impact of iit alumni - business opportunities in india ... · 38 impact of iit alumni was captured...
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Impact of IIT Alumni
Impact of IIT Alumni
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Impact of IIT Alumni was captured through 11 roles and was analyzed for 5 impact areas
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Impact of IIT Alumni
Impact of IIT Alumni
A. EconomicB. SocialC. EntrepreneurialD. Research and EducationE. Leadership
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• Currently IITAlumnihavean“annual revenueresponsibility”of themagnitudeofUSD1 trillionglobally.ThisincludesnearlyUSD700billionfromIndustryroles,USD170billionbyentrepreneursandUSD175billionthroughgovernmentroles.
• Alumni in India account for close to half or USD 500 billion of the overall annual “revenueresponsibility”.InPPPtermsmorethanthree-fourthsofthe“revenueresponsibility”isaccountedforbyalumniinIndia.
• Theaverage“revenueresponsibility”peralumnusinIndiaisclosetoUSD7million,andforalumnioutsideIndiathisfigureisclosetoUSD14millionperalumnus.
• IITAlumnihavebeenassociatedwithincrementalrevenueadditiontothetuneofUSD200billionoverthelastoneyear.66percentofthisisaccountedbyalumniinIndustryroles,18percentbyalumniinentrepreneurialroleand15percentbythoseingovernmentroles.
• Overall,closeto50percentoftheincrementalrevenueadditionisaccountedforbythealumnibasedinIndia.
• IIT Alumni have helped generate, directly or indirectly, 15 to 19 million jobs over the last50years.
• Alumni inindustryroleshavebeenassociatedwith76percent(~12million)of jobgeneration.Entrepreneurshavegeneratedcloseto6percent(~1millionjobs)andalumniingovernmentroleshavebeeninstrumentalinthegenerationof15percentofthejobs.
• Onanaverage,anIITAlumnusisassociatedwiththecreationofaround100jobs.Morethan50percentofthesejobshavebeengeneratedbyalumnifromthepre-1986batch.
• Closeto71percentofthejobsgenerated,directlyorindirectly,byIITalumniareinIndia.
• AlumnibasedinIndiaareresponsiblefor30percenthigherjobgenerationperalumnusascomparedtothealumniabroad.
Key Observations: Economic Impact
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TheEconomicimpactsectionaimstounderstandthefinancialfootprintsoftheIITAlumnionsomeofthekeyparameterssuchas:
1. Annualrevenueresponsibility:Thisisaparameterexclusivelyanalyzedforthetopleadershiproles,withrevenueresponsibility,whichindicatestheoverallrevenuewhichIITAlumnicontrolorareresponsibleforacrosstheglobeinvariousroles.Closeto15percentofthealumniwerefoundeligibleforthisanalysis.
2. Incrementalvalueaddition:ThisparameterwasanalyzedfortheIITalumniinmanagerialpositionsorabove(withrevenueresponsibility)tounderstandthepercentageincrementoftherevenuewhichtheyareresponsiblefor.ThecombinedincrementalrevenuewascalculatedtogetthemagnitudeoftheoverallrevenuecontributionofIITalumniperyear.30percentofthealumniwerefoundeligibleforthisanalysis.
3. JobGeneration:ThisparameterevaluatedtheimpactofIITalumnionthemagnitudeofthejobscreatedorthedirectassociationwiththejobscreated.Allthealumniinmiddlemanagementanabovewereaskedtoregisterthedirectjobscreatedbytheminvariousrolesovertheirlifetime.ThisresultedinthecombinedjobscreatedbyIITAlumnioverlast50years.Closeto30percentofthealumniwerefoundeligibleforthisanalysis.
