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The right program can give a career-boosting, confidence-building qualification

Distance-learning MBA programs


are available from hundreds of
Institutes at any price-point, but with
most employers discounting their
value as a proper qualification, they
cant be compared to full-time or
executive part-time programs in
terms of quality, learning and career
growth.
Realizing that working professionals
needed a faster, but enriching
Executive Masters program, ITM
Executive Education Center (ITM
EEC) started offering its Executive
Masters programs on a weekend
schedule from 2003. Students
attend classes on Saturdays and
Sundays, rather than during the
week. Our focus is very clear and
simple says Prof. Mahesh Ranade,
Director of ITM Executive Education
Centres, We want to give working
professionals a competitive
advantage over their peers who do
not have a Masters qualification
and we want to do it in the fastest,
most convenient and academically
enriching way possible!. We are
able to do this by delivering a
program that is rich in actionable
skills that our executives can use in
their jobs today, combined with
business insights that can drive their
careers tomorrow.
With 16 to 24 courses delivered
through full-contact classroom hours,
ITM EECs executive MBA programs
match any full-time MBA program in
terms of subject coverage and
faculty guidance. Offered at
convenient locations across
Mumbai, Bangalore, Chennai,
Hyderabad, Ahmedabad and Pune,
ITM EECs programs are designed
with the needs of working
executives in mind.
ITM EEC is a part of the ITM Group
of Institutions, founded in 1991.
ITM, a not-for-profit organization, is
among Indias most respected
educators, with over 6000 students
enrolled in its business, engineering,
hospitality, fashion and health
sciences institutions.
ITM Executive Education Center is
one of the largest providers of
Executive Education in India, with
over 3000 students earning their
Masters qualifications at its centers
in Mumbai, Pune, Nagpur,
Chennai, Hyderabad and
Bangalore, ITM EEC offers a 24-
month Masters Program in Business
Administration and a 16-month
Executive Masters program.
Working professionals with 5 years
experience may opt for the 16-
month program, while those with 3
years or less experience may opt for
the more rigorous 24-month
program, which includes a choice
of specializations.
At ITM EEC, highly experienced
faculties lead students in intensive
and interactive sessions, discussing
case-studies and assignments. With
a busy work-week ahead of them,
most students meet-up virtually, over
instant messenger and email, to
work on their group projects.
Anulekha Menon, a student of ITM
EEC says, Im been an Asst.
Marketing Manager at my company
for three years now and decided
that I needed to move up, in terms
of money and responsibility. ITM
EEC has made achieving that a
definite possibility. Many students
find their next job, do business
deals and even start new ventures
even before they complete the
program at ITM EEC.
With all the attention and focus on students preparing for the CAT exam and aspiring for admission into MBA
programs at top business schools, what about the millions of us working executives, with mortgages, EMIs and
families? For many working executives, getting an MBA qualification is what makes the difference between moving
up in their careers or getting left behind. Of all the career-enhancing options available, the MBA has become the
most sought after weapon in any aspiring managers arsenal.
But for working execs, the only way to earn an MBA without leaving the job has been to take up a part-time
course. Part-time and Executive MBA programs have been around for generations, and have proven very popular
among working executives. These programs typically run over 3 years with classes every evening after work hours.
The problem is, with ever increasing responsibilities at work and ever increasing time demands at home, most
working professionals cant handle the pressure of a full work-day plus evening MBA classes for another 3-4 hours
in some Institute. On top of that, with all the competition and work pressures, three years is too much time to invest
in a qualification they need quickly.
For mor e i nf or mat i on about I TM Execut i ve Educat i on Cent r e, cal l Tol l - Fr ee: 1 800 22 9727 or vi si t www. i t m. edu/ eec
Executive MBA Programs:
Are they worth it?
Distance Learning MBA programs cant be compared in value to
Executive programs
NOTES
Key Findings
l Cautious optimism ruled
the recruitment industry
during the July-December
2012 period
l Automobile industry
continued on the growh
path and reported
significant increase in
hiring activity
l Manufacturing and BFSI
industry also managed to
preserve the positive hiring
momentum
l Support functions reported
noticeable increase in
demand for talent
l Demand was for talent
with niche skills in
specialised roles, the same
is expected to be the
trend in the future
l 2013 is expected to be a
good year for industries
that take the right
investment decisions and
focus on technology
innovations
The bi-annual recruitment report by TimesJobs.com, RecruiteX, dis-
cusses the significant developments in the recruitment space and analy-
ses the key trends and issues. The report discusses the Indian job market
in view of demand for talent and supply of talent. The study scrutinises
key industries, reviewing hiring trend on the basis of location, functional
areas and experience in each sector. The comprehensive analysis of the
industry and associated segments aim to serve industry in make strategic
business decisions.
According to the findings of the latest edition of RecruiteX, cautious op-
timism prevails across major industries. Prevailing uncertainty in the
global and domestic markets and policy fissures are resulting in slow-
down in hiring. Engaging and retaining talent is the top workforce man-
agement agenda for companies across industries. Most organisations are
eying brand positioning exercises to attract top talent. Along with organi-
sations referral programmes, online social activity was on top of every
recruitment heads agenda in 2012 and will continue to be so through
2013. Unconventional channels of recruitment such as hiring through
Tier II and III cities is also becoming more and more evident, thereby
giving visibility to rural talent.
While hiring sentiments were dreary across key sectors,
Automobile/Auto Component/Auto Ancillary, Manufacturing and BFSI
industry managed to preserve the positive hiring momentum. Negative
sentiments continued to plague the IT/Telecom industry. Docile budget
allocations for IT industry coupled with the uncertain macro environ-
ment are to be blamed for the downbeat hiring activity during the second
half of 2012, felt industry experts. Demand for most key functional areas
dropped across industries. However, support functions saw growth in
hiring activity. Sales and Business Development professionals emerged
as the most in-demand profile during the July-December 2012 period.
Akin to the overall lacklustre demand scenario, hiring was dormant
across key locations. Where key job hubs such as Delhi/NCR, Mumbai,
Bangalore, Chennai reported slump in demand for talent owing to recur-
ring economic crisis, volatile macro environment and vigilant hiring, tier
II and III locations such as emerged as high growth markets.
During the July-December 2012 period, demand for fresh/entry level
candidates and senior professionals was upbeat in some industries. How-
ever, demand for talent at middle level recorded flat to negative activity
across industries during the same period. Experts say that the numbers
are indicative of the fact that organisations were only looking to hire on
demand, and increase lateral hiring. Lateral hiring too was cautious as
organisations wanted to optimise their workforce. Companies want to re-
tain employees.
Experts predict that while the macro environment would remain chal-
lenging, 2013 can be a good year for industries, with the right invest-
ments and technology innovations. They also ascertained that the
collaboration between government, academia and industries is the need
of the hour and it would provide a competitive edge to Indian recruit-
ment industry in 2013.
Executive Summary
BI -ANNUAL RECRUI TMENT REPORT
Recruite
RecruiteX January 2013 1
500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
I
T
/
T
e
l
e
c
o
m
The recruitment
landscape in the
IT-Telecom sector in
2012 India points to
the resilience in the
country's economy
BI -ANNUAL RECRUI TMENT REPORT
took a hit, explains A G Rao, Managing Director, Manpower Group India.
These, along with domestic policy paralysis, forced the IT industry to lower its
growth forecast to 11-12% from last fiscal target of 16-18% growth.
The second half of 2012 saw cautious hiring by most IT companies as most
corporates hire at the beginning of the year so that new hires have enough
time to ramp up and deliver by the second half of the year. Also, given the
economic environment, organisations would have become cautious about
hiring, adds Shriyan Nagraj, head of recruitment at SAP.
Harshvendra Soin, VP, Leadership Acquisition & Development, Mahindra
Satyam, attributed the fall in demand to the trend that jobs are being
generated more in tier-II cities as the cost structure of these cities is less and
provides an attractive destination for the companies.
The telecom industry faced a lot of uncertainty in 2012 and that led to slow
hiring in 2012. There were policy gaps on the part of the government, and the
industry was just waiting and gauging the way forward. This has led
the industry in general to put off
hiring, adds Rao.
According to a report by
Accenture, India in 2013:
A Quick Recovery is a
Must, sluggish
economic recovery
in Indias
traditional export
markets such as
the US and
Western Europe
have compelled
Indian IT and IT
enabled service
(ITeS) providers
to look east to
other emerging
economies. The
Asia Pacific market
is growing at 18%
year-over-year and is
expected to account for
8% of total IT-ITeS exports
by the end of 2013.
T
he talent demand index for the IT/
Telecom industry has dipped by 28 points
since December 2010 (100*). From July 12
(91) to December 2012, the index lost 19 points.
It touched 72 points in December 2012.
Recruite
RecruiteX January 2013 2
Share of total jobs in the
industry for top locations
during July-December 2012
Bengaluru/Bangalore
Delhi NCR
Mumbai
Chennai
Hyderabad/Secunderabad
Others
21%
18%
26%
8%
17%
9%
A
ccording to
recruitment data from
TimesJobs.com,
demand for talent in
the IT-Telecom sector
fell from July to December 2012 in
all four major locations: Bengaluru
by 34%, Delhi/ NCR by 24%,
Mumbai by 14% and Chennai by
24%. The only upward trend was an
increase in demand for talent in the
below 2 years experience category
by 17% (July-December 2012).
The data provided is in sync with
what the IT industry experienced in
the last quarter of 2012. Apart from
the unfavourable global market
conditions, there were some
structural changes in the software
industry. Many software companies
started recruiting from locations
near the offsite projects, whether in
the US or Europe. Add to this the
economic and political situation in
Europe and the US, and recruitment
Key findings:
> Demand for talent in the IT-Telecom
sector fell from July to December
2012 in most major locations
> Flat IT budgets and the uncertain
macro environment continued to
challenge the industry in the
second half of 2012
> Many software companies started
recruiting locally from locations
near the offsite projects, whether in
the US or Europe
> Uncertainty in the telecom sector,
coupled with policy gaps, led to
slow hiring
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
Hiring
trends 2013
The IT industry will take some
time to recover, atleast 2-3 quarters.
By the fourth quarter of 2013 the
industry will gain ground and show
about 20% growth. As for the
telecom industry, I am very bullish
about hiring in this industry in the
coming months. Auctions in
February and March will help
consolidate the industry it will
establish which players are serious
and where they want to go from
here, leading to hiring, said Rao.
Further, according to the data,
demand fell across all functional
areas, by 11% in Sales and Business
functions, by 30% in the
Banks/Insurance/Financial
Services and 32% in IT/Telecom
functional areas. Experts however,
say that inspite of slow hiring in the
second half of 2012 product
development will be a major area of
growth in the near future. The four
major technologies in the IT
industry that will drive growth will
be cloud, analytics, big data and
mobility.
"Consultancy and products will be two major areas in the IT sector
that will throw up huge opportunities as companies want to
optimise investments in current technology. In telecom, jobs
related to customer experience, big data and analytics will
drive growth as organisations seek to comply with new
regulations, and control new risks more effectively," stated
Rao of Manpower Group.
Nagraj adds that data scientists, people with design and
user experience and people who are able to manage large
projects will be in demand in 2013.
The skill gap
According to RecruiteX data, demand for talent in all
experience categories fell during the July-December12
period, 41% in the 5-10 years experience category; except
less than two years (increase of 17%) and more than 20 years
(increase of 19%). Experts say that the numbers are indicative
of the fact that organisations were only looking to hire on
demand, and increase lateral hiring. Lateral hiring too was
cautious as organisations wanted to optimise their workforce.
Companies want to retain employees. The data for more than 20+
years experience reflects the trend that the industry has focussed on
leadership hiring to manage large geographies, large projects and large
programmes, says Nagraj from SAP.
Industry experts also pointed out that moving forward, addressing the skill
gap issue will be a key focus point for the industry and the government.
Savneet Shergill, Head-Talent Acquisition,
Dell India gave some pointers:
l Invest in Training & Talent
Management
l Set up a diverse
workforce by
embracing
diversity
recruiting
l Strengthen
the Employer
Brand and
leverage
employee
base as brand
ambassadors
l Strengthen the
HR framework
on policies like
job rotation and
reskilling
Soin of Mahindra
Satyam adds, We should
encourage sharing of data
amongst the large companies to
Recruite
RecruiteX January 2013 3
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Bengaluru/Bangalore Delhi NCR
Mumbai Chennai
Hyderabad/Secunderabad
-34%
-24%
-14%
-38%
-24%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
IT/Telecom
Sales/Business Development
Customer Service
HR/PM/IR/Training/T&D
Accounting & Finance
Others
66%
11%
13%
3%
4%
4%
RecruiteX January 2013 4
ensure that anyone who has been
asked to leave for a values issue
does not get hired by a competitor.
We also need to use robust hiring
methodology like skill tests,
technical tests, psychometric tests
and tools like competency based
interviewing.
The social
network
2012 also saw the emergence of the
social recruiter. Employers moved
towards online social and
professional networks to not only
look for talent but also to build their
employer brand among passive
candidates.
Social Media Recruiting has
recently taken off in India and we
see quite a few firms across India
Inc. using it aggressively to build,
manage and scale their talent
pipeline.
Social media has created a
paradigm shift in the way brands
interact with their stakeholders
its taken them a step closer and has
personalised / humanised
conversations. GenY has accepted
social media as a means of day-to-
day communication, explains
Shergill.
Along with organisations referral
programmes, online social activity
was on top of every recruitment
heads agenda in 2012 and will
continue to be so through 2013.
According to a TimesJobs.com
survey, 35% recruiters utilised
social networks to source new
employees in 2012.
In 2013, the conversations will no
longer be one way, organisations
will have to organise themselves
efficiently in order to acquire
passive talent or employees that are
the right fit, most companies will
invest on employer branding online.
We can expect to see more
discussions than ever before as the
trend for social networking
as a recruitment tool
continues to evolve.
Says Soin,
Organisations will
have to use the
social media and
other Gen-Y tools
to improve the
Employer Brand
and clearly
articulate the
EVP (employee
value
proposition) of
the brand
company.
Adds Shergill, Dell
manages a very
aggressive and unique
social media outreach. Our
presence on Facebook, Twitter,
LinkedIn and other social media
platforms is strong and the followership is
becoming even stronger by the day.
This trend will refine even more over this year and will witness shift in hiring
behaviour of employer and employee.
l Employers move towards social
media to source talent as well as
to build employer brand
among passive
candidates
l Social media has
created a
paradigm shift in
the way brands
interact with
their
stakeholders
l According to a
TimesJobs.com
survey, 35%
recruiters
utilised social
networks to
source new
employees in 2012
l Social recruiting would
continue to be on every
recruitment heads agenda
in 2013 also
Recruite
BI -ANNUAL RECRUI TMENT REPORT
IT/Telecom Sales/Business Development
Customer Service HR/PM/IR/Training/T&D
Accounting & Finance
-32%
-11%
-12%
-9%
-5%
Share of total jobs
in the industry for top
experience segments during
July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
18%
39%
1%
31%
11%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
Future Outlook
2012 was a year of challenges for the Indian IT sector. Experts say that
while the macro environment would remain challenging, 2013 can be a
good year with the right investments in platforms and innovation.
According to Rao of Manpower Grop, the key areas of focus for
the HR industry should be:
l Skill set development
l Preparing for the challenging business environment ahead
l Creating a culture of innovation
l Keeping your current employees engaged
Savneet Shergill, Head-Talent Acquisition, Dell India has
some advice for the graduating class of 2013:
l Embrace social media to find your dream job
l Define a Career Path: Network with your peers and
professors, and connect with your mentor. Engage in
conversations regarding what you want to achieve in life, basis
which you can chart out a career path for yourself
l Keep Learning: Focus on skill sets that matter to you and that reflect
in your career path. Keep learning this will help you make progress
towards your desired goals and objectives
What are some of the current
campus trends and challenges?
