IT-ITES units
to follow self-regulated
best HR norms
The
IT and the ITeS
sectors in India,
currently outside
the net of trade
unionism and
labour regulation,
may soon opt
for a self-regulated
charter of Best
HR Practices.
Mercer Human
Resource Consulting,
India has just
concluded a
study of 100
Nasscom member
organisations
(both IT and
ITeS companies)
that provided
details of some
of the HR systems
and processes
followed there.
"This self-promulgated
guideline would
be a good marketing
tool for the
industry campaigns,"
said R. Shankar,
Country Head
and Human Capital
Advisory Services
Leader, Mercer
Human Resource
Consulting,
India.
Speaking at
NASSCOM HR Summit
2006 in Chennai
recently Shankar
highlighted
some concern
areas for the
IT industry
that would be
addressed in
the charter:
attrition, employee
safety, need
for more lateral
movements within
the company,
mentoring and
proportion of
female employees
being less than
the global standards.
"But there
are some areas
in which the
industry has
done exceptionally
well, like providing
world-class
recreation facilities
at workplace,
average workspace
and number of
training hours
given to employees,"
he said. The
study will be
presented to
NASSCOM, the
IT and ITeS
industries'
apex body, Shankar
said.
Kiran Karnik,
President, NASSCOM,
said that this
was a "step
in the right
direction and
the charter
would provide
the IT/ITeS
sectors useful
guidelines to
formulate their
HR systems."
Earlier, NASSCOM,
called for the
`liberation'
of some educational
institutions,
granting them
freedom to experiment
with new courses
and to pay as
much as they
want to faculty.
Welcoming the
gathering at
its annual Human
Resources Summit,
Karnik said,
"On an
experimental
basis, we should
allow some institutions
to recruit who
they want, admit
who they want
and to pay the
faculty market
salaries."
Universities,
he said, "Are
constrained
by rules and
regulations.
They have too
many constraints.
They must have
the freedom
to experiment."
Tomorrow, the
drivers for
the industry
would be innovation
and creativity.
"If our
universities,
which are the
hotbed for innovation,
are constrained
in this manner,
I don't understand
where we are
heading. We
need to see
how we can liberate
the system."
He suggested
that on an experimental
basis, "We
should allow
some institutes
to recruit whoever
they want, admit
whoever they
want and introduce
and experiment
with new courses
as per market
demand."
Currently, he
said, "universities
cannot introduce
a new course
without prior
permission from
the University
Grants Commission.
Why should a
university,
if it has the
best academic
minds, wait
for permission
from someone
in New Delhi
to commence
a course it
deems fit for
the students."
He added that
without action
taken in the
near future,
the Indian IT
industry could
face a shortage
of 0.5 million
professionals
by 2010.
Shortage of
professionals
"This is
not an actual
shortage. We
would have more
engineers than
that figure
by 2010 but
they might no
be employable.
The industry,
academia and
government need
to work together
to prevent this
unnatural shortage."
He also urged
educationists
and policy makers
to look up on
education as
a possible foreign
exchange earner.
According to
him, "Every
year, bright
students who
don't make it
to the best
institutes in
India, prefer
to go abroad
for studies.
India spends
between $2 billion
and $3 billion
every year on
such students.
If institutes
are able to
attract students
both Indian
and foreign,
this could be
a big revenue
earner."
And, he said,
since the Indian
industry will
be the biggest
consumers of
high quality
human resources
with the highest
qualification,
the industry
would benefit,
as well.
STPI:
Awaits Govt
response
Later, interacting
with the press,
Karnik, in response
to a query,
said, "There
is no update
from the Government
on our proposal
to extend the
STPI tax exemption
benefits to
the SEZ scheme
too."
For IT companies
registered under
the Software
Technology Parks
of India (STPI)
scheme, all
tax exemptions
come to an end
in 2009. The
Special Economic
Zone scheme
allows companies
to become eligible
for tax exemptions
afresh.
Karnik said:
"The SEZ
scheme is skewed
in favour of
big companies
and real estate
developers.
If you are a
small company
with a handful
of employees,
you should be
free to have
an office wherever
you want, like
in the STPI
scheme, and
still be eligible
for tax benefits.
