IT/ITeS Certification. Presentation at World Bank SSLEV Mumbai, 9 th February,2008

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1 IT/ITeS Certification Presentation at World Bank SSLEV Mumbai, 9 th February,2008

2 About us India s Largest Skills Assessment Company Investee Company of Manipal Education Group Over 3 Million candidates tested Assessing 125,000 candidates/month 350+ Clients across IT, BPO, Engineering, Banking, Healthcare, etc. Tests in over 300 areas Item bank of 75,000+ questions Web based Testing Engine OnTrac MeritTrac Assessment Zones : 16 cities, 1300 terminals 400+ Employees MeritTrac Certified Test Administrators Exclusive Global Assessment Partners to NASSCOM for NAC-Tech & NAC-BPO Assessment Partner to Govt. of Gujarat for Gujarat Knowledge Society Online Tests delivered in Brazil, China, Costa Rica, Mauritius & Philippines Winner of the NASSCOM Innovation Award 2007 for Online Testing

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4 Partial List of BPO Customers

5 Integrated Talent Engagement Model Creation Alignment Acquisition Management School/College Examinations Employability Enhancements Sourcing Intelligence Right-fit Recruitment Delivery & Administration Talent Management Education Assessments TracSkills: Individual Certifications Talent Pool Analytics & Intelligence Validated Suite of Tests Recruitment Process Management incl. Test Admin Talent Assessments & Methodologies

6 Talent Pool Reports

7 The Demand Side: Exponential growth across all sectors including IT & BPO Future growth is tightly linked to availability of quality manpower The War for Talent fight for the right profile Low conversion rates due to lower input quality and higher customer expectations Increasing processing loads & pressure to lower costs

8 The Supply Side: A large Graduate Population spread across Tier 1,2 & 3 cities Low career orientation & lack of awareness of industry Myths & misconceptions esp. about the emerging industry No structured feedback on skillsets to students to help bridge gaps Diverging industry-academia requirements Faculty!!

9 Shortfall in Manpower Supply IT Manpow er gap (2009) BPO Manpow er gap (2009) Number (000s) Number (000s) IT services exports 460 ITeS market demand (current productivity) 1,416 Domestic IT services Products and Technology services Industry productivity enhancement (product mix, structural changes) Total demand (2009) 1, Total demand (2009) 1,120 Current pool Supply expected based on current trends Shortfall: 235 Current pool Supply expected (net of attrition at current levels) Shortfall: 262 Total supply (2009) 885 Total supply (2009) 741 Source: Institute of Applied Manpower Research. NSSO. NASSCOM. K PMG

10 Conversion Funnel: Engg Skills 100 candidates A B I L I T I E 25 (lower threshold) D O M A I N 18 (Technology/Domain Knowledge) Interviews 12 Offers 10 Joining S

11 Conversion Funnel: Comm. Skills 100 candidates C O M M N S K I L L 15 (lower, trainable scale) A B I L I T I E S 9 (various abilities & skills parameters) Interviews 6 Offers 4 Joining S

12 Some Number Crunching Total number of additions in 2007 BPO Industry: ~ 100,000 agents IT Industry : ~ 125,000 Average Conversions Rates (from Eligible Applicant -> Offer) BPO- Voice-based process : 4-8% IT Freshers/0-1 years : 10-15% Number of Applicants Required/Annum: BPO Industry : > 2.0 Million IT Industry : > 1.25 Million

13 The State of the Talent Pool : BPO Voice All India (% Conversions) Timeframe Dec 2007 Dec % 4% 15% 30% 20% 38% 62% 70% 4/3.5/3.5/3.5 & above 4/3/3/3 & above 4/2/2/3 & above < 4/2/2/3 0% 20% 40% 60% 80% % Scores

14 Current Challenges Selecting the Right people Optimized Assessment tool proven validity & reliability Reaching out to the talent pool On-demand, multi-location presence Standardizing processes across locations Predictable quality of hires, reduce cost of bad hire Improving efficiencies in recruitment processes Focus on core, build the brand & SLA the rest! Reaching the next level in Talent Engagement Continuous Assessments to funnel people into areas of interest