Our current challenge is to train and
equip them for billable positions.
Colleges have to introduce some basic
understanding on the work
environment and their curriculum
needs to be revisited. Some of the
leading IT companies have a tie-up with
engineering colleges and have built
branded curriculum for campus
selected students.
What is the future outlook for
compensation trends in your
industry?
As of now, the future outlook looks flat.
After the assessment of the last quarter
results of the IT/Telecom companies
and the forex, the compensation
budgets would probably remain the
same or less than last year (2012). This
would mean a much stronger focus on
performance and potential of an
individual and the ability of the
organisation to identify the right talent.
What are the key challenges
that should be the focus of the
HR fratenity in your industry
in 2013?
Disengaged employees lead to
dissatisfied customers, which not only
hampers business growth but also
results in attrition. Hence, our primary
focus should be to create an amicable
work environment that keeps the
employee engaged to deliver their best.
At a workplace, there will always be 4-5
generation of employees working
together. Hence all our policies, process
and workflows should be flexible and
effective at the same time to meet the
requirements of employees across
generations. Social Performance
Appraisal and Social 360 degree
feedback should also be in focus in 2013.
With the increasing focus on employee
centric processes and policies, its
crucial to adopt Crowdsourcing
methodology where the management
seeks employees ideas and suggestions
on employee related processes and
programmes. Identification and
development of key talent at various
levels is a key to the organisations
growth. This would mean a closer look
at the competencies needed at various
levels and strengthening the processes
to identify such people and have
specific growth plans to engage them.
Ravi Shankar
EVP & Chief People Officer
Mindtree
BI -ANNUAL RECRUI TMENT REPORT
Recruite
RecruiteX January 2013 5
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
17%
-28%
-41%
19%
-20%
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BI -ANNUAL RECRUI TMENT REPORT
Recruite
RecruiteX January 2013 7
500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
M
a
n
u
f
a
c
t
u
r
i
n
g
&
E
n
g
i
n
e
e
r
i
n
g
Manufacturing is a
prime economic and
societal pillar for
India which will
continue to drive
growth and employ
a large workforce
BI -ANNUAL RECRUI TMENT REPORT
T
imesJobs.coms data
reveals that during the,
July-December 12
period, the
manufacturing industry
witnessed growth in demand for
talent during the month of October
12 (10%) and December 12(14%).
Both August 12 and November 12
witnessed similar dip in demand for
talent. Aditya Narayan Mishra,
President Staffing & Director
Marketing, Randstad India, stated,
Faced with strong headwinds of
poor global and domestic markets,
high fuel prices, power shortage
and lack of availibility of credit,
the performance of the
manufacturing sector, including the
automobile industry has been below
expectation in 2012. Negative
growth rate in IIP and
moderate GDP growth reflects
the same.
Hiring and recruitment across unorganised, small and medium
manufacturing firms and organised manufacturing industries was very
moderate, as there was no clear visibility in the market dynamics, he added.
Tony Goodwin, Chairman & CEO, Antal International, a global executive
recruitment organisation, said, In 2012, while we did see some heightened
recruiting activity, it all tapered off towards the later part of the year as
companies exercised caution due to the impact of global economy.
Quite a few sectors seem keen to push recruitment towards the RPO way
of managing.
Locations in demand
Delhi NCR witnessed the maximum (20%) share of the total jobs in the
industry during the entire July-December 12 period, followed by Mumbai,
which witnessed nearly 19% of the total share of jobs. Both Pune and Chennai
witnessed equal share (8%) of jobs. In terms of growth in demand for talent
during July-December 12, all the top
locations witnessed dip in demand
for talent, with Bangalore
registering the maximum
dip (28%). Ahmedabad
and rest of Gujarat
witnessed similar dip
in demand (27%).
According to
Mishra, The
traditional
manufacturing
belts in Tamil
Nadu,
Maharashtra and
Karnataka have
continued to
attract
investments and
growth; however
Gujarat is witnessing
increased investments
and is expected to be a
strong hub for
manufacturing, especially for
the automobile sector.
Recruite
RecruiteX January 2013 8
Share of total jobs in the
industry for top locations
during July-December 2012
Delhi NCR
Mumbai
Pune
Chennai
Bengaluru/Bangalore
Other
20%
19%
39%
7%
8%
8%
T
he talent demand index for the
manufacturing and engineering industry
remained the same as recorded in
December 2010 (100*). From July 2012 (111) to
December 2012, the index lost 11 points.
Key findings:
> During the July-December 12
period, the manufacturing industry
witnessed growth in demand for
talent during the month of October
(10%) and December (14%)
> Skilled blue collar workers were in
demand in 2012 and would also be
in 2013
> Gujarat is witnessing increase in
investments and is expected to be a
strong hub for manufacturing
> The jobs in the manufacturing
industry need to be branded and
better positioned
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
Functional
areas in
demand
Engineering professionals captured
the maximum (37%) share of the
total jobs created in the industry
during the July-December 12
period, followed by Sales/Business
Development professionals (15%).
Biotechnology/Pharmaceuticals/
R&D professionals captured the
minimum (2%) share of the total
jobs.
Marketing & Advertising
professionals registered the
maximum (31%) dip in demand for
talent in the industry, followed by
IT/Telecom professionals (28%).
Logistics/Procurement
professionals clocked the least dip
(1%) in demand for talent during the
July-December 12 period.
According to Goodwin, sales and
marketing professionals, R&D and
quality control, engineering design
and development & testing
professionals were in demand in
2012.
Mishra stated, With a spurt in the number of organisations setting up
their R&D centres in India, R&D sector would be in demand. Also
there is need for semi-skilled workers for maintenance of
machinery, highly qualified welders, paint shop managers,
production managers and procurement managers.
With Indian consumers becoming more discerning about the
products and services they use, companies are focussing
more on quality and additional features. This is leading to
higher contribution towards R&D and employees getting
trained in niche skills. Also, with India becoming an
engineering and R&D hub, engineering consultancy is
another area which is on the rise, he added.
Amaresh Singh, Country HR Director, Alstom, during a
TimesJobs.com boardroom dialogue, highlighted that fact
that there is a serious dearth of blue collar workers. He
believes good blue collar workers were in demand in 2012 and
would be in the future too. All good manufacturing industries
require hundreds and thousands of welders and we dont have
any. So, we get welders from ITIs and send them to Brazil and
Europe to be trained, he stated.
l R&D sector was in demand in 2012 with many companies setting up
their plants in India
l Engineering consultancy is also on the rise
l Skilled blue collar professionals were in demand in 2012 and would be in
2013 as well
Experience
segments in
demand
Candidates in the
experience
segment of 2-5
years captured
the maximum
(34%) share of
total jobs in the
industry. Of the
total job share,
32% was
claimed by
candidates
belonging to 5-10
years experience
bracket.
Senior candidates
with more than 20
years experience had
the least job share (6%) in
the industry. Candidates with
less than 2 years experience were
Recruite
RecruiteX January 2013 9
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Delhi NCR Mumbai
Pune Chennai
Bengaluru/Bangalore
-13%
-6%
-14%
-28%
-12%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
Engineering
Sales/Business Development
Accounting & Finance
Logistics
Quality/Process Control
Others
37%
15%
26%
6%
10%
6%
RecruiteX January 2013 10
the only ones that witnessed growth
in demand for talent (6%) for the
July-December 12 period.
Candidates with 10-20 years
experience clocked maximum dip in
demand (23%), followed by
candidates with 5-10 years
experience segments (22%). Senior
candidates with over 20 years
experience also witnessed double-
digit dip (14%) in demand during
this period.
The challenges
faced in 2012
According to Goodwin, The key
challenge at this moment is not
sourcing; it is to ensure candidate
movement. Since there is such high
uncertainty candidates seem to
develop cold feet at the end of the
process and do not pick up the
opportunity. Engagement should be
easier due to the lesser number of
jobs available in the market.
However, for the better performing
employees; it sure is about the next
level of responsibility. Hence they
need to see that value being added to
their careers.
From the talent perspective, India
has a young workforce and the
demand for skilled labour outstrips
supply. The main challenge lies in
the shortage of skilled workers to
operate machinery and for the
factory floor. Indian employees are
skeptical about vocational training,
to equip themselves with the skills
required to get a job, as they
consider it less attractive when
compared to other qualifications.
Hence these complexities only
widen the gap and companies are
forced to find other avenues to
source talent, says Mishra. He
believes that the answer to such
challenges lies in vocational
training and other training and
development methods. According to
him, the possible solutions are:
Vocational Training: Government,
Universities and Companies should
incentivise and encourage setting
up of vocational training
institutes. It should not
only be in the form of
funding but also in
terms of recognising
that vocational
institutes will
provide a huge
boost to
employment
opportunities.
Training &
Development:
One other pain
point with
industries is that,
companies have to
invest in basic
training programmes
at the cost of
productivity. To overcome
the same, they can partner
with institutes to build exact
replicas of the work environment in
order to make it easier to cross the theory-
practical divide.
Talking about the branding issue of the sector during the boardroom
dialogue, Sanjeev Kumar, VP-HR, Moser Baer Power & Infrastructures
Limited stated, The jobs need to be branded
and the manufacturing sector has not
invested so much in positioning
themselves and their jobs vis-
-vis IT and IT enabled
services.
Future
Outlook
Manufacturing
is a prime
economic and
societal pillar for
India which will
continue to drive
growth and
employ a large
workforce. The
recent initiatives
and reforms taken by
the Indian government
will further enhance the
attractiveness of the
manufacturing sector and
increase its contribution to the
countrys GDP. The industry is also
Recruite
BI -ANNUAL RECRUI TMENT REPORT
Engineering Sales/Business Development
Accounting & Finance Logistics
Quality/Process Control
-15%
-5%
-20%
-11%
-1%
Share of total jobs
in the industry for top
experience segments during
July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
10%
34%
6%
32%
19%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
gradually moving up the value chain and as a testimonial to this trend we see
multiple MNCs setting up captive R&D centres in India, leading to
increased hiring of specialist talent, predicted Mishra.
We believe that in 2013, government, academia and industry will
act in conjunction with each other to make India gain more
competitive advantage as against its stronger competitors from
around the world, he added.
According to Goodwin, Currently recession has definitely
taken some toll on this industry, increase in bank rates,
increase in fuel prices, and typical seasonal slack are the
major contributors apart from negative force of global
economy. However, this is a transient phase and it is going
to change in the next two quarters, 2013 second half will
turn the manufacturing sector and 2014 will see good times
again.
l Manufacturing is a prime economic and societal pillar for
India which will continue to drive growth and employ a large
workforce
l The collaboration between government, academia and
industries would provide a competitive edge to India in 2013
l The second half of 2013 would witness good hiring activity in
manufacturing industry
What are some of the new trends in
recruiting? Will 2013 witness a more
organised social media talent plan?
Use of social media has definitely made
the recruiting method easier. You can
contact good talent from the industry
through LinkedIn, Facebook,
Skillpages, and Twitter, to name a few.
Job portals have always been there, but
definitely with more and more social
media sites coming up, the year 2013
will see a more organised way of doing
social media recruitment.
What are some of the current
campus trends and challenges?
The colleges are aware of the market
conditions and they are sending the
students to interact with organisations
through projects, internships or
training. Challenges are increasing due
to the increase in number of colleges
every year.
What is the future outlook for
compensation trends?
In the near future, the compensation
trends will be more or less the same.
But, the situation is going to change
fast and the compensation trends would
change as well.
What are the key challenges that
every HR head in your industry
should have on top of their
workforce agenda in 2013?
Retaining existing employees, creating
a win-win situation, work out employee
benefit policies, and mechanising a
proper review procedure are the key
priorities for HR heads.
Are there new skill sets that will
emerge in 2013 that you would like
entrants in your industry to be
trained/ready for?
In our industry the basics will always
be the same. However, there are several
softwares which work as a helping hand
with the employees, the entrants should
keep on enriching their knowledge and
prepare themselves to handle multiple
work.
Which roles will pick up momentum
in coming months and why?
To start with, human resources,
financial positions like CFO will be
picking up momentum. Technical
knowledge will always be in demand,
at least in our industry.
Dr. Siddhartha Pandey
Chief People Officer
(Group Head HR ),
Bhushan Power & Steel Ltd
BI -ANNUAL RECRUI TMENT REPORT
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RecruiteX January 2013 11
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
6%
-10%
-22%
-14%
-23%
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RecruiteX January 2013 13
500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
B
F
S
I
The future for the
banking sector in
2013 is expected to
be challenging yet
full of opportunities,
with lakhs of new
jobs expected in the
industry
BI -ANNUAL RECRUI TMENT REPORT
A
ccording to
TimesJobs.com data,
during the July-
December 12period,
the industry witnessed
a growth in demand for talent only
during the months of October
12(10%) and December 12(3%). 2013
began with a growth of 8% during
the month of January. On the
supply side, the industry recovered
from a substantial dip in July 12
and adopted a growth trajectory till
October. The maximum growth in
supply of talent was witnessed in
September 12(26%). After
witnessing a dip of 1% during
November 12, on the supply side,
the industry recovered again. "In
the next few years, there will be
almost 5 lakh jobs available in the
Banking industry. With the new
banking license regime, it should
only make the job market more
lucrative," stated Hamsaz Vasunia,
Group-Vice President, DCB Bank during a "High-Tea" session, a chat platform
on TimesJobs.com. She also highlighted that despite the economic slowdown
in the industry, the growth in the industry has been steady.
Last year was a mixed bag for the BFSI sector with majority of the hiring
being done in the April-June 12 and July-September 12 quarters. Overall the
hiring grew by 8 to 9%, stated E.Balaji, MD & CEO, Randstad India.
Talking about the compensation trends, Balaji added, BFSI sector has
differential pay structures depending on the business units and revenue
contribution. In 2012, employees in the retail banking segment received a
moderate pay hike but employees in sales and functions like Trade Finance,
Risk Analytics & Assessment and Treasury, received relatively better hikes
and good performance linked bonuses.
Also there is a noticeable shift in trend where companies are proportionately
adjusting the variable component to enhance performance. The salary hikes
range from 8% to 15% for the fixed component and 20% to 30% for the variable
component.
We see a great number of
foreign banks entering into
the Indian markets, which
is generating huge
employment in the
banking sector as
well, stated
Deepak Kaistha,
Managing
Director,
Planman
Consultant.
Vinay
Deshpande, chief
people officer,
Mahindra and
Mahindra
Financial Services
said, We at
Mahindra Finance
have been hiring and
recruiting aggressively
since last year. We have
hired approximately 1000
additional employees during the
T
he talent demand index for the BFSI
industry has dipped by 6 points since
December 2010 (100*). From July 12 (103)
to December 12, the index lost 9 points. It
touched 94 points in December 2012.
Recruite
RecruiteX January 2013 14
Share of total jobs in the
industry for top locations
during July-December 2012
Mumbai
Delhi NCR
Bengaluru/Bangalore
Chennai
West Bengal
Other
29%
16%
35%
6%
9%
6%
Key findings:
> During the July-December period,
the industry witnessed a growth in
demand for talent only during the
months of October and December
> The year 2013 began with a growth
of 8% during the month of January
> The agenda of government is to
increase financial inclusion and
banks have a key role to play by
increasing their rural presence
> Hiring is expected to be on an
upswing with many PSUs
planning to recruit in large
numbers
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
period April 12 January 13.