Module Introduction
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Revenueisoneofthemostdefinitiveparametersusedtomeasuretheimpactofasociety,group,initiativeetc.IthasbeenwidelyperceivedaswellasdebatedthatIITAlumnihavecreatedsubstantial impact,bothinandoutsideIndia.Althoughtheimpactcreatedbyalumniisusuallyspokenofwithreferencetotheachievementsofsomeoftheverysuccessfulalumniacrosstheglobe,onawiderlevel,notmuchisdocumentedwithregardtothefootprintofIITAlumniontheglobaleconomyortherolethattheyhaveplayedinthegrowthofIndianandglobalindustries.
The survey included questions intended to quantify the economic parameters such as the revenueresponsibility, the revenue increment and jobs generated through their direct contribution. Some oftheparametersthroughwhichimpacthasbeencreatedcannotbedirectlyassignedcompletelytotherespondent;hencesomeancillaryquestionswereaskedonthenumberofteammatesandspecificallythenumberofIITiansintheteam.Inordertoavoiddoublecountingattherevenuecontributionstage,onlythealumniatthetop-leadershippositionswereconsideredfortheanalysis(i.e.CXOs,headofbusinessunitsandfoundersorheadsoftheorganization).Themagnitudeoftherevenuecontributionhasbeenimputedonthebasisofthe“revenueresponsibility”oftherespondentsandthenextrapolated.
Headlines
• Two-thirdsofthisrevenueisaccountedforbyalumniinindustrytopleadershiprolesandclosetotwo-fifthsisaccountedforbyentrepreneurs.
Currently, IIT alumni have a combined annual “revenue responsibility”(1) of around USD 1– 1.1 trillion(2) for the year 2007–2008…
Economic Impact: Revenue ImpactA
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Thestudydelvesdeeper to find thegeographic splitof theUSD1.1 trillionof revenue responsibilitythatalumniholdglobally.Therespondentswereaskedtoindicatethe(current)geographyinwhichtheyareresponsiblefor thestatedrevenue.Theoverallrevenuecalculationwasdoneonthebasisof theexchangerateatthetimeofanalysis(1USD~INR45and1Euro~INR62).PurchasingPowerParitywasnotconsidered.
Closeto65percentofthealumnihadindicatedtheircurrentgeographiesasIndiaandhencetheirrevenueresponsibilitywasassignedtoIndia.Itwasfoundthatoutofthetotal~USD1.1trillionthatalumniareresponsiblefor,52percentoftherevenuewasgeneratedoutsideIndia(primarilyUS).Thisthustranslatesto35percentofalumnimaking52percentoftherevenuecontribution.Onanaverage,analumnusinIndiahasarevenueresponsibilityofaboutUSD7million,whereasanalumnusintherestoftheworld(primarilyUS)hasanaveragerevenueresponsibilityofaboutUSD14million.
Someofthemeasureswhichwereusedforimputingtherevenueresponsibilityareasfollows:ForIndustryleaders, the annual revenue responsibility directly held by alumni; for entrepreneurs, revenueof thecompany;andforgovernmentroles,annualbudgetaryresponsibilityofalumni.
A
Alumni based outside India account for 52 per cent of the overall annual “revenue responsibility”(1)
Economic Impact: Revenue Impact
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Onanabsolutescale,the“revenueresponsibility”peralumniabroadhasbeenfoundtobealmostdoubleasthatoftheirIndiancounterparts.Understandably,thereisabiasbecauseofthePPPandthedifferenceintheeconomysizes.WhilethesizeoftheIndianeconomyisclosetoUSD1.2trillion,theUShasaneconomysizeofoverUSD13trillion.Togetaneffectivecomparisonoftheeconomiccontributionofalumniacrossgeographiesthe“revenueresponsibility”wascalculatedusingtheconceptofPPP.AlumnicontributionoutsideIndia(USandEuropeaneconomies)wasscaledwithrespecttoIndia.
ItwasfoundthatalumniinIndia(65percentofthetotalalumni)accountfor78percentoftheentire“revenueresponsibility”indicatedbyalumni.Theremaining35percentofthealumni,whoarebasedoutsideIndiaaccountedforcloseto22percentofthe“revenueresponsibility”.The“revenueresponsibility”peralumnusforIndiawasfoundtobealmosttwiceofthatofthealumniwhoareoutsideIndia.
