Gujarat
Tamil Nadu
Haryana
Maharashtra
Uttar Pradesh
0.0% 5.0% 10.0% 15.0%
Percentage of UG talent from each state
Uttar Pradesh and Maharashtra are the biggest sources of both Under Graduate (UG) Talent for Education Stream
Talent Supply Trends – Analysis of States by Stream (8/13)Stream - Education / Teacher Training Stream
12.7%
2.2%
2.3%
2.6%
2.8%
3.3%
4.0%
4.4%
5.1%
5.6%
11.3%
11.6%
32.1%
Others
Rajasthan
Andhra Pradesh
West Bengal
Uttar Pradesh
Delhi
Gujarat
Punjab
Jammu & Kashmir
Madhya Pradesh
Tamil Nadu
Bihar
Maharashtra
0.0% 10.0% 20.0% 30.0% 40.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 75Source: Accenture Research
15.8%
3.2%
3.4%
3.6%
4.2%
4.2%
4.2%
4.6%
7.4%
9.0%
17.5%
22.9%
Others
West Bengal
Rajasthan
Assam
Odisha
Gujarat
Tamil Nadu
Karnataka
Bihar
Madhya Pradesh
Maharashtra
Uttar Pradesh
0.0% 10.0% 20.0% 30.0%
Percentage of UG talent from each state
A quarter of Law stream UG talent comes from state of Uttar Pradesh while more than a quarter of PG talent comes from Delhi
Talent Supply Trends – Analysis of States by Stream(9/13)Stream- Law Stream
9.5%
2.3%
2.5%
2.5%
3.1%
3.8%
4.9%
5.8%
5.8%
5.8%
6.5%
20.5%
27.0%
Others
Kerala
Assam
Rajasthan
Haryana
Andhra Pradesh
West Bengal
Jammu & Kashmir
Uttar Pradesh
Madhya Pradesh
Gujarat
Maharashtra
Delhi
0.0% 10.0% 20.0% 30.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 76Source: Accenture Research
4.2%
1.6%
1.6%
2.3%
2.6%
3.0%
3.8%
5.3%
8.6%
10.8%
13.2%
20.2%
22.7%
Others
Haryana
Nagaland
West Bengal
Himachal Pradesh
Uttar Pradesh
Tamil Nadu
Gujarat
Madhya Pradesh
Odisha
Delhi
Maharashtra
Bihar
0.0% 10.0% 20.0% 30.0%
Percentage of UG talent from each state
40% of UG talent for other streams come from Bihar & Maharashtra while 40 % of PG talent for Other Streams comes from Gujarat
Talent Supply Trends – Analysis of States by Stream (10/13)Stream - Other Streams
4.8%
1.1%
2.0%
2.2%
2.2%
2.9%
3.2%
3.3%
4.2%
9.1%
12.2%
12.5%
40.3%
Others
Punjab
Himachal Pradesh
Uttar Pradesh
West Bengal
Bihar
Tamil Nadu
Haryana
Delhi
Madhya Pradesh
Maharashtra
Odisha
Gujarat
0.0% 20.0% 40.0% 60.0%
Percentage of PG talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 77Source: Accenture Research
Maharashtra & Gujarat supply more than a third of Post School Diploma talent
Talent Supply Trends – Analysis of States by Stream (11/13)Stream - Post School Diploma
10.4%
2.1%
2.2%
2.3%
2.7%
2.8%
2.9%
7.3%
7.6%
10.7%
13.1%
13.4%
22.5%
Others
Rajasthan
Kerala
Madhya Pradesh
Delhi
Punjab
Uttar Pradesh
Haryana
Tamil Nadu
Karnataka
Andhra Pradesh
Gujarat
Maharashtra
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Percentage of Post School Diplomasfrom each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 78Source: Accenture Research
41% of PG Diploma talent from the state of Madhya Pradesh
Talent Supply Trends – Analysis of States by Stream(12/13)Stream- PG Diploma
6.1%
1.1%
1.2%
1.2%
2.2%
2.7%
2.8%
3.8%
4.5%
9.3%
11.5%
12.6%
40.8%
Others
Puducherry
Uttar Pradesh
Assam
Himachal Pradesh
Delhi
Rajasthan
West Bengal
Karnataka
Gujarat
Maharashtra
Chhattisgarh
Madhya Pradesh
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%
Percentage of PG Diploma talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 79Source: Accenture Research
Tamil Nadu and Andhra Pradesh supply more than a third of Phd/ M. Phil talent
Talent Supply Trends – Analysis of States by Stream (13/13)Stream - PhD / M Phil
12.3%
2.0%
2.3%
2.9%
3.4%
3.7%
4.5%
5.0%
8.7%
8.9%
11.4%
12.8%
22.2%
Others
Kerala
Punjab
Bihar
Gujarat
Himachal Pradesh
West Bengal
Madhya Pradesh
Maharashtra
Uttar Pradesh
Delhi
Andhra Pradesh
Tamil Nadu
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Percentage of PhD/MPhil talent from each state
; Educational Statistics 2010-11, MHRD
Copyright © 2013 Accenture. All rights reserved. 80Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Analysis of Supply Chain w.r.t. Academic outcomes— Summary of Academic Outcomes— Assessment Insights— Summary of analysis of curricula— Curricula Evaluation— Analysis of curricula w.r.t. academic outcomes using Bloom’s Taxonomy— Critical competencies for the IT-BPM Industry— Learning outcomes identified by NBA— Detailed note on Bloom’s Taxonomy of Learning Outcomes
Copyright © 2013 Accenture. All rights reserved. 80
Copyright © 2013 Accenture. All rights reserved. 81Source: Accenture Research
The following courses were chosen:1. Bachelors in Technology (B. Tech.)
