Indian IT/ITES Industry: Impacting Economy and Society 2007-08

Indian IT/ITES Industry: Impacting Economy and

Society 2007-08

15th February 2008

Objective

To carry out an analysis of the overall direct and indirect contribution of

IT/ITES industry to the Economy and Society

Methodology

• Past study reports, NASSCOM and NASSCOM Foundation reports, State Government presentations, STPI data, white papers, international and national press clippings, Company Annual Reports, various websites

Extensive Secondary Research

Primary Survey

• IT/ITES Companies- 123• Employees, entrepreneurs,

Government Departments, others such as real estate developers (including coverage in Bhubaneswar), overseas employees in Deloitte offices etc.

Profile of Respondent Companies in terms of Turnover Range

A Category11%

B Category25%

C Category13%

D Category48%

Others3%

A Category B Category C Category D Category Others

Deloitte Framework for Analysis

National GDP share

Forex earningEmployment

generation

Spurring growth of first generation

entrepreneurs

Driving growth ofother sectors

Indirect employment generation

Boosting India’s image in global

markets

Front runner in good corporate governance

Contribution to Workforce development

Overall talent development in

the country

Employment Diversity:

Persons with diverse qualifications

Differently-abled

Women Persons from

small cities Youth Out of

mainstream candidates

Education

Health

Livelihood

Contribution to Community and Environment

Direct economic impact Improving

product/ service quality

Indirect impact on Economic Scenario

Skill enhancement within organisation

Employee friendly work environmentEnvironment

Rural Development

Women & Children

Differently abled

Sports and Arts

Balanced Regional Growth Fuelling growth

of PE/VC funding activity

Deloitte Framework for Analysis (…contd.)

Progressive influence from direct stakeholders to external

stakeholders

Moving from ‘for-profit’ to ‘not-for-profit’ activities

Focus of companies from immediate concerns areas to

community initiatives


National GDP share


generation

Direct economic impact


National GDP share


generation


entrepreneurs




markets








National GDP share


generation


entrepreneurs




markets




the country



Differently-abled

Women Persons from

small cities Youth Out of






Employee friendly work environment




National GDP share


generation

Spurring growth of first

generation entrepreneurs




markets




the country



Differently-abled

Women Persons

from small cities

Youth Out of


Education

Health

Livelihood

Contribution to Community and Environment





Employee friendly work environment

Environment

Rural Development

Women & Children

Differently abled

Sports and Arts

Balanced Regional Growth Fuelling

growth of PE/VC funding activity

Direct Economic Impact

• Contribution as proportion of national GDP grew from 1.2% in FY98 to 5.2% in FY07

Share of GDP

ForexEarnings

• IT/ITES industry grew by impressive 32.6% in FY07

• Expected to reach 40 bn USD in FY08

Employment Generation

• CAGR of 26% in last decade

• Direct employment of around 2 million by end 2008

Impressive level of contribution for an industry that didn’t have a significant presence 25 years ago

Direct Employment in IT industry (in million)

2.01.631.29

1.050.83

0.670.520.43

0.280.230.19

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08E

Export earnings of the IT industry (USD billion)

1.8 2.7 4.0 6.2 7.7 9.813.3

18.324.2

31.9

40

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08E

Contribution of IT industry to GDP

2.6%

1.2% 1.4%1.8%

2.8%3.2%

3.6%4.1%

4.7% 5.2%

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

Indirect Economic Impact

Driving Growth of

Other Sectors

• Every Re 1 spent by IT/ITES sector results in Rs. 2 total output in the economy

• In FY06, 15.85 bn USD spent by the sector in domestic economy generated total output of 31.35 bn USD

• Multiplier effect more significant in sectors like housing/construction, transport services, communications, consumer durables, food items and clothing

Indirect EmploymentGeneration

• Every one new job in the sector, creates four additional jobs in the economy

• Estimated indirect employment generated around 6.5 mn in FY07

• Indirect employment opportunities created for low skilled/less educated workers- 75% of indirect workforce are SSC/HSC or less educated