15 The Challenge of Employability! A Report by NASSCOM-KPMG estimates a short-fall of 500,000 employable graduates for the jobs that the IT & the BPO industry will create by 2009 Several Talent Pool reports, including those by MeritTrac & McKinsey indicates that only 10-25% of graduates in India are employable Awareness of industry requirements, structured feedback on strengths & weaknesses and connecting employable talent to the Industry are some of the key aspects of enhancing employability Scientific & Structured feedback aids in designing modular training programs The need for a common definition of skills and create a standardized assessment & index to measure employability

16 Benefits of Employability Certifications Students Ability to identify their strengths and areas of improvement and self-assess training needs A common assessment endorsed by multiple companies, which obviates the need for candidates to appear for multiple tests for the same skill sets. An opportunity to get certified at the national level and get noticed by all endorsing companies Colleges/ Universities Helps bridge the gap between academia and industry expectations Provides specific insights for creation of training programs to make students industry ready Helps in reaching out to a larger set of companies, beyond the normal placement network The Industry Creation of a national standard for assessment & recruitment of entry level talent Significant cost savings on sourcing & assessment costs Ease of benchmarking for individual processes with industry standards Ability to create visibility and reach out to a larger audience

17 Partnership with NASSCOM NAC-Tech Exclusive Assessment Partner: MeritTrac

18 NAC-Tech for Engineering Industry Launched in February 2008 Conceived as an industry standard assessment and certification program To ensure the transformation of a trainable workforce into an employable workforce To create a robust and continuous pipeline of talent for the IT& Engineering Industry. Two forms of NAC-Tech: NAC-Tech Diagnostic: aimed at II/III year Students, mainly for feedback and gap identification. Unproctored, Online, Structured Feedback only on Part A NAC-Tech Certification: at III/Final Year Students for submission of scores to endorsing companies. Proctored, Online, Structured Feedback & Certification based on both Part A & Part B NAC-Tech will identify the level of talent which is available across India, especially in Tier II and Tier III cities & provide feedback on specific areas to enhance employability

19 NAC-Tech: Initiative by NASSCOM

20 NAC-Tech Advisory Council The NAC Tech Assessment Framework has been designed by NAC- Tech Advisory Council with representatives from: 1. TCS 2. COGNIZANT 3. INFOSYS 4. SATYAM 5. HCL 6. PATNI 7. ACCENTURE 8. MINDTREE 9. WIPRO 10. IBM

21 NAC Tech Assessment Framework Part A- Mandatory Tests Part B Choice of one of the following Tests Tests Competency Grammar and Comprehension Analytical Ability and Logical Reasoning Eye for Detail Programming Ability Learning Ability Written English Tests Verbal Ability Analytical Ability Attention to Detail Programming Fundamentals Learning Ability Test Written English Test IT Concepts Test Electrical Engineering Electronics & Communication Engineering Mechanical Engineering Civil Engineering Chemical Engineering Textile Engineering Bio Technology Telecommunication Engineering

22 Active Endorsers IT Services: AIG Systems, Convergys, Cognizant, Hexaware,HSBC Software, Impiger, Logica, Microland, Mphasis, Patni, Polaris, Sasken, Silverline Technologies, Sierra Atlantic, Sundaram Infotech, SunGard, UBS, Tanla Solutions, TESCO, Value Source Technologies IT Products: Core Objects, Delphi, Tata Elxsi Core Engineering: APC(Schneider Electric), Areva, Cable & Wireless, Cambridge Solutions, CCI Valve, Harita TVS, Nokia Siemens Networks, Sundaram Fastners, Weir Minerals

23 Program Objective Snapshot 15,000+ candidates have received NAC-Tech certification since Feb colleges across 61 towns and cities locations covered Program Success Parameters: -1 student out of every 9, who has appeared for the test gets shortlisted -1 student out of every 3 interviewed gets an offer (33% met-tooffer) Program has received interest from MHRD: Faculty Development Programs and Finishing school Programs are being linked to NAC-Tech TARGET: 1000 colleges and 1,00,000 engineering graduates by in 2009