2. Bachelors in Science
3. Bachelors in Arts
4. Bachelors in Commerce
5. Bachelors in Law
6. Bachelors in Education
7. Bachelors in Medicine Bachelors in Surgery (MBBS)
8. Masters in Business Administration (MBA)
• An analysis of 8 courses across streams and colleges was conducted to assess the academic outcomes w.r.t. formative and summative assessments
• The courses were assessed using the Bloom’s Taxonomy for learning objectives
Summary of Academic Outcomes
Copyright © 2013 Accenture. All rights reserved. 82Source: Accenture Research
Relatively, the reviewed curricula focused more on Cognitive Domain than on Affective Domain and Psychomotor Domain
Analysis of skills within the Cognitive domain reveals that the curricula lacks focus on higher order Cognitive Skills
While almost all curricula focus on the end objective of theory and knowledge elements, elements such as synthesis and evaluation are not focused in the evaluated curricula
Based on calculated scores B. Tech, MBBS and MBA programs emerged to be the top 3 courses when evaluated on a set framework of Bloom’s Taxonomy of Learning objectives
The courses seem to focus a lot on the Knowledge elements and focused heavily on developing theory in the requisite areas
All courses focused minimally on the Affective domain an observation that has been validated with senior recruitment professionals- this has led to high skills gaps on softer aspects of Communication and Business Conduct
The analysis highlighted key areas of strength and need for improvements w.r.t. outcomes expected by the Industry
Assessments insights
Copyright © 2013 Accenture. All rights reserved. 83Source: Accenture Research
Summary of analysis of curricula using Bloom’s Taxonomy
Domain Learning Objectives B Arts BCom B Sc B Tech MBBS LLBMBA/PGDB
MB Ed
Cognitivedomain
Knowledge
Comprehension
Application
Analysis
Synthesis
Evaluation
Affective domain
ListeningResponding to phenomenon
Valuing
Organization
Internalizing values
Psychomotor domain
Perception
Set
Guided Response
MechanismComplex Overt Response
Adaptation
Origination
Copyright © 2013 Accenture. All rights reserved. 84Source: Accenture Research
The courses and institutes were chosen to holistically represent regional coverage and based on preferred institutions as selected by ~300 organizations over an online survey from a range of Institutes including Anna University, Punjab University, AIIMS, Delhi University etc.
We analysed the curricula from a representative sample of institutes for the following courses
Bachelor of Science Bachelor of Education
Bachelor of Commerce
Bachelor of Law
MBBS Bachelor of Technology Bachelor of Arts
MBA
Copyright © 2013 Accenture. All rights reserved. 85Source: Accenture Research
The reviewed course curricula lacked focus on Ideation and Innovation related skills. B. Com. curricula also did not seem to lay enough emphasis on Decision making skills, which are extremely important in Finance jobs
Summary of curricula evaluation (1/3)
S. No. Course Course Analysis
1 B. Arts
The evaluated Arts curriculum focused on theory elements of English, Local Language, Economics, Geography, Sociology, Political Sciences etc. It included minimal components of practical or industry exposure. The course also focuses on culture, values and social ethics. Community workIdeation was one of the key areas that was missing
2 B. Com.
The evaluated Commerce curriculum focused on theory elements of Financial Accounting, Business Communication, Business Mathematics, Statistics, Economics etc. It included components of accounting standards and account maintenance. There were components of financial analysis of organizations as part of projects but practical exposure was missing.Decision making as a result of analysis and Ideation were some of the key areas that was missing
3 B. Sc.
The evaluated Science curriculum focused on theory elements of Physics, Chemistry, Biology, Statistics, Computer Science, Mathematics etc. It included a good mix of practical and theoretical subjects especially in the area of Physics, Chemistry and Biology. However, the curricula focused less on research and ideation but more on understanding application of theory.Ideation and innovation/Research skills were the key areas that were missing
Copyright © 2013 Accenture. All rights reserved. 86Source: Accenture Research
The evaluated Engineering curricula was found to be a balanced mix of theoretical and practical knowledge. Research related skills was lacking focus.
Summary of curricula evaluation (2/3)
S. No. Course Summary analysis
4 B. Tech.
The evaluated Engineering curriculum focused on theory elements of Applied Physics, Chemistry, Mathematics, Computer Systems, Electronics and Electrical Systems etc. The curriculum was found to be an optimum mix of practical and theoretical subjects. The practical subjects focused essentially on the application of theory. The curriculum also comprised of research and project work however original research/ideation was not mandatory but only optional.Due importance was assigned for professional experience (internship) by assigning credits and dedicating a window of time for the same.Ideation and innovation/Research skills were the key areas that were missing
5 MBBS
The evaluated Medicine curriculum focused on theory elements of Anatomy, Biochemistry, Physiology, Medicine, Surgery, Psychiatry etc. The curriculum was observed to be a good mix of theory and practical courses. It however appeared to contain too many subjects in the duration of the course/subject. The focus on practical and hands-on learning was extremely high.It covered courses pertaining to community welfare and social medicine. Additionally, the course curriculum gives due importance to practical exposure by dedicating one year for internship.Ideation and innovation/Research skills were the key areas that were missing
6 LLB
The evaluated Law curriculum focused on theory elements of Law of Contract, Family Law, Constitutional Law, Law of Torts, Environmental Law, Company Law etc. The curricula seemed too much fact and theory based. There was too less of a focus on practical aspects of application of law.The curriculum did focus on case studies to highlight reference to the laws in real scenarios, however the proportion of this methodology was quite less.Application of law, practical exposure and ideation and innovation were the key areas that were missing
Copyright © 2013 Accenture. All rights reserved. 87Source: Accenture Research
The MBA curricula was one of the rare courses that lay due importance to application of theory in the form of academic projects and all-round evaluation.