Mahindra Finance has followed
industry trends with respect to
compensation philosophy this year.
We have been balanced in our
approach towards compensation at
various levels. Specialised/hot skills
have received higher compensation
due to their limited availability.
Major emphasis is on creating and
executing a variable pay structure
which pushes performance and
productivity, he added.
Locations in
demand
Mumbai captured the maximum
share (29%) of the total jobs created
in the industry during the July-
December 12 period, followed by
Delhi NCR (16%). Among states,
West Bengal held the maximum
(6%) of the total share of jobs.
Hyderabad/Secunderabad and Pune
registered similar share of 4%. In
terms of demand of talent, Mumbai
was the only location that witnessed
a meagre growth of 1% during the
July-December 12 period. All other
major locations witnessed double-
digit dip in demand. The maximum dip (35%) was clocked by
Hyderabad/Secunderabad region. Talking about the locations that
performed well in 2012, Balaji stated, We observe the traditional
financial centres like Mumbai and Delhi to have performed well
in terms of hiring. Also hiring in locations like Chennai are
also picking up with many MNCs setting up their technology
and back office operations here.
l Mumbai captured the maximum share (29%) of the total
jobs created in the industry
l Mumbai again was the only location that witnessed a
meagre growth of 1% during the July-December 12 period
Professionals in demand
During the July-December 12 period, 42% of the total jobs
generated in the industry were captured by Banking/
Insurance/Financial Service professionals. Sales/Business
Development and Accounting and Finance professionals
registered similar share of 17%.
HR/PM/IR/Training/ T&D and Logistics/ Supply Chain Management/
Procurement professionals witnessed growth in demand for talent.
Professionals belonging to all other major functional areas witnessed dip in
demand. The maximum dip (39%) in demand was clocked by IT/Telecom
professionals,Companies prefer candidates with an average experience of 3-8
years for roles in retail banking, corporate sales and business development
which always have been in demand. Other roles related to operations in trade
finance and wealth advisors for premium clients
are gradually picking up, stated
Balaji.
Majority of the
recruitment was focused
towards the Sales and
Recovery operations
function. This is in
the area of retail
asset financing.
Credit
Operations and
Accounting
function has
also seen a
steady increase
in additional
requirements,
says Deshpande.
l HR/PM/IR/
Training/ T&D
and Logistics/
Supply Chain
Management/
Procurement
professionals witnessed
growth in demand for talent
Recruite
RecruiteX January 2013 15
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Mumbai Delhi NCR
Bengaluru/Bangalore Chennai
West Bengal
1%
-15%
-19%
-17%
-17%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
BFSI
Sales/Business Development
Accounting & Finance
Customer Service
IT/Telecom
Others
42%
17%
13%
5%
17%
5%
RecruiteX January 2013 16
l The maximum dip (39%) in
demand was clocked by
IT/Telecom professionals
l The strong demand for qualified
MBA professionals will continue
Top Experience
Segments
Candidates with 2-5 years
experience captured the maximum
share (39%) of the total jobs created,
candidates with 5-10 years
experience followed suit with 33%
share. Senior professionals with
over 20 years of experience
captured the least share (1%) of the
total jobs.
On the demand side, professionals
with less than 2 years of experience
turned out to be the only candidates
that witnessed a growth (6%) in
demand for talent. The maximum
dip (27%) in demand was clocked by
candidates with 5-10 years of
experience. According to
Deshpande, Candidates falling in
the experience segment of 0-5 years
were in demand. These comprise of
field executives and junior
management positions.
Talking about the importance of
middle management professionals
during a TimesJobs.com boardroom
discussion, Dhruv Desai, Sr. VP HR
and Leadership Academy, Angel
Broking, stated, We need to focus
more on retaining middle
management employees. If the
attrition goes beyond a certain level
our cost gets affected and for middle
management its about retaining the
right talent.
l Professionals with less than 2
years of experience turned out to
be the only candidates that
witnessed a growth in demand
l Finance professionals at entry
level will be in demand in 2013
l Hiring activity will increase for
strategy and corporate finance
roles across all sectors
Key Issues
Talking about the
challenges in the
sector during the
TimesJobs.com
boardroom
dialogue, Vibhash
Naik, VP HR,
HDFC Life,
stated,
Challenge lies in
volume
recruitment. We
often fail to
estimate if we
have enough
number of
candidates. Though
candidates are given
the right company
orientation, due to cultural
difference or some other
reason, we face a lot of attrition
in our industry. He also stated that
there is a huge gap between skills required and
what they actually get in the market.
There is also location based talent challenge, according to Deshpande. He
stated, Since we recruit from rural and semi/urban location, sourcing of
suitable candidate pose a big challenge for
us, as our requirements do not
always match the skills
available in the market.
However, engaging
employees has not been
a challenge.
Recruitment in the
BFSI segment will
be driven by PSU
banks
predominantly as
bulk of their
lower and middle
level employees
will retire in the
next five years.
With new banking
licenses in the
pipeline and rural
penetration, the
banking industry is set
to face a huge talent
crunch. We can expect
migration of talent between
private and public sector banks,
stated Balaji.
Recruite
BI -ANNUAL RECRUI TMENT REPORT
BFSI Sales/Business Development
Accounting & Finance Customer Service
IT/Telecom
-25%
-8%
-1%
-39%
-11%
Share of total jobs
in the industry for top
experience segments during
July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
17%
39%
1%
33%
9%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
l There is a huge gap between skills required and what employers actually get
in the market
l Challenge also lies in volume recruitment
Future Outlook
The future for the banking sector in 2013 is expected to be
challenging yet full of opportunities, according to Balaji. With
the government planning to issue new licenses and bring
about policy changes as an impetus for growth. The agenda of
government is to increase financial inclusion and banks have
a key role to play by increasing their rural presence, use
modern technology for greater information security and
lower transaction costs. Also banks are trying to reduce their
NPAs, and shift their focus to a more customer-centric
approach. In terms of employment, hiring is expected to be
on an upswing with many PSUs planning to recruit in large
numbers as close to 50% of the workforce will retire in the next
few years, he added.
Since the RBI has opened new banking license for big corporate
houses, we feel that hot skills with respect to banking would be in
demand in the next year. We also see a growing demand in the retail
asset financing area in rural and semi/urban sector, where we operate,
stated Deshpande.
What are some of the new trends in
recruiting?
Recruiting landscape has changed over
a period of time. Corporates have
become far more tight to pre assess
predictability of success in the roles.
Quality of Hire has become a key
with increase in resource optimisation.
Partnered Hiring models have evolved
more on a variable cost structure and at
times linked to performance and
productivity of the resource over a
longer period of time. Recruitment
Process outsourcing has started taking
shape in some pockets and are moving
towards a process maturity.
Will 2013 witness a more organised
social media talent plan?
In 2013, we will be witnessing more
organised social media plan to create
specific recruiting environment which
will enable candidates to exhibit their
competencies and choose their
employer linked to their ambition. For
organisations there is a growing need to
participate in right social media
recruiting forums with two way
evaluation tools and to ensure that the
brand is build jointly with the word of
mouth approach by this talent pool.
What is the future outlook for
compensation trends in your
industry?
Compensation in the coming days will
be very tightly linked to growth.
Businesses are not only looking at
growth as increase in top line/revenue
but similar focus on value and bottom-
line is also getting linked to the
compensation philosophy. Corporates
are taking a far more balanced
approach while finalisation of
compensation increases.
Fixed to variable ratio is being re-
looked at and higher variable
compensation linked to business levers
and performance seems to be the
mantra in the days ahead. Long
term/deferred pay plans linked to
performance is getting more focus to
retain and manage key talent.
Considering the existing scenario of
high inflation, GDP predictions and
other external aspects the outlook will
remain conservative. Compensation
trends will remain moderate. However,
we will follow a fairly
differential/segmented approach for
key talent and average performance.
Saurov Ghosh
Executive VP & Head - HR & Training
Birla Sun Life Insurance Co. Ltd.
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
-16%
-27%
-3%
-26%
6%
BI -ANNUAL RECRUI TMENT REPORT
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Expert Speak
BI -ANNUAL RECRUI TMENT REPORT
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500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
B
P
O
/
I
T
e
S
BPO/ITeS sector has
played a pivotal role
in placing India on
the world map as a
booming outsourcing
destination, in a very
short span of time
BI -ANNUAL RECRUI TMENT REPORT
D
emand index for the
BPO/ITeS industry
dropped from 115 in
July 12 to 106 in
December 12. The
index witnessed a nearly 20% drop
in the July to September 12 quarter,
closing at 93 in September 12.
However, after the initial blow
demand for talent in has been
steadily increasing. The Indian BPO
industry is at a crossroads. While it
is poised for huge growth, the
industry as a whole is grappling
with challenges including wrong
perceptions and severe talent
shortage.
Though the sector is trying to move
up the value chain and seek out new
opportunities of growth, the
scarcity of people with required
skill sets is making this an
extremely difficult task.
Perception about BPO jobs is a problem. It is considered a stop-gap job.
Although opportunities are abundant in BPOs, getting people to join BPO
industry is a struggle, said Subrat Chakravarty, Head Human Resources,
HCL technologies Business Services, at the TimesJobs.com boardroom
dialogue.
There is a dichotomy of what really happens and strong perceptions, which
are out there in the market generated by people, who really do not know the
business. There is a strong need to build a brand. There is a strong need to tell
people what the industry offers to its employees in the short term as well as in
long term level.
Functional areas in demand
The overall decline in demand for talent was a result of low hiring in all top 5
functional areas with over 20% drop in hiring for IT and Finance and
Accounting profiles. Sales and Business Development profiles were the only
exception and reported a 7% increase in
demand for talent. Increase in
hiring for Sales and Business
Development profiles
indicate a heightened
focus on expanding into
new territories and
domains by most
companies.
Where demand for
Customer
Service/ Tele
Calling profiles
fell by 10%, its
share in total job
postings
witnessed a
healthy increase
of 55% during the
July-December 12
period. Being one of
the key functional
areas in the BPO/ITeS
sector, the drop in
Customer Service/Tele
Calling profile points towards
T
he talent demand index for the BPO/ITeS
industry rose by 6 points from December
2010 (100*). From July 12 (115) to
December 12, the index lost 9 points. It
registered 106 points in December 2012.
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RecruiteX January 2013 20
Share of total jobs in the
industry for top locations
during July-December 2012
Delhi NCR
Mumbai
Bengaluru/Bangalore
Chennai
Hyderabad/Secunderabad
Other
29%
19%
21%
8%
12%
11%
Key findings:
> Demand for talent in BPO/ITeS
industry reported a 9 point drop
during the July-Decemeber 12
period
> Demand soared for Sales and
Business Development profiles,
other key functions experienced a
drop in demand
> Hiring was upbeat for junior/entry
level and senior candidates,
pointing towards future business
expansion plans
> The industry needs to work on
brand building and positioning
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
the tough competition from
international markets such as
Philippines, believe industry
experts. Another reason could be
the brand positioning of the
industry. As Ravikumar Aleti, Head-
Talent Acquisition, Cognizant BPO,
articulated at the TimesJobs.com
boardroom dialogue, The quality
talent pool in the market does not
look at this industry as a long-term
career option. People do not find the
need to continue in a BPO job. As a
result, we are losing people to other
industries. This is resulting in jobs,
especially voice-related work,
moving out of India. However,
experts are optimistic that demand
will improve for these profiles in
times ahead.
l Sales and Business Development
profiles reported highest increase
(7%) in demand for talent.
l IT and Finance & Accounting
profiles witnessed a drop of over
20% in demand.
l Despite a drop, the share of
Customer Service/ Tele Calling
profiles in total job postings
increased.
Locations in demand
Kerala clocked a 9% increase in hiring activity during the
July-December 12 period. It was the only region in the top ten
locations to report positive hiring activity. Overall, hiring was
low across all major cities with southern states and cities
losing the most momentum.
Among the top five locations, Bangalore, Chennai and
Hyderabad experienced a drop in demand by an average of
17%. Inspite a 6% drop in demand for talent, Delhi/NCR
reported maximum increase in proportion of jobs posted as
against total jobs in the BPO/ITeS industry during the
stated period, followed by Mumbai. According to Harish
Jotwani, Head Recruitment, Serco Global Services,
Hyderabad and Bangalore locations saw slump in the
number of hires because companies at those locations rely
more on tech specific processes linked to the downtrend in the
US and European economies.
Earlier studies by TimesJobs.com have revealed that many
BPO/ITeS companies are strengthening their bench strength in
cities such as Lucknow and Jaipur owing to the escalating manpower
and logistics cost in metros.
According to experts, local BPOs are coming up in a major way and thus, the
industry is sourcing talent from Tier II and III cities to tap the local talent,
which is well-versed with the local dialect and is economical. Subir Ghosh,
President Aegis Global Academy stated at one of the boardroom dialogues
conducted by TimesJobs.com, Going forward real opportunities when we talk
about job creations will be driven by
domestic markets. In that case
English speaking skills are not
going to be primary but
customer empathy and
right temperament to
serve is going to be
fundamental.
l Among top
locations,
Kerala was
the only
region to
clock growth
(9%) in
demand for
talent.
l Pune was
worst effected
among top job
locations,
witnessing a drop
of 33% in demand.
l Tier II and III cities
emerged as new BPO/ITeS
job hubs.
Recruite
RecruiteX January 2013 21
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Delhi NCR Mumbai
Bengaluru/Bangalore Chennai
Hyderabad/Secunderabad
-6%
-9%
-19%
-22%
-11%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
Customer Service
Accounting & Finance
BFSI
IT/Telecom
HR/PM/IR/Training/T&D
Others
55%
10%
15%
4%
8%
7%
RecruiteX January 2013 22
Experience
segments in
demand
Hiring during the six-month period
was mainly limited to entry
level/fresher hiring. This segment
reported over 20% increase in
hiring activity. According to
Jotwani, Entry level functions
always face a constant level of
attrition as candidates keep moving
on to seek greener pastures. Also,
new business growth in the
industry requires higher level of
entry level candidates which results
in more of entry level hire than mid
and top-level hires. The ITeS/BPO
industry also witnessed a 7%
increase in demand for candidates
with over 20 years experience
suggesting hiring for head of
operations.
While the industry is hiring
freshers and entry level candidates,
experts admitted that there is a
broad overall issue of skills in the
Indian workforce, specially the kind
of people the industries hire from
colleges.
As experts pointed out in
TimesJobs.com boardroom
dialogues, while the top tier colleges
that have the best talent are grabbed
by the best in the industry, other
companies also go to a number of
second tier and third tier
institutions and colleges, where
there is fair amount of retraining
and skill development that needs to
be done.
l Fresh hires reported an increase
of 22% in demand during the
July-December 2012 period
l Candidates with 5-10 years
experience witnessed highest drop
(25%) in demand, during the same
period
l Senior candidates with over 20
years of experience saw a 7%
increase in demand for talent
during the stated period
Key issues
The ITeS/BPO industry
is in a growth phase
and is evolving from
a primarily voice-
based industry to
high-end services.
With this
evolution, the
industry is also
facing unique
talent challenges.
Today with the
evolution of the
industry, skills
such as voice or
capability to just
process invoices and
transaction have become
a minimum requirement
and redundant skills.
As companies move higher up in the
value chain, demand for the right talent is
tough. The industry is looking at well established industries to gain
understanding of different market segments. Companies across the board are
finding it difficult to move talent from industries such as manufacturing and
integrate it into a BPO environment, both culturally and career wise.