ThisstatisticunderlinedtheimpactthatalumnihavecreatedbybeinginIndia.Thisanalysisisfurthervalidated,inothersectionsofthereport,basedonotherparameterslikejobcreationtowhichalumnihavecontributed.71percentofthejobscreatedthroughthedirecteffortsofalumniareinIndia.
But in PPP terms(1), alumni in India account for 78 per cent of the overall annual “revenue responsibility”(2)
Economic Impact: Revenue ImpactA
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Inordertoexplorethetrendintherevenuecontributionbybatches,the“revenueresponsibility”parameterwasanalyzedacross thebatches.Since theanalysis for the“revenue responsibility”was restricted toalumniintopleadershiproles(toavoiddoublecounting)thepercentageofalumniinlaterbatches,post1996,whowereeligibleforthisanalysiswerelimited.Mostofthesealumni(post1996inclusionsinthisanalysis)wereeitherentrepreneursoringovernmentadministrationroles.
Headlines
• Alumni from batches post 1996 have limited “revenue responsibility” in their organizations ascomparedtoalumnifrombatchestill1996.
• Onanaverage,alumniwithmorethan12yearsofexperiencearethemajorcontributorstothetotal revenue impact;60 to65percentof thesealumniare in the top leadership roles in theirorganizations.
• Thesealumni,onanaverage,haveanannual“revenueresponsibility”ofUSD10to12million.
Average annual “revenue responsibility”(1) per alumni with more than 12 years of work experience is around USD 11 to 12 million
A Economic Impact: Revenue Impact
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Around30percentoftheoverallalumniareintopleadershiproles,66percentoftheseareinindustryrolesorareentrepreneurs.Inordertogaugetheincrementalrevenuecontributionbythesealumniintheircurrentrole,theywereaskedabouttherevenueadditionthattheyhavemadeinthelastoneyear.Thiswasimputedonthebasisofdirectlyattributablerevenuetoeachofthealumniandthegrowthinrevenueswitnessedinthelastfinancialyear.Again,toavoiddoublecountingonlyalumniintopleadershiprolesweretakenintoconsideration.15percentofthealumniwereconsideredforthisanalysis.
Overthelastoneyear(2007-08),alumnihavebeenresponsibleforcreatingincrementalrevenueofaroundUSD220billion.Thisisclosetothe20percentofthecombinedrevenueresponsibilityofIITalumni.65percentofthealumniinIndiaaccountedfor50percentoftheoverallincrementalvalueaddition.ConsideringPPP,thealumnibasedinIndiaaccountedfor78percentoftheincrementalvalue.
Onthebasisofanotheranalysisdoneonthelargest500companiesinIndia,itwasfoundthataround54percentofthesecompanieshaveoneormoreIITAlumniinthetop-leadershippositions(CXOlevel,boardmembersetc).Thecombinedrevenueofthesecompaniesaccountedfor90percentoftherevenueofthesetotal500companies.
IIT alumni have been associated with Incremental revenue(1) to the tune of USD 200 – 240 billion(2) in the year 2007–2008
Economic Impact: Revenue ImpactA
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Apartfrommeasuringtheimpactcreatedbyalumnithroughrevenuegeneration,thestudyalsoexaminedtheimpactcreatedonemploymentgeneration.Therespondentswereaskedabouttheapproximatenumberofjobstheyhavecreatedorhavebeendirectlyassociatedwith,ineachoftheirroles.Dependingupontherolesinwhichthealumnigetclassified,suitablemetricswereconstructedtogaugetheemploymentgenerationimpactofalumniindifferentroles.
