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For Private Circulation only
Ensuring Sustainable Offshore Delivery : India’s Skills Development Model :
Opportunities for India Australia Partnerships
25th July 2012 Melbourne, AustraliaDilip ChenoyCEO & MD
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2Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Agenda
Overview Government Initiatives in Skill Development in India
NSDC Model: Encouraging Public Private Partnerships
Areas of Collaborations and Key Recommendations
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3Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
India: Land of World’s Largest Young Population
22.2
17.0
13.9
10.2
6.9
4.3
2.1
0.6
22.9
25.6
21.3
17.3
13.3
9.4
6.3
4.2
1.8
0.8
0-9
10-19
20-29
30-39
40-49
50-59
60-69
70-79
80+
1991Age 2001 2011 202119.6
18.7
19.5
14.4
11.6
8.2
5.0
2.4
0.8
15.8
17.1
17.0
15.7
12.6
10.1
6.9
3.5
1.3
70% of the population will be in working age group by 202170% of the population will be in working age group by 2021
• Where the Population of rest of the world is relatively old, India has a great opportunity to harvest its ‘Demographic Dividend’
• Government’s policy to ensure that working population are skilled to meet requirements of the industries.
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4Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
However, plagued by inadequately skilled manpower
High drop outs in the education space
1
In service training levels very low in India
4
Very low enrolments for VET
3
Skilling should Become a major
Policy Focus going forward
Skilling should Become a major
Policy Focus going forward Employability of the skilled a challenge
2
Only one in four engineering graduates in India is employable, based on their technical skills, English fluency, teamwork and presentation skills and of the 4 lakh odd engineering graduates, who graduate each year, only about 20% is good enough for India Inc.
- NASSCOM
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5Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.Source: IMaCS analysis
Industry Incremental
requirement
(in million)
Building and Construction Industry 33.0
Infrastructure Sector 103.02
Real Estate Services 14.0
Gems and Jewellery 4.6
Leather and Leather Goods 4.6
Organised Retail 17.3
Textiles and Clothing 26.2
Electronics and IT Hardware 3.3
Auto and Auto Components 35.0
IT and ITES 5.3
Banking, Financial Services, and
Insurance
4.2
Furniture and Furnishings 3.4
Industry Incremental
requirement
(in million)
Tourism and Hospitality services 3.6
Construction Material and Building
Hardware
1.4
Chemicals and Pharmaceuticals 1.9
Food Processing 9.3
Healthcare 12.7
Transportation and Logistics 17.7
Media and Entertainment 3.0
Education and Skill Development
Services
5.8
Select informal employment sectors (domestic help, beauticians, security guards)
37.6
Incremental 347
Industry requires 347 million skilled manpower over 10 years for sustaining it’s growth
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6Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
The National Skills Policy 2009 targets skilling 500 million people through 4 pronged approach
• No discrimination between private or public delivery
• Importance on outcomes, users choice
• Competition among training providers
Policy coordinati
on and coherence
• Promote excellence • Meet the
requirements of knowledge economy.
• A framework for better coordination among various Ministries, States, industry and other stakeholders
• Approach adequately communicated and implemented
• male/female• rural/urban• organized/
unorganized employment
• traditional/contemporary workplace
Choice,competition
and accountability
High inclusivity
Dynamic & demand-based system planning
India needs to create 500
million skilled workers by 2022
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7Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Social Appreciation of Skills As a Livelihood Asset
Linking Education to Employability in the Global Knowledge Economy.
No One Solution. Every Region demands an innovative approach.
1. Undertake fundamental reforms across the education system (primary, secondary and higher) to
• improve overall quality / outcomes,
• increase retention and
• ensure seamless integration with vocational training
2. Significantly enhance Government-driven vocational training efforts
3. Increase scale of PPP initiatives to better utilize Government infrastructure
4. Foster Private sector / Industry participation in skill development
New approach to addressing the gap
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8Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Government’s Co-ordinated Action in Skills Space
Multilateral , bilateral and private sector funding to NSDF
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9Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Why the “ New” Partnership Model
• For identifying the competencies and setting up standards as per Industry
requirements
• For delivery of training, monitoring and evaluation
• For participation in examination and certification
• For participation in affiliation and accreditation process
• For facilitating training of trainers
• For facilitating employment of trained persons
• Skill demand analysis and curriculum development
• Sharing of work place experience, machinery and equipment
• Support by way of physical, financial and human resources
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10Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Agenda
NSDC Model: Encouraging Public Private Partnerships
Overview Government Initiatives in Skill Development in India
Areas of Collaborations and Key Recommendations
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11Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
NSDC – a unique model created with a well thought through underlying philosophy
Create: Proactively catalyze creation of large, quality vocational training institutions
Fund: Reduce risk by providing patient capital
Improve returns by providing viability gap funding
Enable: Support systems required for skill development• Sector skill councils• Quality Assurance• Information system• Train-the-trainer• Set Standards
Key elements of NSDC’s underlying philosophy
1
2
3
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12Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Create : Inviting Private Sector to Make it Sustainable and Scalable
• Response to Demand• Develop a strategy • Create a knowledge base• Excite entrepreneurs by
bringing out the opportunity
• Go beyond the training, address issues of the ecosystem
• Develop partnerships, move beyond a pure funding relationship
• Focus on outcomes
• Share the risk • Provide patient capital • Develop non intrusive robust
monitoring programmes• Trust and transparency in the
system • Eco system to support the
organization
Attracting Industry players: Start ups, Social Entrepreneurs, NGOs, Medium Size Training Organizations and Large Corporates into Skill Development.