Also, the ITeS/BPO industry is
currently viewed as a stop-gap
opportunity for most freshers.
This is largely due the
inability of small
companies to match a
job profile with the
skill sets of a
candidate.
The mismatch
often results in
dissatisfaction
with the job and
leads the
employees to
believe that the
BPO is not a long-
term career.
The industry needs
to collectively
showcase the various
opportunities available
within the industry and
career paths available to
candidates. Industry experts have
Recruite
BI -ANNUAL RECRUI TMENT REPORT
Customer Service Accounting & Finance
BFSI IT/Telecom
HR/PM/IR/Training/T&D
-10%
-9%
-19%
-12%
-27%
Share of total jobs
in the industry for top
experience segments during
July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
28%
42%
1%
24%
6%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
suggested that to tackle the problem of image the term call- center should be
replaced with other professional job terms such as managed services.
Additionally, success stories from the industry should be shared with
the media to project the industry in a good light.
To arrest the problem of image internally, companies should
counsel new employees and find the right fit. Companies should
not hire for projects but should look at recruitment
holistically.
Looking ahead
According to TimesJobs.com data, increased hiring activity
for Sales and Business Development executives and
candidates with over 20 years experience, suggests the
ITeS/BPO industry is expecting increased business activity
in the coming months, which may result in increased hiring
across levels and functions. Companies across the board are
now looking at various models between build from within
versus hire.
Companies are looking at the concept of skills in a manner that
would allow them to remain competitive vis--vis other emerging
location. Government agencies are working extensively on the skill
gap by collaborating with top companies in the industry and creating a
standard skill training module.
Expert Speak
Praveen Kamath
General Manager & Global Head of
Talent Transformation
BPO/KPO division
Wipro Corporation
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
-25%
-18%
22%
7%
-21%
BI -ANNUAL RECRUI TMENT REPORT
Recruite
RecruiteX January 2013 23
What are some of the new trends in
recruiting?
Hiring through Social Media especially
through Facebook, LinkedIn and
Twitter has become a differentiator for
many emerging conglomerates.
Alternative channels such as hiring
through Tier II/III/IV cities there by
giving visibility to rural talent is
becoming more and more evident
Will 2013 witness a more organised
social media talent plan?
Yes of course. Organisations are
spending considerably to train HR
professionals to understand this
channel of hiring. There is significant
progress both in terms of numbers
hired through this channel as well as
the percentage of contribution through
this particular channel of hiring.
What are some of the current
campus trends and challenges?
E-campus and virtual campus hiring is
becoming a reality, today. Technology
solutions around this channel of hiring
are emerging. Many corporations have
piloted this effort and it is working
for them.
What is the future outlook for
compensation trends in your
industry?
Flat. Niche skills will be paid more,
plain vanilla skills will be paid less
and less in the days to come.
Compensation eventually will be a
function of demand and supply with a
factor of degree of difficulty/
availability of the skill.
What are the key challenges that
every HR head in your industry
should have on top of their
workforce agenda in 2013?
Talent Acquisition and Talent
Retention are some of the major
challenges that the ITeS/BPO
industry is struggling with, currently.
Are there new skill sets that will
emerge in 2013 (owing to new
technology/market forces) that you
would like entrants in your industry
to be trained/ready for?
Remote and hands-free hiring, remote
and technology based training
completely will move into e-Learning,
v-Learning, link-based learning using
CBT technique.
ORION
Bellatrix
Mintaka
Meissa
Alnilam
Alnitak
Rigel
Saiph
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RecruiteX January 2013 25
500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
C
o
n
s
u
m
e
r
D
u
r
a
b
l
e
s
/

F
M
C
G
The FMCG industry
has been resilient
through the
slowdown. The
impetus for hiring
will now come from,
rural sector and tier
II and tier III towns
BI -ANNUAL RECRUI TMENT REPORT
A
ccording to
TimesJobs.com data,
there was a drop in the
demand for talent in
major cities in the July-
December 12 period. For instance,
the demand in Delhi fell by 13%, in
Mumbai by 5%, in Chennai and
Bangalore by 12% and 24%,
respectively.
The reasons for negative demand in
terms of hiring were given as lack
of movement in existing projects
and dearth of new projects in the
pipeline. FMCG is a very
replacement heavy industry. So,
placements happen when people
quit their jobs. However, looking at
the economic scenario, there has
been no movement. Candidates/
employees are staying put and are
averse to taking risks by not looking
out for options. Hence, there has
been no demand, points out
Vandana N Pannaswami, executive director, ABC Placements. She adds,
Along with employees, organisations are also not taking too many risks.
Hence there have been no new investments in terms of projects. They are
playing it safe. Further, organisations are trying to retain employees rather
than hiring new ones.
But, experts say, dont let this dampen your spirits just yet. The reason why
FMCG sector has shown negative numbers in terms of hiring is because these
numbers were based on a projection of last year. In the early months of 2012,
the industrys performance was weak. However, this picked up later in 2012
and even as we have entered in 2013 the growth seems positive. So, this means
to sustain the growth, companies will focus on hiring new people, points out
Ganesh Shermon, partner (market), KPMG in India.
He adds that there has been new growth as the companies are launching fresh
products across lifestyle, fashion and personal care brands. Even regional
brands are doing significantly well. This means there will certainly be
positive hiring.
We are expecting growth in the
FMCG sector during medium
and long term, given the
broad-based
consumption and
rising consumer
incomes, says
AshutoshTelang,
executive vice
president and
head human
resources at
Marico.
The reason for
this growth is
that the consumer
has high
disposable income
at hand. In the last
year there has been a
significant drop in
capital expenditure. This
means people now have
more disposable income, and as
a result they are spending more
T
he talent demand index for the consumer
durables/FMCG industry rose by 9 points
from December 2010 (100*). From July 12
(119) to December 12, the index lost 10 points. It
registered 109 points in December 2012.
Recruite
RecruiteX January 2013 26
Share of total jobs in the
industry for top locations
during July-December 2012
Delhi NCR
Mumbai
Bengaluru/Bangalore
Chennai
Pune
Other
21%
19%
38%
7%
8%
7%
Key findings:
> The dip in demand in the sector
can be attributed to the lack of
movement in existing projects
and dearth of new projects
> Broad based consumption and
rising consumer income would
facilitate industry growth
> Companies like Marico, Godrej
Consumer Products are likely to
invest in new talent ahead of the
growth curve this year
> Growth this year will come largely
from rural consumers
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
money on day-to-day goods and
other lifestyle goods, adds
Shermon.
This is likely to affect hiring as well.
In fact, according to our data, there
was a rise in demand for people
below two years of experience by
16%. However, at mid-management
and senior level the demand has
been negative.
FMCG majors have now posted
positive results and they will push
sales. This job will then require a
stronger salesforce. Hence, the
candidates with 0-2 years of
experience will see growth in
recruitment. Having said that,
companies are also looking at
pushing the brands. There will be
focus on specialists in branding and
marketing space, points out
Shermon.
This trend is not restricted to big
cities and metros. In fact, small
towns are where the real game is
being played. For instance, in the
last few months, Delhi, Kolkata,
Hyderabad and Chennai saw a
hiring slowdown, while pockets like
Ernakulam, Kochi and Baroda saw relatively healthy hiring. Many
companies, including FMCG majors Dabur, HUL and Godrej, are
seeing category share from rural markets growing. But,
Sangeeta Lala, senior Vice-President and co-founder,
TeamLease says, While there is some bit of recruiting
happening in the rural segment, the major chunk is still in
the metros. This is where big and managerial positions are
available.
Further, companies like Marico and Godrej Consumer
Products are likely to invest in new talent ahead of the
growth curve this year. We will continue to invest in new
talent hiring. There will be no significant changes in the
companys strategy of hiring new talent. The FMCG
sector has been resilient in the phase of slowdown and
will continue hiring unmitigated, pointed out Telang.
According to some reports, at Godrej Consumer Products
the growth in recruitment in India over last year has been in
the range of 3 to 4%.
l According to TimesJobs.com data, there was a drop in the
hiring demand in major cities in the July-Decmber 12 period
l There has been new growth in the sector as the companies are
launching new products across lifestyle, fashion and personal care brands
l Broad based consumption and rising consumer incomes are facilitating the
growth in the sector
l In the last few months, Delhi, Kolkata, Hyderabad and Chennai saw a hiring
slowdown, while pockets like
Ernakulam, Kochi and Baroda
saw relatively healthy
hiring.
Hiring
Trends
l FMCG is
expected to
generate 1.76
lakh new jobs
in 2013
l Dabur, HUL
and Godrej
are seeing
category
share from
rural markets
growing.
l In 2013, hiring is
likely to go up by
10-15% in the
months of April-
May 13
Recruite
RecruiteX January 2013 27
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Delhi NCR Mumbai
Bengaluru/Bangalore Chennai
Pune
-13%
-5%
-24%
-8%
-12%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
Sales/Business Development
Engineering
Accounting & Finance
Marketing & Advertising
Logistics
Others
34%
13%
25%
8%
11%
9%
RecruiteX January 2013 28
Trends that will drive FMCG
growth in 2013
The growth this year will come
largely from rural dwellers, while
urban consumers will continue to
be affected by the macroeconomic
environment, point out experts. In
comparison to other sectors the
consumption story will remain
intact, though the pace of growth
has slowed compared with previous
years.
According to experts, this time the
slowdown in consumption spending
is visible in some categories in the
higher SECs (socio-economic
classifications) of urban India.
The first quarter of 2013 does look a
little glum for recruitment. The
hiring is likely to go up by 10-15% in
the months of April-May, says Lala.
Toned Down
Cheer
"The year is just beginning. Many
companies were cautious in the
past, but post appraisals and with
the start of a new financial year
companies will start recruiting,
says Lala.
This increase is expected to be
driven by an improvement in the
outlook for the financial services
and FMCG/retail sectors. Also,
there are small investments being
made in new products launches, so
this will help the sector to grow
further.
The FMCG sector has infact been
showing a positive growth in the
last few months. Driven more by
domestic consumption and
protected against currency
fluctuations, companies in the
FMCG and retail sector, such as
Dabur, have an upbeat hiring and
business outlook.
The FMCG sector has been
recording year-on-year growth of
around 15-16%. The other thing that
will give a boost to the sector is
clarity in FDI in retail.
Once the government
gives more clarity in
retail then there will
be some movement
within the sector.
This will lead to
growth in
demand and
hiring, says
Pannaswami.
Agrees
Shermon,
With clarity in
retail and new
tie-ups, the
industry will
certainly see
positive growth.
There will be
movement in single
franchisee models and once
IKEA sets shop in India, the
game plan will totally change.
New Markets
l Clarity in FDI in retail will boost the FMCG sector
l Recruiters are cashing in on the growth in e-commerce
Salary
Advances
Though the hiring is
likely to happen mid-
year, candidates
should not expect
big salary hikes
during appraisals
or while
switching jobs.
According to a
study conducted
by Kelly services,
in India the
salaries and
increments are
expected to witness
a projected best case
of 8 to 10% hike.
The hikes will be
rather nominal this year.
So, its best not to expect
much more. This hike is also
largely due to inflation, says
Pannaswami.
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BI -ANNUAL RECRUI TMENT REPORT
Sales/Business Development Engineering
Accounting & Finance Marketing & Finance
Logistics
10%
-32%
-13%
-3%
-21%
Share of total jobs
in the industry for top
experience segments during
July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
12%
38%
4%
30%
17%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
Points out Lala, This hike is likely to come only after April-May. According
to Hay Group, India Inc is expected to dole out an average pay hike of
11.2% across job roles in 2013, lower than 12% increase witnessed last
year. The other reason for the moderate hike is directly related to
the performance. FMCG companies are showing signs of
recovery since 2012. Companies will first try and stabilise
themselves before going all out with fatter salary packages,
says Shermon.
But, if the company thinks you are a stronger candidate
then some analysts say that the rules of the game can be
changed. So, Lala has a word of advice. FMCG is a highly
competitive sector. So, one has to be ready to beat the
competition to grab that perfect pay package.
l Though the hiring is likely to happen mid-year, candidates
should not expect big salary hikes during appraisals or
while switching jobs.
l Salaries and increments are expected to be in the range of 8
to 10% hike
l This hike is likely to come only after April-May 13
l With the industry undergoing a recovery phase since 2012,
companies woud first try to stabilise before offering generous salary
packages and increments
What are some of the new trends in
recruiting?
Despite overall macroeconomic
challenges, we will see a steady hiring
trend across the sectors. While most of
it will come from the need of talent
replenishment (replacement hiring),
there will be upswing in the growth
oriented hiring for sectors like retail.
Top talent across the board will
command premium and will be most
sought after. Once the consumer
sentiment improves, more
opportunities will be available to the
current talent population which is
today risk averse. Most preferred form
of hiring will continue to be through
employee referral and organisations
will deploy means to reduce their
dependence on search partner agencies.
Will 2013 witness a more organised
social media talent plan?
The advent of Social media will
continue to provide more opportunities
for consumer durable sector. The use of
Facebook, Linkedin and Twitter like
platforms will be leveraged to our
advantage and the job postings on
online job portals and company's own
websites will increase as percentage of
total of hires from all channels. This
will be particularly attractive for Gen-Y.
Use of mobile phone applications in
recruitment will increase. Companies
will actively be looking forward to
engage passive job seekers by building
online brand and top of the mind social
media presence.
What are some of the current
campus trends and challenges?
Overall campus hiring sentiment will
be optimistic yet cautious.
Organisations campus plans will
remain intact in 2013 owing to focus on
getting young talent and developing
them from within. Companies will have
to focus on creating strong accelerated
career development programs for
campus hires. The opportunity being
leveraged is to engage with talent
directly at campuses.
Which skill sets will pick
momentum in coming months?
Owing to opening of retail sector, front-
end sales and customer service, back-
end logistics, supply chain with the
advent of Retail/GST changes will pick
momentum.
Anil Garg
Vice President - Human Resource
Whirlpool India
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
-24%
-25%
16%
-11%
-10%
BI -ANNUAL RECRUI TMENT REPORT
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RecruiteX January 2013 29
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500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
P
r
o
j
e
c
t
s
/
I
n
f
r
a
s
t
r
u
c
t
u
r
e
Hiring optimism
prevails in the
infrastructure
industry in 2013 as
this year would
witness the impact
of the economic
reforms
BI -ANNUAL RECRUI TMENT REPORT
E
mployer hiring
intentions look positive
in infrastructure,
despite the continuing
uncertainity around the
economic and political environment
in India. There is a great deal of
optimism for 2013. Why?
This year the effects of government
stated intentions to invest in
infrastructure during the Twelfth
Five Year Plan should start kicking
in.. Experts say that by the second
quarter of this year there should be
definitive indications of a rise in
overall hiring activity. There is also
hope that the market conditions will
strike the right balance of demand
and supply in addition to clearing of
old projects. This will lower the
liability of existing project and
make way for new projects. All
these changes are certainly
expected to boost hiring
in 2013.
The past v/s the future
So, why is the industry upbeat about the change when the numbers were
negative in 2012? According to TimesJobs.com data, there was a dip in hiring
figures across all major cities in India. For instance, Mumbai recorded a fall
of 11%, while Delhi fell by 35%, in Chennai hiring was lower by 15% and
Bangalore fell by 28%. Even the most promising state in terms of
infrastructure growth, Gujarat, showed a drop in hiring. It fell by 28%.
However, recent policy movements within infrastructure and the
governments clear mandate to banks in India, instructing them to move
faster with funding infra projects are an indication that in 2013 there will be
heightened hiring activity.
