skill development landscape in india: a perspective … development landscape in india: a...

Skill Development landscape in India: A

perspective for foreign service providers

2015

2

03 | Executive Summary

06 | Case Studies: Appraisal of select foreign skill development service providers in India

25 | Select unique and recent foreign collaborations

33 | Defining industry focus for UK based skill development institutions targeting India

37 | Recent government initiatives and consequent opportunities for foreign skill development

providers

44 | Way forward

48 | Annexure I – Skill gap assessment – Sector wise

67 | About UKIERI

Contents

3

India is at the cusp of becoming the world's most populous country with its population estimated to

increase to 1.45 billion by 2028, surpassing that of China. While many argue that most of India's challenges

arise due to its large population base, the flipside is that more than 60% of its current population is in the

age group of 15 to 59 years; which makes India home to the largest employable manpower base. The

demographic dividend indicates a tremendous supply of the working age population. However, the real

question for India's business houses and the government is: "Is this manpower really skilled to be

employable?". In order to steer India towards higher economic growth, it has become imperative to utilise

this demographic dividend through skill development and increasing employability.

Infusion of foreign skill providers and their ways and means to establish skills would provide a fresh

perspective to the Indian skill segment. However, the initiatives by foreign skill development providers

over the last few years have met with limited success. Accordingly, this report was commissioned by

UKIERI to provide a perspective to foreign skill development companies by identifying potential

opportunities and best practices in the skill development domain in India. The report is intended for use

by foreign skill development entities wanting to evaluate India as a potential destination to set up

operations in.

Grant Thornton India LLP has prepared this report using various sources of information available in the

public domain. Additionally, we have interviewed the industry experts, Indian companies operating in the

skill/training domain, foreign players with operations in India and others who are evaluating operations in

India.

The key aspects covered in this report provide insights to the foreign players to determine its strategy for

India, through the following:

• Case studies of foreign skill providers operating in India, illustrating the business and the operating

model of the respective foreign skill development companies in India. Further, it provides insights

into their business model and the critical success parameters responsible for their successful

operations in India. Some of the key success factors for foreign skill development operators include:

• Establish partnerships and linkages to attain local intelligence and enable government schemes

• Selecting the appropriate location will enable the foreign skill development provider to mobilise

students or domestic skilling companies and form the right alliances with the Indian industry

• Offer courses in industries where the foreign company has a niche and there is skill gap in India

• Offer a diversified service portfolio and reduce dependence on student fees

• Evaluate government schemes and incentives to reduce financial stress

Executive Summary

4

• Identification and illustration of the new and unique business models and collaborations established

by foreign skill development companies operating in India. In this section we explore the unique

partnerships established by foreign players to generate revenue from multiple sources. Foreign skill

development players looking to successfully operate in the Indian market should look for multiple

revenue sources, as traditional student fee based models may not be financially feasible in the early

stages of establishment. Some of revenue sources that could be explored include revenue from train

the trainer programmes, certifications and assessments, corporate training, consulting projects for

government and corporates etc.

• Determining industry focus for UK based skill development institutions targeting India. In order to

assess the Indian industries which offer maximum opportunity to UK based skill development

providers, we have used the following approach:

• Analysis of UK skill landscape to determine focus industries where UK Skill development

companies have a stronghold

• Assessment of the existing skill gap in Indian industries

• Analysis of the priority sectors under Make in India campaign

An intersection of the target industries shortlisted under the three approaches mentioned above was

identified. The shortlisted sectors include advanced manufacturing industries such as automotive,

construction, healthcare and pharmaceutical, food processing, retail, travel, tourism and hospitality.

• Assess recent government initiatives and identify opportunities for foreign skill development

providers. The government has recognised the need and opportunity to train the youth in order to

realise India's potential. It has made significant efforts to set up a robust vocational skilling set up.

