1. 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) 2784-6137/6667-1191(O) F: +91 (40) 2789-6103/6667-1111 (O) thc@satyam.com Talk @ Nalanda:Vijayawada on 12 Sept 2008

2. THC_CTMSS394 Sep 20082 Taking off World GDP per Person, 1000=100 ______________________________________ 3500 ______________________________________ 3000 ______________________________________ 2500 ______________________________________ 2000 ______________________________________ 1500 ______________________________________ 1000 ______________________________________ 500 _ _____________________________________ 0 1000 1200 1400 1600 1800 2000 Sources: Angus Maddison; J.P. Morgan

3. THC_CTMSS394 Sep 20083 World Population and the Poor YearPopulation% of the Poor 1820 1.1 billion85% 1980 5 billion30% 2000 6 billion20% 20076.5 billion18%

4. THC_CTMSS394 Sep 20084 PeriodGDPPOPPCIYRS 1951 to 2000 3.52.80.770 2004- 07 9.01.87.210 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.]

5. THC_CTMSS394 Sep 20085 Content of GDP (Figs. in %)

6. THC_CTMSS394 Sep 20086 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 ( 9-11-1989) 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

7. THC_CTMSS394 Sep 20087 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 19912004 69.7 mln (8.2%) 246.9mln (23%) Graduates & above 19912004 20.5 mln (2.4%) 48.7 mln (4.5%) About 24% of graduates are in sciences Of about 10 mln P.Gs in 2004 - 20% are in sciences

8. THC_CTMSS394 Sep 20088 Engineering & Business Professionals / year Engineers*MBAsMCAs 450,00080,00060,000 * About 100,000 are ICT-related

9. THC_CTMSS394 Sep 20089 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

10. THC_CTMSS394 Sep 200810 S &T Personnel (per 1000 persons)

11. THC_CTMSS394 Sep 200811 25,000 20,000 15,000 10,000 5,000 0 1980 1990 2000 Number of Research Papers Published India China South KoreaIsraelBrazil Years No. of Papers Source: Business World, 30 Jan 2006 Quality of Education (1)

12. THC_CTMSS394 Sep 200812 1975 1975 1999 4,000 3,000 2,000 1,000 500 0 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)

13. THC_CTMSS394 Sep 200813 Knowledge Production- China Total Exp/student on Higher education Ex R&D on PPP basis USADKAusUKFraFRGSpainMexico 2111987.57.06.85 Doctorates awarded by China 19901995200020022003 24.511.51518 Source: Economist, Sept 10, 2005

14. THC_CTMSS394 Sep 200814 Brain Gain in Developed Countries Brain Gain: Stock of highly skilled immigrants (mln) USCNAusUKFRGFRNSpainS’landHolland 8.22.11.6 1.50.80.30.250.2 Foreign Students as % in USUKFRGAusFrnJapBlgmItal y Spain S’landOther OECD 3011.5 10941.5 10 Source: Economist, Sept 10, 2005

15. THC_CTMSS394 Sep 200815 College Grads ( Professions) Leaving Country (%) ItalyFranceUKSpainFRGIndia 2.51.10.90.80.6(2 to 5 )

16. THC_CTMSS394 Sep 200816 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

17. THC_CTMSS394 Sep 200817 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%

18. THC_CTMSS394 Sep 200818 Decline in the USA Our Opportunity (3/3) Foreign born S&E graduates in the US (Brain gain) S&E Bachelors Masters Ph.Ds 1999 11% 19% 24% 2000 17% 29% 38%

19. THC_CTMSS394 Sep 200819 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….

20. THC_CTMSS394 Sep 200820 Indian Software Industry Exports ( $ mln )

21. THC_CTMSS394 Sep 200821 Employment in Indian IT sector*,’000 (* Years ending March; + Estimate @ break-up: NA) 20 mln 2.5 mln 2008

22. THC_CTMSS394 Sep 200822 Share of India in Global BPO & KPO Markets Year 2003-’04 2010-’11 BPO 36% 55% KPO 56% 71% Leaders: Eng. Design Basic Data Biotech & Search Pharma Integration & Mgment 400m $ 300m $ 280 Education coming up

23. THC_CTMSS394 Sep 200823 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

24. THC_CTMSS394 Sep 200824 Some Foreign Companies’ Employees in India GE CapsGE DevIBMOracleEDSTexas 16,0001,80010,00060003,500900 IntelJP Morgan HUWAISiemensMotorola 1,7001,2001,50020001,500

25. THC_CTMSS394 Sep 200825 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

26. THC_CTMSS394 Sep 200826 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

27. THC_CTMSS394 Sep 200827 Satyam/ Byrraju – GramIT; work to villages

28. THC_CTMSS394 Sep 200828 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

29. THC_CTMSS394 Sep 200829 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 com@Gram.IT twinning)

30. THC_CTMSS394 Sep 200830 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

31. THC_CTMSS394 Sep 200831 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

32. THC_CTMSS394 Sep 200832 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 31.1.04)

33. THC_CTMSS394 Sep 200833 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

34. THC_CTMSS394 Sep 200834 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)

35. THC_CTMSS394 Sep 200835 Foolish Questions Are we producing cyber-coolies West exploiting Indian talents & profiteering Digital Divide: Rich-poor gap between nations & within India

36. THC_CTMSS394 Sep 200836 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.

37. THC_CTMSS394 Sep 200837 Dhanyawad: Thank You