Summary of curricula evaluation (3/3)
S. No. Course Summary analysis
7MBA/PGDB
M
The evaluated management curriculum focused on theory elements of Financial Management, Marketing, Organization Behavior, Operations Management etc. The curriculum was a mix of theoretical subjects and project work to apply the theoretical knowledge. There was due importance in terms of credits assigned to application of theory in the form of academic projects.Due importance was assigned for professional experience(internship) by assigning credits and dedicating a window of time for the same. The curriculum was closely integrated with the skills demanded by the industry.Ideation and innovation/research skills were the key areas that were missing
8 B Ed
The evaluated management curriculum focused on theory elements of the role of Education System, Sociology, Culture and Values Systems etc. The curriculum focuses on teaching methodology and less on theoretical subjects. The curriculum focused on understanding the bigger picture of education, culture and the impact of education on the social structure.Importance was also given to practical exposure in the form of community based project workIdeation and innovation/research skills were the key areas that were missing
Copyright © 2013 Accenture. All rights reserved. 88Source: Accenture Research
Key learning outcomes that the courses focused on were identified based on Bloom’s Taxonomy. Learning outcomes based on NOS that should be included in the curricula have been highlighted for each course.
Recommended learning outcomes based on NOS(1/2)
S. No. Course Key Learning Outcomes – As is Key Learning outcomes - Desired
1 B. Arts
• Knowledge• Comprehension• Valuing• Organization
• Analytical Thinking• Application• Problem Solving/ Synthesis• Responding to Phenomenon, Adaption• Innovation/Creativity/ Origination
2 B. Com.
• Knowledge• Comprehension• Analysis• Evaluation• Organization
• Problem Solving/ Synthesis• Responding to Phenomenon, Adaption• Innovation/Creativity/ Origination• Oral Communication
3 B.Sc.
• Knowledge• Comprehension• Analysis• Evaluation• Organization
• Problem Solving/ Synthesis• Responding to Phenomenon, Adaption• Innovation/Creativity/ Origination• Oral Communication• Internalizing values
4 B. Tech.
• Knowledge• Comprehension• Analysis• Evaluation• Mechanism• Complex response
• Problem Solving/ Synthesis• Innovation/Creativity/ Origination• Valuing• Application
Copyright © 2013 Accenture. All rights reserved. 89Source: Accenture Research
Key learning outcomes that the courses focused on were identified based on Bloom’s Taxonomy. Learning outcomes based on NOS that should be included in the curricula have been highlighted for each course
Recommended learning outcomes based on NOS(2/2)
S. No. Course Key Learning Outcomes Learning outcomes which should be included
5 MBBS
• Knowledge• Application• Valuing• Set• Guided Response• Complex Response
• Responding to Phenomenon, Adaption• Plan and Organize• Innovation/Creativity/ Origination
6 L.LB
• Knowledge• Comprehension• Analysis• Evaluation
• Analytical Thinking• Problem Solving/ Synthesis• Responding to Phenomenon, Adaption• Innovation/Creativity/ Origination
7 MBA/PGDBM
• Knowledge• Comprehension• Analysis• Evaluation• Mechanism• Complex response
• Guided response• Mechanism• Responding to Phenomenon, Adaption• Innovation/Creativity/ Origination
8 B. Ed.
• Knowledge• Evaluation• Valuing• Comprehension• Application
• Internalizing values• Analytical Thinking• Problem Solving/ Synthesis• Responding to Phenomenon, Adaption• Innovation/Creativity/ Origination• Internalizing values
Copyright © 2013 Accenture. All rights reserved. 90Source: Accenture Research
a) System-level perspective (including Knowledge integration, consideration for multilateral viewpoint, and user centeredness)
b) Analytical skills (including investigative skills, critical thinking, numerical ability, attention to detail, visualize/conceptualize, research and experimentation skills)
c) Creativity and Idea Initiation
d) Entrepreneurship, Decision-making, Project Planning and Adaptability
e) Persuasion skills, Mentoring skills, Persistence and Sense of urgency
f) Sensitivity towards moral responsibilities and sustainability
g) Knowledge of contemporary issues
h) Ability to work in multicultural teams
i) Listening
j) Adaptability and ability to multi-task
k) Organizational skills
l) ‘Be the customer’ mentality
m) Project planning and management
n) Stress management
Following outcomes have been identified as critical success factors for employment in the IT-BPM Industry
Using a combination of Primary and Secondary research we have identified the following competencies to be critical for IT-BPM Industry
Copyright © 2013 Accenture. All rights reserved. 91Source: Accenture Research
NBA – India’s only official accreditation body for engineering education has established 11 Program Outcomes. The analysed courses lacked highly on Communication, Contemporary issues, Design skills.
Expected learning outcomes identified by National Board of Accreditation (NBA)
The NBA is a provisional member of the Washington Accord — an international agreement between accreditation agencies for engineering education for 18 countries. The NBA criteria are:
a) Graduates will demonstrate knowledge of mathematics, science and engineering
b) Graduates will demonstrate an ability to identify, formulate and solve engineering problems
c) Graduates will demonstrate an ability to design and conduct experiments, analyze and interpret data
d) Graduates will demonstrate an ability to design a system, component or process as per needs and specifications
e) Graduates will demonstrate an ability to visualize and work on laboratory and multidisciplinary tasks
f) Graduate will demonstrate skills to use modern engineering tools, techware and equipment to analyze problems
g) Graduates will demonstrate knowledge of professional and ethical responsibilities
h) Graduate will be able to communicate effectively in both verbal and written form
i) Graduate will show the understanding of impact of engineering solutions on the society and also will be aware of contemporary issues
j) Graduate will develop confidence for self-education and ability for life-long learning
k) Graduate who can participate and succeed in competitive examinations.