Infrastructure sector is the backbone of the Indian economy, and it needs to
grow at a CAGR of 15% in next five years. The key growth area lies in roads,
railways, power, airports and land acquisition, which would require almost $1
trillion investment in next five years, says
Deepak Bharara, director- corporate
HR, Lanco Infratech.
Thus, companies are
looking for experts, as
the sector shows
potential for growth -
a complete change
from last years
scenario.
According to data,
in the last six
months of 2012,
hiring had taken
a dip across the
board.
Hiring for
freshers with
0-2 years of
experience fell by
11%, while it fell by
21% in the bracket of 2-
5 years. And, the band
between 5 to 10 years took
the maximum hit with hiring
falling by 26 per cent. At the senior
level the situation was equally grim.
T
he talent demand index for the project/
infrastructure industry has dipped by 16
points since December 2010 (100*). From
July 12 (101) to December 12, the index lost 17
points. It registered 84 points in December 12.
Recruite
RecruiteX January 2013 32
Share of total jobs in the
industry for top locations
during July-December 2012
Mumbai
Delhi NCR
Chennai
Pune
Gujarat
Others
18%
15%
47%
5%
8%
6%
Key findings:
> There was a dip in demand for
talent across all major cities
in India
> According to the RBI, nearly
33% of market share lies in the
infrastructure and construction
sector.
> The government is now focusing on
policies to push these sectors
> If the projects and policies fall into
place as expected, one could expect
a hike of 9 to 10% in salaries
across the spectrum
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
The hiring numbers fell by 22% for
10 to 20 years of experience and 17%
for 20+ years of experience.
This is likely to reverse as central
and state government are making
progress in clearing old projects and
bringing in new reforms to push
growth. All these developments will
increase the hiring sentiment in
this sector.
There are seven major segments
that employ majority of people in
this segment namely designing,
engineering, airport project
management; highways project
management, civil engineering,
contract management and
consulting services. And, the
combined workforce in these
segments is expected to grow by 8 to
10 per cent in the next 5 years,
points out Bharara.
The industry is also hopeful about
developments following the Union
Budget. We expect the Budget will
bring in clarity in terms of
governments plans to clear old
projects and to bring in longevity
and sustainability in the future
projects. We are also hoping that there is more clarity in terms of
environmental scenario, says Aviraj Nandan, head- human
resources, the 3C Company.
But Nandan quickly points out, growth in hiring will be
moderate.
l Companies are looking for experts, as the sector shows
potential for growth
l Delhi witnesses a major dip (35%)in demand for talent
during July-December 12 period
l The industry is also hopeful about developments
following the Union Budget
Treading Cautiously
The year 2012 has been one of continuing decline for
many sectors in terms of hiring activity. But, as we move
forward most Indians are anxious. Last years figures and
numbers are likely to bury themselves.
In 2012, FICCI and ASSOCHAM declared there was a fall in the GDP
growth to an average of 5.4%. The recession of course affected the
numbers. Global recession and regulating policies created a growth
paralysis in India, points out Bharara.
Overall, infrastructure sectors like power, roads and airports saw a drop of
25% in hiring. The industry was stagnant and other factors like banks and
major lending institutions shying away
from lending to the infrastructure
segment led to the drop.
But, this could well be a
thing of the past.
According to the RBI,
nearly 33% of
market share lies
in the
infrastructure
and
construction
sector. Thus,
the government
is now
focussing on
policies to push
these sectors.
For this,
Government
policies will be
required to increase
consumption and
attract investors, points
out Bharara. But, despite
talks of reforms it is expected
that the market will remain very
Recruite
RecruiteX January 2013 33
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Mumbai Delhi NCR
Chennai Pune
Gujarat
-11%
-35%
-15%
-28%
-16%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
Engineering
Sales/Business Development
Accounting & Finance
Quality/Process Control
Logistics
Others
59%
9%
15%
5%
7%
6%
RecruiteX January 2013 34
objective and cost conscious due to
economic scenario, say experts.
The long-term benefits will only
materialise if SEBs (State
Electricity Boards) meet their
milestones on tariff rises and
reducing the large operational
inefficiences.
The other problem that sector has
faced in the past is that most states
have repeated political interference
on revising retail rates. This will
show poor results.
On the other hand, the distribution
sector reform coupled with easing
fuel supply constraints, duty
measures for protection of the
domestic equipment industry and
the interest rate regime, will be the
key factor in fuelling the growth of
the sector this year.
l Infrastructure sectors like power,
roads and airports saw a drop of
25% in hiring
l The long-term benefits will only
materialise if SEBs meet their
milestones on tariff rises and
reducing the large operational
inefficiences.
l As nearly 33% of the market
share lies with construction and
infrastructure industry, the
government is implementing
policies to push these sectors
l Infrastructure sectors like power,
roads and airports saw a drop of
25 per cent in hiring.
The talent
game
The hiring trend shows a moderate
response for 2013. This means that
the salary growth will also be
moderate. The hike in salary will
be average. If the projects and
policies fall into place as expected,
one could expect a hike of 9 to 10 per
cent in salaries across the
spectrum, says Nandan.
Agrees Bharara, Most
industries would keep
to single digit
increments as
companies are
likely to take a
cautious
approach and
adopt cost
cutting
measures.
Companies may
look at
increasing the
variable
component linked
to performance
rather than
increasing the fixed
component. In some
cases, analysts say that
companies may not
hesitate to lay off non-
performers.
Along with changes in the industry, most
companies are looking at talent development this year. The focus is to
strengthen the existing staff before hiring new employees.
The other areas of focus are re-structuring
and consolidating the organisation
based on active engagement of
employees and business
requirement while keeping
the organisation lean.
For instance, LANCO
is looking at
training and
development
initiatives focused
on behavioural
and technical
competency
building.
Further,
recruitment will
be focussed on
lateral hiring. This
will be based on skill
required for the
business. Campus
hiring is likely to take a
beating for the next one
year.
Recruite
BI -ANNUAL RECRUI TMENT REPORT
Engineering Sales/Business Development
Accounting & Finance Quality/Process Control
Logistics
-6%
-15%
-20%
-15%
-26%
Share of total jobs
in the industry for top
experience segments during
July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
7%
25%
8%
34%
26%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
Lastly, training will be based on competence required by the business; while
the focus will be to get trained manpower to execute the project on time.
The picture may not be rosy yet, but there is no doubt that the
prospects are positive. Everyone is looking at a strong year,
supported by the market and the government.
l If the projects and policies fall into place as expected, one
could expect a hike of 9 to 10% in salaries across the
spectrum
l Most industries would keep to single digit increments as
companies are likely to take a cautious approach and adopt
cost cutting measures
l The focus is to strengthen the existing staff before hiring
new employees
l The other areas of focus are re-structuring and
consolidating the organisation based on active engagement of
employees and business requirement while keeping the
organisation lean
l Training will be based on competence required by the business;
while the focus will be to get trained manpower to execute the project
on time.
What are some of the new trends in
recruiting? Will 2013 witness a more
organised social media talent plan?
Social media is making its presence felt
in the IT and ITES sector. Job and
employee branding will make a
comeback on the mobile platform and
social media. Referrals have hogged the
lions share in talent acquisition
numbers and will continue to dominate
with the help of social media. Online
rating of employers by ex-employees is
set to gain on social media. With high
tele-density and mobile applications
reach providing real-time access to data
services, companies will be compelled
to design their social media strategy to
attract, retain and brand talent more
aggressively.
What is the future outlook for
compensation trends in your
industry?
Of late, the policy and regulatory
announcements from the Government
appear to be clear and there is a visible
resolve to address issues plaguing the
industry. This will help the investment
sentiment, translating into business
expansion and growth in industrial
output. Industry growth, though
restrained, will remain positive as
domestic demand and internal
consumption will drive industrial
growth. As global investment
sentiments improve, resulting in
sustained capital inflows for the
industry, talent mobility is expected to
be high. And hence the compensation
trends look robust to me. Though I feel
that base compensation offered by
companies will remain stagnant, pay
for performance, bonuses, and
incentives will increase.
What are the key challenges that
every HR head in your industry
should have on top of their
workforce agenda in 2013?
Talent quality available on the
campuses remains a huge concern as
technical and managerial aptitude
remains to be tested. Movement of free
agents negatively impacts the talent
strategy. Faster learning curves, ability
to train, retain and keep the workforce
engaged will be the focus of every HR
professional. Rising employee costs
with declining ROI, rising health care
costs and social security costs will
continue to draw the attention of HR
departments.
Sanjeev Kumar
Vice President-HR
Moser Baer Power & Infrastructures
Limited
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
-26%
-22%
-11%
-17%
-21%
BI -ANNUAL RECRUI TMENT REPORT
Recruite
RecruiteX January 2013 35
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500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
R
e
t
a
i
l
Shopping for talent:
The Indian retail
sector is pegged to
create 10 million jobs
by 2015, the critical
area that needs
attention is
development of
relevant skills
BI -ANNUAL RECRUI TMENT REPORT
F
or the longest time
analysts have been
placing their bets on
strong retail and
financial sector
performances to power the Indian
growth story. In 2011 global
management consulting firm AT
Kearney in its 10th annual Global
Retail Development Index (GRDI)
has ranked India as the fourth most
lucrative investment destination for
retail. The size of India's retail
market is expected to rise from
about US$ 500 billion in 2011 to
about US$ 2,500 billion in 2026.
However, in 2012 the advent of the
worldwide recession brought in a
new set of challenges. Besides the
weak economy and feeble consumer
sentiments, the disappointing retail
growth was attributed to poor
supply chain management, weak
support infrastructure and
skyrocketing rentals. This led to toughening of internal efficiencies and cost,
or manpower optimisation. According to TimesJobs.coms recruitment data
the latter half of 2012 saw a decline in demand of manpower in all key
locations across the country. While Delhi/NCR and Bengalaru experienced a
significant drop of 26% in overall demand for talent, Chennai and Mumbai
were relatively shielded by this slowdown in hiring and exhibited a drop of
10% and 7% respectively.
The global economy has been riding through an uncertain phase and has had
an ostensible impact on the Indian economy, also reflected by the GDP. This
fall in demand for talent in the retail sector is a reflection of the economic
barometer and not of the retail sector itself, explains NS Rajan, Partner and
Global Practice Leader People & Organisation, Ernst & Young.
According to industry experts, as compared to the overtly optimistic
projections from a few years ago, retailers in the past year were focussed on
drawing customers into the stores to drive sales, while at the same time
reducing cost overheads. This meant
optimising available talent and
increasing employee
productivity. In an era of
cost-cutting and wafer-
thin margins, the focus
of HR was building
manpower
efficiencies.
There were not
too many
retailers hiring
in the last
quarter. In the
gloomy
environment we
benefited as we
continued hiring
as our expansion
plan has not been
deferred, adds
Venkataramana B.,
President - Group HR,
Landmark Group India.
The only area of growth that
was seen, according to recuitment
data from TimesJobs.com, was in the
T
he talent demand index for the retail
industry has dipped by 20 points since
December 10 (100*). From July 12 (101)
to December 12, the index lost 11 points. It
touched 80 points in December 2012.
Recruite
RecruiteX January 2013 38
Share of total jobs in the
industry for top locations
during July-December 2012
Mumbai
Delhi NCR
Bengaluru
Chennai
West Bengal
Others
26%
24%
30%
5%
10%
5%
Key findings:
> The latter half of 2012 saw a
decline in demand of manpower in
all key locations across the country.
> Delhi/NCR and Bengaluru experi-
enced a significant drop of 26% in
overall demand of talent
> In 2012, HR focussed on
optimising available talent
and increasing employee
productivity
> The task ahead for talent
managers is to help shape a highly
skilled, engaged and productive
workforce
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
below 2 years of experience
category. This segment posted a 12%
growth from July to December 2012.
The sector, basically divided into
organised and unorganised
segments, has different formats.
Major organised retail formats
include hypermarkets/
supermarkets, departmental stores,
convenience stores, shopping malls,
e-retailer and specialty stores. In
whatever format, add industry
experts, the industry is manpower
intensive and there is need for
talent to man the floor. This fuels
demand in the below 2 years
experience category. Employees at
the store level are the face of the
organisation for the customer.
As for the fall in demand in other
experience categories,
Venkataramana explains this was
due to a shift in talent strategy due
to the global slowdown. Amidst the
change in the global economy and
flux, people have started opting for
long-term players and stability than
just a JOB. The shift is to seek long-
term careers with present
organisations.
Winds of change
According to experts, even though 2012 witnessed slow
hiring, 2013 will be different due to the government relaxing
investment norms and allowing 51% FDI in multi-brand retail
and 100% FDI in single brand retail recently.
The quarter gone by has seen much excitement in the retail
sector with the government relaxing investment norms and
allowing 51% FDI in multi-brand retail and 100% FDI in
single-brand retail. This, along with the introduction of
Goods & Service Tax (GST), sends a positive signal that
retail is going to be a hot sector for employment. The
buoyancy in the sector is already reflected with recent
announcements of big retailers like IKEA gearing to enter
the Indian market. The opening of premier retail chains like
Starbucks and other global fashion brands will augur well for
the sector and its employability quotient, explains Rajan.
According to a January 2013 Deloitte report Indian Retail
Market - Opening more doors, the expected future trends in the
retail segment in India are:
l FDI in specialty stores: Multi-brand organised retail in specialty
stores such as consumer electronics, footwear, furniture and furnishing etc.
are expected to expand and mature in the next few years. However the policy
condition on sourcing will continue to be a major bottleneck for FDI in
many of these segments.
l Dominance of unorganised retail: Flexible credit options and convenient
shopping locations will help traditional
retail to continue its dominance
in retail sector.
l Growth in small cities
and towns: Stiff
competition and
saturation of
urban markets is
expected to
drive domestic
retail players
to tap the
potential in
small cities.
However, the
report adds
that one of the
major challenges
faced by the
existing players is
the availability of
skilled manpower
and any foreign
retailer planning to
enter India will have to
face similar challenges.
Recruite
RecruiteX January 2013 39
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Mumbai Delhi NCR
Bengaluru Chennai
West Bengal
-7%
-26%
-26%
-22%
-10%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
Sales/Business Development
Accounting & Finance
Export/Import
Engineering
Logistics
Others
25%
14%
34%
8%
11%
8%
RecruiteX January 2013 40
Building
capability
The sector is currently facing a
talent crunch because of non-
availability of the talent required
on such a large scale and a lack of
training facility for the same. The
sector is facing competency gaps in
various key areas like supply chain
management, vendor development
and customer relations
management.
Due to the recent changes in FDI
norms many existing joint venture
partnerships between Indian and
foreign retailers could stand to get
realigned. With the sector opening
up, the job spread will subsequently
increase. Hiring will happen at a
faster pace as the employers will be
competing to hire the best talent.
The biggest hiring trends for retail
in 2013 amongst the stagnated talent
pool would be to reach out and
develop fresh talent pipeline from
across the industries. The industry
employs a staggering number of
people, and given its rapid
proliferation, this number is always
on the rise, says Venkataramana.
Industry sources add that while the
need for talent will go up multi-fold,
the challenges are many. The
scarcity of an experienced talent
pool in the retail industry in India
means that HR needs to focus on
building in-house talent capability.
Many Indian organisations have
created retail talent academies to
build the capability of their in-
house talent.Given the vast number
of relatively inexperienced
employees at the store level, experts
pointed out that there was a
pressing need to train them in
orienting to a global retail scenario,
primarily in the domain of
customer service. The diverse
geographic spread of these
employees makes this even more
challenging.
