HR Trends Changing Talent Paradigm 2013

2013: HR TRENDS
C h a n g i n g T a l e n t P a r a d i g m
2
2013: HR Trends Changing Talent Paradigm
The Indian IT-BPM industry has continuously evolved in various ways to adjust to the changing economic environment. The 2008 global recession
was a watershed moment as it changed the way the industry looked at operating models, including hiring patterns. Changing client expectations,
budgetary constraints, new emerging lines of businesses, new technology trends, and the need to stay relevant to customers forced the industry
to embark on a non-linear growth path, in addition to adding employees with new, unique skill sets. At the same time, increasing diversity of the
workforce is driving the need to foster deeper connects.
In view of the continuously changing environment, NASSCOM recently conducted a dip-stick survey of its member rms to understand the hiring
outlook for FY2014. We received responses from around 30 rms who account for over 20 per cent of industry workforce and nearly 30 per cent of
export revenue (FY2013). Key highlights include:
Industry to remain a net hirer; hiring sentiments positive despite tough business environment
Attrition no longer a challenge for the industry, with most rms recording steady or decreasing levels
There are clear, discernable shifts in hiring patterns with respect to background, skill sets and location:
- Firms are expected to hire most just in time than planned campus hires
- Soft skills and domain knowledge are increasingly being sought after in candidates
- Data scientists is the most in demand technical skill set, engineers and statisticians the most sought after domain skill, and leadership and
customer interaction capabilities the most popular soft skill
- Hiring is increasingly going global as rms expand their footprint across the globe
Industry absorbs ~15 per cent of annual engineering turnover; job opportunities for engineers from non-IT sectors energy, healthcare,
manufacturing, media, etc.
- Entrepreneurship ecosystem developing rapidly in India creating additional jobs
NASSCOMs IT-ITeS Sector Skills Council is working jointly with NSDC and academia to develop future talent:
- Assess demand-supply gap and develop occupational standards for IT services, BPM, ER&D, software products
- Extend deployment of NAC-Tech and NAC (BPM) to access students abilities
- Train the faculty
Executive Summary
3
The IT-BPM industry overwhelmingly Gen Y with almost 2 million employees born after 1980
Gen Y love challenging jobs with relaxed work environment and fast career growth; they also have a need for instant gratication and entitlement
which poses a signicant challenge
Firms connecting to Gen Y both on professional front through rewards and recognition, trainings and career management, as well as personal
front through health plans, exible work environment
Promoting an entrepreneurial culture, ensuring employee safety are key focus areas for IT-BPM rms
Organisations feeling the need to re-invent themselves internally both at individual and procedural levels to become employers of choice
and to stay relevant to Gen Y
HR increasingly employing technology for higher employee outreach this has resulted in better communication and engagement, quicker
turnaround time and improved skill mapping
Social media: Growing in importance as a tool for employee connect and as a recruitment channel to hire across the board from freshers to
top management
4
Contents
Evolving IT-BPM Sector, Changing Needs 5
IT-BPM industry: Hiring Trends 6
IT-ITeS Sector Skill Council 13
IT-BPM Industry: Diverse Workforce, Gen Y 14
Technology in HR 18
NASSCOM Top 20 IT-BPM Employers in India FY2013 21
Summary 22
5
Evolving IT-BPM industry trends transforming industry talent models
Industry added >2 million
employees in last decade
Focus on non-linear growth,
global hiring
Skill base who are trained in
mobility, social media, cloud,
big data
Sustained investment in
structured training programmes
Develop in-house universities
and affiliations with academia
Focus on entrepreneurial skill
development, domain
Talent requisites
Evolving Industry Trends
Source: NASSCOM
Technology
Top 100 IT-BPM firms offerings
>40 per cent: SMAC solution
>35 : Cloud and platform solutions per cent
Moving up the
value chain
End-to-end services
30-32 : Verticalised services as percentage of
total exports
Increased focus on transforming client business
through innovative and specialised offerings
per cent
Lines of
business
Business users Influencers to buyers
77 : Business executives who buy their own
technology without involving CTOs
CMO emerging as key buyers
per cent
Talent
Future-ready workforce