Copyright © 2013 Accenture. All rights reserved. 92Source: Accenture Research
Cognitive Domain
Detailed note on Bloom’s Taxonomy of Learning Outcomes(1/3)
Category ExampleKnowledge: Recall data or information Examples: Recite a policy. Quote prices from memory to a customer. Knows the safety rules.
Comprehension: Understand the meaning, translation, interpolation, and interpretation of instructions and problems. State a problem in one's own words
Examples: Rewrites the principles of test writing. Explain in one's own words the steps for performing a complex task. Translates an equation into a computer spreadsheet.
Application: Use a concept in a new situation or unprompted use of an abstraction. Applies what was learned in the classroom into novel situations in the work place
Examples: Use a manual to calculate an employee's vacation time. Apply laws of statistics to evaluate the reliability of a written test.
Analysis: Separates material or concepts into component parts so that its organizational structure may be understood. Distinguishes between facts and inferences
Examples: Troubleshoot a piece of equipment by using logical deduction. Recognize logical fallacies in reasoning. Gathers information from a department and selects the required tasks for training.
Synthesis: Builds a structure or pattern from diverse elements. Put parts together to form a whole, with emphasis on creating a new meaning or structure
Examples: Write a company operations or process manual. Design a machine to perform a specific task. Integrates training from several sources to solve a problem. Revises and process to improve the outcome.
Evaluation: Make judgments about the value of ideas or materials
Examples: Select the most effective solution. Hire the most qualified candidate. Explain and justify a new budget.
Copyright © 2013 Accenture. All rights reserved. 93Source: Accenture Research
Affective Domain
Detailed note on Bloom’s Taxonomy of Learning Outcomes (2/3)
Category Example
Receiving Phenomena: Awareness, willingness to hear, selected attention.
Examples: Listen to others with respect. Listen for and remember the name of newly introduced people.
Responding to Phenomena: Active participation on the part of the learners. Attends and reacts to a particular phenomenon. Learning outcomes may emphasize compliance in responding, willingness to respond, or satisfaction in responding (motivation).
Examples: Participates in class discussions. Gives a presentation. Questions new ideals, concepts, models, etc. in order to fully understand them. Know the safety rules and practices them.
Valuing: The worth or value a person attaches to a particular object, phenomenon, or behavior. This ranges from simple acceptance to the more complex state of commitment. Valuing is based on the internalization of a set of specified values, while clues to these values are expressed in the learner's overt behavior and are often identifiable.
Key Words: completes, demonstrates, differentiates, explains, follows, forms, initiates, invites, joins, justifies, proposes, reads, reports, selects, shares, studies, works.
Organization: Organizes values into priorities by contrasting different values, resolving conflicts between them, and creating an unique value system. The emphasis is on comparing, relating, and synthesizing values.
Examples: Recognizes the need for balance between freedom and responsible behavior. Accepts responsibility for one's behavior. Explains the role of systematic planning in solving problems. Accepts professional ethical standards. Creates a life plan in harmony with abilities, interests, and beliefs. Prioritizes time effectively to meet the needs of the organization, family, and self.
Internalizing values (characterization): Has a value system that controls their behavior. The behavior is pervasive, consistent, predictable, and most importantly, characteristic of the learner. Instructional objectives are concerned with the student's general patterns of adjustment (personal, social, emotional).
Examples: Shows self-reliance when working independently. Cooperates in group activities (displays teamwork). Uses an objective approach in problem solving. Displays a professional commitment to ethical practice on a daily basis. Revises judgments and changes behavior in light of new evidence. Values people for what they are, not how they look.
Copyright © 2013 Accenture. All rights reserved. 94Source: Accenture Research
Psychomotor Domain
Detailed note on Bloom’s Taxonomy of Learning Outcomes (3/3)
Category ExamplePerception: The ability to use sensory cues to guide motor activity. This ranges from sensory stimulation, through cue selection, to translation.
Examples: Detects non-verbal communication cues. Estimate where a ball will land after it is thrown and then moving to the correct location to catch the ball. Adjusts heat of stove to correct temperature by smell and taste of food. Adjusts the height of the forks on a forklift by comparing where the forks are in relation to the pallet.
Set: Readiness to act. It includes mental, physical, and emotional sets. These three sets are dispositions that predetermine a person's response to different situations (sometimes called mindsets).
Examples: Knows and acts upon a sequence of steps in a manufacturing process. Recognize one's abilities and limitations. Shows desire to learn a new process (motivation). NOTE: This subdivision of Psychomotor is closely related with the “Responding to phenomena” subdivision of the Affective domain.
Guided Response: The early stages in learning a complex skill that includes imitation and trial and error. Adequacy of performance is achieved by practicing.
Examples: Performs a mathematical equation as demonstrated. Follows instructions to build a model. Responds hand-signals of instructor while learning to operate a forklift.
Mechanism: This is the intermediate stage in learning a complex skill. Learned responses have become habitual and the movements can be performed with some confidence and proficiency.
Examples: Use a personal computer. Repair a leaking faucet. Drive a car.
Complex Overt Response: The skillful performance of motor acts that involve complex movement patterns. Proficiency is indicated by a quick, accurate, and highly coordinated performance, requiring a minimum of energy. This category includes performing without hesitation, and automatic performance. For example, players are often utter sounds of satisfaction or expletives as soon as they hit a tennis ball or throw a football, because they can tell by the feel of the act what the result will produce.
Examples: Maneuvers a car into a tight parallel parking spot. Operates a computer quickly and accurately. Displays competence while playing the piano.
Adaptation: Skills are well developed and the individual can modify movement patterns to fit special requirements.
Examples: Responds effectively to unexpected experiences. Modifies instruction to meet the needs of the learners. Perform a task with a machine that it was not originally intended to do (machine is not damaged and there is no danger in performing the new task).
Origination: Creating new movement patterns to fit a particular situation or specific problem. Learning outcomes emphasize creativity based upon highly developed skills.
