Outsourcing: India Skills Gap Widens

As its technology companies soar to the outsourcing skies, India is bumping up against an improbable challenge. In a country once regarded as a bottomless well of low-cost, ready-to-work, English-speaking engineers, a shortage now looms.
India still produces plenty of engineers, nearly 400,000 a year at last count. But their competence has become the issue. A study commissioned by the National Association of Software and Service Companies, or Nasscom, found only one in four engineering graduates to be employable. For the rest, it said, either their technical skills are deficient, their English-language abilities are below par or they have not been taught how to work in a team or deliver a basic oral presentation.

The skills gap reflects the narrow reach of high-quality higher education in India and the galloping pace of its service-driven economy, which is growing faster than just about any other except China's. Software exports alone expanded by 33 percent over the past year.

The university systems of few countries would be able to keep up with such demand, and India is having trouble. The best and most selective universities generate too few graduates, and new private colleges are producing graduates of uneven quality.

Many fear that the labor pinch may well signal bottlenecks in other parts of the economy. It is already being felt in the information technology sector. With the number of technology jobs on track to nearly double to 1.7 million in the next four years, companies are scrambling to find fresh engineering talent and upgrade the schools that produce them.

Some companies offer training themselves, with courses tailored to industry needs, and upgrade college laboratories and libraries. They are rushing to get first choice on would-be engineers long before they are done with course work. And they are fanning out to small, remote colleges no one had heard of before.

India's most successful technology companies can no longer afford to recruit only from the country's most prestigious universities. Nor can they expect graduates to be ready to hit the shop floor. Most companies require internal training of two to six months.

In a handful of instances, as Indian businesses expand their global footprint, companies are looking abroad for talent, mostly to staff their operations in foreign countries. Demand is beginning to be felt on the bottom line. Entry-level salaries in the software industry have shot up by an average 10 percent to 15 percent in recent years. Nasscom forecasts a shortfall of 500,000 professional workers in the technology sector by 2010.

T-Schools campus track survey in '06

• Most Indian IT companies emerge as the major gainers on this year’s CRI*.
• Management consultancy is the most preferred sector amongst students from premier institutes

As per ACNielsen Campus Track T-Schools 2006 survey, global Internet search firm Google appears as the top-most prospective employer for the Indian engineering students of the 2007 batch. Yahoo!, featuring for the first time in the survey, emerged as the third most preferred employer.

The survey analysed student perceptions about recruiters and the factors used by engineering students graduating in 2007 to evaluate prospective employers. From previous years, the scope of the study has expanded from the 20 leading engineering school to 73 this year.

The other interesting finding is the increasing popularity of Indian firms as preferred employers compared to global giants. Infosys' relative position moved up by 14 places on the CRI as compared to the last track. Satyam and Cognizant were some of the other major gainers on the CRI this year.

Engineers Eye Management Consultancy; IT/Software Favourite Sector
Management consultancy follows IT/software to be the favourite career option in the premier engineering campuses. Preference for management consultancy is significantly higher amongst IITians as compare to other institutes. Energy/power and biotech are the other areas which are gaining interest amongst set of the student. However, telecom is no longer perceived as the industry of the future.

Let's compare the trends of the years. The Top 10 companies on the CRI list of the 2005 batch included a wide spectrum of companies in IT/Consulting, FMCG and Core Sectors . The 2 006 batch wanted IT/Consulting and FMCG , and finally the 2007 batch has only IT/Consulting firms in its Top10 list. So, the shift in perception as 'Dream Recruiter' has narrowed down to only IT/consulting companies over the years. W hile there was only 1 Indian IT company among the Top 10 list of the 2005 batch, there are three this time - Infosys, TCS and Wipro.

Opting for Higher Education
The interest in pursuing a post-graduate degree continues to be high with students. About 55 per cent of all students want to pursue an MBA and this trend has been increasing over the years, as seen when compared with the earlier batches, making it even more attractive than M.Tech/MS.