In this section we document the recent initiatives undertaken by the government and the resultant

opportunities for the foreign skill development provider. Some of the opportunities include the

following:

• Development of online assessment tools and training curriculum

• Development of transnational standards for vocational education

• Upgradation of vocational education framework under National Skill Qualification

Framework

• Undertake assessment as part of government schemes such as PradhanMantri Kaushal

Vikas Yojana

Executive Summary

Case Studies: Appraisal of select

foreign skill development service

providers in India

6

Appraisal of select foreign skill development

service providers in India

Over the past few years, the government of India has successfully identified Skill Development as one of

its key agenda. Through creation of frameworks, nodal bodies and public private partnerships focusing on

skill development domain, the Government of India has not only attracted domestic but also many

foreign players in the skill development and training domain. This section highlights various foreign

companies operating in India. An appraisal of the operations of these companies have been conducted on

the following parameters:

Critical Success factor

1. Diversified services portfolio

Ability of the company to offer

varied solutions in the skill

development domain such as train

the trainer programmes,

assessments and certification,

consulting projects etc. in addition

to candidate training.

2. Partnerships and local

linkages

Creation of skill development

infrastructure and investments

therein would often hamper the

ability of the foreign skill

development company to set up a

sustainable business in India.

Accordingly, partnerships with

local players and government

assistance for funds become

imperative.

3. Industry linkage and

geography selection

Certain industries in India have a

higher skill gap than others.

Additionally, Industries in India

operate in clusters. Focus on right

industry would maximise the

Company's chances to set up a

successful venture.

Rationale and critical success parameters for foreign skill

development companies operating in India

Fee from training candidates in India are usually low. Unless a foreign

skill development company is able to provide industry linked niche

training, it would not be able to compete with the domestic skill training

companies. Accordingly, it is critical for the foreign skill development

company to focus on value added solutions such as assessments and

certifications, train the trainer programmes, consulting projects,

advisory assistance to Sector Skill Councils and Government

departments etc.

A key challenge for domestic skill development companies is their

ability to get quality trainers, superior curriculum, recognised

certifications and assessments modules. Foreign skill development

companies can bring in these expertise and partner with domestic

players to leverage already created infrastructure. Additionally,

partnerships with government and other public bodies could ensure

subsidised capital and steady work flow.

The foreign skill development company's ability to cater to an Indian

industry with skill gap, wherein the foreign company has a niche, will

contribute immensely to its success. Selecting the appropriate location

in the country to conduct its business will enable the foreign skill

development provider to mobilise students or domestic skilling

companies and form the right alliances with the Indian industry.

The ensuing sections present select case studies of established foreign players which have successfully

demonstrated their knowledge of skill development sector and overcome the inherent challenges of the

Indian skill development sector.

7

Case Study 1: Heraud Training and Education

background

Heraud is a registered training organisation (RTO) in Australia and engages with various Australian

Government institutions to provide skills development training. Additionally, it undertakes consulting

engagements in the skill development sector in Australia. In 2013, Heraud set up its Indian entity, Heraud

Training & Education India Pvt Ltd (Heraud). The company initially invested approximately AUD

100,000 in India. In the year 2014, it raised AUD 0.5 million from NSDC through loan funds.

Realising that significant investments are required to set up skill development training infrastructure, the company

has partnered with existing Indian players to impart training; whilst curriculum and standards are managed by

Heraud. The domestic partner manages training delivery. Some of the delivery partners include:

• Thapar Polytechnic College, Patiala, Punjab

• Amity University, Manesar, Haryana

• Dynamic Tec Institute, Rohtak , Haryana

In addition to these partnerships, Heraud operates its own centre at Mohali, Punjab.

It has successfully secured subsidised loan funds from National Skill Development Corporation (NSDC)

amounting to AUD 0.5 million in 2014.

Partnerships and local linkages

8


background

The company operates in automotive, telecom, retail, healthcare and construction sectors.

The company operates in Gurgaon, Patiala and Rohtak through its franchisee partners and operates its own

centre in Mohali.