Examples: Constructs a new theory. Develops a new and comprehensive training programming. Creates a new gymnastic routine.
Copyright © 2013 Accenture. All rights reserved. 95Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Talent Demand-Supply Analysis— Hiring and Talent Supply in IT-BPM Industry— Employable Talent Supply— Talent Demand-Supply Analysis- Entry level (0-2 yrs.)— Talent Demand-Supply Analysis- Experienced level (>2 yrs.)— Talent Demand-Supply Analysis by Region and State
PS: The analytics in this section consider supply as ‘employable supply’ the same has been defined in the initial slides in the section
Copyright © 2013 Accenture. All rights reserved. 95
Copyright © 2013 Accenture. All rights reserved. 96Source: Accenture Research
Though companies hire across all levels, 95% of the net hiring or net job-creation for industry is at the entry-level
Hiring in IndustryNet hiring / Job-creation Funneling
Net Hiring ~ 0.2 million
--Attrition
+Lateral Hiring
+Fresher Hiring
--Attrition
Gross Hiring ~ 0.4 million
FY 2013E
xper
ienc
edE
ntry
leve
l
Company A
Exp
erie
nced
Ent
ry le
vel
Company B
FROM COLLEGES
Exp
erie
nced
Ent
ry le
vel
Other industry
Copyright © 2013 Accenture. All rights reserved. 97Source: Accenture Research
Total Supply from Technical Streams
Willing to work in IT-BPM
Employable
Out of the total talent from technical stream and willing to work in the IT-BPM Industry ~24% are employable in the IT-BPM Industry (exported oriented / high end occupations).
Talent Supply for IT-BPM Industry - Non BPM sub-sector
80%
24%
Percentage Available Talent Supply ( for 2013)
100
80
24
0.78 millions
0.62 millions
0.15 millions
Copyright © 2013 Accenture. All rights reserved. 98Source: Accenture Research
Out of the total supply from non-technical streams and willing to work in the IT-BPM Industry ~18% are employable in the IT-BPM Industry (BPM sub-sector)
Talent Supply for IT-BPM Industry - BPM sub-sector
Total Supply of Other Streams
Willing to work in IT-BPM
Employable
60%
18%
Percentage Available Talent Supply
100
60
18
4.24 millions
2.54 millions
0.46 millions
Copyright © 2013 Accenture. All rights reserved. 99Source: Accenture Research
Overall considering total supply from All streams and willing to work in the IT-BPM Industry ~20% are employable in the IT-BPM Industry
Talent Supply for IT-BPM Industry- BPM sub-sector
Total Supply of Other Streams
Willing to work in IT-BPM
Employable
62%
20%
Percentage Available Talent Supply
100
62
20
5.11 millions
3.16 millions
0.61 millions
Copyright © 2013 Accenture. All rights reserved. 100Source: Accenture Research
Only ~0.15 mn technically qualified candidates are estimated to be employable in the non BPM sub-sectors out of the ~8 mn people supplied from technical streams in 2013. This proportion is lower for other streams
Employable Talent Supply for IT-BPM Sector
0.78 0.62
0.15
4.24
2.54
0.46
5.01
3.16
0.61
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Tota
l
Willi
ng
Em
ploy
able
Tota
l
Willi
ng
Em
ploy
able
Tota
l
Willi
ng
Em
ploy
able
Technical non Technical All graduates
Mill
ions 2013
1.6
0.9
0.2
6.6
3.0
0.5
8.1
3.9
0.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Tota
l
Willi
ng
Em
ploy
able
Tota
l
Willi
ng
Em
ploy
able
Tota
l
Willi
ng
Em
ploy
able
Technical non Technical All graduates
Mill
ions 2020
Copyright © 2013 Accenture. All rights reserved. 101Source: Accenture Research
Talent Demand-Supply Analysis : IT-BPM IndustryAssuming the most likely* scenario for growth in employment, the availability of talent will continue to be in excess of the demand
* @ 9 percent p.a; Educational Statistics At A Glance 2011-12, MHRD
Copyright © 2013 Accenture. All rights reserved. 102Source: Accenture Research
Talent Demand-Supply Analysis : BPM sub-sectorFor BPM sub-sector, the demand supply gap will be relatively larger. This is due to the fact that the non-Engineering talent is potential supply to each and every industry in the Indian economy.
