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Computerized Vocational Training& Employable Skills
Uncommon Opportunities: Roadmap for Employment, Food & Global Security
November 21, 2004
The Mother’s Service SocietyPondicherry, India
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Employable Skills
50% of firms in developing and industrialized
countries report severe shortage of skilled workers.
India’s problem is not lack of employment
opportunities but lack of employable skills.
Skills create employment and self-employment
opportunities.
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Vocational Skills Gap
Only 5% of India’s workforce (20-24 years) have
vocational training compared with 28% in Mexico
and 96% in Korea.
By 2010 major labour shortages will emerge in the
industrialized nations forcing movement of both
manufacturing & service jobs to wherever the skills
are best.
Upgrading skills essential to tap global markets
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Vocational Training in India
4200 ITIs 1,654 government run 2,620 private
Courses offered 43 engineering & 24 non-engineering trades
Capacity – 6.3 lakhs
State enterprise programmes – 1.7 lakh
Including agriculture & other – 20 lakh
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Vocational Training Deficit
Students completing 8th-9th standard 300 lakhs
Students entering 10th-11th 150 lakhs
New entrants to workforce (per year) 70 lakhs
Vocational training in engineering, agriculture & other fields
20 lakhs
New entrants to workforce w/o training 50 lakhs
Existing unemployed youth (15-29) of which 80% are educated up to 10th
150 lakhs
Existing workers to be trained to raise non-ag skilled portion to 25%
350 lakhs
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Three Models
Farm Schools in every revenue village
Vocational Schools
Computerized & Televised Vocational Training
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Vocational Schools
Promote vocational institutes at block and district level 5000 govt 50,000 private
Conduct exams for every skill as for drivers licenses
Certify approved training centres, e.g. BPO
Provide scholarships & incentives for trainees
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Computer-based learning is twice as fast @ half the cost
Multimedia Interactive Immediate Feedback Self-paced learning Eliminates need for trained teachers Responds rapidly to changing skill needs Uniform testing
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Computerized Vocational Training
Establish 1 lakh CVT Institutes like internet cafes 50,000 in private sector 50,000 training centres at engineering and arts colleges,
ITIs, polytechs, high schools, NGOs, etc. Partnership with industry to develop multimedia training
software Provide training to a minumum of 4 million students per
annum Government certification of courses Generate self-employment opportunities for 50,000
entrepreneurs
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Multimedia vocational courses
RWH Child care Nutritionist
Selling skills Real estate Law clerk
Telemarketing Insurance agent Quality manager
Catering Video editing Furniture design
Farm mgmt Pharma rep Textile design
Reporter Dry cleaning Electrical repair
Travel agent Internet research Graphic design
Bookkeeper Organic farming Interior design
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Vocational Skills
50% of firms in developing and industrialized
countries report severe shortage of skilled workers.
India’s problem is not lack of employment
opportunities but lack of employable skills.
Skills create employment and self-employment
opportunities.
12
Vocational Skills Gap
Only 5% of India’s workforce (20-24 years) have
vocational training compared with 28% in Mexico
and 96% in Korea.
By 2010 major labour shortages will emerge in the
industrialized nations forcing movement of both
manufacturing & service jobs to wherever the skills
are best.