Industry linkage and geography selection

Diversified services portfolio and consequent revenue model

Heraud acts as the knowledge partner for Indian skill development players. The portfolio of service offerings

include:

• Provision of curriculum to delivery partners. Heraud has partnered with TAFE SA* for use of their

curriculum

• Engages with the sector skill councils (SSC) in India to ensure the curriculum is standardised and of high

quality

• Specifies competency of trainers and conducts train the trainer programme

• Though the delivery partner is responsible for sourcing of trainees, Heraud organises education/job fairs for

mobilising students on a periodic basis

• Conducts quality assurance audits at franchisee centres

Revenue model –

• Heraud operates through a hybrid of own centre and franchisee model. In respect to its own centre, it earns

revenues through the fee charged to trainees. From the franchisee, it charges a one time sign up fee and a

share of revenue from their training operations

*TAFE SA is the largest provider of vocational education and training in South Australia.

9


appraisal of its model

Presented below is the appraisal of Heraud on the critical success factors which it has incorporated in its

business model:

Critical Success Factor

(CSF)

Heraud' s incorporation of the CSF in its model

Partnership and local linkages • Minimal capital investment on infrastructure through creation of only one

owned centre

• Franchisee model which secures additional revenues and substantial reach

through minimal investments

• Partnership with National Skill Development Corporation to avail

subsidised capital

Diversified services portfolio

and consequent revenue model

• TAFE certified curriculum and certification has lead to industry acceptance

of the courses at high fee price points (approximately INR 35,000 – INR

40,000 per annum for the certification)

• Hedging through other revenues sources such as delivery partner sign up

fees in addition to the trainee fee model

Industry linkage and

geography selection

• Focus on industry with significant skill gap has led to acceptance and

minimal competition

• Selection of training delivery partners located at focus industry hubs has led

to ease in sourcing trainees

10

Case Study 2: SkillSonics background

In 2008, Swiss-Indian Chambers of Commerce launched a pilot project in collaboration with the Industrial

Training Institutes (ITIs) from the states of Maharashtra and Karnataka along with 10 private companies

from India to train 150 people. These trainees were staffed at the participating companies as apprentices

and were trained 'on the job'. Owing to the success of the pilot, SkillSonics Indian Private Limited was

formed in 2011, as a private enterprise.

SkillSonics leverages the following partnerships for crucial aspects of skill development operations:

• SWISSMEM provides curriculum, certification and assessment for trainees

• SFIVET provides certification and assessment for ITI teachers and company instructors

• Government agencies such as Directorate of Employment and Training (DET) for providing infrastructure

and teachers for theoretical training

• Companies in the industry for on the job training

SkillSonics has secured subsidised loan funds worth INR 225 million from NSDC in 2013.

SkillSonics is responsible for coordinating inputs from partners, adaption of curriculum and conducting train the

trainer programmes.


11

SkillSonics acts as the knowledge partner for the industry partners and respective industrial training institutes.

The portfolio of service offerings include:

• Conduct train the trainer programmes for ITI teachers and company instructors

• Provision of curriculum to industry partners and ITIs. SkillSonics has partnered with SWISSMEM (Industry

association of Swiss Companies for mechanical and electrical engineering industries) for use of their curriculum

• Conduct the exams based on the Swiss vocational training guidelines. SkillSonics has partnered with

SWISSMEM and SFIVET (Swiss Federal Institute for Vocational Education & Training) for certification of

trainees and trainers respectively

• SkillSonics conducts quality assurance audits at ITI centres and industry partner training facilities

Revenue model –

• Industry partners pay SkillSonics certification fees, company instructor training fees, fee for use of training aids

and curriculum

• The respective state DETs pay fees for conducting teacher training programmes for ITI teachers to SkillSonics

• SFIVET and SWISSMEM earn royalty as a percentage of revenues from SkillSonics



SkillSonics base in India includes the following:

• 22 locations, SkillSonics has delivered training in partnership with companies such as ABB, ACC, Bobst,

Buhler and Burckhardt etc.