In fact higher study, especially MBA, is the reason behind engineering students wanting to move out of their first job early. This year's results show that about 70 per cent of the students expect to move out of their first job in 3 years or less, mainly to pursue higher studies.

“The percentage of students opting out of their job in the first few years for higher education has been increasing over the years

. This is becoming a major concern for the HR departments. Since most students plan to pursue their higher studies, the HR departments should organise innovative retention plans like sponsored on-job MBA programmes for the Engineering graduates” says Prasenjit Das, associate director, ACNielsen India.

Remuneration expectations too have seen a change with this batch of engineering graduates. Average salary expectation from their dream company is close to Rs 6 lakh, a rise of 15 per cent from last year .

Google replaces Microsoft at the top spot
Google, Microsoft, Yahoo!, Oracle and IBM emerged as the top 5 companies among students from the top 20 engineering campuses.

The study indicates that job content and growth prospects in the company as well as the size of the recruiting company and its market standing continue to be important parameters for selection.

By ranking individual companies on these various parameters, the ACNielsen Campus Track T-schools can be used to devise an action plan by individual companies to attract better talent by analysing the various attributes of 'Goodwill' enjoyed by it, within the engineering talent pool.

The overall effect on this goodwill is accumulated to compute a composite 'goodwill score' used to construct the Campus Recruiter Index. This index reflects the overall standing of companies in the minds of students. The CRI comprises companies mentioned by respondents and not all Indian companies.

IT companies recruits non IT professionals in '07

Mumbai: The dearth of IT engineers is forcing the Indian IT companies to recruit around 40,000-50,000 non-IT professionals and science graduates in this financial year – the highest by any industry in the country.

This is notwithstanding the fact that over 10 lakh IT engineers are being churned out annually by the 17,625 IT and management institutes in the country.

IT majors such as Infosys Technologies, Tata Consultancy Services (TCS), Tech Mahindra, GTL and Wipro Technologies are some of the companies in the forefront of recruiting non-IT personnel for IT jobs, while other IT companies and the unorganised sector is also close behind.

“The requirement of IT engineers is huge, with the industry needing an estimated 50 lakh personnel in the current financial year itself, of which around 50-55 per cent had been recruited. However, recruiting another 45 per cent in the last quarter is quite unlikely, with a maximum of around 10 per cent likely to be added,” GTL group Chief People’s Officer S N Jadhav said.


Jadhav, who is also doing his thesis on ‘Impact of Technology on Employment Market’ expects recruitment of around 50,000 personnel in the fourth quarter.
GTL intends to recruit over 1,000-1,500 non-IT employees in this year and will train them for the jobs.

Reflecting the sentiment, Infosys Technologies’ chief mentor N R Narayana Murthy said, “There is a serious dearth in talent across all the verticals of the IT industry, and we have been continuously recruiting non-IT personnel in the company.”

The company had forecast an addition of 25,000 employees and later revised it to 28,000, recruited around 25,000 personnel during the year. The IT bellwether company would recruit over 3,000 hands in the last quarter of this year, of which a considerable number would be non-IT hands.

Tech Mahindra (TM) will recruit 1,000 non-IT graduates and management students for IT jobs in the current financial year, of which 500-600 of them will be graduates (BSc and BCom) having experience of 1-2 years.

According to L K Bhatia, vice-president (resource management group), Tech Mahindra, “I wouldn’t say that the recruitment of graduates is due to a dearth of skilled personnel, though that is one of the reasons. Bringing down total employment cost of the company and reducing attrition are the main reasons.”

TCS has rolled out a programme - ‘Ignite’ - much ahead of the curve. The programme intends to train non-engineering talent to work on IT assignments.

“We have already enrolled 500 people this year, and we intend to increase it to 2,500 next year. The programme will help us to reduce the pressure we face due to lack of skilled manpower,” TCS Global Head (Human Resources), S Padmanabhan said.