• Employment generated for direct service providers e.g. catering, transport and housekeeping, security and sectors where consumption spending has risen

Balanced Regional Growth

• Sector contributing to small city growth by hiring employees from these areas

• Several IT/ITES Companies shifting to smaller cities, beyond traditional Tier I locations - Emerging pan India presence of the sector

Fuelling growth of PE/VC Funding

• Worldwide dotcom boom and IT sector growth kick-started VC activity in India - India-centric VC funds got created followed by larger PE players

• IT/ITES sector was the initial focus – offered better returns and accounted for 65% of deals by number in 2000

• Other sectors like healthcare, manufacturing and financial services have also benefitted and able to access this source of funding

• IT/ITES sector continues to attract largest share of PE/VC investments

• IT/ITES sector largely responsible for initiating trend of first generation entrepreneurship • Created role models for Indian middle class – spurred them to exploit potential with

confidence • As per STPI, 1,905 new units registered between FY01-05, most of which set up by first

generation entrepreneurs• Wealth created by entrepreneurs was also shared among employees – ESOP practice

started by the IT/ITES sector created many salaried millionaires

Spurring first generation

entrepreneurship

Indirect Economic Impact (…contd.)

High quality levels to cater to global

markets

• Moving out from low-end non-technology oriented products to products/services that can compete and win on quality parameters

• 30% of companies who have reached Level 5 of CMMI (Capability Maturity Model Integration) are from India

• Large percentage of Fortune 500/Global 2000 corporations source their technology related services from India

• Raised the bar for other industries as well

• Sector acknowledged to be the front-runner in practicing good corporate governance• Many Indian IT companies listed on US stock exchanges which require adherence to stringent

guidelines• Has created positive pressure within and in other sectors to adopt global standards• Many companies received national/international recognition for such initiatives

Front runner in

practicing good Corporate

Governance

Boosting India’s image overseas

• Sector helping define what brand ‘India’ stands for in today’s global market • IT/ITES sector leading Indian business’s overseas acquisition spree• Growing number of companies being listed on global stock exchanges – building a strong brand

outside India• Partnerships between Indian IT firms and high profile events/brands & use of ‘Made in India’

software products worldwide

Indirect Economic Impact (…contd.)

Indirect Economic Impact: Balanced Regional Growth

Balanced Regional Growth

• Contributing to small city growth by hiring employees from these towns

• Several IT/ITES Companies are now shifting to smaller cities, beyond their traditional Tier I locations - Emerging pan India presence of the sector

Hyderabad

Chennai

Pune

Jaipur

Chandigarh

Lucknow

Kolkata

Bhubaneswar

Ludhiana

Ahmedabad

Baroda

Managalore

Coimbatore

Cochin

Trivandrum

Nagpur

Indore

Nasik

Vishakhapatnam

Mysore

Hubli

Manipal

Guwahati

Vijayawada

Mohali

Trichy

Madurai

Tirunelveli

Presence of IT/ITES Companies in Tier II/III Cities

9473

5675 72

100

0

20

40

60

80

100

120

A B C D Others Total

Company Category

Pe

rce

na

tge

ha

vin

g

pre

se

nc

e

A Case Study of Regional Balancing: Bhubaneswar

IT/ITES sector growth

• Units registered with STPI as well as exporting units have risen steadily since 2003-04

Number of Units

77

102

116

132

46

59

64

69

0 20 40 60 80 100 120 140

03-04

04-05

05-06

06-07

Registered Units Exporting Units

Indirect Economic Impact: Balanced Regional Growth (…contd.)

Software Exports from Orissa

213

260

315

400

500

800

0 100 200 300 400 500 600 700 800 900

01-02

02-03

03-04

04-05

05-06

06-07

Exports in Rs. Cr.