12 : Domain specialists in total industry workforce
~2 : Amount spent on training the workforce
per cent
per cent
6
Industry to continue hiring despite tough economic conditions
F 2014: Hiring trend of large firms Y F 2014: SMEs A more robust hiring growth Y
60%
40%
95%
5%
Industry to continue to be main hirer; most firms to grow hiring, but at slower rate
Net hiring trend more positive for SMEs in FY2014; large firms to hire selectively
Hiring increasingly going global as firms expand footprint across globe; global hiring to constitute 5-7 per cent of total
hiring in FY2014
Note: Numbers in charts indicate percentage respondents
Source: NASSCOM
Hiring
to grow
Hiring to
remain
steady
Hiring
to grow
Hiring to
remain
steady
7
Attrition, no longer a challenge for the industry
Source: NASSCOM
Attrition under control firms also indicated a decline
Remained
steady
Large firms
80%
20% Decrease
SMEs
Remained
steady
Decrease
56%
44%
~39 per cent survey respondents indicated a decline in attrition levels in FY2013 as compared to FY2012; remaining
respondents indicated steady levels
0 per cent respondents indicated higher attrition in FY2013
Attrition had started declining since FY2011:
- IT/ER&D/Software products declined from 19 per cent in FY2011 to 14 per cent in FY2013
- BPM (voice) attrition declined from 43 per cent in FY2011 to 33 per cent in FY2013
8
2013 expected to see higher just-in-time hiring with focus on specialised skills
2013: Just-in-time (JIT) hiring
takes precedence
Driving FY2014 HR mandate for focus
on niche skills
Equal hiring, 4%
Source: NASSCOM
Higher JIT
hiring, 57%
Higher campus
hiring, 39%
1
2
3
4
5
Hiring
specialised skills
Skill
assessment
Employee
engagement
Training
Academia
partnerships
9
Soft skills and domain skills increasingly being sought among candidates
Academia tie-up
Higher education
2000-06 2006-11 2011 onwards
Higher demand for domain and soft skills
Source: NASSCOM
Internal & external ecosystem being
leveraged to develop expertise
In-house training
External certifications
1
3
4
85%
10%
5%
65%
22%
13%
40%
40%
20%
Technical skills Soft skills Doman skills
2
10
With specialisation around SMAC, engineering; demand for leadership skills
Top skills in demand from freshers
Source: NASSCOM
Technology Domain Soft skills
1
2
3
4
5
Cloud/
Virtualisation
Platform
engineering
Data
scientists
Mobile
applications
User
experience
design
1
2
3
4
5
Banking
Mathematicians
S/w
engineering
Lawyers
Doctors,
economists
1
2
3
4
5
Customer
interaction
Problem
solving
Leadership
English
comm.
Presentation
skills
11
Enhanced capacity across colleges, diverse job opportunities
Domestic market
Domestic IT
A USD 50 billion market
Entrepreneurship status
Enormous opportunities in multiple sectors
- Energy: Smartgrids, smart buildings
- Technology-enabled healthcare delivery
- Medical device design
- Manufacturing
- Media
by 2020
Opportunities in
- Software products, IS outsourcing, ER&D,
embedded systems
- System integration
- Mobile software applications
- eLearning
2,400+ product start-ups in India
- Vibrant ecosystem around mobility, eCommerce,
education, telecom VAS
>46 million non-IT SMBs in India
- Employs ~47 per cent total India workforce
- Growing IT penetration
Enhanced jobs opportunities Tech grads : 10-15 per cent hired by IT-BPM
1
365
1,323
FY2005 FY2013E
000 nos
3.6X
Technical outturn up 3.6 times in eight years
To attract IT firms, colleges need to create
differentiation, create students with industry-
ready skills
- Strengthen foundation skills
- Define occupational standards for entry-level
unique jobs
1. Includes engineering graduates and engineering diploma holders
Source: McKinsey, Zinnov, NASSCOM
12
Start-ups fuelling innovation in education and HR
Collaboration
Assessment
Skill
development
Technology
Education
7%
8%
10%
23%
44%
Start-ups in India: Education and HR are the leading sectors
Education
& HR
25%
Others
75%
Education and HR largest share among start-ups
Followed by retail, media/communication
Education start-ups: eLearning/eTutorials
Skill development: Finishing schools, vertical-specific solutions
Source: NASSCOM
13
IT-ITeS Sector Skills Council: Laying the groundwork for a future-ready talent pipeline
Education
initiatives
Assessment
Faculty
development
Occupational
standards
Foundation
skills
Design and develop
Occupational Standards (NOS) and
Qualification Packs
Published for 67 entry level unique job roles across
ITS, BPM, ER&D, SPD
Deploy
NAC-Tech: 137,000
NAC (BPM): ~10,000
F&A, analytics, actuarial, multi-channel
customer service
Data structures, algorithms, programming
Applied communication, aero structures,
automotive electronics
BPM:
ITS:
ER&D:
(By industry