Headlines
• Almost70percentofjobsweregeneratedbythealumniinindustryrole
• Entrepreneursaccountedfor15to20percentofthejobsgenerated
• Restofthejobsweregeneratedthroughthealumniingovernmentadministrationroles
Itisobservedthatalumniinentrepreneurialroleareplayinganincreasinglyimportantroleinthejobcreation.Thisisevidentthroughtheincreasingnumberofcompaniesbeingfoundedbyalumni;almost10,000companieshavebeenfoundedbyIITalumnioverthelast18years(postliberalization).Currently,16percentofallalumni(i.e.entrepreneurs)aregeneratingbetween15to20percentofthejobs.
IIT alumni have helped generate 15–19 million jobs(1) over the last 50 years
A Economic Impact: Revenue Impact
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Tounderstandthetrendinjobcreationimpactbythealumnithroughthebatches,jobcreationimpactwassegmentedbythebatchesofalumni.Whilethe“revenueresponsibility”parameterwasevaluatedonlyforthealumniintop-leadershiproles,forthejobcreationimpact,thealumniinmiddlemanagementandaboveinindustryrolesandallthealumniinentrepreneurialroleswereconsideredfortheanalysis.Therefore,almost50percentofallalumniwereconsideredfortheemploymentgenerationimpact.
Headlines
• Approximately175,000alumniwhohavepassedoutoverthelast54yearshavebeeninstrumentalincreatingaround15millionjobs,i.e.around100jobsperalumni
Onanaverage,each IITalumnushasbeen responsible for thecreationofapproximately100 jobsduringhiscareer.Alumnifrombatchesbefore1986havebeenresponsibleforaround160jobscreatedperalumnusandalumniforbatchesafter1986havebeenresponsibleforaround50jobscreatedperalumnus.
On an average, each IIT Alumnus is associated with creating around 100 jobs(1)
Economic Impact: Revenue ImpactA
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Overallaround65percentofalumniarecurrentlybasedinIndia,accountingforcloseto50percentofthe“revenueresponsibility”and“incrementalrevenue”contributionbythealumni(withouttakingaccountthePPPfactor).Inordertoexploreanotherparameterofeconomicimpact,i.e.employmentgeneration,respondentswereaskedaboutthenumberofjobstheyhavedirectlycreatedintheirrespectiveroles.Further,theserolesweresegmentedacrossthegeographiesinwhichthesejobswerecreated.
Headlines
• Closetothree-fourthsofthejobscreatedbyalumniareinIndia
• Overall, the job creation impact of the IIT alumni in India is higher than the alumni who areabroad
It can be observed therefore, that while alumni outside India accounted for the higher “revenueresponsibility”peralumni,thoseinIndiahaveahigherimpactintermsofthejobscreated.ThiscanbeattributedinparttothefactthatahighernumberofentrepreneursarebasedinIndiaandalsothatalumniingovernmentadministrationroles(specificallyinIndia)havehadahighemploymentgenerationimpact.Analumnusinthegovernmentadministrationroleisassociatedwiththecreationofalmosttwicethenumberofthejobsascomparedtoalumniinotherroles.
Almost three-fourths of the jobs created by IIT Alumni are in India
A Economic Impact: Revenue Impact
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Impact of IIT Alumni
Impact of IIT Alumni
A. EconomicB. SocialC. EntrepreneurialD. Research and EducationE. Leadership
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• Currently, 8 per cent or 14,000 of the alumni are in roles related to social transformation,with 2 out of 3 among these working with social bodies and 1 in every 4 in governmentadministrationroles
• About3percentoftheIITAlumnichooserolesrelatedtosocialtransformationastheirfirstrolespostIITs
• Onanaverageabout3percentofalumnifromeachbatchselectsocialrolesastheirfirstrole
• 70percentofthealumniinsocialrolesarebasedinIndia;1outof3arereturneesfromabroad
• Ahigherpercentageofalumnifromsmallercitiesandlowereconomicbackgroundtendtotakeuprolesrelatedtosocialtransformation
• Close to4,000alumnihavebeenassociatedwith foundingofsocialbodies,pre-1986batchesaccountsformorethan50percentofthesealumni
• Almostoneoutoftwoalumniinvolvedinsocialroleshasbeenworkingineducation,environment,engineeringorinfrastructurerelatedareas
• Aboutoneinfoursocialbodies(NGOs)foundedbythealumnihavemorethan100volunteersandanequalnumberoforganizationshavemorethanUSD1millionoffunding
• Around4,500alumnigloballyareactivecontributorsthroughCorporateSocialResponsibility(CSR);over3,000ofthesearebasedinIndia
• Closeto10,000alumnihavehelpedinsocialtransformationthroughtheirworkon“bottomofthepyramid”.Around4,000oftheseareinResearchandEducationandtheother6,000areinServicesorEngineering
Key Observations: Social Impact
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TheSocialImpactmoduleaimstounderstandthedifferenttypesofimpactcreatedbyalumniinvariousrolesrelatedtosocialtransformation(directsocialroles)aswellasindirectimpactcreatedbyalumniinotherroles.