While the retail sector is pegged to
create 10 million jobs by 2015, the
critical area that needs attention is
development of relevant
skills to make the
workforce employable.
To this effect, various
agencies and
associations like the
Retailers
Association of
India are
imparting
training to
acquire
functional
competencies to
develop and
harness skills,
says Rajan.
Roles in
demand
NS Rajan, E&Y shares job
roles that will be in demand in
retail:
l The next couple of years, beginning 2013, will clearly see a spurt in jobs in
areas like sales, and IT,
l Hiring will also rise for functions like visual merchandising,
l Technical competencies in areas like
customer service will be highly
in demand,
l The most crucial
function for the retail
sector, especially in
big-ticket retail
like cash-and-
carry, would be
procurement,
inventory
management
and supply
chain as these
will form the
back-bone for
operations.
Besides giving
employment to
professionals and
skilled labour, the
organised retail sector
also generates a number of
jobs for unskilled labour for
the tasks of sorting, grading,
labelling etc. Adds Venkataramana,
Recruite
BI -ANNUAL RECRUI TMENT REPORT
Sales/Business Development Accounting & Finance
Export/Import Engineering
Logistics
49%
-10%
-19%
-14%
-4%
Share of total jobs
in the industry for top
experience segments during
July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
10%
36%
4%
33%
18%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
The backbone of the sector are the buying, design and- operations jobs so
trained professionals in these fields will continue to be in demand in
addition to sales executives, store managers to merchandise planners
and supply chain positions.
Future outlook
According to the Deloitte report The Indian retail industry
has experienced growth of 10.6% between 2010 and 2012 and
is expected to increase to US$ 750-850 billion by 2015. Food
and Grocery is the largest category within the retail sector
with 60 per cent share followed by Apparel and Mobile
segment.
However, industry sources add, as retailers in India prepare
for competition from new players, it is evident that getting
their talent portfolio in order will be the biggest priority
and will be critical to succeed. The task ahead for talent
managers is to help shape a highly skilled, engaged and
productive workforce and to discover newer sources of
effective talent.
The industrys people challenges lie in:
l pre-empting industry trends,
l identifying future business needs,
l creating a pool of future-ready talent that can take on new market players.
What are some of the new trends in
recruiting? Will 2013 witness a more
organised social media talent plan?
Because of FDI in the retail sector, not
much action has been seen on the
ground. And, till date, no international
player has made investment in the
Indian market. Currently, Indian
companies are in the wait-and-watch
mode, and major players dont have
expansion plans in 2014. At the
corporate level and in intermediary
circles, which are re-cast with re-
structuring, hiring is on freeze due to
static market conditions. However,
there will be large opening for front-line
managers at the store level. Since
companies are looking for cost-effective
recruitment solutions, HR managers
are using social platforms (15%) and job
portals (40%) extensively to recruit. The
trend will pick up more momentum in
coming months.
What are some of the current
campus trends and challenges?
We havent done much hiring from
campuses in the last couple of years.
However, we do have strong internal
talent development modules for retail
management training. We train our
entry-level recruits, by this mean; we
are successfully able to fill 30-40% of
our managerial, 60-65% of our
supervisory and 20% of on-the-floor
assets. To hire fresh talent, we have tie-
ups with RAI training agencies,
vocational training agencies and
finishing schools.
What is the future outlook for
compensation trends in your
industry?
The compensation trend in the retail
industry, on an average will be 10-12%.
For front-line managers, salary hike
will be 10-11% and for senior level
executives will be 28-30%.
Are there new skill sets that will
emerge in 2013 that you would like
entrants in your industry to be
trained/ready for?
Skill-sets which will be emerging in
2013, are store and space planning as
there are not enough professionals who
are trained in this domain. Another
would be merchandising, which is
again hard to find, and the success of
any retailer depends on its
merchandisers.
Nihar Ranjan Ghosh
Executive Director - HR
Spencers Retail
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
-26%
-22%
12%
-10%
-18%
BI -ANNUAL RECRUI TMENT REPORT
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RecruiteX January 2013 41
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500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
A
u
t
o
m
o
b
i
l
e
s
The manpower
intensive Indian
automotive industry
is the countrys key
economic driver
and will witness
cautious hiring in
2013
BI -ANNUAL RECRUI TMENT REPORT
D
uring the July-
December12 period,
automobile/auto
component/auto
ancillary industry
witnessed growth in demand for
talent only during the months of
October (1%) and December (14%).
The maximum dip in demand for
talent was observed during July 12
(12%). On the supply side, the
industry witnessed growth in
supply of talent during four out of
six months through the July-
December 12 period. July
registered the maximum dip (16%)
in supply, followed by December 12
(3%). Tony Goodwin, CEO &
Chairman, Antal International,
stated, Automotive function did not
witness much of action in terms of
hiring in 2012. Most of the
manufacturers were adopting a
cautious hiring approach.
Passenger car sales have not
improved much followed by commercial vehicles which witnessed a decline in
sales. As a result the manufacturing sector hiring levels came down
considerably due to scaling down of production volumes.
Talking about the hiring scenario of her organisation in 2012, Emrana
Shaikh, sr. general manager-human resources, Automotive Division,
Mahindra & Mahindra Ltd, stated, Our business outlook has been very
positive this year and as a result the hiring has also been as per plan. This
holds true for both campus as well as lateral hiring done by Mahindra &
Mahindra in the automotive sector.
Locations in demand
In the automobile industry, Delhi NCR witnessed the maximum (25%) share of
the total jobs generated in the manufacturing sector during the July-
December 12 period, Pune followed suit with the second highest share of 15%.
Among other states, West Bengal, Uttarakhand and Tamil Nadu, each
registered 2% share of total jobs. In
terms of growth in demand for
talent, Maharashtra turned out
to be the only location that
witnessed a growth (1%).
Among top metros,
Bengaluru/ Bangalore
registered maximum
dip in demand
(26%) during this
period. According
to Goodwin,
Pune, Delhi/NCR
and Chennai
have performed
well during 2012
in terms of
hiring in this
sector.
l Delhi NCR
witnessed the
maximum (25%)
share of the total jobs
l Bengaluru/Bangalore
registered maximum dip in
demand (26%) during the July-
December 12 period
T
he talent demand index for the
automotive industry rose by 13 points
from December 10 (100*) and, touched
113 points in December 12. From July 12 (120)
to December 12, the index lost 7 points.
Recruite
RecruiteX January 2013 44
Share of total jobs in the
industry for top locations
during July-December 2012
Delhi NCR
Pune
Chennai
Mumbai
Bengaluru/Bangalore
Others
25%
15%
29%
7%
12% 11%
Key findings:
> Automobile/auto component/auto
ancillary industry witnessed growth
in demand for talent only during the
months of October (1%) and
December (14%)
> Maharashtra turned out to be the
only location that witnessed growth
> Using a talent farming rather than
talent buying approach is one way
to overcome the challenges faced
during the transition from campus
to the corporate environment
> Hiring in the industry will continue
in a cautious manner
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
Professionals
in demand
Engineering professionals turned
out to be the most in demand in the
sector during July-December 12
period, followed by sales/business
development professionals. The
minimum share (2%) of the total
jobs generated in the sector was for
customer service/ tele calling
professionals.
All the top functional areas
witnessed dip in demand for talent,
except HR/PM/IR/Training/ T&D,
which witnessed a growth in
demand of 9%. Marketing and
advertising professionals witnessed
the maximum dip in demand (33%).
According to Goodwin, candidates
belonging to R&D, design &
development, testing, quality and
purchase sector were in demand in
automotive sector. Recruiting was
witnessed in the sales & marketing
functions on a low level, wherein a
few senior managers moved jobs.
However, not as much new jobs were
created. Focus was on sales and
marketing functions to improve the
sales numbers. Manufacturing, production recruitment levels
remained a low key affair with the curtailing of the production
numbers, he added. According to Shaikh, design engineers,
service engineers and highly technical domain specialists have
been in demand in 2012.
l Engineering professionals turned out to be the maximum
(38%) shareholders of the total jobs generated in the
industry
l HR/PM/IR/Training/ T&D professionals witnessed a
growth in demand of 9%
l Design engineers, service engineers and highly technical
domain specialists have been in demand in 2012
Experience segments in
demand
Candidates with less than 2 years of experience witnessed the
maximum share of total jobs created in this sector. With 30% of the
total share, candidates within 5-10 years experience bracket held the
second highest share. Senior professionals with less than 20 years of
experience witnessed the least share (4%) of the total jobs.
However, during the July-December 12 period, candidates belonging to all the
top experience segments witnessed a dip in demand for talent. Candidates
within 5-10 years experience bracket witnessed the maximum dip (23%) in
demand, followed by candidates with 10-20 years experience bracket (21%).
Mid-level professionals with 4-6 years of experience were in demand in 2012,
stated Shaikh.
Key Issues
Talking about the
challenges faced by
the industry,
Goodwin stated,
Sourcing talent
in Tier I and Tier
II is a big
challenge;
everyone likes
to move
upwards in
Original
Equipment
Manufacturers
(OEMs), hence
moving talent
from OEM to
TierI is the biggest
challenge. Also as
there are few OEMs in
India, getting talent at
right value is also a major
challenge.
Recruite
RecruiteX January 2013 45
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Delhi NCR Pune
Chennai Mumbai
Bengaluru
-6%
-12%
-1%
-26%
-11%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
Engineering
Sales/Business Development
Quality/Process Control
Accounting & Finance
Logistics
Others
38%
15%
24%
7%
9%
8%
RecruiteX January 2013 46
Highlighting the solution for the
talent movement from OEMs to Tier
I, Goodwin stated, Most people
have a typical mind set about
working in the auto sector which is
not OEM, they dont considered it
very appealing. Great career
advancement options, with good
monetary benefits in Tier 1
organisations can help improve this
situation to great extent.
Talking about the challenges faced
by the industry at a TimesJobs.com
boardroom dialogue, Vittal S,
General Manager HR, Sonalika
Group, stated, There are a number
of global companies which are
setting up their Engineering Design
Centres (EDCs) in India. Top talent
is moving into these sectors and it
would be a challenge to source top
talent for R&D as they do not see
automobile industry as a lucrative
sector, he added.
Shaikh stated, One of the key
challenges faced is the transition
from campus to the corporate
environment. Lot of investments
need to be made to help fresh talent
migrate into the work environment.
Secondly, there is talent deficit
which is being witnessed especially
in niche & technical domain areas
like R&D, service, etc. We find
ourselves constantly looking out for
innovative ways to source rich
talent. Thirdly, Mahindra &
Mahindra has a lot of Gen-Y talent
which constitutes almost 55% of the
workforce and keeping a multi-
generational workforce engaged is
tough.
According to her, the solution lies in
talent farming. She stated, Using
a talent farming rather than talent
buying approach is one way to
overcome the challenges mentioned
above e.g. we put a lot of emphasis
on capability building in the
organisation; helping people build a
career is a priority. We encourage
job rotations and help employees
acquire multiple skills. We have
created empowering platforms like
Young Mahindra to leverage the
power of youth. We also use
generational diversity for
greater business impact.
Blending different
thought processes,
mentoring and
reverse-mentoring
help us in a big
way to create a
positive impact.
Talking about the
initiatives
undertaken to
strengthen the
industry-academia
connect during the
dialogue, Vittal S,
General Manager
HR, Sonalika Group,
stated, We have a
customised program to
induct trainees from
agricultural engineering colleges
who work in the sales & marketing
division of the company. These trainees would
serve as the talent pipeline for us to meet the scarcity of front line managers
in the organisation. Summer interns from these colleges work with us in the
sales organisation and are later on absorbed in the organisation after line
managers are satisfied with their performance.
MOUs with these colleges help us
in building a long term
relationship in mutual areas
of synergy, he added.
l Sourcing talent in
Tier I and Tier I is
a big challenge
l Top talent is
moving into
global
companies and
EDCs
l Transition from
campuses to
corporate
environment is a
big challenge
l The quality of the
engineering
graduates coming out
has been steeply
declining
Recruite
BI -ANNUAL RECRUI TMENT REPORT
Engineering Sales/Business Development
Quality/Process Control Accounting & Finance
Logistics
-8%
-8%
-13%
-15%
-16%
Share of total jobs
in the industry for top
experience segments dur-
ing July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
12%
38%
4%
30%
17%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
Future Outlook
According to Goodwin, Currently recession has definitely taken some
toll on this industry, apart from this other factors like increase in
bank rates, increase in fuel prices, and typical seasonal slack have
contributed to the slowdown. However, this is just a transient
phase and it is going to revive in the next two quarters, 2013
second half will turn the manufacturing sector and 2014 will
see good boom again.
Talking about the future outlook, Shaikh stated, As per the
CLC Global Workforce Insight Report for Q4, the global job
opportunity barometer has hit an all-time three-year low at
48.2%. As a result, the trend observed in India and even
within our organisation is that retention levels have been
significantly increased and attrition related challenges have
come down dramatically.
A very important aspect that will impact the hiring in the
industry would be the overall auto industry outlook. In
January, SIAM had lowered car sales growth projection to just
0-1 % for this financial year from 1 3% and 9 11% announced
in October and July 2012, respectively. So going forward, in order to
run businesses effectively, hiring will continue albeit in a cautious
manner and cost of structure would remain in focus, she added.
What are some of the new trends in
recruiting? Will 2013 witness a more
organised social media talent plan?
New trends in recruiting include
referral programs at junior levels for
R&D, competition mapping for S&M
positions & social media for
senior/mid-senior positions. Auto
industry had largely focused on
traditional methods of hiring, but with
the social media bubble, prospective
employees are easily available. The year
2013 will witness more organised and
increased hiring through social media
for specialist and leadership positions.
What is the future outlook for
compensation trends in the
automobiles Industry?
The year 2011-12 saw a marginal
increase in compensation through
annual increments mostly ranging
between 8-10% hikes with a few
exceptions. But coming years would see
higher increments to prevent losing top
talent to other companies/sectors. Now
companies will also have to revisit their
existing salary levels with entry of
global auto companies vying for the
limited talent pool of employees.
What are the key challenges that
every HR head in your industry
should have on top of their
workforce agenda in 2013?
The four major challenges every HR
head should have on top of their agenda
include:
l Lean workforce with emphasis on
productivity of employees
l Skill mapping for effective
deployment of manpower
l Development of home-grown talent
pool
l Branding auto sector as a preferred
sector amongst campuses
Which professions will pick
momentum in coming months and
why?
Hiring for R&D professionals will be on
the rise with most companies investing
on research in new technologies and
product feature enhancements. Hiring
for sales and marketing professionals
will be on the rise with entry of new
players in the market and creation of
new segments in the market.
Vittal S
General Manager-HR
Sonalika Group
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
-23%
-21%
-8%
-2%
-2%
BI -ANNUAL RECRUI TMENT REPORT
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RecruiteX January 2013 47
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RecruiteX January 2013 49
500
400
300
200
100
0
Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Demand for Talent Supply of Talent
H
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a
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BI -ANNUAL RECRUI TMENT REPORT
T
he pharmaceutical/
biotechnology industry
has been growing at a
steady pace over the
years. However, in the
last year to six months the industry
has gone through a consolidation
period recording a consequent drop
in demand with respect to hiring.
Although the pharmaceutical
industry grew by about 15-20% in
the last one year, all the verticals in
this segment were hit by the global
economic pattern change.
``The industry got hit by a double
whammy, specially in the last six to
eight months, observes Rahul
Nene, Director- Pharmaceutical and
LifeScience Practice, StantonChase,
India. ``With several
pharmaceutical IPs going off
patents, smaller companies started
selling these products at lower cost.