• 24 courses across segments such as mechanical, electrical, instrumentation and electronics

• Over 3,300 certified trainees


12


Key business

parameter

SkillSonics Companies from

Indian Industry

/Industry Partners

Foreign partners Government/ NSDC

Infrastructure 'On-the-job' practical

training is conducted at

company premises

Theory classes are

conducted at ITI

Curriculum,

assessment and

certification

SkillSonics customises the

curriculum to adapt it to Indian

context

• SWISSMEM

provides the

curriculum. It also

provides

certification for

trainees

• SFIVET provides

assessment and

certification for

company

instructors and ITI

teachers

Trainers SkillSonics trains ITI teachers

and company instructors on

Swiss VET pedagogy using

SFIVET train the trainer

modules

Companies provide

instructors for on the

job training

State departments such as

DET, Karnataka provide

qualified trainers from

existing ITIs

Mobilisation of

trainees

SkillSonics arranges workshops

where school representatives are

briefed about the scheme

State DET sends out

scheme information to

schools. Additionally, it

uses different advertising

mediums to target students

Subsidised

funding

NSDC has provided

subsidised loan and equity

funding worth INR 225

million

Revenue model • Industry partners pay

SkillSonics certification fees,

company instructor training

fees, fee for use of training

aids and curriculum

• The respective state DETs

pay fees for training ITI

teachers to SkillSonics

Companies recruit and

pay stipend to trainees

during the training

programme. These

trainees work as

apprentices on the shop

floor

SFIVET and

SWISSMEM earn

royalty as a

percentage of

revenues from

SkillSonics

The ITI teachers are

government employees,

hence SkillSonics does not

bear the salary cost of

these trainers

The unique model of SkillSonics draws its strength from various collaborations and alliances, the roles of

key partners are documented below:

13

Presented below is the appraisal of SkillSonics on the critical success factors which it has incorporated in

its business model:


(CSF) SkillSonic' s incorporation of the CSF in its model

Partnership and local linkages • Unique partnership model that addresses twin challenges of mobilisation

and placement of trainees. The government partner aids in mobilisation of

trainees and the industry partnership ensures their placements

• Minimal capital investment on infrastructure as practical training and

theoretical classes are undertaken at company premises and ITIs

respectively

• Partnership with NSDC to avail subsidised capital

• Apprentice model attracts trainees as they get paid while learning on the

job

• Provision of Swiss certification provides unique edge to candidates in

addition to gaining real time on the job experience



• Limited dependence on student fees as SkillSonics receives its revenues

from industry partners and respective state education departments

• Curriculum sourced from SWISSMEM has enabled acceptance of the

courses among industry partners as target companies are Switzerland based

organisations with India operations


geography selection

• Strategically targeted Switzerland based organisations operating in India for

industry partnerships. Examples of industry partners include ACC, Buhler

and Bobst etc.

• Strong placements since the industry partners spend significant time,

money and effort on selection and training of apprentices

Case Study 2: SkillSonics appraisal of its model

14

Case Study 3: Manipal City & Guilds

background

City & Guilds has formed a joint venture with Manipal Education to form Manipal City and Guilds

(MCG) in 2009. City & Guilds is a UK based skills development company that certifies an estimated 18

lakh learners annually, offering over 600 qualifications across 30 sectors. Established in 1953, Manipal

Education is one of the leading private players in the Indian higher education segment. It has established

two universities and nine campuses in five countries. Further, Manipal offers distance education to

approximately 70,000 students through 500 learning centres.

MCG offers various solutions in the skill development domain:

• Corporates - conducted training programme for leading lifestyle retail chain to upgrade skill levels of their

front end customer service associates

• Government - trained and certified over 2,000 trainees of Metro Rail corporation on health and safety aspects

• Academic institutions – offers programmes such as Financial Planning in partnership with Sikkim Manipal

University

• Training programmes under its own and franchised centres

It has also successfully secured subsidised loan funds from NSDC worth INR 13 million


15

Case Study 3: Manipal City & Guilds

background


MCG has a diversified services portfolio comprising the following:

• Certification services to third party skill development operators

• Corporate upskilling projects

• Government projects, including both training and consulting assignments

• Candidate training through own and franchised centres. MCG provides the following services to its

franchisees:

• Conducting train the trainer programmes

• Curriculum development – content development team at MCG has created 11,130 hours of curriculum

across twelve sectors

• Quality and assurance analysis at franchisee centres

• Conducting certification and assessment for all trainees

Revenue model –

City and Guilds derives a share from the revenues earned by MCG, through the following sources:

• Training fee from company operated centres

• Revenue share with franchisee centres

• Franchisee sign up fee for franchisee centres

• Fees from corporate/government trainings

• Certification & assessment fees

• Consulting fee for projects

Focus segments include Banking and Financial Services and Insurance(BFSI), Hair and Beauty, Hospitality, Retail,

Supply Chain Management, Security, Engineering, Construction, Automotive and Textiles

MCG has established a network of hundred centres across twenty five Indian states


16

Case Study 3: Manipal City & Guilds appraisal

of its model

Presented below is the appraisal of MCG on the critical success factors which it has incorporated in its

business model:


(CSF) MCG' s incorporation of the CSF in its model

Partnership and local linkages • City and Guilds has partnered with Manipal Education, one of the leading

private education players with extensive experience in higher education

• Partnered with NSDC to avail subsidised capital

• Adopted the franchisee model which secures additional revenues and

substantial reach through minimal investments


and consequent revenue

model

• MCG has limited dependence on student paid model due to its diversified

portfolio of service offerings such as corporate training, government

projects and certification and assessment

• Strong brand equity and expertise of both the partners i.e. City and Guilds

and Manipal has led to greater acceptability of courses and training

programmes


geography selection

• Focus on industries with significant skill gap has led to high acceptance of

courses

• Significant reach through leveraged franchisee infrastructure

17

Case Study 4: GIZ background

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) is a subsidiary of the Government

of Germany and has been operating in India for over 60 years. In addition to projects for German Federal

Government, GIZ also works on behalf of international organisations, governments and foundations.

Projects for these clients are carried out under GIZ International Services (GIZ IS), an independent

department under GIZ. GIZ IS commenced its activities in India in 2006.

GIZ usually works on consultancy projects providing technical assistance for skill development projects.

GIZ has engaged with multiple government departments for such assignments in India, examples of which

are provided in the table below:

S No Project details Role of GIZ IS Impact

1 Project - Technical support

for upgradation and

modernisation of Industrial

Training Institutes

Client - Department of

Employment &

Training, Government of

Karnataka

Duration - January 2012 to

December 2015

•Design framework for new

courses and upgradation of

existing ITI courses

•Curriculum development

• Instructional and learning

material development

•Preparing technical

specifications for procurement

of additional machines

•Capacity development &

training of ITI trainers in

technical fields and training

pedagogy

•Facilitate tie-ups with industries

for placement

•76 ITIs in the state upgraded

and brought in line with the

industry requirements

•Upgraded short and medium

duration courses

• Improvised competency of the

trainers

2 Project - Technical assistance

and support services in

establishing vocational

training centres for the tribal

youth in Gujarat

Client - Government of

Gujarat

Duration - August 2010 to

October 2013

•Analysis of labour market

• Identification of skill needs

•Designing a conceptual

framework

•Curriculum development

•Preparation of instructional

and learning materials

•8 long duration courses (1 to 2

years) started and 125 tribal

students admitted

•8 medium duration courses

started and 160 students

admitted

•Course curriculum and

instructional

material developed

•7 trainers trained at GIZ Multi

Skill Development Centres

Revenue Model – Though, the revenue model could vary on a project-wise basis, GIZ is typically paid a

lump sum fee for provision of consultancy services

18

Presented below is the appraisal of GIZ on the critical success factors which it has incorporated in its

business model


(CSF) GIZ' s incorporation of the CSF in its model

Partnership and local linkages • GIZ has engaged with multiple partners including central and state

government departments and nodal bodies, industry associations etc

• GIZ has been able to leverage client relationships to source multiple

projects from the same client. As an example, GIZ has undertaken multiple

projects for Government of Karnataka



• GIZ has limited dependence on student paid model as it receives majority

of its revenues from consulting projects

• GIZ has been able to leverage preference of Indian stakeholders for

German expertise in vocational education domain, especially the "Dual

System"* of training

*The Dual System of training comprises a holistic approach of skill development, involving on the job training along

with theoretical education at training centres.