"Without
this, not only
will a small
company find
it difficult
to transport
employees to
an SEZ way out
of the city,
but will also
fall prey to
builders charging
him say, Rs
150 a sq ft
instead of the
Rs 30 per sq
ft that the
employer would
pay."
At the inaugural,
Dr D. Vishwanathan,
Vice-Chancellor,
Anna University,
said, "Anna
University is
planning to
get a consortium
of institutes
going. This
is aimed towards
sharing of knowledge
within the community
and among faculty.
The university
has also, in
collaboration
with ELCOT,
conducted courses
to impart soft
skills and communication
skills to students
of the third
and fourth year
of the engineering
stream."
NASSCOM Overview
In an overview
prepared for
the HR Summit,
NASSCOM stated
that the Indian
IT-ITES industry
is on a high
momentum path.
Rapid growth,
consolidation
and a move up
the value chain
in terms of
products and
services define
the sectors.
Rampant growth,
however, has
come with its
own set of challenges.
Chief among
them relates
to skilled manpower
resources-the
key edge India
currently enjoys
in the global
IT-ITES markets.
Not only does
the country
have to sustain
its vast pool
of specialized
IT-ITES talent,
it has to ensure
that it remains
"industry-relevant"
and "rightly
skilled."
There is a growing
need for not
only IT professionals
but professionals
that have specific
expertise for
different industry
segments and
domain knowledge.
The Indian IT-ITES
industries are
also grappling
with the crucial
issue of manpower
acquisition
and retention.
Attrition levels
remain high,
causing concern
for organizations.
Indian IT-ITES
players, both
large and small,
are struggling
with a workforce
crisis! People
issues loom
large on the
agendas of companies
that are attempting
to position
themselves as
the "best
career destinations,"
"employers
of choice,"
and the "best
places to work!"
In this uncertain
and dynamic
market scenario,
Human Resource
Development
has become an
important function
within the enterprise
and the HR chief,
a key member
in the team
of decision
makers. Against
the above background,
NASSCOM HR Summit
2006, sought
to take a close
look at the
evolving profile
of HR and the
transformational
role it could
play within
the IT-ITES
industries,
to make them
more globally
competitive.
The focus of
the Summit was
on how HR could
serve as a change
agent, innovator
and strategic
partner for
the Indian IT-ITES
sectors and
help these industries
combat their
workforce challenges.
Attention was
also given at
the conclave,
to leadership
building within
the HR community-to
how HR professionals
could better
align themselves
to the vision
and business
goals of the
organizations
they were a
part of.
The aim of the
Summit was also
to outline strategies
that would help
India create
an HR eco-system,
characterized
by better quality
IT professionals,
global-class
HR leaders and
value creation.
The Summit,
through its
myriad sessions
and discussion
forums, sought
to spotlight
the strategies
that would help
forge industry-academia
linkages and
better tune
India's learning
environment
with the needs
of the IT-ITES
industries.
Key
Highlights
The areas of
interaction
at the NASSCOM
HR Summit 2006
include
• The
transformation
role of HR within
the IT-ITES
sectors
• Innovative
trends in compensation
and benefits
• The
profile of the
emerging IT-ITES
workforce
• Leadership
development
within the HR
community
• Overcoming
challenges related
to manpower
shortages.
Maintaining
India's competitive
edge in the
"people's
space"
• Successful
performance
management strategies
for large organizations
and SMEs
The deliberations
took place on
the issues given
under:
• The
challenges facing
HR and the building
of an HR eco-system
• Evolving
role of recruitment
companies
• Skill
set development
through Certifications
• Models
for building
industry-academia
partnerships
• Innovative
models of capability
development
like Finishing
Schools
• Diversity
in Workforce:
Managing Cross
Cultural teams
The attendees
at the summit
included:
• CEOs,
Senior HR professionals
• Training
and Industry-Academia
alliance heads
• Knowledge
Management executives
• Consultants
offering technical
and linguistic
training
• Senior
faculty, Heads
of Department,
Vice Chancellors
of higher educational
institutions
offering technical
and other professional
courses
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1 |
•
Senior
level
HR executives,
industry
gurus,
CEOs,
HR product
and service
providers
who will
address
issues
related
to the
manpower
challenges
facing
the IT-ITES
industries
•
Senior
faculty
from higher
educational
institutes.
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