This coupled with lack of suitably
specialised personnel at the base of the pyramid resulted in a fair amount of
negative growth.
Drop in Demand in established hubs due to:
l setting up of specialised research centres in smaller towns
l multi-location trials into new locations
Geographically the industry reported a significant drop in demand for
specialised personnel across all centres of pharmaceutical/biotechnology
hubs. The only exception was Mumbai, which grew marginally by 4 per cent
in the period July to December 2012.
Bangalore recorded the biggest drop in the said period at 31%, closely followed
by Hyderabad which recorded a 30% drop. Gujrat another established hub
reported a 24% drop in growth, while the Delhi/NCR region accounted for a
17% drop.
Industry experts attribute several reasons for
this.``Several companies have hived
off from parent companies to set
up their own specialised
research centres in smaller
towns. This is the reason
that places like
Pondicherry and
Meghalaya have
come into the
map, states Nene.
By its very
nature the
industry requires
multi-location
trials, combined
with data-
tracking at
different stages
followed by scaling
post-DCGI approvals.
Hence expansion into
smaller and new
locations, in addition to
the established ones, is
essential.
T
he talent demand index for the healthcare
industry has fallen by 11 points since
December 10 (100*). From July12 (95) to
December 12, the index lost 6 points. It touched
89 points in December 12.
Recruite
RecruiteX January 2013 50
Share of total jobs in the
industry for top locations
during July-December 2012
Mumbai
Delhi NCR
Bengaluru/Bangalore
Hyderabad/Secunderabad
Chennai
Other
26%
15%
39%
5%
9%
6%
After witnessing a
steady growth over
the years, the Indian
healthcare/
pharmaceutical/
biotechnology
industry witnessed
disappointing
performance in
2012
Key findings:
> Among top locations, only Mumbai
witnessed a growth in demand
(4%) during the July-December 12
period
> Biotechnology or pharmaceutical
companies go out of their way to
retain experienced personnel
> Small and mid-size companies
attract trained personnel from larger
companies resulting in a constant
churn and gaps in terms of skill
demand.
> The current supply demand ratio
stands at about 1: 25 per job
*The base value for the talent demand index is taken as 100 for the month of December 2010.
BI -ANNUAL RECRUI TMENT REPORT
Key
Issues
Though a recognised global
destination for vaccines, bio-
services and increasingly for
contract manufacturing especially
bio-similars, major product
discoveries have still not come
Indias way. Early stage discovery of
products, which have little IP value
still remain the mainstay of India.
According to experts from ABLE,
the gestation period per product is
long and the failure rate extremely
high. This coupled with the
inability of the industry, specially
the biotechnology segment, to
match the salaries as compared to
other knowledge-based sectors has
lead to very high levels of skill-gap.
Trend by
experience
segments
In the last 6 months the industry
witnessed significant drop in
demand. The demand for personnel
at the mid-level with 5-10 years
experience recorded the biggest
drop, reporting 22% less demand. This was followed by a 18% drop in
demand in the 10-20 years segment. Interestingly enough, the under-
two years and 2-5 years segment has reported lower percentage
drop, even though the industry is essentially bottom heavy.
Industry observers attribute several reasons for this trend.
``The pharmaceutical companies typically recruit in the
January-June 12 phase, states Hussain Tinwala, General
Manager, TeamLease. ``Most July-December hiring are
primarily replacement or need-based.
``We also need to keep in mind that biotechnology or
pharmaceutical companies go out of their way to retain
experienced personnel, he continues. ``In this industry,
especially in segments like biopharmaceutical, required
skill-sets need to be absolutely matching. They cannot afford
to go in for best-match. So once they get such a person,
corporates go out of their way to keep him or her. A person
quitting is not just non-availability of the skill sets but also a
loss in terms of IP, something they cannot afford. Hence the
attrition in these segments is low.
Companies hence engage actively in several programmes developed
essentially to retain talent. The only segment that reported an increase
in demand was in the over 20 years experience category, recording a
nominal 4 % rise.
``With the economy as a whole under stress globally, a flurry of activities was
witnessed in the last year. Several small enterprises came into being, set up
either as breakaways from large global organisations, or as cost-effective
suppliers of services to large MNCs. These
were set up by people with a large
experience in this segment.
This is the top level growth
in demand that is being
witnessed, states
Nene.
l Companies in
this sector
typically
recruit in the
January-
June12 phase
l Most July-
December 12
hiring are
primarily
replacement
or need-based
l Biotechnology or
pharmaceutical
companies go out of
their way to retain
experienced
personnel
Recruite
RecruiteX January 2013 51
Growth in demand for talent
in top locations within the
industry during
July-December 2012
Mumbai Delhi NCR
Bengaluru/Bangalore Hyderabad/Secunderabad
Chennai
-17%
-31%
-15%
-30%
4%
Share of total jobs
in the industry for top
functional areas during
July-December 2012
Doctors/Nurses
Sales/Business Development
BioTechnology/Pharmaceutical
Engineering
Accounting/Finance
Others
25%
16%
33%
6%
12%
8%
RecruiteX January 2013 52
Functional
Category
With regards to demands in
functional aspects the industry
witnessed a massive drop in
IT/Telecom personnel. This is
primarily because this segment of
hires has a reputation of not
continuing in this industry for long.
Hence data shows a significant drop
in demand of 46%. This segment is
followed by a drop in demand for
marketing personnel, which
dropped by 33 % in the last 6
months. Other areas that reported
significant drop include customer
service and tele-calling which
reported a drop in demand by 20 %,
followed by demand in engineering
personnel which stood at 16 %. The
functional demand in the healthcare
segment, however, remained steady
as did the requirement for
quality/process control personnel.
``There is not much happening in
the bio-engineering segment other
than vanilla engineering projects,
states Nene. `` Overall there has
been a drop in demand in the bio-
chemical segment, especially in
protein synthesis and other
microbiology areas, primarily due
to absence of many opportunities in
India.
Skill-gap
In spite of great potential for
growth, the Indian
pharmaceutical/biotechnology
industry has remained just that, `a
potential, unable to translate it into
suitable growth and development.
The capacity for research and
development, and facilitating
translation into workable products
and commercialisation, with the
exception of a few bright spots still
remain extremely rudimentary.
India continues to be a country with
educational institutions which lack
capacity in terms of skills in
research and technology, as well as
in technology commercialisation.
``There is currently a
disconnect at two levels:
between educational
institutes and industry
requirement. Making
it even deeper is the
disconnect between
educators and the
industry, say
ABLE sources.
``There is a large
requirement in
quality control
and quality
checks and in
regulatory checks
at every level. The
current supply
demand ratio stands
at about 1: 25 per job.
And unless we move fast
in addressing this issue,
this gap is only likely to grow.
The other aspect that is affecting the
industry is lack of available jobs for the highly
qualified. For instance, a BE or a B-Tech, who is not trained in biotechnology
opts for the healthcare segment, especially in analytical chemistry companies.
But often they are retained in product mode against the process mode that he
or she is used to.
``India is very good in the chemistry-
specific aspects of the industry.
However, when it comes to
understanding of biology
we are still poor,
reports the ABLE
source. ``Thus with a
couple of well-
known exceptions
only early stage
discovery of
products are still
coming to India.
The industry
spends about
R 20,000 to 30,000
per candidate for a
minimum period of
a year before
expecting an RoI
from the hire.
``Large pharmaceutical
players provide in-depth in-
house training after hiring a
candidate who has the degree but is
Recruite
BI -ANNUAL RECRUI TMENT REPORT
Doctors/Nurses Sales/Business Development
BioTechnology/Pharmaceutical Engineering
Accounting/Finance
-11%
1%
-12%
-15%
-16%
Share of total jobs
in the industry for top
experience segments dur-
ing July-December 2012
Less than 2 years
2 to 5 years
5 to 10 years
10 to 20 years
Over 20 years
13%
38%
4%
29%
15%
Growth in demand
for talent in top functional
areas within the industry during
July-December 2012
raw in terms of industry requirement. The small and mid-size companies,
unable to provide such a platform, rely on trained personnel from the
larger firms and attract them with good compensations and benefits.
This puts larger organisations in the spot, resulting in a constant
churn and gaps in terms of skill, observes Tinwala.
Though institutions like BioTechnology Finishing Schools
(BTFS) for post graduate diploma in specialised
biotechnology-related job-oriented courses have been
launched to address the shortage of industry-ready
graduates and post-graduates, it is just a beginning. Several
such organisations are required to address the requirement.
Future trends
l Future demands in bio-economics
l In the bio-similar and vaccine manufacturing segment
and stem cells
l Expansion in medical devices and diagnostics and contract
research and manufacturing
l Integrating scientific evidence-based traditional knowledge into
healthcare
l Agri-biotechnology and green-biotechnology, especially bio-
remediation and bio-energy
Jacob Jacob
Chief People Officer
Apollo Hospitals
Growth in demand
for talent in top experience
segments within the industry
during July-December 2012
Less than 2 years 2 to 5 years
5 to 10 years 10 to 20 years
Over 20 years
-22%
-18%
-5%
4%
-13%
BI -ANNUAL RECRUI TMENT REPORT
Recruite
RecruiteX January 2013 53
Expert Speak
What are some of the new trends in
recruiting? Will 2013 witness a more
organised social media talent plan?
Poaching might emerge as the strongest
recruitment trend of 2013 as
increasingly HR experts recommend
shopping for new hires among
competitors and the reasoning is that
often, the candidates best suited for a
job are already employed.
Since most of the top HRMS vendors
now provide integration of recruitment
module with social platforms like
Facebook, LinkedIn and Twitter, the
year ahead will certainly witness
employers leveraging the power of
social media to fill up vacancies.
What is the future outlook for
compensation trends in your
industry?
Jobs and manpower growth in
healthcare is expected to be 20 to 22 per
cent this year, compared with 14 per
cent in 2012. An average increment for
employees in healthcare sector is
expected to be in the range of 5-10%.
What are the key challenges that
every HR head in your industry
should have on top of their
workforce agenda in 2013?
l Automation of HR processes
l Managing industrial unrest
l Hiring and retaining critical talent
l Skill gap among new hires
l Controlling HR costs
Are there new skill sets that will
emerge in 2013 that you would like
entrants in your industry to be
trained/ready for?
Across the healthcare sector, there is a
big wave of service culture
transformation and the focus in most
hospitals is in providing customers
with a memorable experience over and
above good clinical outcomes. Hence
for new entrants, especially in front-
facing roles, customer-orientation skills
are a must.
Other new skills which have emerged
in this sector due to influence of
market forces are multi-linguistic skills
(including foreign languages), process
orientation, cost management skills etc.
BI -ANNUAL RECRUI TMENT REPORT
Recruite
RecruiteX January 2013 57
A
erospace
manufacturing is a
high technology and
capital intensive
industry. Its value
chain is characterised by long
project cycles spanning R&D,
engineering design, manufacturing,
assembly, maintenance, repair and
overhaul. Intensive technology and
safety requirements require
significant investments in R&D and
quality control.With the need to cut
costs and deliver products faster, the
segment is undergoing significant
changes.
India so far has been restricted by
and large to a Tier-III supplier
status for the industry with a focus
on low-tech design and engineering
services, with the exception of some
players in the IT segment.
Given this scenario a dearth of
talent continues to weigh on India's
nascent defense and aerospace
industry, especially given the
increase in civil aerospace projects.
``Recruiting in the engineering
services has always been pretty
challenging. With more and more
aerospace companies setting up
their offshore centres here, the war
for skilled talent is fierce, states
Nirmala Bhat, Head Human
Resources, Altran Technologies
India Pvt Ltd.
Sourcing talent for the sector is
going to become a bigger challenge
now because a lot of defense related
programmes are drawing to a close,"
said Shilpa Swamy, HR Consultant,
who specialises in aerospace hiring
in TransSearch, a talent advisory
services firm.
With industry clusters expected to
develop around a system or type of
technology, like aerostructures,
engines, interiors, avionics, control
systems or landing gear and
potentially also focussing on a
particular platform type, the skill
gap is expected to intensify further.
Complicating the scenario further is
the large presence of SME players
in this segment. Estimates suggest
that almost 50 % of the workforce in
this sector is constituted by
engineers and management
graduates.
Increase in demand due to:
l Increase in setting up of
specialised non defence centres
l Gradual growth from Tier III
supplier to end-to-end projects in
diverse fields
l Mushrooming of SME especially
in the component sector
``Whilst one could also reason that
since aerospace and defence being a
very niche sector with specific skills
requirement, firstly, it is important
to develop training grounds for the
manpower so that they are sector-
ready for application of these skills.
On the other hand, it can also be
argued that once the sector comes
out of infancy that one would see
the setting up of such training
schools/innovation hubs. Both
arguments may be correct in their
own respect and a logical way ahead
would be that they both need to
function together so that one
complements the other, observes
KPMG sources, who had developed a
detailed report on HR issues faced
by this segment.
Although Tier-I colleges are the first
choice for the players in this
segment, they also look for
specialisations while hiring.
Fresher Hiring
``Fresher hiring is done primarily
by the corporate themselves. And
most of them target Btech or BE
Electronics or Mtechs. However
with Avionics likely to pick up in
2013 extra specialisation like in
CAD-CAMs or in display system
apps and integrators are more likely
to get hired, observes Shashwath
Priya, Consultant R& D, ABC
Consultants. ``The quality of
graduates however remains a
l The need to cut costs and deliver products faster, the segment
is undergoing signicant changes
l According to industry feedback, the research and training
institutes in India are insucient as compared to the number of
students
l According to a survey by KPMG, greater involvement in setting
up of training schools for acquiring specialised skills for this
Industry is essential.
l Although Tier-1 colleges are the rst choice for the players in
this segment, they also look for specialisations while hiring
Key Findings
The Aerospace Industry
Aerospace, grounded for so long, now ready to take off"
Recruite
BI -ANNUAL RECRUI TMENT REPORT
RecruiteX January 2013 58
subject of concern. Several
educational institutes are setting up
aeronautical departments, but
active involvement of the
government, as well as the private
sector is required to develop
industry specific courses that are
relevant and effective. This is where
there is a key challenge.
According to industry feedback, the
research and training institutes in
India are insufficient as compared
to the number of students.
Moreover, the training provided in
these institutes is not uniform
across the country.
With greater emphasis on domain
knowledge, there is always a
hesitation to engage them on core
activities in the beginning. This is a
key hindrance for potential
candidates as most today have an
eye for fast track growth.
``They (potential recruits)
sometimes fail to recognise the fact
that domain knowledge is gained
after sufficient time. Many of the
top notch engineering colleges have
factors favouring the students than
addressing the real need of the
corporates in this sector. Attracting
and hiring the so called cream (from
the students base) has always been
challenging from retention
perspective and will continue to be
so,observes Bhat.
Challenges in
Fresher Hiring
l Insufficient research and training
institutes as compared to the
number of students
l With Avionics likely to grow extra
specialisation in addition to
BE/BTech is a pre-requisite
l Core engineering jobs only a
second choice for students
Identifying students with core
engineering passion continues to be
a challenge, especially when the
requirement is on a long term basis.
As the campus salaries for IT sector
is higher than engineering sector,
students always opt for core
engineering jobs only as a second
choice and that too as a stop gap
arrangement.
This has resulted in this segment
witnessing a high degree of
attrition.
Reasons for
Attrition
``The average attrition in the junior
mid-segment is about 20 %, which is
significant especially because this is
an industry segment that requires
personnel to have a long innings
due to the project lifecyles, states
Priya.
