Post on 20-Oct-2015
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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
22013: 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
32013: HR Trends Changing Talent Paradigm
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 grati cation and entitlement
which poses a signi cant 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
42013: HR Trends Changing Talent Paradigm
ContentsEvolving 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
52013: HR Trends Changing Talent Paradigm
Evolving IT-BPM industry trends transforming industry talent models
Industry added >2 millionemployees in last decade
Focus on non-linear growth,global hiring
Skill base who are trained inmobility, social media, cloud,big data
Sustained investment instructured training programmes
Develop in-house universitiesand affiliations with academia
Focus on entrepreneurial skilldevelopment, domain
Talent requisites
Evolving Industry Trends
Source: NASSCOM
Technology
Top 100 IT-BPM firms offerings
>40 per cent: SMAC solution
>35 : Cloud and platform solutionsper cent
Moving up thevalue chain
End-to-end services
30-32 : Verticalised services as percentage oftotal exports
Increased focus on transforming client businessthrough innovative and specialised offerings
per cent
Lines ofbusiness
Business users Influencers to buyers
77 : Business executives who buy their owntechnology 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
62013: HR Trends Changing Talent Paradigm
Industry to continue hiring despite tough economic conditions
F 2014: Hiring trend of large firmsY F 2014: SMEs A more robust hiring growthY
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 totalhiring in FY2014
Note: Numbers in charts indicate percentage respondentsSource: NASSCOM
Hiringto grow
Hiring toremainsteady
Hiringto grow
Hiring toremainsteady
72013: HR Trends Changing Talent Paradigm
Attrition, no longer a challenge for the industry
Note: Numbers in charts indicate percentage respondentsSource: NASSCOM
Attrition under control firms also indicated a decline
Remainedsteady
Large firms
80%
20%Decrease
SMEs
Remainedsteady
Decrease
56%
44%
~39 per cent survey respondents indicated a decline in attrition levels in FY2013 as compared to FY2012; remainingrespondents 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
82013: HR Trends Changing Talent Paradigm
2013 expected to see higher just-in-time hiring with focus on specialised skills
2013: Just-in-time (JIT) hiringtakes precedence
Driving FY2014 HR mandate for focuson niche skills
Equal hiring, 4%
Note: Numbers in charts indicate percentage respondentsSource: NASSCOM
Higher JIThiring, 57%
Higher campushiring, 39%
1
2
3
4
5
Hiringspecialised skills
Skillassessment
Employeeengagement
Training
Academiapartnerships
92013: HR Trends Changing Talent Paradigm
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
Note: Numbers in charts indicate percentage respondentsSource: NASSCOM
Internal & external ecosystem beingleveraged to develop expertise
In-house training
External certifications
1
34
85%
10%
5%
65%
22%
13%
40%
40%
20%
Technical skills Soft skills Doman skills
2
102013: HR Trends Changing Talent Paradigm
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
Platformengineering
Datascientists
Mobileapplications
Userexperience
design
1
2
3
4
5
Banking
Mathematicians
S/wengineering
Lawyers
Doctors,economists
1
2
3
4
5
Customerinteraction
Problemsolving
Leadership
Englishcomm.