Wipro has a tie-up with Birla Institute of Technology and Science (BITS), Pilani, and is currently training 2,000 personnel for its IT initiatives.

Outsourcing oppurtunity for engineers

Taking the BPO-KPO wheel forward, the offshoring industry is looking to tap the $750 billion-a-year global engineering services industry.
India enjoys a relatively strong position in the automotive and high-tech telecom engineering services market with a $25 billion opportunity by 2020, according to a latest industry report. Aerospace offers the greatest potential for expansion - though it is also one of the toughest opportunities to tap because of its close association with the defence sector.

"The total offshore engineering spend is expected to grow to $150-$225 billion by the year 2020, and India with its talent pool and existing experience in engineering services, is well suited to realise 25 per cent of this opportunity," Kiran Karnik, president, Nasscom.

"Companies in India have developed capabilities and skill sets, and invested in technology platforms to leverage this opportunity. The growth in engineering services signifies the need for global corporations to expand their R&D pool beyond their home countries," said Karnik in the report.

Engineering services are a $40 billion opportunity for India by 2020, but to achieve that there is need to create 250,000 jobs for Indian engineers and also chalk out a roadmap for stakeholders to achieve this, said Dr Harsh Gupta, director, Centre for Design and Research, Pentair.

Also, to capture the market, what is needed is a brand name for Indian services, same on the lines of software, Dr Gupta said. Agreeing, B Ramalinga Raju of Satyam Computer Services said, "... to target the maximum potential revenue of $40 billion by 2020 - all important stakeholders including the government of India, academic institutions, service providers and trade bodies such as Nasscom will need to undertake a series of important measures."

A carefully thought out strategy that combines strong marketing efforts - such as the development of a 'Engineered in India' brand, with investments in infrastructure, workforce and expertise and the very least is required. In addition, it's important for all stakeholders to get together and think about how India's domestic growth can become a strategic advantage in the long-term, he said.

"The demand for engineering talent is growing, and emerging market countries such as India will play a vital role in expanding capacity," said Kevin Dehoff, of Booz Allen, which along with Nasscom conducted the study.

"Companies will increasingly create competitive advantage by accessing and building core innovation capabilities in a world-class global network," he said in the report.

For India, Engineering Services Offshoring presents a tremendous opportunity - it is not only a significant revenue generator, but will also place India on the global innovation map. Attaining, training and retaining talent will be a critical next step for India to maintain its current advantage, industry experts say.

SS However, BVR Mohan Reddy of Infotech Enterprises said the report also indicates that the market is highly fragmented by industry with Automotive at 19 per cent, Aerospace at 8 per cent and Utilities at 3 per cent in 2004. High-Tech and Telecom is the dominant and fastest growing sector, with 30 per cent of the market, and the traditional engineering powerhouses - USA, Germany and Japan have a lead in engineering spend.

The report calls for greater support from the government to realise this opportunity.

If addressed appropriately, engineering services offshoring (ESO) can help the Indian offshore services industry further consolidate its leadership position and build a significant skill-value advantage over the competition, he said.

For the right kind of Engineers

The impact of engineering outsourcing on the global economy is a discussion of keen interest. Consistent reporting of problematic engineering graduation data has been used to fuel fears that the U.S. is losing its technological edge. Typical articles have stated that in 2004 the U.S. graduated roughly 70,000 undergraduate engineers, while China graduated 600,000 and India 350,000. Our study has determined that the comparison is inaccurate, or tells only part of the story.

The commonly quoted numbers are based on reports issued by the Chinese Ministry of Education and the National Association of Software and Service Companies (NASSCOM) in India. However, the statistics have included not only four-year degrees, but also three-year degrees and diploma holders. These numbers have been compared against the annual production of accredited four-year engineering degrees in the U.S. Additionally, these numbers include not only engineers in traditional disciplines, but also IT specialists and technicians.