Impact of IT/ITES sector growth

Impact on Export Earnings• Reached around Rs. 800 crore (183 mn

USD) in 2006-07 – set to reach target of Rs 2000 crore (500mn USD) by 2011-12

• Growth in 06-07 of 60% - higher than national average of 28%

Impact on Employment• Demand for IT/ITES professionals grew at

CAGR of 206% during 2001-07- projected to reach 430,000 by 2011-12

• From surplus manpower till 2004, shortfall of nearly 63,000 professionals in 2007

Demand Supply Gap

4000

10000

21000

47000

67000

117000

11572

19819

28440

37061

45682

54303

0 20000 40000 60000 80000 100000 120000 140000

02

04

06

Manpower estimates

Demand Supply


Impact of IT/ITES sector

growth

Impact on Education• Number of engineering colleges in state has risen from around 10

five years ago to around 45 currently• Several new educational institutions are to be set up (including

IIIT, IIT Kharagpur campus, NISER, private engineering colleges and polytechnics)

• Introduction of new courses – MCA in all Engg. Colleges, IT/ITES related courses in polytechnics

• Training initiatives being undertaken by Companies to improve quality of students

• Supply of IT professional has grown at a CAGR of 148% during 2001-07

Impact on Infrastructure• Creation of IT Parks and townships to meet requirements of

companies – entry of national infrastructure development players• Improvement in local amenities (roads, housing, retail,

entertainment etc.) especially with growth in ancillary services

Impact on service quality in associated sectors• Rising demand leading to increased number of vendors and

encouraging existing vendors to improve service quality

Entry of IT/ITES Companies into a region

Socio-Economic Impact on the region

Government initiatives to attract Companies in

other regions

Driving factors: Availability of cheaper

land Lower operating costs

(rentals, salaries etc). Availability of a basic

level of talent Lower attrition rates.

Growth in software exports

Employment generation Growth in educational

institutes & improvement in education quality

Growth in ancillary services sector

Development in real estate/infrastructure.

Investments in physical infrastructure and improving quality of local amenities.

Development of educational infrastructure.

Basic level of infrastructure and talent pool exists in smaller

cities where companies expand

Further development takes place as a result

of, and to support, IT/ITES growth

Inspiration for other cities to emulate the success, leading to

large scale regional development

Impact of Entry of IT Companies into Tier II/III Cities


Diversity at the Workplace

Diverse qualifications

• Direct employment opportunities for people with qualifications ranging from school pass-outs to highly qualified professionals

• Indirect employment opportunities for around 6.5 million employees, including those with lesser qualifications

Women• Employer of choice for women - percentage in workforce set to rise from current 30% to 45% in 2010• Encouraging women to pursue employment in the sector through women focused strategies at each level of

employment cycle

Youth• Set to be one of the largest employers of a growing ‘young population’ of India – 2/3rd being below 30 years• Median age of professionals 28.9 years (even lower in BPO sector) with 70% workforce in 26-35 age group

Out-of-Mainstream

• Through innovative HR practices, industry has engaged unconventional employee groups such as retired persons, housewives etc.

Small City/Town Persons

• By moving into Tier II/III cities, sector creating huge employment opportunities, hitherto largely limited• Deloitte survey shows large IT/ITES companies often have 33-50% employees from non-metro/rural areas

• 64% of IT/ITES companies in the Deloitte survey employed differently abled persons• Companies are collaborating with NGOs and Governments to institutionalise hiring of differently abled persons

Differently abled

Faced with a shortage of talent, the industry has responded with innovative solutions leading to a diverse atmosphere at workplace

Human Resource Development

• Only 10% of Indian youth receive higher education compared with more than half in industrialised countries and 15% in China

• Of the 4 lakh engineers produced per year in India, only one out of four are employable

• Estimated likely shortfall of 500,000 employees in the industry by 2010

Fast growing industry -grappling with

availability and quality of talent issues

Industry’s initiatives to address issue

Development of overall talent pool in the country

Enhancing skill levels of employees in the organisation

Stimulating and employee friendly work environment

The IT/ITES sector has not only come forward by making investments in training their own employees but has gone beyond and collaborated with Government and private institutions to

enhance the capabilities and skills of the talent pool in general

Development of overall talent

pool in the country

• Relationships have been forged with the Government, academia and students to help raise the bar with respect to quality of talent churned out by the educational system

