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Computerized Vocational Training& Employable Skills

Uncommon Opportunities: Roadmap for Employment, Food & Global Security

November 21, 2004

The Mother’s Service SocietyPondicherry, India

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Employable Skills

50% of firms in developing and industrialized

countries report severe shortage of skilled workers.

India’s problem is not lack of employment

opportunities but lack of employable skills.

Skills create employment and self-employment

opportunities.

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Vocational Skills Gap

Only 5% of India’s workforce (20-24 years) have

vocational training compared with 28% in Mexico

and 96% in Korea.

By 2010 major labour shortages will emerge in the

industrialized nations forcing movement of both

manufacturing & service jobs to wherever the skills

are best.

Upgrading skills essential to tap global markets

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Vocational Training in India

4200 ITIs 1,654 government run 2,620 private

Courses offered 43 engineering & 24 non-engineering trades

Capacity – 6.3 lakhs

State enterprise programmes – 1.7 lakh

Including agriculture & other – 20 lakh

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Vocational Training Deficit

Students completing 8th-9th standard 300 lakhs

Students entering 10th-11th 150 lakhs

New entrants to workforce (per year) 70 lakhs

Vocational training in engineering, agriculture & other fields

20 lakhs

New entrants to workforce w/o training 50 lakhs

Existing unemployed youth (15-29) of which 80% are educated up to 10th

150 lakhs

Existing workers to be trained to raise non-ag skilled portion to 25%

350 lakhs

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Three Models

Farm Schools in every revenue village

Vocational Schools

Computerized & Televised Vocational Training

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Vocational Schools

Promote vocational institutes at block and district level 5000 govt 50,000 private

Conduct exams for every skill as for drivers licenses

Certify approved training centres, e.g. BPO

Provide scholarships & incentives for trainees

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Computer-based learning is twice as fast @ half the cost

Multimedia Interactive Immediate Feedback Self-paced learning Eliminates need for trained teachers Responds rapidly to changing skill needs Uniform testing

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Computerized Vocational Training

Establish 1 lakh CVT Institutes like internet cafes 50,000 in private sector 50,000 training centres at engineering and arts colleges,

ITIs, polytechs, high schools, NGOs, etc. Partnership with industry to develop multimedia training

software Provide training to a minumum of 4 million students per

annum Government certification of courses Generate self-employment opportunities for 50,000

entrepreneurs

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Multimedia vocational courses

RWH Child care Nutritionist

Selling skills Real estate Law clerk

Telemarketing Insurance agent Quality manager

Catering Video editing Furniture design

Farm mgmt Pharma rep Textile design

Reporter Dry cleaning Electrical repair

Travel agent Internet research Graphic design

Bookkeeper Organic farming Interior design

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Vocational Skills

50% of firms in developing and industrialized

countries report severe shortage of skilled workers.

India’s problem is not lack of employment

opportunities but lack of employable skills.

Skills create employment and self-employment

opportunities.

12

Vocational Skills Gap

Only 5% of India’s workforce (20-24 years) have

vocational training compared with 28% in Mexico

and 96% in Korea.

By 2010 major labour shortages will emerge in the

industrialized nations forcing movement of both

manufacturing & service jobs to wherever the skills

are best.

Upgrading skills essential to tap global markets

13

Vocational Training in India

4200 ITIs 1,654 government run 2,620 private

Courses offered 43 engineering & 24 non-engineering trades

Capacity – 6.3 lakhs

State enterprise programmes – 1.7 lakh

Including agriculture & other – 20 lakh

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Vocational Training Deficit

Students completing 8th-9th standard 300 lakhs

Students entering 10th-11th 150 lakhs

New entrants to workforce (per year) 70 lakhs

Vocational training in engineering, agriculture & other fields

20 lakhs

New entrants to workforce w/o training 50 lakhs

Existing unemployed youth (15-29) of which 80% are educated up to 10th

150 lakhs

Existing workers to be trained to raise non-ag skilled portion to 25%

350 lakhs

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Three Models

Farm Schools in every revenue village

Vocational Schools

Computerized & Televised Vocational Training

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Vocational Schools

Promote vocational institutes at block and district level 5000 govt 50,000 private