Case Study 4: GIZ appraisal of its model

19

Case Study 5: Festo background

Festo is one of the world's leading companies engaged in engineering and automation technology. It set

up its operations in India in 1986 as Festo Controls Pvt. Ltd. Festo Didatic is a skill development and

consulting business unit arm of the Festo Group. Besides the India operations, Festo Didatic is a global

leader in providing training solutions and equipment for the industrial automation segment.

Festo Didactic has been engaged by following client segments for skill development engagements in India:

• Government Departments - Gedee Festo Mechatronic Centre (GTTI) in Coimbatore was founded by Festo

Didactic in 2010. This project was started in collaboration with the central government and aimed at

introducing the dual educational system in India on the basis of the German vocational training model. Festo

Didactic assisted the centre in curriculum development, training of trainers and provision of equipment for

technical training. Currently, the centre offers courses in tool and design Engineering, precision machining

and mechatronics

• Educational Institutes – In partnership with C.V. Raman College, Odhisa, the company established a FESTO

Authorised and Certified Training (FACT) centre to impart training on process automation to students,

teachers and technicians

• Skill Development companies – In February 2012, the company signed an MoU with IL&FS (Infrastructure

Leasing & Financial Services) skills to jointly conduct study to design, develop and deliver skill training courses

in Industrial Automation. As part of the analysis, electrician training course was offered at ILFS centre at

Bhubaneswar in partnership with Festo Didactic


20

Case Study 5: Festo background


The company has a diversified services portfolio comprising the following:

• Formulation of curriculum for automation courses

• Customised training for corporates

• Consulting engagements with corporates, training institutes, engineering colleges for setting-up skill

development centres

• Candidate training in machine automation through owned centres

• Supply of training kits, training media, training aids, software and advice on training room layouts

Revenue model –

The organisation derives revenue through following sources:

• Training fees from candidates in company operated centres

• Fees from corporate/government training

• Fees from services such as provision of curriculum

• Consulting fees for engagements with corporates, training institutes and engineering colleges

The organisation operates 7 training centres at Ahmedabad, Bangalore, Chennai, Coimbatore, Mumbai, Delhi and

Pune.

The company operates in segments such as industrial automation, electrical engineering, process automation and

mechatronics


21

Case Study 5: Festo appraisal of its model

Presented below is the appraisal of Festo on the critical success factors which it has incorporated in its

business model


(CSF) Festo' s incorporation of the CSF in its model

Partnership and local linkages • Festo Didactic has engaged with multiple partners including central and

state government departments, corporates, educational institutions etc.

• Festo Didactic, the skill training business unit has benefited from

leadership position of Festo in industrial automation technology



• Hedging through other revenues sources such as consulting fees, corporate

and government training fees in addition to the trainee fee model

• Festo has been able to leverage preference of Indian stakeholders for

German expertise in vocational education domain, especially the Dual

System of training


geography selection


minimal competition

• Selection of training centres at focus industry hubs has led to ease in

sourcing trainees

22

Case Study 6: Pearson background

Pearson India's skill development initiative IndiaCan was started in 2009 as a joint venture between

Pearson education and Educomp, a leading education provider in India. In 2013, Pearson education

acquired Educomp's stake in IndiaCan, making it the sole owner. In addition to IndiaCan which offers skill

training programmes, the company offers certification and assessment services under Edexcel.

