Global Opportunities for Engineers and S & T Professionals By Dr T.H. Chowdary * Director, Center for Telecom Management & Studies * Chairman, Pragna Bharati (Intellect India), AP * Former Information Technology Adviser, Government of A.P Chairman & Managing Director Videsh Sanchar Nigam Ltd., Bombay T: +91 (40) / (O) F: +91 (40) / (O) Nalanda:Vijayawada on 12 Sept 2008

THC_CTMSS394 Sep Taking off World GDP per Person, 1000=100 ______________________________________ 3500 ______________________________________ 3000 ______________________________________ 2500 ______________________________________ 2000 ______________________________________ 1500 ______________________________________ 1000 ______________________________________ 500 _ _____________________________________ Sources: Angus Maddison; J.P. Morgan

THC_CTMSS394 Sep World Population and the Poor YearPopulation% of the Poor billion85% billion30% billion20% billion18%

THC_CTMSS394 Sep PeriodGDPPOPPCIYRS 1951 to Growth of GDP; Population; Per Capita Income (PCI) & Years for doubling PCI Lesson from China: Control population during period of growth [JRD’s advice to Nehru in 1950s dismissed.] BPL ratio is the index: in India it came down from 70% in the 1950s to about 30% now [BPL ratio in A P is 85% according to white ration cards & increasing.]

THC_CTMSS394 Sep Content of GDP (Figs. in %)

THC_CTMSS394 Sep The Earth is Flat – Thomas Friedman 2.5 bln, educated, low wage people added to work in the global economy after the Collapse of the Berlin wall ( ) and the USSR’s empire (1991) Service occupations opened to competition by emergence of digital economy and the global spread of broad-band Out-sourcing; Off-shoring; Not only software, BPO but also KPO! Out-ward looking international economic policy-relations with trade/market partners Bold and sustained political support for education; S&T & Entrepreneurship

THC_CTMSS394 Sep Science & Engineering Education India has 12.1 mln science grads & diploma holders ( 14% in A P highest in India; 2 nd Tamilnadu; 3 rd Maharastra) 10 mln age group ( 17 to 22) in the Universities Population with 10 th /12 class study mln (8.2%) 246.9mln (23%) Graduates & above mln (2.4%) 48.7 mln (4.5%) About 24% of graduates are in sciences Of about 10 mln P.Gs in % are in sciences

THC_CTMSS394 Sep Engineering & Business Professionals / year Engineers*MBAsMCAs 450,00080,00060,000 * About 100,000 are ICT-related

THC_CTMSS394 Sep How Equipped is India for Higher Education *Suggest: Begin having a University for each District * Every Private Engineering College should be required to grow into a University within 8 years of wind up. Corporates to found.fund ‘Varsities’. In India we have 8.8 mln. or 5% of the young in the age group 18 to 23 yrs. in Universities

THC_CTMSS394 Sep S &T Personnel (per 1000 persons)

THC_CTMSS394 Sep ,000 20,000 15,000 10,000 5, Number of Research Papers Published India China South KoreaIsraelBrazil Years No. of Papers Source: Business World, 30 Jan 2006 Quality of Education (1)

THC_CTMSS394 Sep ,000 3,000 2,000 1, Number of PHD Degrees in Engineering India ChinaSouth Korea Japan Taiwan Source: Business World, 30 Jan 2006 Years No. of Degrees Quality of Education (2)

THC_CTMSS394 Sep Knowledge Production- China Total Exp/student on Higher education Ex R&D on PPP basis USADKAusUKFraFRGSpainMexico Doctorates awarded by China Source: Economist, Sept 10, 2005

THC_CTMSS394 Sep Brain Gain in Developed Countries Brain Gain: Stock of highly skilled immigrants (mln) USCNAusUKFRGFRNSpainS’landHolland Foreign Students as % in USUKFRGAusFrnJapBlgmItal y Spain S’landOther OECD Source: Economist, Sept 10, 2005

THC_CTMSS394 Sep College Grads ( Professions) Leaving Country (%) ItalyFranceUKSpainFRGIndia (2 to 5 )

THC_CTMSS394 Sep Decline in the USA Our Opportunity (1/3) US 18 to 24 Y olds receiving science degrees has fallen to 17 th position in the world from 3 rd, three decades ago. World-wide Bachelor degrees in Science & Engineering 2.8 mln in Y 2003 Asia EU USA 2.1 mln 830K 400K Asian Universities produce 8 times more Engineers than the USA

THC_CTMSS394 Sep Decline in the USA Our Opportunity (2/3) S&E degrees (out of all Bachelor degrees) China Korea Taiwan USA 60% 33% 41% 31% Engineering Bachelors graduating every year USA Russia China India 5% 25% 46% 4%

THC_CTMSS394 Sep Decline in the USA Our Opportunity (3/3) Foreign born S&E graduates in the US (Brain gain) S&E Bachelors Masters Ph.Ds % 19% 24% % 29% 38%

THC_CTMSS394 Sep Indian Talent Works for Others GE- largest R&D center outside USA in Bangalore 2300 –double that in Shanghai –$ 80 mln Bangalore center –Filed for 260 patents (37 appvd.) Motorola: 1700 employees –40% of software in its mobiles from India –The Internet Browser and multimedia messge system conceived & developed for 3G,GSM, engineered –Global automakers ( 3 to 5)% on R&D India: 150K computer graduates HUWAI & ZTE….