* @ 9 percent p.a; Educational Statistics At A Glance 2011-12, MHRD
2011 2012 2013 2020Demand BPM 74,400 71,300 60,140 1,47,688Employable non engineers 4,06,771 4,31,085 4,57,639 5,32,380
-
1,00,000
2,00,000
3,00,000
4,00,000
5,00,000
6,00,000
Demand-Supply analysis - BPM sub-sector
Copyright © 2013 Accenture. All rights reserved. 103Source: Accenture Research
By 2020, the gap between demand and supply is expected to reduce, which will become a challenge as high-growth industries such as electronics, retail, telecom, healthcare, infrastructure will attract talent from the same supply pool
Talent Demand-Supply Analysis by 2020
; NASSCOM STR 2008-2013;
Copyright © 2013 Accenture. All rights reserved. 104Source: Accenture Research
The supply for experienced people is highly constrained as this is where companies hire from each other, 95% of net job creation is at entry level
Level wise analysis (entry and experienced)
Copyright © 2013 Accenture. All rights reserved. 105Source: Accenture Research
Demand is ~60% for South region while the Supply is fairly well-distributed across all regions
Talent Demand-Supply Analysis By Region
; STPI Annual Report 2008-11
Copyright © 2013 Accenture. All rights reserved. 106Source: Accenture Research
Karnataka, Delhi, Maharashtra, Tamil Nadu and Andhra Pradesh account for 86% of all jobs created in country, this figure was 90% 5 years back
Current Talent Demand Analysis By State
; STPI Annual Report 2008-11
Copyright © 2013 Accenture. All rights reserved. 107Source: Accenture Research
5 States – Maharashtra, Uttar Pradesh, Andhra Pradesh, Tamil Nadu and Karnataka contribute to more than 50%of the total potential supply for IT-BPM
Talent Supply Analysis By State
Copyright © 2013 Accenture. All rights reserved. 108Source: Accenture Research
• Delhi and Chandigarh face a supply crunch• Uttar Pradesh and Haryana dominate the employable supply in the North Region
Demand-Supply Gap North Region
; STPI Annual Report 2008-11
Copyright © 2013 Accenture. All rights reserved. 109Source: Accenture Research
In Karnataka demand exceeds supply by ~30%
Demand-Supply Gap South and East
; STPI Annual Report 2008-11
Copyright © 2013 Accenture. All rights reserved. 110Source: Accenture Research
Madhya Pradesh could be evaluated as a new destination for IT-BPM jobs
Demand-Supply Gap West and Central
; STPI Annual Report 2008-11
Copyright © 2013 Accenture. All rights reserved. 111Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Recommendations
Copyright © 2013 Accenture. All rights reserved. 111
Copyright © 2013 Accenture. All rights reserved. 112Source: Accenture Research
The report makes recommendations to resolve the key issues identified. Corrective actions and data-based policy making can ensure that the Industry comes out stronger and continues on the path of growth
Summary of Recommendations
Recommendations
Change positioning
from service
based to product based
Locate Demand closer to Supply bases
Devise Skill
Development
Initiatives based on
the foundation
of Occupatio
nal Standards
Set-up more
Vocational Training facilities
and Community colleges to impart skills that improve
‘job-readiness’
Promote Innovation
and Ideation in
Higher Education curricula
Undertake a more
data based
decision making
approach to policy
Copyright © 2013 Accenture. All rights reserved. 113Source: Accenture Research
• As quality talent saturates especially in the traditional centers of Indian IT-BPM Industry, migration is becoming the norm
• This situation, combined with high attrition as result of incessant competition with other players is leading to increased manpower costs and are reducing the overall competitiveness of the Industry
• There thus exists a need for the organizations, to re-look at the operational centers and consider Tier 2 and 3 cities for setting up shops
• Such a movement can greatly benefit the organizations/industry by:–Leveraging home base preference of some professionals
–Tapping comparatively less mobile BPO talent
–Providing Better quality of life with lower commute times, cost of living, pollution levels etc.
–Reducing costs of operation
Issue: High regional concentration in four states and excessive focus on Tier 1 cities to establish shops
Locate Demand closer to Supply bases (1/2)
Copyright © 2013 Accenture. All rights reserved. 114Source: Accenture Research
If Infrastructure and Political factors can be managed, movement to Tier 2 cities can prove to be a game changer for the Indian IT-BPM Industry in the current decade
Locate Demand closer to Supply bases (2/2)
A NASSCOM and AT Kearney report categorized 50 Indian cities on a scale of location attractiveness into the following categories:• Leaders: Bangalore, Chennai, Hyderabad, Kolkata,
Mumbai, NCR, Pune• Challengers: Ahmedabad, Bhubaneshwar, Chandigarh,
Jaipur, Madurai etc.• Followers: Bhopal, Goa, Kanpur ,Surat etc.• Aspirants: Allahabad, Gangtok, Ludhiana etc.
Recent moves by the government suggest that it is supporting this movement in policy by encouraging SEZs in Tier 2 and 3 cities.
The Industry must now play its part in contributing to the development of these cities and attempting to develop and capture local pool in these cities
Copyright © 2013 Accenture. All rights reserved. 115Source: Accenture Research
Issue: Need to increase revenue per employee contribution
The industry should change its positioning from service-based industry to a product based industry
Copyright © 2013 Accenture. All rights reserved. 116Source: Accenture Research
Issue: Insufficient PG and PhD/M. Phil talent poolCurrently, the Industry is churning out a mere ~25,000 PhDs and ~500,000 PGs. Of every 1000 candidates who enroll in Primary Education only ~13 reach the PG stage and ~1 reaches Doctorate education
Promote Innovation and Ideation in Higher Education curricula(1/2)Supply of Post Graduates and PhDs is extremely low
Post RTE implementation there has been a remarkable improvement in GERs for Primary and Secondary Education.
The Government now needs to ensure that these benefits also reach out to the higher education sector
100%
79%64%
49%
30%
12%1.27% 0.07%
0%
20%
40%
60%
80%
100%
120%
India
Drop in Talent Enrolment
Class I
Class V
Class VIII
Class X
Class XII
Graduates (incl. Diploma courses)
PG
Doctorates
Copyright © 2013 Accenture. All rights reserved. 117Source: Accenture Research
Education policy level changes are required to ensure that the supply in these areas increases leading to an increase in Innovation and Research facilities in India
Promote Innovation and Ideation in Higher Education curricula(2/2)Supply of Post Graduates and PhDs is extremely low
Copyright © 2013 Accenture. All rights reserved. 118Source: Accenture Research
• It is a well accepted fact that the quality of skills imparted is highly inconsistent across the different institutes in the Supply Ecosystem
• While India is churning out huge numbers of Engineers every year, their quality is now starting to be heavily questioned
• There is thus a need for skill development, both in the formal as well as non-Formal Educational system to bridge the employability gap
• We recommend that these skill development initiatives be based on Occupational Standards
• In the short term, the Vocational Training providers should develop fast track training programs to impart ‘right’ skills that make students ‘job ready’
• In the medium to long term OS should lead to redesign of curricula in the Indian Higher Education System
Issue: Extremely low employability rates for both Engineering and non-Engineering graduates
Execute Focused Skill Development Initiatives based on the foundation of Occupational Standards(1/2)
Copyright © 2013 Accenture. All rights reserved. 119Source: Accenture Research
Both Public and Private participation should be encouraged to ensure skill development happens at a fast rate
Execute Focused Skill Development Initiatives based on the foundation of Occupational Standards(2/2)
Copyright © 2013 Accenture. All rights reserved. 120Source: Accenture Research
22 high-growth sectors identified by NSDC for skill development, most of them are clients/industry verticals of IT-BPM industry
Occupational Standards (OS) developed by SSC organisations for all industry sectors to facilitate cross-industry movements
Copyright © 2013 Accenture. All rights reserved. 121Source: Accenture Research
Issue: Low Graduate Employability Ratios indicate that talent is available in quantity but not quality
Set-up more Vocational Training facilities and Community colleges to impart ‘job-readiness’ skillsets(1/2)
• Research conducted by NSSO for the ILO shows 48 percent of employers reported having difficulty in filling jobs
• Another research conducted by IMaCs and NSDC, showed that there exists a growing need to increase employability by implementing skill development programs by offering strong market linkages, specialized skill development, continuation of learning etc.