• Institution of various programmes in colleges for Ph.D. courses to foster excellence in education

• Provision of training to students and faculty by employee volunteers in various educational institutions for developing “industry ready” professionals• Participation in curriculum design and updation for ensuring match between what is taught in institutions and requirements of industry• Ministry of Human Resource Development has recommended launch of five new IIITs based on PPP model with support from NASSCOM and industry

Human Resource Development (…contd.)

StimulatingWork

Environment

• Industry has set a precedent by developing employee friendly work environment to improve employee satisfaction and productivity levels

• State of the art offices and innovative HR policies offered by Companies to ensure that they employ an engaged workforce

• 90% of companies surveyed offer flexi work hours and 59% offer work from home option

Skill Enhancement in

the Organisation

• Industry has emphasised upon workforce development by encouraging and aiding upgradation of skills and abilities

• 68% of companies surveyed offer scholarships and fund higher education courses• Massive investment made in training new skills and abilities not acquired during educational

courses, to sustain growth and compete globally ; top 5 cos. investing close to 430mn $ in FY08• Several companies tie-up with institutions to provide higher training to employees

Socially Relevant Products and Services

• Computer based literacy programmes, education and research networks, school support curriculum, curriculum wikipedia, collaborative tools, digitisation and local language conversion…

• Microfinance, setting up of rural BPOs, skills development and mobile applications that supplement employment and self employment…

• Compatible software and hardware for visually impaired, tools and applications to support we accessibility, setting up of telecentres in rural areas, providing technology support to NGOs through www.bigtech.in...

• Teleconsultation systems, emergency medical services, health portals and applications, awareness on HIV and AIDS…

Industry has been responsible for developing products and services which have had an impact on lives of disadvantaged sections of society

EducationEmployability&

EntrepreneurshipHealth Bridging the digital divide

Computer based literacy programmes of TCS, which aims to enable illiterate people develop reading skills in 40 hours as against 200 hours required traditionally ; have helped over 90,000 people across 1,400 centres in select states

Patni Computer Services is improving access to quality health care services in semi-urban and rural areas through its teleconsultation system, which has benefited about 100 people till date at Jalna, a town 250 kms from Pune

The Fisher Friend BREW application developed by Qualcomm, enables fishing community to earn their living in a safe and proactive manner by providing access to market prices, weather updates and emergency information in local language

The NASSCOM Knowledge network, aimed at creating an enabling environment for underserved communities by facilitating access to information and services, has created a national grid of 140 knowledge centres across 12 states and 75 districts in India

Socially Relevant Community Initiatives

• 85% of Companies surveyed undertake socially relevant initiatives

Channels of Contribution

63%

31%

6%

Donations and Volunteer time Donations (monetary or kind)

Volunteer time

IT/ITES Companies have undertaken various community based programmes for sustainable development especially focusing on marginalised sections of society

Prevalence Organisational Set Up

Companies undertaking socially relevant initiatives

100% 100% 100%

74%85%

0%

20%

40%

60%

80%

100%

120%

Category ACompanies

Category BCompanies

Category CCompanies

Category DCompanies

Overall

Channels of contribution

• Majority of Companies contribute through a mix of monetary assistance and employee volunteer time

• Several companies have dedicated department/employees to undertake community initiatives

Organisational Set Up

66%

22%

12%

Through Existing Department Dedicated Department/Personnel

Foundation / Trust

Socially Relevant Initiatives – Focus sectors

• Access - sponsoring schools in rural areas, scholarship provision to needy students etc.

• Retention - mid day meals, counseling by employees, ensuring child friendly learning environment

• Quality - curricular research, teacher’s training, education infrastructure improvement, employee volunteer time for conducting classes etc.