According to a survey by KPMG
greater involvement in setting up of
training schools for acquiring
specialised skills for this Industry
are essential.
``Self assessment and prioritisation
of new skills and abilities which are
complementary and synergetic to
the requirements of the industry is
one area that the government, the
academia and the industry needs to
come together to provide; if this
segment needs to grow to it full
potential, states Alvira Ponappa,
HR & Training Consultant, AP
Recruits. `` Backward integration
for the formation of new tier in the
global supply chain and
establishment of a strategy for
sourcing versus outsourcing are
some of the other key areas that
need to be developed.
There is also a stigma attached to
hands-on labour and a lackluster
focus in providing end-to-end
specialisation by the candidates, in
project life cycles as the years go by.
``In India anyone with about 7 to 8
years of experience in this industry
wants to be a manager, whether
they have the capabilities or not.
This is in direct contrast to the
global scenario, where detailing and
providing expertise in the complete
project life cycle is valued more,
states Priya.
Part of the reason is lack of
awareness among the stakeholders.
Key players in shaping the talent
pipeline such as educators,
guidance counsellors and parents
are unaware of the diversity of
career options in aviation and are
l Non IT jobs still a second
choice for students
l Expectation of quick rise
to managerial position
l Lack of awareness
among all stakeholders
Major Reasons for
Attrition
With a lot of global
collaboration happening
on a daily basis, there is a
genuine need for us to
train our workforce on
cultural sensitivity and
international adaptation.
This plays a key role, not
only in efficient delivery
of what our customers
want, but also in
portraying a professional
image of our capabilities
globally. HR has a large
role to play in this critical
mission.
Nirmala Bhat
Head, Human Resources
Altran India
BI -ANNUAL RECRUI TMENT REPORT
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not promoting them to the next-
generation workforce.
Retention
All this has resulted in attrition.
Hence identifying and retaining
core talent is a key focus area. And
this is where the other challenge
begins. Most of the time companies
tend to use the common retention
tools that have successfully
roadtested across the talent pool.
This they are finding is not an
effective strategy.
``We need to divide our talent pool
in to various segments based on
their need (remember Maslows
need hierarchy), states Bhat.
`` For an employee who is fresh out
of college, nature of job is the
motivating factor. For an employee
who has been working for few years,
a stamp on the passport is necessary
and that is to say onsite opportunity
is a key factor to retain him/her. For
an experienced engineer who has
suddenly seen his expenses rising
(moving from shared
accommodation to individual one)
due to his marriage, salary becomes
the top retention factor and so on
and so forth. It would be interesting
for us to identify these segments
and accordingly implement the
retention strategy.
l Customisation of retention tools
l Creating better job-awareness
among target segment
Training
With a lot of global collaboration
happening on a daily basis, training
especially towards cultural
sensitisation and international
adaptation of the workforce is
another aspect that corporates are
addressing. And the HR has a key
role to play here.
Domain related training is yet
another very important area of
focus. Most of the time an engineer
is working on a part/sub-system of
the aircraft which he or she has not
seen and is not even aware how his
work is going to influence the larger
system. Thus making it extremely
important to explore ways and
means (including site visits and
familiarisation training at the shop
floor or assembly points) to enhance
domain knowledge. While overseas,
retired professionals with huge
amount domain knowledge are good
sources to draw information, the
Indian workforce relies primarily
on in-house or online exposure for
up skilling at this level.
``India does not have a shortage of
people. But there is an acute
shortage of good, employable and
industry-ready people," says
Ponappa. ``One time we wanted to
hire 750 engineers in India, but
could manage only 300. The
situation today is if you are a stress
engineer (one who determines the
stress and strain in materials
subjected to static or dynamic
forces) in India, you can right away
choose the company, salary and city
you wish to work in.
l Corporates are addressing
cultural sensitisation and
international adaptation based
training programmes, with the
HR playing a key role here.
l Domain related training is yet
another very important area of
focus
Tie-up with
Varsities
To address the talent crunch in this
niche market, companies like
Infotech and colleges have entered
into agreement with organisations
like the Jawaharlal Nehru
Technological University
(Kakinada) and IGNOU for
preparing curriculum for M.Tech
(Avionics). The idea is to create
employable engineers for the
avionics industry.
``There is a lot of talent but what we
need today is quality education
system, especially in MBAs. Most of
the colleges are offering the degree
but not with standard. (I am not
talking about the tier I B-schools).
All are not targeting them. Many of
us also hire from tier II colleges,
states Ponappa.
``There is no point in having more
MBAs with no project training
which makes them inefficient at the
skill levels. Till such time we
address these issues this problem
will exist.
l Companies have entered into
agreement with universities for
preparing industry-specific
curriculum, to address the talent
crunch in the sector
l MBAs should be provided with
essential project training to make
them efficient and skillful
Aerospace
manufacturing will
always be cutting edge
and will need both
experienced and fresh
hands. So even as
Indian aircraft
consumption rises, the
industry would witness
an equal increase in
availability of the right
talent, with the right
demographics for atleast
the next 20 years. Few
large economies can
boast of this and no
industry can benefit
more than aerospace
given the long gestation
periods in
manufacturing.
Sanjay Kumar
CEO and MD
Altran India
Recruite
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E x p e r t S p e a k
What are some of the new trends
in recruiting in this segment?
Recruiting in the Engineering
services has always been pretty
challenging. With more and more
Aerospace companies setting up
their offshore center here, the war
for skilled talent is fierce. However
the new trends are:
l Fresher hiring from premium
institutes is a good source to build
talent internally for core
engineering jobs
l Professional Networking sites like
LinkedIn is explored intensively
to identify specific skilled
resources in this sector
l With more and more firms
recruiting, nature of job is a good
selling point for the OEMs and
high end consulting (engineering
services) firms to attract skilled
talent
l Collaboration programs with
premium institutes serves as a
platform for the organisation to
get in resources with a faster
productivity time
l With limited availability of
domain people in sectors like
Aerospace, corporates are willing
to train the resources, who is
hired outside the domain
l Employee reference is another
good source as the visibility and
reach to the potential candidates
is yet to reach the desired
maturity level. For the same
reason, professional forums are
becoming an important
networking tool to source
potential candidates
l Hiring interns is another way to
get committed resources
Will 2013 witness a more
organised social media talent
plan?
Social media is a new recruiting
trend. Yes, 2013 will definitely
witness a positive trend. Whether it
will reach a point of maturity is
questionable. I say this because I am
not sure if 100% of potential
resources in this sector use social
media; but definitely the trend is
catching on.
What are some of the current
campus trends and challenges
you have faced?
Campus has always been my most
interesting source of potential
talent. With greater emphasis on
domain knowledge, there is always
a hesitation to engage them in the
core activity in the beginning. This
sometimes is a hindrance for those
potential candidates who are
looking for fast track growth. They
sometimes fail to recognise the fact
that domain knowledge is gained
after some time. Many of the top
notch engineering colleges do not
address the real need of the
corporates in this sector. Attracting
and hiring the so called cream (from
the student base) has always been
challenging from retention
perspective and will continue to be
so. Identifying students with
engineering passion is always
challenging, especially when the
need is long term. As the campus
salaries for IT sector is higher than
the engineering sector, students
always opt for the core engineering
job as a second preference.
What is the future outlook for
compensation-trends in your
industry?
Like any other services company,
complex skills are paid more.
Compensation would see a stable
growth for next few years. As the
engineering sector is one of the
fastest growing sectors (about 9-11%
growth year to year) and more and
more complex work is being
outsourced to India, compensation
will definitely experience an
upward trend.
Are there new skill sets that will
emerge in 2013 (owing to new
technology/market forces) that
you would like entrants in your
industry to be trained/ready for?
I feel entrants should always be
ready to learn as this is a very
elaborate and intense arena. I would
say patience is another key
ingredient to success in this sector.
Compensation is no doubt
important but should not be looked
at in isolation. They need to do their
homework right and for the right
reasons should consider this sector
as a career option. Doing
internships in core engineering
services organisation will help the
students get a reality check.
Nirmala Bhat
Head, Human Resources
Altran India
Heading the Human
Resources division for
Altran Technologies India,
Bangalore, she is driving
Altrans growth in India in
the capacity of HR Leader
and strategic business
partner. In her previous
assignments, she has worked
with Safran Engineering,
Onward technologies, HCL
and Maftalal Consultancy
Services.
T
he Indian aerospace
industry has remained a
laggard compared to
some other sectors where
we can benchmark with
the best. For example banking,
telecom, automotive etc. This has
largely been due to the monopolistic
nature of the business environment.
As the monopoly of public sector
banks was disallowed, vast
improvements came about in the
sector, and telecom and automotive
have probably seen more change in
the last 10 years than what was seen
in the last four decades. However,
the aerospace Industry continues to
be shackled by controls and an
environment which does not
provide for competitiveness, growth
or modernisation.
Today a country like Brazil can
produce aircrafts which are sold
globally. Even in India while we can
launch a satellite in space we still
struggle to repair an aircraft. So if
one looks at the entire value chain
from manufacturing to maintenance
we fare rather poorly. Even Dubai
has better facilities for aircraft
repair and maintenance than we do.
This is not because we are not
capable of doing this. Its simply
because we are engulfed with a
highly complex regulatory
environment and a fiscal regime
that makes it more attractive to do
simple things like aircraft
maintenance and repair outside our
country than within.
The story does not end there, in
manufacturing we continue to
believe that a single state entity can
meet all our complex needs. But
with every crises comes
opportunity, today as the country
stares at an extremely high Aurrent
Account Deficit , its capacity to
import weapons and aircrafts/
helicopters to meet its defense needs
will increasingly reduce. And given
the highly volatile neighbourhood
we live in we cannot choose to
ignore our defense requirements.
The offset policy set forth by the
government is therefore an outcome
of a pressing need which is to
reduce our defense imports in a
sustainable manner. If one were to
just take the aeropsace defense
needs and do a back of envelope
estimate, by 2020 the Indian
aerospace replacement market
alone would touch nearly 20 billion
USD, and with the offset clauses
clicking in we can well estimate a
nearly 30 % share in domestic
ancillaries and spares
manufacturing. In addition to this
the civil aviation market will also
Flying into a vibrant future
Sanjay Kumar, CEO and MD Altran India, took over the
responsibility of taking Altran India to the next level. Sanjay is
instrumental in improving Altran India delivery, in line with
the strategic plan initiated by the Group. Apart from
managing India operations, he is also the member of
Global Management Team of the Altran Group.
He has worked for the Royal Dutch Shell Group for over 18
years, where he held various positions in Europe and Asia.
In India, he was part of the team that set up Royal Dutch
Shell's joint-venture with Bharat Shell and then went on to
develop Shell's bitumen market in India. At the international
level, he was in charge of turning around the oil company's
retail-lubricants business in 13 Asia-Pacic countries, including
Oceania and China.
He also played a crucial role in launching several targeted consumer-initiative programmes in
Germany, Greece and Turkey designed to boost the lubricant retail-sales business in Europe.
Upon his return to India in 2007, Sanjay Kumar helped conceptualise set up Shell's Aviation
joint-venture with MRPL in Bangalore (India), then moved to Chennai to launch a Business
Intelligence and Strategic Consulting unit.
Prior to joining Shell in 1994, Sanjay worked in commercial and marketing roles at Eureka
Forbes, Arvind and Marico. Sanjay graduated in Physics from the University of Delhi and
holds an MBA degree from IRMA Gujarat.
BI -ANNUAL RECRUI TMENT REPORT
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continue to grow at nearly 11 %
CAGR, making India one of the top
six civil aviation markets in the
world.
The offset opportunity from the
civil and military aviation
combined will bring in substantial
investments both in manufacturing
but equally so in services. The
aerospace services market will grow
by over 300 % over the next three
years to approximately 3 billion
USD from the current 0.8 billion
USD.
Quite clearly, the industry is on the
threshold of immense change and
rapid exponential growth and the
services market will lead this
simply because there are fewer
executional bottle necks and lower
gestation period for starting up. The
only spoiler will be the lack of
trained manpower and absence of
critical talent but just like
everything else in this country
demand will create its own supply
amidst a period of rapid unplanned
growth, much as what was seen in
the post telecom liberalisation.
However, to make a real success and
become a regionally relevant player
in the aerospace market India will
clearly need to do more. One of the
challenges of most of our
unforeseen growth in sectors
telecom, banking and automotive
has been that it has taken an
unusually long time to be best in
class and be benchmarked to be on
par with global best practices. A
large part of this has been due to
the weak fiscal environment with
regard to automotive taxation
policies.If these were to play out
similarly in aerospace then of
course we would be grounded even
before we start.
Therefore it will take bold
leadership, clear and well drawn out
policy guidleines, a commitment to
avoid frequent policy changes and a
stable fiscal regime to enable this
sector to deliver. Specially on the
manufacturing side where
production timelines are long and
investments are huge. At this point
there seems to be very little to
believe that we are headed for such
a regime. But as someone who has
seen that within all this chaos we
somehow muddle through, I remain
hugely optimistic that we will
eventually get there.
The mere fact that our defense
needs will rise with a rapidly
assertive China and an extremely
volatile neighbourhood will ensure
that low hanging fruits around
manufacturing of simple parts and
delivery of complex services
continue to grow rapidly. These will
eventually provide the much needed
ecosystem to put in place more
complex manufacturing capabilities
which involve higher outlays and
greater risks. This will become even
more compelling as China grapples
with a demographic difficulty, and
India prepares to reap its
demographic dividend by 2030.
Aerospace manufacturing will
always be cutting edge and will need
both experienced and fresh hands
and the western world will be
increasingly stretched. So even as
Indian aircraft consumption rises,
the industry would witness an equal
increase in availability of the right
talent, with the right demographics
for atleast the next 20 years. Few
large economies can boast of this
and no industry can benefit more
than aerospace given the long
gestation periods in manufacturing.
Today, even in the services sector
within aerospace India continues to
dominate in some of the low end
areas of CAD and CAE design. This
is but a start, much like the Y2k
eventually from these basic
capabilities will come the more
sophisticated skills as clients will
increasingly seek single points of
contact when they interface with
their clients. All of this has already
begun to happen and we see
increasing depth of knowledge in
skills in avionics, and aeronautics.
So take a line from the famous Bob
Dylan song the times they are a
changing!!!, and the journey from
here on will be even more exciting
than it has ever been in the past for
the aerospace industry.
So while most of us may not fly in a
made in India plane in our lifetime
we will definitely see a time when
the aircraft monitors, the seats and
the lights would have been made in
a factory somewhere close to where
we live.
Key Findings
l Aerospace Industry continues to be shackled by controls and
an environment which does not provide for competitiveness,
growth or modernisation
l By 2020, the Indian aerospace replacement market alone
would touch nearly 20 billion USD
l With the oset clauses clicking in we can well estimate a
nearly 30 % share in domestic ancillaries and spares
manufacturing
l The aerospace services market will grow by over 300 % over
the next three years to approximately 3 billion USD from the
current 0.8 billion USD
l The industry currently lacks trained manpower and absence
of critical talent
l Aerospace manufacturing will always be cutting edge and will
need both experienced and fresh hands
Recruite
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RecruiteX January 2013 62
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Copyright 2013 Times Business Solutions Limited. All rights reserved.
Editorial: E Jayashree Kurup, Girish Bindal, Neha Sharma, Apeksha Kaushik, Neha Singh Verma, Rahul Raj,
Kanchana Dwarakanath, Meghana Biwalkar
Layout Design: Harsha Khattar
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