Presentationskills
112013: HR Trends Changing Talent Paradigm
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 opportunitiesTech grads : 10-15 per cent hired by IT-BPM1
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 createdifferentiation, create students with industry-ready skills
- Strengthen foundation skills
- Define occupational standards for entry-levelunique jobs
1. Includes engineering graduates and engineering diploma holdersSource: McKinsey, Zinnov, NASSCOM
122013: HR Trends Changing Talent Paradigm
Start-ups fuelling innovation in education and HR
Collaboration
Assessment
Skilldevelopment
Technology
Education
7%
8%
10%
23%
44%
Start-ups in India: Education and HR are the leading sectors
Education& HR25%
Others75%
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
132013: HR Trends Changing Talent Paradigm
IT-ITeS Sector Skills Council: Laying the groundwork for a future-ready talent pipeline
Educationinitiatives
AssessmentFaculty
development
Occupationalstandards
Foundationskills
Design and develop
Occupational Standards (NOS) andQualification Packs
Published for 67 entry level unique job roles acrossITS, BPM, ER&D, SPD
Deploy
NAC-Tech: 137,000
NAC (BPM): ~10,000
F&A, analytics, actuarial, multi-channelcustomer service
Data structures, algorithms, programming
Applied communication, aero structures,automotive electronics
BPM:
ITS:
ER&D:
(By industrytrainers): ~160
(By trained masterfaculty): 211
Master training
Train the trainer
Source: NASSCOM
142013: HR Trends Changing Talent Paradigm
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 workenvironment
Rapid job promotions
Work-life balance
Mobility, social media,device usage
Retention
Instant gratificationand entitlement
Rapid careergrowth
Compensation
Attitudinal andcultural 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
152013: HR Trends Changing Talent Paradigm
Gender inclusivity, global workforce, diff erently-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
underprivilegedTier 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 managementcomprise
Peer engagement,decision-making across
>9050-60
48
collaboration/innovation,
per centper cent
per cent
Source: NASSCOM
162013: HR Trends Changing Talent Paradigm
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
172013: HR Trends Changing Talent Paradigm
HR: New competencies needed to manage inter-generational dynamics
Organisational Managerial IndividualOperate without hierarchy
Enhanced fl 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 approachable attitude, greater informality with greater emotional connect
Respect the individual and individual differences
Develop an environment of honesty and transparency
Share knowledge and experience selfl essly
Recognise and reward contributions
Keep abreast of changing technology; actively use technology includingsocial media
Increase focus on excellence and perfection in work
Develop a longer term out look 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/policies through an increased understanding of their signifi cance
Source: iPRIMED
182013: HR Trends Changing Talent Paradigm
Technology in HR: Manifold impact, multiplying overall eff ectiveness
Tech-enabling HR processes Leading to greater clarity and responsiveness
1Better clarityof HR policies
2Better
communication
3Higher queryturnaround
4Improved HRperceptions
5Map training
to skills
Source: NASSCOM
Adopting technology to deliverHR services
Mobile emerging deliveryplatform for HR
>85 per cent survey respondentsindicate tech-enabling HR processes
Greater connect with stakeholders;higher productivity
192013: HR Trends Changing Talent Paradigm
Social media: Increasingly used for recruitment; Gen Y driving this as maincommunication channel
Employeereferrals
Traditionalchannels
2
Social media
95%
71% 68%
Middlemanagement
Domain/Industry
specialists
Freshers Seniormanagement
76%
52% 48% 48%
Social media: Emerging recruitment channel
Nearly 90 per cent of large firms and 50-60 per cent ofSMEs engage social media as communication channel
Social media emerging as an important recruitmentchannel across employee value chain freshers to middleand 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 respondents2) Includes campus recruitment, newspapers, recruitment agencies, job portals, etc.Source: NASSCOM
202013: HR Trends Changing Talent Paradigm
Firms leveraging social media platform for greater connect with Gen Y
HCLs Meme: In-house social networking platform gives complete social media experience whileat work. Conceptualised to enhance connect, build trust through transparency and invertingorganisational pyramid. It can facilitate discussions, engagement, collaboration/innovation acrossgeographies, 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 acommon global culture. It has tools such as groups, discussions, blogs, status updates, as well associal 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 governanceand insight-driven decision making. It connects Cognizant, customers, vendors on singlecollaborative, knowledge sharing platform
212013: HR Trends Changing Talent Paradigm
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 Limited1
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 entityNote: 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 surveyBased 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
222013: HR Trends Changing Talent Paradigm
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 diff erentiate 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, diff erently abled and social collaboration
IT-ITeS Sector Skills Council is laying the groundwork for a future-ready talent pipeline
232013: HR Trends Changing Talent Paradigm
International Youth CentreTeen Murti Marg, ChanakyapuriNew Delhi 110 021, IndiaT 91 11 2301 0199 F 91 11 2301 5452research@nasscom.inwww.nasscom.in