• Awareness level - spreading awareness about diseases and good health practice, health camps

• Access to healthcare - initiating and supporting telemedicine projects, medical emergency services

• Quality -improving availability and quality of infrastructure

Focus sectors for socially relevant initiatives are Education, Health and Environment - initiatives are aimed at addressing critical issues plaguing various sectors in India and

corresponding with the MDG goals

Education Health Environment

• Environmental sustainability - conservation of resources, adoption of environmentally friendly practices in supply chain, creating awareness, tree plantation etc.

Others

Rural Development• Connectivity - using technology for

better connectivity, information availability etc.

Livelihood• Skill development- training,

donations etc.Women & children• Economic independence -

empowerment programmesDifferently abled• Employability -support to NGOs,

training programmes etc.Sports and Arts• Encouragement-sponsoring events,

donations etc.

Socially Relevant Community Initiatives - Education

Education

• 68% of Companies undertaking socially relevant initiatives are involved in this sector• Top areas of contribution are infrastructure, primary education, scholarships, IT training and higher

education• Initiatives by top 6 Companies impacted 17.5 lakh people in 2006-07

Primary Education

• Funding of schools, NGOs, donations etc.

• Employee volunteer time for training etc.

• Networking with Government, NGOs for advocacy and systemic changes

Higher Education

• Teaching regular curriculum and other relevant skills, organising workshops etc.

IT Training

• Designing and sponsoring training programmes, carrying out training through employee volunteers

Infrastructure

• Overall infrastructure development in institutions, donation of computers etc.

Others

• Training of teachers• Adult education• Mid day meals• Scholarships

• Overall literacy rate in India around 65%, which is even lower (54%) in case of women• Only 1.7% of GDP is spent on primary education and 3.4%% on education overall in India• As per a 2005 survey, 7.8 million primary school-age children were out of school

Socially Relevant Community Initiatives – Primary Education

Wipro’s ‘Applying Thought in School’ project with its 3 components of Training programs, Whole School Transformation and holistic intervention in Govt. schools reaches out to around 500,000 children and 9,698 teachers in 1,065 schools

Monetary contribution/Infrastructure

development

Implementation – Employee Time as

Volunteers

Network Advocacy and Systemic Changes

Direct funding of schools, funding NGOs, donations etc: MindTree sponsors a

school in the backward district of Tamil Nadu with 400-500 students

i-Gate supports education of 450 children in Guntur and Kundalahalli

Convergys donated USD $20,000 to AIF to designate a school in Gurgaon as a digital equalizer school

Cognizant helps set up reading rooms, school building, labs in various schools which has benefited over 5,000 students

Volunteer to provide curriculum coaching, soft skills training, all round personality development etc: Through Geometric

Global’s community group UDAAN, volunteers undertake classes for underprivileged children

Syntel takes school children for regular ‘education tours’ to factories banks, national parks, museums etc.

TESCO employees volunteer to help Class I to X students with syllabi based education, soft skills etc.

Networking with NGOs, and government departments for executing various initiatives in primary education: Zensar, have a partnership

with Akanksha for providing primary education to 120 underprivileged students.

E-valueserve undertakes various initiatives in partnership with Literacy India and AID, Gurgaon.

Wipro has been the fore-runner in networking and works with 30 organizations in the education sector

Socially Relevant Community Initiatives – Higher Education/ IT Training

Teaching Regular Curriculum

Teaching Other Relevant Skills

Developing infrastructure

Busy Infotech employees collaborate with SMILE Foundation to teach accounting skills to underprivileged adolescents and youth through 50-60 institutes in New Delhi.

Texas Instruments employees enhance the existing syllabi of senior level students with exposure to state-of-the-art knowledge in high technology areas, mainly in electronics.

Cognizant has set up Learning Centres in Rajasthan and Uttar Pradesh for educating girls. The centers cover 300 girls.

GTL’s initiated ‘Gyan IT’, a computer training program aimed at youth and differently-abled citizens of rural India, that aid in providing livelihood. There have been over 55,000 beneficiaries till date.