trainers): ~160
(By trained master
faculty): 211
Master training
Train the trainer
Source: NASSCOM
14
Diversity in the industry: Gen Y taking over, need to establish connect
>60 per of industry workforce comprises Gen Y
Drivers Challenges
Challenging jobs,
learning opportunities
Easy-going work
environment
Rapid job promotions
Work-life balance
Mobility, social media,
device usage
Retention
Instant gratification
and entitlement
Rapid career
growth
Compensation
Attitudinal and
cultural disparity
1
2
3
4
5
Strategies for Gen Y connect:
Entrepreneurship Among top five priorities
Professional
Personal
Rewards and recognition
Career management
Entrepreneurship
Open environment
Specialised training
Comprehensive health plan
Self-development
Flexible work hours and employee safety
Employee volunteerism
Child care centres
Source: NASSCOM
15
Gender inclusivity, global workforce, diferently-abled, social collaboration key priorities
Diversity and inclusivity: Unity in diversity PwDs: Opportunities for the differently abled
Workforce: From India to global Social media: Changing how we work
workforce comprises
women at managerial level and above
Grooming roles
Talent from background,
cities
>30 per cent women
>15-20
women for leadership
underprivileged
Tier II/III
per cent
When hiring and working with PwDs
Potential and current PwD employees
workplace
Technology, administration,
marketing, accounts, etc.
Sensitise:
Interact:
Accessible
Job opportunities:
ODCs across countries, languages
foreign nationals employed
of foreign employees in top four firms
~580 75 35+
>100,000
7-8 per cent
Communication: (large firms) and
(SMEs)
Recruitment: Freshers, top management
comprise
Peer engagement,
decision-making across
>90
50-60
48
collaboration/innovation,
per cent
per cent
per cent
Source: NASSCOM
16
Promoting an entrepreneurial culture and ensuring employee safety two key focus areas
for the industry
Platforms to innovate
Forums and contests
Mentorship and shadow-boarding
Investment councils and funding grants
Employee own time
(Time given to pursue own ideas at work)
CoEs/Innovation labs
Personal investments Formalised investments
Sexual harassment policies
Background checks; pick up/drop
Counselling
Survival, self-defence training
Prevent cyber crimes
Employee safety practices
5
4
3
2
1
Source: NASSCOM
17
HR: New competencies needed to manage inter-generational dynamics
Organisational Managerial Individual
Operate without hierarchy
Enhanced exibility in policies
Foster an entrepreneurial climate with
greater empowerment
Continuous emphasis on learning and
skill development opportunities
Build social networks
Strong work-life balance ethics
Adopt an approachabl e atti tude,
greater informality with greater emotional
connect
Respect the individual and individual
differences
Develop an environment of honesty
and transparency
Share knowl edge and experi ence
selessly
Recognise and reward contributions
Keep abreast of changing technology;
acti vel y use technol ogy i ncl udi ng
social media
Increase focus on excellence and
perfection in work
Devel op a l onger t er m out l ook
towards work results, rewards and
career aspirations
Develop respect for and accommodate
others points of view
Actively enhance opportunities to build
a larger world view
Build respect for critical organisational
process/systems/pol i ci es through
an increased understanding of their
signicance
Source: iPRIMED
18
Technology in HR: Manifold impact, multiplying overall efectiveness
Tech-enabling HR processes Leading to greater clarity and responsiveness
1
Better clarity
of HR policies
2
Better
communication
3
Higher query
turnaround
4
Improved HR
perceptions
5
Map training
to skills
Source: NASSCOM
Adopting technology to deliver
HR services
Mobile emerging delivery
platform for HR
>85 per cent survey respondents
indicate tech-enabling HR processes
Greater connect with stakeholders;
higher productivity
19
Social media: Increasingly used for recruitment; Gen Y driving this as main
communication channel
Employee
referrals
Traditional
channels
2
Social media
95%
71%
68%
Middle
management
Domain/
Industry
specialists
Freshers
Senior
management
76%
52%
48% 48%
Social media: Emerging recruitment channel
Nearly 90 per cent of large firms and 50-60 per cent of
SMEs engage social media as communication channel
Social media emerging as an important recruitment
channel across employee value chain freshers to middle
and top management
Being used for senior management and even freshers
Large firms SME
90%
50-60%
Social media for employee connect
Notes:
1) Numbers in charts indicate percentage respondents
2) Includes campus recruitment, newspapers, recruitment agencies, job portals, etc.