Forthisstudy,alumniinsocialwork,governmentadministration,politicsandnationalorinternationalbodieshavebeenconsideredasalumniindirectsocialroles.Further,alumniinseniormanagement,entrepreneurshipandresearchandeducationhavebeenconsideredasalumniwhohavecreatedindirectsocialimpact.IndirectsocialimpacthasbeenmeasuredaccordingtoinvolvementinCSRactivitiesaswellasimpactonthepeopleatthebottom-of-the-pyramid.
‘SeniorAlumni’forthisstudy,havebeenconsideredasthealumniwhohavecompletedtheirdegreefromIITbefore2002.
Module Introduction
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ThefirstlevelofstudyfortheSocialmoduleinvolvesoutliningthenumberofalumnithatcurrentlycreateadirectimpactthroughsocialroles.
Forthepurposeoftheaboveanalysisonlyalumniwhoarecurrentlyinthesedirectsocialroleshavebeenconsidered.
Headlines
• Almostoneintenalumniareinrolesrelatedtosocialtransformation,socialworkisthemostcommonrolefollowedbygovernmentbyadministrativeroles
• Two-thirdsofthesealumni(closeto14,000)areinrolesrelatedtoSocialtransformation
Ithasfoundthatalmost3percentofthealumniacrossthebatchestakeuptherolesrelatedtosocialtransformationastheirfirstroleafterIIT.Forthecurrentrolestheearlierbatcheshavethehighestpercentageofalumniinsuchroles,i.e.closeto15percent.
Currently, 8 per cent of the alumni are in roles related to social transformation(1)
Social ImpactB
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Toexaminetheperceptionregardingthepresenceoflargernumberalumnifromolderbatchesinsocialroles,thestudyprobedintothebatch-wisesplitofalumniintheseroles.Anotherhypothesisisthatthenumbersofalumniwhochosetoentersocialrolesimmediatelypost-IIThasbeendecreasingovertheyears.Toexaminethishypothesis,thestudyanalysedthepropensityofalumnibatch-wisetogetintosocialrolesastheirfirstrole,post-IIT.
Headlines
• Thehighestnumberofalumniinsocialrolescomefrombatchesafter2001
• Onanaverageabout3percentofalumnifromeachbatchselectsocialrolesastheirfirstrole
Severaleminentalumniindifferentsocialroleshavechosentotaketheseupastheirfirstchoice.Oneeminentalumnusdevotedoverfourdecadesinhiscareerinthefieldofruraldevelopment,byprovidingtechnicalexpertisetoruralcommunities,environmentalplanningetc.EvenwhilehewasatIIT,heconstantlytriedtoassesshowhiseducationalknowledgecouldhelpinsolvingproblemsofthepoor.
Several other alumni chose to enter government administration or roles after IIT. Alumni in theseroleshavereachedpositionssuchasStateChiefMinister,MemberofParliament,andAdvisortoPrimeMinisteretc.
