NASSCOM President’s Key Messaging at the HR Summit
- The IT BPM industry has been the mainstay of the Indian economy for over three decades which gives us huge confidence of what this industry can achieve. As Roger Federer said after winning the 19th Grand Slam at Wimbledon – “to aspire, first and foremost, one has to believe in it.”
- Having weathered many a storm in the past, once more we are experiencing a turbulence, but of a different kind. One more test, but I am confident that the industry will prove itself adequately. There’s a deluge of new ideas & technologies and the HR function has to deal with these multiple forces, unlike what it experienced in the past. More so, their impacts have been compounded by geo-political shifts and economic upheavals.
- The industry has to unlearn and re-learn once again to create a niche for itself globally, and will have to be ably supported by HR professionals. One is reminded once more – What got us here won’t get us there!
- The impact of all these changes are rapidly unfolding right in front of our eyes as we march towards our avowed vision – 350 billion USD of industry revenue by 2025. Digital revenue in this, is expected to be around 60% which is approximately four times than what it is at present. Moreover, a significant portion will still remain with traditional, so the balance will have to be maintained over the next 5 – 6 years. This bit is most critical.
- For the 154 billion USD industry which employs nearly 4 million people, the biggest preparation that is required is about re-skilling. Right now, we are looking at re-skilling 1.5 million people in digital technologies.
- The need for re-skilling is a pressing one globally and not only restricted to India. The NASSCOM Sector Skill Council, the nodal skilling agency under National Skills Mission has identified 55 new job roles and 155 new skills which will be most relevant in future. While there are many, a special mention of Big Data & Analytics is required. Currently the market size is about 2 billion USD which is expected to grow eight-fold to 16 billion USD by 2025. The demand will be for niche capabilities with a high degree of granularity.
- The revenue growth for next fiscal is estimated to be between 7 – 8 %. In the current year, the headcount growth has been approx. 4 – 5 %. For some time now, the de-coupling of revenue and headcount has been evident. It must be emphasized that it isn’t a case of jobless growth at all, as many would like to prophesize. This year, the industry is expected to have a net addition of 130000 – 150000 jobs. Technology has brought about a definitive convergence of industries which is expected to bring in newer opportunities.
- In a world which is increasingly getting flooded with “fake news” there’s a need for leaders to speak up. A structured approach is required though the industry is already a pioneer in “Compassionate Capitalism.”
- The presence of millennials is huge and growing by the day. The young people in organisations today want to be treated like “consumers” and be provided an experience. A far cry from just being “employees.”
- There’s another axis shift as well. Only about 25% of Fortune 500 companies are in emerging markets today, including India. By 2025, this number will be as high as 50%. What would be the experience of South Asian companies in India for instance? Would it be any different from American and European companies?
- Finally, when the company is on a high growth stage, CEOs will have to re-define measuring metrics so as to stay connected with the expanded workforce. In a war for talent, HR leaders will be the “Culture Ambassadors” who will have to enable automation across functions, with a high degree of transparency.
This blog is about the author’s session at NASSCOM HR Summit. You can see blogs from other session using this tag: hr summit 2017