Upgrading skills essential to tap global markets
13
Vocational Training in India
4200 ITIs 1,654 government run 2,620 private
Courses offered 43 engineering & 24 non-engineering trades
Capacity – 6.3 lakhs
State enterprise programmes – 1.7 lakh
Including agriculture & other – 20 lakh
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Vocational Training Deficit
Students completing 8th-9th standard 300 lakhs
Students entering 10th-11th 150 lakhs
New entrants to workforce (per year) 70 lakhs
Vocational training in engineering, agriculture & other fields
20 lakhs
New entrants to workforce w/o training 50 lakhs
Existing unemployed youth (15-29) of which 80% are educated up to 10th
150 lakhs
Existing workers to be trained to raise non-ag skilled portion to 25%
350 lakhs
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Three Models
Farm Schools in every revenue village
Vocational Schools
Computerized & Televised Vocational Training
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Vocational Schools
Promote vocational institutes at block and district level 5000 govt 50,000 private
Conduct exams for every skill as for drivers licenses
Certify approved training centres, e.g. BPO
Provide scholarships & incentives for trainees
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Computer-based learning is twice as fast @ half the cost
Multimedia Interactive Immediate Feedback Self-paced learning Eliminates need for trained teachers Responds rapidly to changing skill needs Uniform testing
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Computerized Vocational Training
Establish 1 lakh CVT Institutes like internet cafes 50,000 in private sector 50,000 training centres at engineering and arts colleges,
ITIs, polytechs, high schools, NGOs, etc. Partnership with industry to develop multimedia training
software Provide training to a minumum of 4 million students per
annum Government certification of courses Generate self-employment opportunities for 50,000
entrepreneurs
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Multimedia vocational courses
RWH Child care Nutritionist
Selling skills Real estate Law clerk
Telemarketing Insurance agent Quality manager
Catering Video editing Furniture design
Farm mgmt Pharma rep Textile design
Reporter Dry cleaning Electrical repair
Travel agent Internet research Graphic design
Bookkeeper Organic farming Interior design
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CVT Job Shops
Privately owned, self-employment
Each centre with 1 to 10 computers
Stocked with a library of training software
Training material on CD-Rom format
Fees based on an hourly rate
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CVT Job Shop: Assumptions
Three computers per Job Shop 20 training programmes per Job Shop Each computer utilized 300 hours per mo Operating expenses for rent, two paid
employees, phone, electricity may range from Rs 15,000 to 20,000 per month
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CVT Job Shop: Economics
Capital investment Rs 1.5 lakh.
Cost of operations per computer hour = Rs 20 / hour.
Cost of amortising of computers and software over two
years = Rs 14 per hour
Average cost of training = Rs 35 per hour
Average retail price of training = Rs 50 per hour
Net profit = Rs 15 per hour or Rs 1.5 lakhs / yr
50 hours of computerized vocational training, equivalent to
about 250 hours of classroom training, would cost the
student only Rs 2500.
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Training Software: Economics
Cost Rs 50 lakhs per course
Retail price Rs 1000 per set
Sale of 10,000 sets generates Rs 50 lakhs profit
Offer 50% government subsidy for development
of approved courses
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CVT Action Plan
1. Delivery CVT through all state-owned engineering colleges, ITIs, Polytechnics, liberal arts colleges, high schools, other institutions.
2. Provide financial assistance/ incentives under Central Government self-employment schemes to promote private training institutes.
3. Encourage financial institutions to provide loans to entrepreneurs.
4. Negotiate with computer software companies to develop a wide range of vocational training courses.
5. Recognized institutional authorities to certify course contents.
6. Finance bulk purchase of approved training software with 50% subsidy to minimize the cost of training.
7. Train entrepreneurs to set up/manage private institutes.
8. Provide scholarships to low income youth to cover training fees.
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IT Incubator Business Parks Computerised vocation training Computerised tuitions institutes Computerised language training Software training Video-conferencing services High speed data transfer services Web, graphic and animation design services Computer repair and maintenance services International Internet telephony Computer hardware parts manufacturing and assembly Customer and technical support call centres Back office processing Medical transcription Digital photography, scanning and image processing Internet research services Accounting services Computerized testing laboratories
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Who creates enterprises?
Skilled experienced workers leaving existing jobs create enterprises Machinists taxi drivers hotel servers bus cleaners Printers tailors
Do entrepreneurial training programmes work?
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Promoting Entrepreneurship
Extend bank credit & seed capital to employees
with 5 years experience
Require training & certification for new enterprises
to reduce failure rate
Existing entrepreneur to sign as guarantor
Insurance companies can ensure loans based on
qualifications
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Issues for Study
Natural job creation How many jobs are being created? In which sectors & fields? By what process? How can the natural process be magnified and accelerated? How are rural migrants absorbed in the cities?
Occupational demand Identify high growth occupational categories at all levels Measure growth in pay/income levels by category
Emerging Activities Identify emerging occupations in all sectors,
Farm managers & Soil technicians Servicing for cell phones, ACs, computers, VCDs, etc. Home delivery, floor cleaner, masseuse
Skills for national development Compile a complete list of skills needed for India’s development to next higher level
Job creation in other countries Study which job categories grew rapidly in US during a comparable period?
Efficacy of Entrepreneurial Development Programmes