Here, we will present a clearer analysis of the number of engineering and engineering related degrees awarded annually by the U.S., India and China. We will define the term "engineer" and the various degree options that exist. We will then offer what we believe is a more accurate and balanced comparison between the numbers of engineering, computer science and information technology degrees awarded in the three countrie

Typical questions that are asked in an Interview

1.Tell me about yourself
The most often asked question in interviews. You need to have a short statement prepared in your mind. Be careful that it does not sound rehearsed. Limit it to work/Study-related items unless instructed otherwise. Talk about things you have done well at your college and how you wanted to perform in the first job.

2. Why Should We Employ You?
For this question, your answer should list out strengths that you feel are relevant to the job. Given below are some answers which could help you with your answers. However, structure them to suit your requirements.

I have good co-ordination skills
Good analytical skills
I can persuade people to see my point of view, and get the work done
My greatest asset is my ability to motivate people
Even during emergencies, I do not loose my cool
I have good entrepreneurial skills
I have consistently met my deadlines and targets
Can say “no” to people when required to do so!
I am very co-operative with my sub-ordinates, and would like to see them grow
I am a good team player
I am very flexible, and have the ability to work hard under difficult work conditions
I have the experience and knowledge relevant to this job (Here, give appropriate details and examples)

3. Do You Have Offers From Other Companies ?
This is of course a difficult question to answer. Obviously, you must have applied to other companies if you are looking for a job or would have some offers from other companies already. Therefore, do not lie that you have not. However, you are on thin ice here! The interviewer could be checking your honesty. On the other hand, he/she may also be trying to find out how focused you are - are you applying randomly, or is there a well-planned strategy?
Whatever your answer, it should match your career goals.

4. What Salary Are You Expecting?
Try not to get into salary details early in the interview. If pressed, you could say that it all depends on the job, and would like to talk about it after a job offer. Say this in a convincing tone. In case you are asked this question in your latter interviews, give a direct answer. Do not sound apologetic while quoting the figure you have in mind.

SALARY EXPECTATIONS :

1. How much do you expect?
If you have done your homework, you would know how much other people in similar jobs are paid. Quote the range upfront.

2. How much do you think you are worth?
Work out how much you should be paid, given the market value of the job and your skills. If you can bring some extra skills to the table, do not hesitate to ask for more than the market value.

3. What kind of a culture are you comfortable with?
It is better to be frank about your preferences. Your interviewer will get a clear idea about your expectations.

4. Which is more important to you-salary, perks or growth opportunities?
This one will reveal the real you. So be sure what you are going to say. Above all, be true to yourself. If you think this is a negotiation move, then say clearly that you will never sell yourself short.

5. What do you know about our company?
Do not give your opinions about the company. Stick to reported facts that you have gathered from newspapers and so on. Talk about the product portfolio, size, income, and market perceptions of the company. Also it is better to refer details about each company before going for the interview from Freshersworld.com or PlacementWeek.com

6. Why should we choose you over someone else?
Talk clearly about problems that you have solved in your College/Project Team and highlight the quality required.

6. Your qualifications are excellent, but you may be overqualified for the position we have to offer?
Point out that more experience can never be a drawback. If you are multi-skilled, then highlight the fact that a company on the fast-track needs multi-skilled people. It needs people within different departments to work together. Also emphasise that the company's future growth will be an exponential function of your experience.

QUESTIONS YOU SHOULD ASK :

Interviewers usually round off by giving you an opportunity to ask questions. Treat it like a welcome opportunity.
You could ask questions like.
a) Tell me about your company.
b) Now that I have outlined my career goals, do you think you can offer me the opportunities I need?
c) What kind of training and learning can I expect in your company?
d) Describe the work culture and the management style of your company?
e) What is the long-term vision of your company?