• It also goes on to identify a need for a strong system where Vocational Skill Building is imparted as a part of Education
Copyright © 2013 Accenture. All rights reserved. 122Source: Accenture Research
Vocational Training largely offered through ITIs and ITCs falls under the ambit of MoLE through the Directorate General of Education and Training (DGET)The DGET must ensure the implementation of the National Policy through the State Governments and their agencies
Set-up more Vocational Training facilities and Community colleges to impart ‘job-readiness’ skillsets (2/2) National Policy on Skills Development
Copyright © 2013 Accenture. All rights reserved. 123Source: Accenture Research
Issue: Lack of structured information and analysis around Talent demand-Supply situation
Undertake a more data based decision making approach to policy (1/2)
Copyright © 2013 Accenture. All rights reserved. 124Source: Accenture Research
• Primary research on employment and employability of school pass-outs (NVEQF Level 1-3)
• Talent Demand-Supply analysis drilled-down to the level of occupation and job-role• Mobility studies indicating percentage of talent moving to Ties 1 cities for
employment in IT-BPM Industry
Following additional analysis are recommended based on the preliminary findings of this report
Undertake a more data based decision making approach to policy(2/2)
Copyright © 2013 Accenture. All rights reserved. 125Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Appendix
Copyright © 2013 Accenture. All rights reserved. 125
Copyright © 2013 Accenture. All rights reserved. 126Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
List of Appendices
Appendix A: State ProfilesAppendix B: Qualitative skill gaps by sub-sectorAppendix C:Analysis of Talent Demand-Supply gaps by RegionsAppendix D: Definitions used in the report
Copyright © 2013 Accenture. All rights reserved. 126
Copyright © 2013 Accenture. All rights reserved. 127Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Appendix – A State Profiles— State wise Analysis of Talent Supply — Enrollment in Streams and Availability across levels
Copyright © 2013 Accenture. All rights reserved. 127
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• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Appendix BSkill Gaps by Sub-sector
Copyright © 2013 Accenture. All rights reserved. 153
Copyright © 2013 Accenture. All rights reserved. 154Source: Accenture Research
More than 50% of Organizations consider Java & Testing skills to be most sought after
Technical Skills in Demand Today: IT Services Sub-Sector
Copyright © 2013 Accenture. All rights reserved. 155Source: Accenture Research
More than 50% of Organizations consider Java and . NET Framework to be high demand skill areas in future
Technical Skills in Demand in Future: IT Services Sub-Sector
Copyright © 2013 Accenture. All rights reserved. 156Source: Accenture Research
More than a third of the organizations feel that there exists a skill gap for Cloud Computing, Java, Testing , Software Development Lifecycle and DBMS
Skill Gaps in IT Services Sub-sector (1/2)
Copyright © 2013 Accenture. All rights reserved. 157Source: Accenture Research
More than 60% of organizations observe a need to improve Communication and Problem solving skills of the workforce
Skill Gaps in IT Services Sub-sector (2/2)
Copyright © 2013 Accenture. All rights reserved. 158Source: Accenture Research
About 50 % of Organizations consider MS Office and .NET Framework skills to be most sought after
Technical Skills in Demand Today: BPM Sub-sector
Copyright © 2013 Accenture. All rights reserved. 159Source: Accenture Research
About 50% of Organizations consider MS Office to be high demand skill areas in future
Technical Skills in Demand in Future: BPM Sub-sector
Copyright © 2013 Accenture. All rights reserved. 160Source: Accenture Research
More than a third of the organizations feel that there exists a skill gap for skills in MS Office, Java , SQL and Cloud Computing
Skill Gaps in BPM Sub-sector (1/2)
Copyright © 2013 Accenture. All rights reserved. 161Source: Accenture Research
More than 70% of organizations observe a need to improve communication skills of the workforce
Skill Gaps in BPM Sub-sector (2/2)
Copyright © 2013 Accenture. All rights reserved. 162Source: Accenture Research
0%10%20%30%40%50%60%70%80%
JAVA C++
Test
ing
UN
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Fram
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are…
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More than 60 % of Organizations consider Java, C++ and Testing skills to be most sought after
Technical Skills in Demand Today: Engg. and R&D Sub-sector
Copyright © 2013 Accenture. All rights reserved. 163Source: Accenture Research
0%
10%
20%
30%
40%
50%
60%
70%
JAVA
Test
ing
C++
UN
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More than 50% of Organizations consider Java, Testing and C++ to be high demand skill areas in future
Technical Skills in Demand in Future: Engg. And R&D Sub-sector
Copyright © 2013 Accenture. All rights reserved. 164Source: Accenture Research
0%
10%
20%
30%
40%
50%
60%
Sof
twar
e…U
NIX
C++ C
#C
loud
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More than a third of the organizations feel that there exists a skill gap for Software Development Cycle, UNIX, C++, C# and Cloud Computing
Skill Gaps in Engg. And R&D Sub-sector (1/2)
Copyright © 2013 Accenture. All rights reserved. 165Source: Accenture Research
0%10%20%30%40%50%60%70%80%90%
More than 60% of organizations observe a need to improve communication skills of the workforce