Adventnet has set up ‘Adventnet University’ to provide IT education to XII passouts to help them become earning members

NIIT - in collaboration with Delhi University, NIIT provides training in vocational programmes for socially backward students

Intel has established 18 computer labs across the country and donated 10,000 PCs to State Govts.

HP is helping set up a computer learning centre for students from deprived backgrounds at a residential school in Karnataka

Azim Premji Foundation is developing education software to improve learning of children. 118 titles in 18 languages are used in more than 16000 schools across 13 states involving more than 2 million children.

Microsoft’s Unlimited Potential (UP) program has been a landmark initiative to bridge the gap in IT skills across rural India, particularly amongst the disadvantaged and women ; focuses on empowering women and rural community through ICT and enabling them to explore sustainable livelihood options ; targets to directly train over 2,20,000 individuals by 2010 through more than 2,000 Community Technology Learning Centres across 17 States and UTs

Socially Relevant Community Initiatives – Others

IBM’s Reinventing Education aims to improve the quality of teaching using innovative technology solutions ; based on the understanding that an important component of student’s learning is the teacher’s preparation and professional development ; targeted at training 180 teachers from 40 schools in Chennai and Hyderabad in 2007, which would benefit 7,000 students

Training of Teachers Wipro’s ‘Teacher Empowerment Program’ is a

comprehensive development program for in-service teachers. 244 schools across 25 cities have been taken up, covering 6,505 teachers.

GTL organized 12 day computer training for teachers of the Municipal Corporation Schools of Navi Mumbai.

Scope International undertook training of the faculty of Madras University, MOP Vaishnava College for Women, Stella Maris and ELCOT, Chennai.

Under Intel’s “Teach India Program” which focuses on professional development, over 750,000 teachers have been trained in 15 states.

Mid-day Meals

Companies such as Infosys, Philips Software Centre, ASM Technologies, PAR, Stag Software, MindTree Consulting etc. contribute to ISKCON’s Akshayapatra, one of the largest privately run mid-day meals program covering over 1 lakh students

Scholarships NIIT offers the Bhavishya Jyothi scholarship for

computer training. Huawei Technologies offers 5 scholarships at the IIIT

(B) – 3 for academic excellence and 2 for research project.

Xansa offers scholarships in each of the 18 schools covered by them for 95 children of their extended staff.

Education for Adults Xansa conducts ‘Literacy at

Home’ program for their extended staff in Chennai, Noida and Pune.

GTL organized a Senior Citizens Meet where basic computer knowledge was imparted to more than 100 senior citizens.

Training of Teachers Wipro’s ‘Teacher Empowerment Program’ is a

comprehensive development program for in-service teachers. 244 schools across 25 cities have been taken up, covering 6,505 teachers.

GTL organized 12 day computer training for teachers of the Municipal Corporation Schools of Navi Mumbai.

Scope International undertook training of the faculty of Madras University, MOP Vaishnava College for Women, Stella Maris and ELCOT, Chennai.

Under Intel’s “Teach India Program” which focuses on professional development, over 750,000 teachers have been trained in 15 states.

Mid-day Meals

Companies such as Infosys, Philips Software Centre, ASM Technologies, PAR, Stag Software, MindTree Consulting etc. contribute to ISKCON’s Akshayapatra, one of the largest privately run mid-day meals program covering over 1 lakh students

Scholarships NIIT offers the Bhavishya Jyothi scholarship for

computer training. Huawei Technologies offers 5 scholarships at the IIIT

(B) – 3 for academic excellence and 2 for research project.

Xansa offers scholarships in each of the 18 schools covered by them for 95 children of their extended staff.

Education for Adults Xansa conducts ‘Literacy at

Home’ program for their extended staff in Chennai, Noida and Pune.

GTL organized a Senior Citizens Meet where basic computer knowledge was imparted to more than 100 senior citizens.