As a fresher, current position and status can impact the way you are interviewed. Fresh Out of College

The basis on which you will be judged is your academic background, family background, and interests.
If looking for your first job, ensure that your previous experience, even if it is part-time, is noticed.
Mention projects or responsibilities you may have undertaken. This will indicate your area of aptitude.
You should be willing to put in regular hours, in line with the company's policies. The interviewer needs to know whether you can be punctual and put in full-time work.
In case you have applied for the post of management trainee, you should display an ability to adapt, and indicate all-round interests. Moreover, you should have good interpersonal skills.
You should be enthusiastic to learn, and show commitment towards the organization, as the company will be spending a lot on your training.

Bring with you :
a) Copies of your resumes
b) References and letters of recommendations.

First Impressions :
There is a common saying that minds are made up within the first 5 minutes of an interview. So keep in mind these important first impression indicators. Walk in the door as if you already work there, carry yourself as though you feel perfectly comfortable with the situation. Arrive on time or a little early. In the waiting area, politely tell the receptionist who you are meeting and in a friendly way, ask where you should sit. Take slow, deep breaths to help you remain calm and focused. When introduced to the interviewer, have a firm, but not painful, handshake. Smile. Have good posture when sitting or standing. Introduce yourself in a relaxed, confident manner. Have a well-groomed, professional appearance. Project a feeling of confidence. Bring extra copies of your resume, some thing to write on and something to write with.

Freshersworld.com wish you all the best of luck in your Job Interview !

General Tips to overcome an Interview

So what if you are not a mountaineer. Or a keen hiker. You still cannot treat your interview like a careless morning trot along a jogger's path. Your jaw-jaw at the interview table is nothing less than a cautious climb up a mountain trail--which begins around your early childhood and meanders through the years at the academia before reaching a new summit in your career. And as you retrace your steps down memory lane make sure that you post flags at important landmarks of your life and career, so that you can pop them before the interview panel scoops them out of you. You don't want to be at the receiving end, do you?

Face the panel, but don't fall of the chair in a headlong rush-and-skid attempt to tell your story. Take one step at a time. Here are a few preparation tips from the Team of Freshersworld.com that books on interviews sometimes overlook. Remember, as a fresher you do not have anything to loose but to gain.

Do you know about e-campus?

What is e-Campus ?

e-Campus is the online recruitment software for conducting campus recruitments from different colleges in India.

>> How can I apply for e-Campus ?

e-Campus recruitment is done through freshersworld.com database. Companies who are looking for freshers will go through the resumes submitted in freshersworld.com by the final/pre-final year students. Hence you can upload your resume in freshersworld.com and take part in e-Campus.

>> How will I know if I am short listed for a test in e-Campus ?

The companies who shortlist your resume from freshersworld.com will send you call letters through email for test/interview. Also the e-Campus shortlisted UserIds will be displayed in the results page or in www.ResultBox.com website.

>> If I see my UserID in the e-Campus results page am I sure to get a call letter ?

Need not be always. The UserIDs updated in our results page against each company is the list of profiles that we have forwarded to the HR of that company. The company may again screen out resumes and may call only selective people from the list. Also there can be instances where the company had postponed the test/ or even called-off the recruitment. So wait for a call letter from the company.

>> How will I know the eligibility criteria for each company ?

You may upload your latest details with freshersworld.com and when companies searches for resume, if your branch, % marks, location of test/interview and year of passout matches with their requirements, you will get short listed.

>> What will happen if I couldn't attend a test after getting the call letter ?

If you do not attend one or two tests, your resume will be in-activated and will not be considered for further tests. Hence update your profile with only your nearest city where you can attend the test surely.

>> For each test in e-Campus should I register each time in freshersworld.com ?

No. You should not register twice with freshersworld.com. Duplicate registrations will make your profiles in-activated and you will not be considered for further tests.

>> Only Premier members will be considered for e-Campus ?

Yes. In some cases where there are not enough resumes with premier membership, Gen. members also will be considered.

>> How should I upload my resume ?

The registration form submitted by you is taken as your resume/profile submitted. We are collecting all the necessary information about you that are needed for campus/off-campus recruitment. If your detailed resume is required for any company, the company HR will contact you and will ask separately. We do not accept any other form of resume submission.