Conduct exams for every skill as for drivers licenses

Certify approved training centres, e.g. BPO

Provide scholarships & incentives for trainees

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Computer-based learning is twice as fast @ half the cost

Multimedia Interactive Immediate Feedback Self-paced learning Eliminates need for trained teachers Responds rapidly to changing skill needs Uniform testing

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Computerized Vocational Training

Establish 1 lakh CVT Institutes like internet cafes 50,000 in private sector 50,000 training centres at engineering and arts colleges,

ITIs, polytechs, high schools, NGOs, etc. Partnership with industry to develop multimedia training

software Provide training to a minumum of 4 million students per

annum Government certification of courses Generate self-employment opportunities for 50,000

entrepreneurs

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Multimedia vocational courses

RWH Child care Nutritionist

Selling skills Real estate Law clerk

Telemarketing Insurance agent Quality manager

Catering Video editing Furniture design

Farm mgmt Pharma rep Textile design

Reporter Dry cleaning Electrical repair

Travel agent Internet research Graphic design

Bookkeeper Organic farming Interior design

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CVT Job Shops

Privately owned, self-employment

Each centre with 1 to 10 computers

Stocked with a library of training software

Training material on CD-Rom format

Fees based on an hourly rate

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CVT Job Shop: Assumptions

Three computers per Job Shop 20 training programmes per Job Shop Each computer utilized 300 hours per mo Operating expenses for rent, two paid

employees, phone, electricity may range from Rs 15,000 to 20,000 per month

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CVT Job Shop: Economics

Capital investment Rs 1.5 lakh.

Cost of operations per computer hour = Rs 20 / hour.

Cost of amortising of computers and software over two

years = Rs 14 per hour

Average cost of training = Rs 35 per hour

Average retail price of training = Rs 50 per hour

Net profit = Rs 15 per hour or Rs 1.5 lakhs / yr

50 hours of computerized vocational training, equivalent to

about 250 hours of classroom training, would cost the

student only Rs 2500.

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Training Software: Economics

Cost Rs 50 lakhs per course

Retail price Rs 1000 per set

Sale of 10,000 sets generates Rs 50 lakhs profit

Offer 50% government subsidy for development

of approved courses

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CVT Action Plan

1. Delivery CVT through all state-owned engineering colleges, ITIs, Polytechnics, liberal arts colleges, high schools, other institutions.

2. Provide financial assistance/ incentives under Central Government self-employment schemes to promote private training institutes.

3. Encourage financial institutions to provide loans to entrepreneurs.

4. Negotiate with computer software companies to develop a wide range of vocational training courses.

5. Recognized institutional authorities to certify course contents.

6. Finance bulk purchase of approved training software with 50% subsidy to minimize the cost of training.

7. Train entrepreneurs to set up/manage private institutes.

8. Provide scholarships to low income youth to cover training fees.

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IT Incubator Business Parks Computerised vocation training Computerised tuitions institutes Computerised language training Software training Video-conferencing services High speed data transfer services Web, graphic and animation design services Computer repair and maintenance services International Internet telephony Computer hardware parts manufacturing and assembly Customer and technical support call centres Back office processing Medical transcription Digital photography, scanning and image processing Internet research services Accounting services Computerized testing laboratories

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Who creates enterprises?

Skilled experienced workers leaving existing jobs create enterprises Machinists taxi drivers hotel servers bus cleaners Printers tailors

Do entrepreneurial training programmes work?

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Promoting Entrepreneurship

Extend bank credit & seed capital to employees

with 5 years experience

Require training & certification for new enterprises

to reduce failure rate

Existing entrepreneur to sign as guarantor

Insurance companies can ensure loans based on

qualifications

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Issues for Study

Natural job creation How many jobs are being created? In which sectors & fields? By what process? How can the natural process be magnified and accelerated? How are rural migrants absorbed in the cities?

Occupational demand Identify high growth occupational categories at all levels Measure growth in pay/income levels by category

Emerging Activities Identify emerging occupations in all sectors,

Farm managers & Soil technicians Servicing for cell phones, ACs, computers, VCDs, etc. Home delivery, floor cleaner, masseuse

Skills for national development Compile a complete list of skills needed for India’s development to next higher level

Job creation in other countries Study which job categories grew rapidly in US during a comparable period?

Efficacy of Entrepreneurial Development Programmes