1 Computerized Vocational Training & Employable Skills Uncommon Opportunities: Roadmap for Employment, Food & Global Security November 21, 2004 The Mother’s Service Society Pondicherry, India

2 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.

3 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

4 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

5 Vocational Training Deficit Students completing 8 th -9 th standard300 lakhs Students entering 10 th -11 th 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 training50 lakhs Existing unemployed youth (15-29) of which 80% are educated up to 10 th 150 lakhs Existing workers to be trained to raise non-ag skilled portion to 25% 350 lakhs

6 Three Models Farm Schools in every revenue village Vocational Schools Computerized & Televised Vocational Training

7 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

8 Computer-based learning is twice as half the cost Multimedia Interactive Immediate Feedback Self-paced learning Eliminates need for trained teachers Responds rapidly to changing skill needs Uniform testing

9 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

10 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

11 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

14 Vocational Training Deficit Students completing 8 th -9 th standard300 lakhs Students entering 10 th -11 th 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 training50 lakhs Existing unemployed youth (15-29) of which 80% are educated up to 10 th 150 lakhs Existing workers to be trained to raise non-ag skilled portion to 25% 350 lakhs

15 Three Models Farm Schools in every revenue village Vocational Schools Computerized & Televised Vocational Training

16 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

17 Computer-based learning is twice as half the cost Multimedia Interactive Immediate Feedback Self-paced learning Eliminates need for trained teachers Responds rapidly to changing skill needs Uniform testing

18 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

19 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

20 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

21 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

22 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.

23 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

24 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.

25 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

26 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?

27 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

28 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