24 Summary of Inferences 1. NAC-Tech scores are the most important factors distinguishing offered candidates Academic scores by themselves are very feeble differentiators of employable talent NAC-Tech improves throughput by effectively capturing parameters that influence hiring 40% 30% 20% Difference in average score of Offered vs Non-Offered candidates Academic Scores 10% 0% Written English Test Analytical Ability Attention to Detail Programming Fundamentals Others

25 Summary of Inferences 2. Written English Test & Analytical Ability are the best differentiators amongst NAC-Tech Scores Correlation 10th 12th Grad. Verbal Ability Anal. Ability Attn.to Details Prog. Learng Ability Written English Overall & Interviewed Overall & Offered Interviewed. & Offered 25% 22% 21% 11% 44% 25% 18% 8% 17% 17% 14% 8% 8% 25% 16% 15% 5% 21% 9% 3% -9% 4% 1% 6% 12% 1% 24%

26 NAC by NASSCOM Assessment Vendor: MeritTrac

27 NAC for the BPO Aspirants The Model:

28 Our Advisory Board NAC Assessment Framework Skills Note/Description Speaking Parameters assessed will be Voice Clarity, Fluency, Accent Neutrality and Grammar. Listening Analytical and Quantitative Reasoning Writing (multiple choice) Conversation in neutral English will played online followed by questions which the candidates can answer online Analytical and Logical Reasoning questions like puzzles, data sufficiency, inductive and deductive logic will have to be solved by the candidate. Numerical Reasoning will include Percentages, Averages, Profit and Loss type of questions Candidates will attempt questions on Grammar, Reading Comprehension, Vocabulary Writing (essay) Test will assess candidate on Content, Relevance, Grammar, and Vocabulary. Learning Ability Checks is a person has ability to learn new things Keyboard Skills Checks if the candidate is comfortable in using the keyboard and also if the candidate can enter data into fields accurately.

29 NAC & MeritTrac NAC BPO was launched in mid-2006 Since its launch, over 25,000+ Graduates have been assessed in various States MeritTrac has delivered NAC in the following states in India, for NASSCOM: Rajasthan 7 North-East States West Bengal Currently being rolled out in Gujarat & Orissa Total Tested Candidates: 19,000+

30 Learnings Talent is wide-spread and not just restricted to only to Tier I Colleges and to Metros Exposure to industry (requirements, thinking) is very important Feedback mechanism is critical to get the focus on gaps Create Success Stories in Tier II colleges and smaller towns Colleges and Universities will need to allocate sufficient resources for post-assessment training to help students improve their employability Training on industry readiness needs to be customized/modularized at individual student/group level, rather than the current one size fits all approach Need to move away from a Quality Control mode into Quality Assurance mode

31 The Principles Everyone is employable Play to the strengths Shortest-distance to employability

32 The Model for Talent Pool Development PRE-TRAINING ASSESSMENTS SKILLS TRAINING POST TRAINING ASSESSMENTS Trainable Students Diagnostic Tests Feedback of Performance and curriculum framework design Define Objective & criterion measure Define Content Design methods and training material Post-Training Assessment & Certification Employable Students Mid-course Assessments Endorsing Partners

33 Proposed Model Phase I: Awareness & Benchmarking Initiate a career awareness campaign across colleges in the Country Identify customization requirements for the test framework and sample groups within existing ITO/BPO companies Roll out a Nation-wide Assessments to measure skills for benchmarking

34 Proposed Model Phase II: Training Programs Initiate specific training programs to bridge gaps and up-skill candidates Assess skills on a regular basis and classify people into Recruit-able & Trainable pools Post-Training Assessments to ensure quality of output from Training Showcase the talent pool in the Country and provide this to Corporates to recruit

35 Proposed Model Phase III : Curriculum & Certifications Basic Skills Training programs at the College level Focussed training programs to cater to each segment of the outsourcing services spectrum Segment- specific certification programs to continuously funnel candidates into interest areas

36 Thank You