Pearson India has been engaged by following client segments for skill development engagements in India:

• Government Departments –

• In 2012, an MOU was signed between the Assam government and Pearson India for a pilot project to

introduce vocational education programmes in 10 government schools across the state. IndiaCan was

the implementing agency for the project and was supported by Pearson's curriculum standards body,

Edexcel, UK. As part of the project, Pearson formulated the curriculum, provided qualified trainers for

conducting the programme, was responsible for project management, provided quality assurance and

conducted assessment. The pilot programme has been completed and involved training of 605 students

across 10 schools

• Ministry of Rural Development (MORD) – IndiaCan in partnership with MORD has launched skill

development programmes in multiple states such as Rajasthan, Madhya Pradesh, Chhattisgarh, Odisha,

West Bengal, Gujarat and Jammu & Kashmir. The training for such programmes is conducted at

company owned centres and IndiaCan is responsible for all aspects of training delivery such as

mobilisation of trainees and trainers, programme delivery and placements etc.

• Skill development companies – Pearson offers B.Tec certifications under the Edexcel board to Indian skill

development companies. These are vocation related qualifications and are offered in sectors such as media,

hospitality, fashion and information technology. Currently, Pearson offers these certification in partnership

with approximately 60 Indian skill development companies


23

Case Study 6: Pearson background


The company has a diversified services portfolio comprising the following:

• Assessment and certification services for third party skill development operators

• Consulting engagements with government departments and corporates

• Formulation of curriculum for training programmes

• Conducting train the trainer programmes

• Delivering government funded training programmes through IndiaCan centres

Revenue model –

The organisation derives revenue through following sources:

• Fees for certification and assessment services

• Fees from services such as provision of curriculum, train the trainer programmes etc.

• Consulting fees for engagements with corporates and government departments

• Fees from government departments for conducting training programmes

The organisation operates in more than 100 training centres across states such as Gujarat, Jammu & Kashmir,

Madhya Pradesh, Chhattisgarh, Odisha and West Bengal.

The company operates in segments such as media, hospitality, information technology, retail and sales etc.


24

Case Study 6: Pearson appraisal of its model

Presented below is the appraisal of Pearson on the critical success factors which it has incorporated in

its business model:


(CSF) Pearson' s incorporation of the CSF in its model

Partnership and local linkages • Pearson has engaged with multiple partners including central and state

government departments, corporates, skill development companies etc.

• Pearson has been able to leverage client relationships to source multiple

projects from the same client. As an example, Pearson has undertaken

multiple projects for ministry of rural development



• Pearson has limited dependence on student paid model due to its

diversified portfolio of service offerings such as government funded

training projects, certification and assessment, consulting services.

• Strong brand equity and expertise for Pearson has led to greater

acceptability of its courses and training programmes


geography selection


minimal competition

• Selection of training centres at focus industry hubs has led to ease in

sourcing trainees

Select unique and recent foreign collaborations

26


In addition to the established foreign skill development companies operating in India, as showcased in the

previous section of this document, presented below are select models which have either set up operations

recently in India or are operating with a unique offering. These have been categorised on the basis of their

solution offering:

1. Curriculum development

As a knowledge partner, the foreign skills development company can provide curriculum development

support and support customisation to cater to Indian requirements.

Indian Partner Foreign Partner Role of the foreign partner

Centurion University,

Bhubaneswar

Sports Development

and Education

Australia (SEDA)

• SEDA and Centurion University signed an

agreement for developing vocational courses in

the domain of sports and fitness in 2014

• SEDA has an established library of curriculum

from its experience of running sports and

wellness courses in Australia. Grants from

Australian Sports Commission are funding the

cost of engaging experts to redraft and adapt the

curriculum for India

• Post successful completion of proposed training

programme, students could work in the fitness

industry in the capacity of personal trainer,

fitness manager, gym floor instructor, gym/club

business development etc.

• The curriculum has been prepared and the

Centurion University plans to launch the fitness

training programme in May 2015

27

2. Train the trainer programme

Creating a critical mass of qualified trainers is a key challenge for the Indian skill development providers.

Foreign skill development companies can exploit this opportunity to setup train the trainer programmes.