On an average about 3 per cent of alumni from each batch select social roles as their first role
Social ImpactB
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InordertoexaminetheperceptionregardingalumnihavingcontributedmoreabroadthanwithinIndia,thestudysoughttoevaluatethenumbersofalumniinsocialrolesinIndiaversusthoseoverseas.Thestudythereforeanalysedthecurrentgeographiesofalumniinsocialroles,batch-wise,tobringouttheabsoluteandchanginggeographicpreferencesofthealumniintheseroles.
Forthepurposeofthisanalysis,onlyalumnicurrentlyinsocialroleshavebeenconsidered.
Headlines
• Onethirdofalumniinrolesrelatedtosocialtransformationareactiveoninternationallevel
• MorethanoneinfourofthealumniinsocialroleswhoareworkinginIndiaarereturnees
Alumniinsocialroleshavebeeninworkinginwiderangeoffields,over50percentofthesealumniare leveraging the technicalknowhowthroughtheirwork. Therearemanyeminent IITalumniwhoare in top leadership positions on international bodies for environment, engineering and educationrelatedissues.
70 per cent of the alumni in social roles are based in India
Social ImpactB
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Inordertostudythecorrelation,ifany,betweenthesocio-economicbackgroundofalumniandtheirtendencytotakeupsocialroles,thestudyprobedintothenumbersofalumnifromdifferentcitybackgroundsanddifferenteconomicgroupsinsocialroles.
Forthepurposeofthisanalysis,alumniwhohavebeeninsocialrolesatanypointoftimehavebeenconsidered.
Headlines
• Alumniwithlowereconomicbackgroundandsmallercitiestendtoselecttherolesrelatedtosocialtransformation
• 24percentofalumnifromlowereconomicgroupstakeupsocialroles
A higher percentage of alumni from smaller cities and lower economic backgrounds take up social roles
Social ImpactB
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Aparameterused toevaluate the impact createdbyalumni in roles is thenumberof socialbodiesfoundedbyalumni.Thestudythereforedelves intothebatch-wisesplitofalumni insocialroleswhohavefoundedsocialbodies.Toprobeoneleveldeeper,thestudyanalysestheareasinwhichalumniinsocialroleshavebeeninvolved.
Forthepurposeofthisanalysis,alumniwhohavebeeninsocialrolesatanypointoftimehavebeenconsidered.
Headlines:
• Almost30percentofalumniinsocialroleshavebeenfoundersorco-foundersofsocialbodies
• Morethan50percentofthealumniinsocialroleshavebeeninvolvedintheareaofEducation,environment,orotherengineeringrelatedroles
OneeminentalumnushasachievedthedistinctionofbeingthefirstwomanofficertohavejoinedtheIndianPoliceService.Thereafter,throughhercareer,shehasbeeninvolvedinsettingupmultipleorganizationsforwhichreachouttothousandsofbeneficiariesdaily,intheareasofdrugabusetreatment,schoolingforchildrenofprisoners,education,training,counselling,andhealthcaretotheurbanandruralpoor.
MultipleeminentalumnihavebeenattheforefrontoftherevolutionarymovementwhichhasledtotheRighttoInformationActin2005andsubsequentawarenesscampaignsforthesame.
Nearly 4000 alumni in social roles have founded social organizations
Social ImpactB
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Giventhatalargenumberofalumnihavefoundedorco-foundedsocialbodies,thestudysoughttoprobealeveldeeperintosomeparametersthatcouldbeusedtoquantifythesizeofthesocialbodiesandthelevelatwhichtheyoperate.Thestudythereforequantifiestheleveloffundingreceivedbythebodiesandthenumbersofvolunteersthatexistinthesesocialbodies.
Headlines
• OneoffoursocialbodiesfoundedbyalumniinsocialrolesreceivedfundinginexcessofUSD1Million
• One-thirdofsocialbodiesfoundedbyalumniinsocialroleshavemorethan100volunteers
Around one in four social bodies founded by alumni have received funding in excess of USD 1 million
Social ImpactB