THC_CTMSS394 Sep Indian Software Industry Exports ( $ mln )

THC_CTMSS394 Sep Employment in Indian IT sector*,’000 (* Years ending March; + break-up: NA) 20 mln 2.5 mln 2008

THC_CTMSS394 Sep Share of India in Global BPO & KPO Markets Year 2003-’ ’11 BPO 36% 55% KPO 56% 71% Leaders: Eng. Design Basic Data Biotech & Search Pharma Integration & Mgment 400m $ 300m $ 280 Education coming up

THC_CTMSS394 Sep Foreign Companies Engaging Indian intellect GE – Largest R&D center outside USA is in India in Bangalore with 2300 researchers, double that in Shanghai GE put in $ 80 mln in the Bangalore R&D facility GE’s Bangalore R&D field for 260 patents in the USA (37 already approved) Boeing USA is outsourcing Aircraft design to Russia ( $ 120/ Hr) Russians are outsourcing parts of the design to HAL (BG) at $ 30/Hr Gorbachev went to USA to recommend Moscow as Bangalore’s rival! An Indian retained does the work of 2 or 3 Europeans; does not take 6 weeks of holidays & costs one-fourth

THC_CTMSS394 Sep Some Foreign Companies’ Employees in India GE CapsGE DevIBMOracleEDSTexas 16,0001,80010, , IntelJP Morgan HUWAISiemensMotorola 1,7001,2001, ,500

THC_CTMSS394 Sep A New Business: Education  NIIT trains 45,000 students/year Has tie-up with 35 Universities in China Entered China in 1997, has 10 training centers in 25 provinces Offers courses in Arabic, Spanish, Russian, Chinese, French and English Took loan from World Bank and gives education loans & scholarships

THC_CTMSS394 Sep E-tutors Kochi tutors teach 20,000 US Students in Maths and Science online ( audio, video interactive) IIT Chennai students help students in Singapore, grades 6 to 12 on their Maths homework –Teachers develop lesson plans to teach Maths –Company is Heymath.com

THC_CTMSS394 Sep Satyam/ Byrraju – GramIT; work to villages

THC_CTMSS394 Sep Work taken to Villages: GramIT While US, EU, Oceania outsource to Hyderabad, Hyderabad out-sources to villages. Satyam Computers & Byraju Foundation 200 Resident village graduates ( BA, B.Com, B.Sc) trained in Ameringlish; imparted computer & Internet skills Satyam (Hyderabad HQ) outsourced its own internal work (pay-roll, accounting; travel; training; MIS Satisfied,work from abroad moved to villages

THC_CTMSS394 Sep Work taken to Villages: GramIT (2) Broad-band telecom (optical fiber) 512 kbps extended from point of presence (POP) to work- site by PMP wireless Called Gram ITs, these offer transaction processing services (accounting, bulk mlng; records digitisation, reminder and follow-up and travel support). A whole Gram IT can be dedicated to a customer (like twinning of cities across continents; city twinning)

THC_CTMSS394 Sep Work taken to Villages: GramIT (3) Gram IT-team contributed part of profits for village development scheme designed by them – Independent and local initiative Rural Pressure group to demand and get quality infrastructure and services such as roads, retailing, education, health

THC_CTMSS394 Sep Social Impact of Gram IT Reverse migration ( 5% within 6 months) Educated house-wives (lost resource) join work force (no travel)-20% now Un-married girls: better spouses

THC_CTMSS394 Sep India’s English Speaking Advantage This is an excerpt from an essay written by a candidate from Bihar in the UPSC (IAS) examination. We are informed that the candidate has passed the exam: The cow is a successful animal. Also he is 4 footed, and because he is female, he give milks, ( but will do so when he is got child). He is same like God, sacred to Hindus and useful to man. But he has got four legs together. Two are forward and two are afterwards. His whole body can be utilised for use. More so the milk. Milk comes from 4 taps attached to his basement. His motion is slow only because he is of lazy species. Also his other motion (gobar) is much useful to trees, plants and as well as for making flat cakes ( like pizza), in hand, and drying in the sun. His only attacking and defending organ is the horns, specially so when he is got child. - (Contributed by Vipin Buckshey, New Delhi, H.T )

THC_CTMSS394 Sep Improvements We Need (1/2) We need great teachers 70% of living Nobel Laureates are teaching in the top 50 US Universities Quality of education; learning; creativity; analytical & communication abilities Examination talent X Knowledge talent Competition among colleges & universities Private Universities – Government to back off End the farce of “minority” colleges

THC_CTMSS394 Sep Improvements We Need (2/2) Great companies, not MLAs, Real-estate men to found colleges & varsities Post graduation/ Research & work for a few years in the top six of the OECD countries Markets/Clients abroad Wealth creation here & jobs for Indians MIT graduates founded 4,000 companies, created 1.1mln jobs, generated sales of $232 bln (Rs. 10,43,000 crores)

THC_CTMSS394 Sep Foolish Questions Are we producing cyber-coolies West exploiting Indian talents & profiteering Digital Divide: Rich-poor gap between nations & within India

THC_CTMSS394 Sep Bharat Mahan !! Indians in the US There are 3.22 Million Indians in America 38% of Doctors in America are Indians. 12% of Scientists in America are Indians. 36% of NASA employees are Indians. 34% of MICROSOFT employees are Indians. 28% of IBM employees are Indians 17% of INTEL employees are Indians. 13% of XEROX employees are Indians.

THC_CTMSS394 Sep Dhanyawad: Thank You