Source: NASSCOM
20
Firms leveraging social media platform for greater connect with Gen Y
HCLs Meme: In-house social networking platform gives complete social media experience while
at work. Conceptualised to enhance connect, build trust through transparency and inverting
organisational pyramid. It can facilitate discussions, engagement, collaboration/innovation across
geographies, time zones and employees
Genpacts Glue: An internal collaboration network for social interaction between employees,
builds a collaborative knowledge pool, identifies and engages experts and ultimately creates a
common global culture. It has tools such as groups, discussions, blogs, status updates, as well as
social features including like, comment and share
Cognizant 2.0: Enterprise social business platform that drives collaborative work management,
knowledge sharing, project/service management, innovation management, programme governance
and insight-driven decision making. It connects Cognizant, customers, vendors on single
collaborative, knowledge sharing platform
21
Top 20 rms account for >1 million India-based employees
Rank Organisation
1 Tata Consultancy Services Ltd.
2 Infosys Ltd.
3 Cognizant Technology Solutions India Pvt. Ltd.
4 Wipro Ltd.
5 HCL Technologies Ltd.
6 Tech Mahindra Limited
1
7 Genpact Ltd.
8 Serco, Global Services*
9 Capgemini India Pvt. Ltd.
10 Mphasis Ltd
Rank Organisation
11 Aegis Ltd.
12 iGATE Global Solutions Ltd.
13 CSC, India
14 Firstsource Solutions Ltd.*
15 WNS Global Services (P) Ltd.*
16 Syntel Ltd.
17 EXL*
18 L&T Infotech
19 Hinduja Global Solutions Ltd.*
20 Aditya Birla Minacs Worldwide Ltd.
1) Includes Mahindra Satyam and Tech Mahindra as they are now a combined entity
Note: This list is based on the India-based FTE headcount of rms with IT-BPM operations in India, as reported to NASSCOM in its annual survey
Based on publicly available information, few other MNCs such as Accenture, HP India, Convergys and IBM would have also featured in this list.
However, as they have not participated, the survey was unable to rank them.
Most rms on this list are engaged in IT as well as BPM. Firms marked with an * indicate pure-play BPM rms.
Source: NASSCOM
NASSCOM Top 20 IT-BPM Employers in India FY2013
22
Summary
Evolving IT-BPM industry trends transforming industry talent models
Industry will continue to hire recruitment to be skill-based
Soft skills and domain skills are increasingly being sought among candidates
High demand for freshers with SMAC, engineering; and leadership skills
Colleges need to diferentiate to attract IT-BPM industry, potential opportunities through domestic market and entrepreneurship
Education & HR, emerging as the biggest areas of interest for start-ups; expected to fuel innovation
Increasing diversity in the industry
- Gen Y taking over, need to establish lasting connect
- Gender inclusivity, global workforce, diferently abled and social collaboration
IT-ITeS Sector Skills Council is laying the groundwork for a future-ready talent pipeline
23
International Youth Centre
Teen Murti Marg, Chanakyapuri
New Delhi 110 021, India
T 91 11 2301 0199 F 91 11 2301 5452
research@nasscom.in
www.nasscom.in

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