Skill Gaps in Engg. and R&D Sub-sector (2/2)
Copyright © 2013 Accenture. All rights reserved. 166Source: Accenture Research
0%10%20%30%40%50%60%70%80%
JAVA
Test
ing
.NE
T Fr
amew
ork
ASP
.Net
DB
MS
SQ
LC
++ C#
Sof
twar
e…U
NIX
Clo
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ting
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cle
Dat
a A
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tect
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MS
Offi
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CN
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earl
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QM
SC
aptiv
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SAP
SPS
SA
RIB
AU
GC
ATI
Aid
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Hyp
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Ada
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Des
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soft
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About 70 % of Organizations consider Java skills to be most sought after, Another 60 % consider Testing skills to be important
Technical Skills in Demand Today: Software Products Sub-sector
Copyright © 2013 Accenture. All rights reserved. 167Source: Accenture Research
0%
10%
20%
30%
40%
50%
60%
70%
JAVA
Clo
ud C
ompu
ting
.NE
T Fr
amew
ork
Test
ing
ASP
.Net C#
SQ
LS
oftw
are…
DB
MS
Dat
a A
rchi
tect
ure
C++
UN
IXO
racl
eS
ASO
ther
sC
CN
A/C
CN
SS
APM
S O
ffice
QM
SP
earl
Cap
tivat
eS
PSS
AR
IBA
UG
CA
TIA
idea
sH
yper
mes
hN
astra
nA
baqu
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- Dyn
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dam
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am-C
rash
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ax-D
esig
ner
KIS
Sso
ftU
nigr
aphi
csP
roe
More than 50% of Organizations consider Java and Cloud computing to be high demand skill areas in future
Technical Skills in Demand in Future: Software Products Sub-sector
Copyright © 2013 Accenture. All rights reserved. 168Source: Accenture Research
0%
10%
20%
30%
40%
50%
60%
Clo
ud C
ompu
ting
Sof
twar
e…JA
VATe
stin
g.N
ET
Fram
ewor
kS
QL
C#
ASP
.Net
Dat
a A
rchi
tect
ure
Ora
cle
C++
UN
IXD
BM
SQ
MS
Oth
ers
CC
NA/
CC
NS
SAS
MS
Offi
ceS
APP
earl
SPS
SA
RIB
AC
aptiv
ate
UG
CA
TIA
idea
sH
yper
mes
hN
astra
nA
baqu
sLs
-Dyn
aA
dam
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am-c
rash
Rom
axD
esig
ner
KIS
Sof
tU
nigr
aphi
csP
roe
More than 50% of the organizations feel that there exists a skill gap for Cloud computing skills
Skill Gaps in Software Products Sub-sector (1/2)
Copyright © 2013 Accenture. All rights reserved. 169Source: Accenture Research
0%10%20%30%40%50%60%70%80%90%
More than 60% of organizations observe a need to improve Communication , Problem solving and Analytical Thinking skills of the workforce
Skill Gaps in Software Products Sub-sector(2/2)
Copyright © 2013 Accenture. All rights reserved. 170Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Appendix CAnalysis of Talent Demand-Supply gaps by Regions
Copyright © 2013 Accenture. All rights reserved. 170
Copyright © 2013 Accenture. All rights reserved. 171Source: Accenture Research
Delhi–NCR has the largest demand in the Northern region although Uttar Pradesh supplies most talent
Analysis of Demand-Supply : Region wise (North)
Copyright © 2013 Accenture. All rights reserved. 172Source: Accenture Research
While Karnataka, Andhra Pradesh and Tamil Nadu continue to be the Big 3 -Kerala is emerging as the new destination
Analysis of Demand-Supply : Region wise (South)
Copyright © 2013 Accenture. All rights reserved. 173Source: Accenture Research
While Maharashtra continues to lead both demand and supply, Gujarat is emerging as the new centre for IT-BPM Industry in the West region
Analysis of Demand-Supply : Region wise (West)
Copyright © 2013 Accenture. All rights reserved. 174Source: Accenture Research
Odisha and West Bengal have large potential of growth
Analysis of Demand-Supply : Region wise (East)
Copyright © 2013 Accenture. All rights reserved. 175Source: Accenture Research
The Central region is extremely supply heavy although it is not the preferred location for Indian IT-BPM Industry
Analysis of Demand-Supply : Region wise (Central)
Copyright © 2013 Accenture. All rights reserved. 176Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
Appendix DDefinitions
Copyright © 2013 Accenture. All rights reserved. 176
Copyright © 2013 Accenture. All rights reserved. 177Source: Accenture Research
Following terms have been used consistently across this report. We have defined them here for the benefit of the reader
Definitions
Term Definition
Employment Defined as headcount across all levels
Net Hiring Difference in headcount for consecutive years
Gross Hiring Net Hiring + Industry Attrition
Enrollments Total number of students enrolled in the course across all years
Total Talent Supply Number of students passing out of the course
Employable Talent Supply
Numbers of students interested in and employable in the Industry
GER Gross Enrollment Ratio, defined as the percentage of people in the age group who are enrolled in the class/course at the given time
Copyright © 2013 Accenture. All rights reserved. 178Source: Accenture Research
• Executive Summary• Demand-Supply Ecosystem• Analysis of Current and Future Demand and Supply of Talent
– Region-wise
– Sub-sector/Occupation wise
– Diversity
• Skill Gaps and Challenges• Recommendations
Contents
End
Copyright © 2013 Accenture. All rights reserved. 178