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13Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Driving vocational training business models by providing patient capital
• Any organization with scalable, sustainable business model that ensures employability of the resources trained
• Including start ups• Including Indian partnership with Australian Companies
Who gets funded?
What is the amount of funding?
What is the form of funding ?
DescriptionElements
• ~Upto 75% of the project cost
• Debt at subsidized rates ; other features like moratorium built in depending upon nature of project
• Equity • Grant funding (only in very select cases)
Is there special focus?
• NSDC is looking to fund businesses that seek to create employable people across all sections of the society
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14Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Proposal Evaluation Committee (PEC)
Proposal Approval Committee (PAC)
Diverse representation from the Government, private equity, NGOs, industry
Board
Representatives of key stakeholders – both government and private sector
Due diligence partnersNSDC team
Proposal Introduction and evaluation – test of responsiveness, technical, financial and legal due diligence
Turnaround of < =3 months targeted for proposals
Robust process designed to ensure rapid turnaround in the process
Active involvement of Government, Industry Leaders and leaders from Social Sector for approving projects, ensuring interest of all stakeholders.
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15Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Private partners from Industry, NGOs, Start Ups form NSDC Portfolio
Training providers
In the education business
In unrelated businesses
Start upsLarge established corporates
TechnableGOLS
Total Ten Year projections of 67 Million
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16Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Parameters As of June 2010 As of 31March 2011 As of June 2012Total Number of Partners' Approved 65
• Training Partners 3 25 52
• Sector Skill Councils 0 3 13
Total Active Partners 0 12 28
Total number of Centres - 82+484* 619 + 3041*
Number of People Trained - 20,482 212,664
Number of People Placed - 789 165,896Cumulative Placement Achieved - 70.1% 78%Total Funds Committed (in US $) $8.2 mn $120 mn $254mn
Total Sectors Covered 6 15 23
Note: *Pratham’s EFE centers.
Some early signs of success…
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17Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Multiple initiatives being taken by NSDC to develop the skills ecosystem, 2011-12 (I)
Sector skill councils Knowledge BaseFinancing for
vocational training
• 11 SSCs approved by NSDC
• 9 proposals getting evaluated; pipeline of about 10 proposals
• Slow but sure interest by industry
• District wise skill gap studies undertaken for the 8 NE states, Odhisa, Bihar, AP, Bihar, MP, Rajasthan, West Bengal and Karnataka
• In addition to 20 high priority sectors, sectors skill gap studies for infrastructure and sports sector
• A study on train the trainers conducted
1 2 3
• Vocational Loan on a Pilot basis
• Loan would in the range of Rs.5000/- to Rs.1,50,000/-
• Operate through tripartite agreement amongst Student (Trainee), Training Provider and the Bank
• NSDC would stand as a guarantor for a certain percentage of the default
National Qualification Framework
4
NSDC, IAMR and States have been involved by MHRD in evolving the NVEQF document from Dec 2010, and a Draft Note has now been prepared for Cabinet Approval.
Funding for a pilot in schools of Haryana and Bengal has been released. Four SSCs are engaged in this Pilot
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18Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Multiple initiatives being taken by NSDC to develop the skills ecosystem , 2011-12 – (II)
World skills competition
Business Plan competition
Media Campaign
• NSDC acted as nodal agency for the World Skills Competition hosted in London
• Results limited but good learnings
• Preparation underway for the 2013 competition
• “Power to Empower” – India’s first Skills enterprise competition organised by NSDC and CII jointly
• 71 educational institutions and over 3000 students participated in the competition
• Work on- going on a media campaign to make skills aspirational
Work with international organisations
Multiple international organizations being engaged with to leverage existing skills and knowledge base• UKIERI• ILO• AIEC• UKCES• EU• DFID
5 6 7 8
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19Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Sector Skill Councils : Ensuring Industry Involvement
TRAINING NEED ANALYSIS
CURRICULUM DEVELOPMENT
ROLLOUT OF TRAINING
ASSESSMENT AND
CERTIFICATION
• Creation of Occupational Standards
• Towards National Vocational Qualification Framework
• Labour Market Information System
• Skill Development Plan
• Accreditation of Training Institutes
• Academics of Excellence • Training of Trainers• Guidelines and Participate in
Assessments and Certification of Trainers and Trainees
• Sector Skill Councils (SSC) consists of representation from Industry Member, Government Bodies, Industry Associations, Business Leader and Training providers to ensure participation of all ecosystem members.
• Till now 11 SSC have been approved in main high growth sectors such as Automotive, Retail, IT/ITES, BFSI, etc.