Socially Relevant Initiatives - Health

Health• 56% of Companies contribute to this sector• Initiatives are aimed at improving quality and availability of infrastructure, initiating and supporting tele-

medicine projects and creating awareness about risk factors

Infrastructure

• Construction of medical facilities• Maintenance of facilities• Sponsoring equipment and

vehicles, ambulances etc.

Technology Support

• Setting up telemedicine systems

• Setting up emergency and health information help lines

Others

• Sponsoring treatment for the poor

• Creating health awareness• Organising health camps• Blood donation drives

• Level of public expenditure on health in India, at 0.9% of GDP, is among the lowest in the world – India ranked 173 among 177 countries as per UNDP Human Development Report 2004

• Almost half the children under five years of age are stunted and 43% are underweight• 3rd National Family Health Survey (05-06) shows only 17% of women and 33% of men have knowledge of

HIV/AIDS

Socially Relevant Community Initiatives – Technology Support

EMRI, a non-profit entity promoted by Satyam Computer Services, provides service for medical emergencies through its network of ambulances fitted with advanced life support system ; the call centre, accessed by toll-free 108 number in Andhra Pradesh, receives 13,000 calls a day ; has helped save over 20,000 lives and responded to 500,000 emergencies with 502 ambulances

TransContinental - “Cancer Helpline” o Working with Tata Memorial Hospital,

Mumbai for setting up a dedicated helpline for ‘cancer’ related queries for women.

KPIT Cummins o Set up a telemedicine centre at a public health

centre in Khed Shivapur. o It helps villagers to save travel cost and

reduces load on government clinics. TCS - “WebMedicine”

o Partnered with the government of Tamil Nadu in developing its telemedicine project.

o The project involved linking many primary healthcare centres to the district tertiary hospital.

o By taking telemedicine to grassroots, quality / specialized medical care has been made available to the rural populace.

Socially Relevant Initiatives - Environment

Environment• 42% of Companies undertaking socially relevant initiatives are involved in this sector• Initiatives are aimed at conservation of resources and environmentally friendly practices in supply chain,

awareness creation, tree plantation etc.

Resource conservation and supply chain practices

• Conservation of resources such as energy, water, paper etc.

• Recycling and reduction of wastes

• Promoting the concept of Green Building in IT sector

Awareness creation

• Awareness creation through campaigns

• Organising events such as essay writing competitions

• Supporting Green Peace activities etc.

• Ecological sustainability is being ensured in office campuses- certified ‘green’ office buildings, use of energy compliant products, rainwater harvesting, vermi composting etc. – the first building in the country set to earn carbon credits is an IT park in Kolkata• Collaboration with various agencies to promote awareness regarding climate change in India – HP is collaborating with WWF to establish a climate witness project in Sunderbans• Applied Material has invested in setting up of a solar enabled Digital Equaliser Centre in a rural school to deal with power shortages and reduce usage of electricity

Others

• Plantation of trees• Converting barren lands into

green zones• Initiating projects which reduces

greenhouse gas emission, monitoring climate changes

• According to World Bank, after population growth, environmental sustainability is the greatest challenge facing India in its path to development

Other Community Initiatives – Rural Development/Livelihood

Rural Development/Li

velihood

• Key contribution in the use of technology for bringing about better connectivity, information availability and linkages in rural areas

• Also provided financial contribution or adopted villages for their overall development

Qualcomm, in support of India’s Mission 2007 initiative in

conjunction with NASSCOM Foundation and Tata Teleservices, provided Internet connectivity to 65 Village Knowledge Centres in rural India

KPIT adopted a village for social development. Activities undertaken include computer training, compilation of village details using computers, purchase of software covering 8th, 9th and 10th curriculum in A/V format and setting up library.

GTL set-up Village Knowledge Centres in partnership with NASSCOM Foundation in Pinguli, Sindhdurg to promote literacy in health, sanitation etc.