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20Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Approved by NSDC
(11 till now)
SSC Proposals under Diligence with NSDC(10 SSC presently)
SSC Proposals in Pipeline
(9 SSC presently)
Auto Domestic Workers Mining
Security Construction and Real Estate Capital Goods
Retail Foundry Hospitality
IT/ITES Agriculture Pharmaceuticals
BFSI Handicrafts Beauty & Wellness
Media Textiles Steel
Healthcare Logistics & Transportation Aviation
Gems & Jewelry Plumbing Oil & Gas
Rubber Education and skills
Leather
Electronics Hardware
Telecom
Food Processing
Large Workforce
13 SSCs approved and a strong pipeline – June 201220 of the high priority sectors covered, move towards large and informal sectors
Priority Sectors
Informal Sector
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21Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Organization Support
International Network of Sector Skill Organizations
Seminar on Setting up SSCs held for all SSC leaders in May 2012 by 4 International Leaders of SSCs from UK & Australia
AIEC Support to Retail SSC – CEO of Service Skills Australia provided 2 week on site support in May- June 2012. Key areas covered, stakeholder engagement, Standards, LMIS, SSC processes etc. Preliminary talks to support one more SSC.
UKIERI 1. Project Funding released by end April2. Two SSCs, Agriculture & Media to be provided on site support3. A second UKIERI fund provides for support to Food Processing
SSC
EU Project to support three SSCs in capacity building over three years. Year 1 focus on Auto SSC.
NSDC Workshop and Framework to 10 SSCs for creation of NOS in occupations covering 80% of workforce, by individual RFPs.
NSDC also receiving support from multiple international organizations in SSC incubation
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22Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Agenda
Areas of Collaborations and Key Recommendations
Overview Government Initiatives in Skill Development in India
NSDC Model: Encouraging Public Private Partnerships
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23Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Current Collaborations with Australia:Several MOUs Signed between Australia and India
• MOU between XLT and Jaypee Group: Training to focus on metals, construction, automotive and mining
• TAFE NSW- Sydney Institute and Heraud Inc : MOU to provide services to proposed College,
facilitating academic collaboration, professional development, study tours, student and teacher exchange, and international student recruitment.
• Central Institute of Technology (Australia) and the Central Board of Secondary Education (CBSE): To develop models of VET engagement to help students to complete school with both a secondary school certificate and job oriented and job linked skills. Pilot with delivery of 4 courses- Design, Retail, Music production and Beauty therapy.
• Australian Vocational Training Employment Group (AVTEG) and JIS Group
• College of Innovation and Industry Skills (CIIS) and JIS Group
• Kangan Institute in Australia to support training of 425 ITI teachers in Karnataka and Maharastra.
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24Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Possible areas of collaboration
• To set up skill development programmes in cooperation with NSDC or
NSDC Partners
• Industry based curriculum development
• Training of Trainers including NSDC Partners
• Sharing of best practices in training particularly in sectors such as
Mining, Construction, Retail, Healthcare, Hospitality etc.
• Training in Agriculture: Sharing International standard training
modules for India to learn.
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25Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Possible areas of collaboration: Sector Skill Councils
• Capacity building and organizational support for Sector Skill Councils
• Sharing standards in development of Occupational Standards
• Development of Curriculum Framework
• Sharing best practices in assessments, certifications and
accreditation.
• Development of Labour Market Information System
• Development of Qualification Framework
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26Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Multiple forms of interventions possible on the skill development space
Systematically focus on areas and create skill led community interventions
Build capacity to train and skill people• Own capacity
Use expertise in certain areas to provide curriculum and training material in select areas
Leverage and consolidate existing capacity to deliver quality training
Community based interventions
Build capacity
Standards and Curriculum
Leverage existing capacity
INTERVENTIONS
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27Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Different business models can be builtIllustrative : Single Entity with different Centre's
Option 1 Key activities
Skills Centre
COE for Sales ….COE for Sector 1
Corporate training for Sector 2
Learning centre n
Learning centre 2
Learning centre 1
Research and development of content
Methodology
Train the trainer
Overall strategy and management
Sector specific centres of excellence
Focus on sector requirements
Regarded as best in class training centres for a particular sector/ function
Learning centres (owned) dispersed all over the country for sector/ functional expertise
Innovative models can be developed depending upon requirements of the secotr
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28Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.
Different business models can be builtIllustrative : Multiple corporate / Training entities partnering
Option 2 Key activities
Holding Entity : Lead player
COE for SalesEntity 1
….
COE for Customer Service Entity 2
COE for Sector Entity 3……
Learning centre n
Learning centre 2
Learning centre 1
Research and development of content
Methodology
Train the trainer
Overall strategy and management
Sector/ area specific centres of excellence led by different firms
Focus on sector requirements
Regarded as best in class training centres for a particular sector/ function
Learning centres (owned) with different entities dispersed all over the country for sector/ functional expertise
Innovative models can be developed depending upon requirements of the secotr
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29Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.Source: BCG Analysis
A LEADER IS ONE WHO TAKES THE FIRST STEP TOWARDS A GOAL HE DEEPLY CARES ABOUT, IN WAYS
THAT OTHERS WISH TO FOLLOW
Take Charge Leaders!