Convergys has a programme called Masum for expanding reach of technology in rural areas by ensuring access to computers, providing educational programmes and internet access for agricultural advancements

TCS has taken various steps for betterment of rural infrastructure in the country, including initiatives such as the ‘Village Knowledge Portal’ and ‘Project Krishi’

Byrraju Foundation’s GramIT, a rural BPO initiative aims to create employment opportunities and stem migration to urban areas of the rural youth by honing their computer and English skills ; 3 centres in Andhra Pradesh have imparted more than 150,000 person-hours of training session and produced over 500,000 person-hours of world class service delivery ; clients include multi-billion dollar publishing firm based in UK, India’s largest GSM mobile service operator, largest pre-hospital care provider of Andhra Pradesh

Contribution of NASSCOM Foundation

NASSCOM Foundation

• Key activities are geared to contribute to the achievement of MDGs as it focuses on poverty reduction through improved access to education, health care and livelihood

• Initiatives impact over 30,000 community members through technology assistance, adult literacy, health awareness, IT skills development, micro-enterprises, life skills and women empowerment

NF STEP (Sustainability through Education, Employability and Entrepreneurship) Approach: Providing education, training and skill development to improve employability and micro-entrepreneurship

NASSCOM Knowledge Network: Setting up Telecentres with computers and connectivity to help provide access to information and services for underserved communities

Building ICT @ the Grassroots (BiG): Building capacities of small and medium NGOs to use ICT as part of their activities

BiG Tech (www.bigtech.in): Enabling technology companies to help NGOs conserve their ICT budget by donating products and services

Disability Initiative: Weekend executive development programme to train people with disabilities to seek employment in the industry

Challenges faced

Involvement of small companies

low

• In early years of operation Companies find it difficult to allocate time and resources to community initiatives due to low margins and pressure on the bottom line

While the contribution of the sector to India’s economy and society is well established, as the industry grows in stature and size, it is expected to play a larger role ; NASSCOM Foundation is best placed to address

some of the key challenges faced by IT/ITES industry in fulfilling this bigger role

• Industry wide focus for carrying out socially relevant activities not yet developed, limiting contribution, reach and scalability

• Social initiatives are typically carried out within the geographical proximity of their organisations, which are typically urban areas.

•Very few Companies are involved in measuring outcomes or capturing data which would help in assessing the impact of initiatives

Stand alone initiatives

Limited geographical reach

Measuring of outcomes largely

absent

Way Forward

Handholding for smaller

companies

• Providing hand holding support and advisory services to smaller companies to help participate in community initiatives

As a relatively young organisation, NF has taken significant strides to fulfill its stated role ; to help promote practice of socially relevant initiatives among IT/ITES companies, some future focus areas of NF

Knowledgedissemination

• Dissemination of information on best practices, international benchmarks and monitoring mechanisms to ensure greater effectiveness and impact

Sector identification

• Identifying sector specific investment opportunities which can be linked with MDG goals or Govt. initiatives in promoting socio-economic development

Award/recognition system

• Initiating a award/recognition system for socially relevant community initiatives to showcase commendable activities and encourage more companies to participate

NGO CapacityBuilding

• Capacity building of NGOs, both technical and functional, to help extend the reach and scalability of various innovative community initiatives

Conclusion

Excerpt from keynote address made by Nobel Laureate Dr. Amartya Sen at the NASSCOM India Leadership summit 2007

“It (ITsector) makes enormous contributions: it generates significant incomes for many Indians; it has encouraged attention to technical excellence as a general requirement across the board; it has established exacting standards of economic success in the country; it has encouraged many bright students to go technical rather than merely contemplative; and it has inspired Indian industrialists to face the world economy as a potentially big participant, not a tiny little bit-player.

… it can do even more, indeed in some ways, much more. This is partly because the reach of information is so wide and all-inclusive, but also because the prosperity and commanding stature of the IT leaders and activists give them voice, power and ability to help the direction of Indian economic and social development.”

Thank You

Date post:	12-May-2015
Category:	Technology
Upload:	nasscom
View:	8,067 times
Download:	4 times