An example of such partnership is as follows:


• Cordia Group

of Institutes,

Punjab

BKSB India, wholly

owned subsidiary of

Vision West

Nottinghamshire

College, UK

• BKSB India partnered with Cordia College in 2012 to

develop and deliver train the trainer programe to build

capacity of trainers teaching in English

• In January 2015, BKSB launched a vocational centre, in

partnership with the Cordia Group of Educational

Institutes in Sanghol, Punjab. The centre would offer

courses in masonry, carpentry, plumbing, and painting

and decorating. BKSB India's role in this partnership is to

conduct train-the-trainer programmes and design courses

for training delivery

3. Quality Assurance

As documented in the earlier section of this report, Heraud, is a Melbourne based vocational training

institute which set up operations in India in 2013. It has partnered with domestic skill development

institutes for course delivery. Heraud is responsible for ensuring quality assurance of their delivery

programmes through periodic audits.

Additionally, Manipal City and Guilds, the Indian-UK joint venture in skill development established in

2009, conducts quality assurance processes for its franchised vocational training centres to ensure delivery

of quality training.


28

4. Certifications and assessments

Foreign certification and assessment increases the ability of the skill development companies to charge a

premium in respect of the training fee. Foreign certification, if globally recognised could lead to mobility

of the trained candidates to foreign locations. An example of a foreign provider offering certification and

assessment services in the skills domain is presented below:


Pearson has

collaborated with

numerous Indian

institutes such as

International Institute

of Culinary Arts, Delhi

(IICA), and Institute of

Apparel Management,

Gurgaon

Pearson • Pearson offers BTEC certifications under the

Edexcel board. These are vocation related

qualifications and are recognised in more than 100

countries. The certifications are offered in multiple

sectors such as hospitality, fashion, media,

information technology etc.

• Using Pearson's certification solution, IICA has been

able to charge a premium fee for training. The

international certification increases the prospects of

placements overseas or in large companies

• Institute of Apparel Management offers short term

programmes in design, management, retail and

technology. These programmes are accredited by

Edexcel


29

5. Advisory and consulting projects

The government and Sector Skill Councils (SSC) in India have significant requirement on advisory

assistance in varied areas such as training frameworks, skills programmes, qualification frameworks etc.

Numerous foreign skills development providers have successfully established partnership with various

Sector Skill Councils in order to assist them. Some of the examples are captured below:

Indian

Partner

Foreign

Partner Scope of the Project

Confederati

on of Indian

Industry –

Institute of

Logistics

(CII-IL)

Hamburg

Chamber

of

Commerc

e-

Chamber

Consult

• Confederation of Indian Industry (CII) was appointed as a lead

organisation for the establishment of Logistics Sectors Skills Council

(LSSC). CII-IL entered into a MoU with Hamburg Chambers of

Commerce in October 2012 for providing knowledge assistance in the

establishment of the Logistics Sectors Skills Council (LSSC)

• The scope of the partnership included the following activities:

• Road map development and competency mapping for prospective

candidates

• Analysis on the existing skill gaps

• Identifying the best available technology to enhance skill development

practices

• Imparting accurate and quality training to trainers in centres

• The LSSC was able to create 64 job roles under the National Occupational

Standards (NOS) and aims to affiliate 1,425 training institutes over the 10

year period beginning October 2012

Automotive

Skills

Developme

nt Council

(ASDC)

BOSCH • BOSCH partnered with Automotive Skills Development Council in 2012

for conducting train the trainers and machining technician training

programmes for ASDC. In addition, it also provides assistance in

developing industry specific content for the SSC

• In 2013, 10 trainers and 22 machining technicians were trained at the

Bosch Training centre in Bangalore.

Telecom

Sector Skill

Council

(TSSC)

CISCO • Under the STAR scheme, TSSC signed an agreement with CISCO in April,

2014 to skill 80,000 people in the telecom domain. Under the

collaboration, CISCO deployed its Cisco Education Enabled Development

platform, which are cloud based video delivery solutions to enable skill

development training

• The STAR scheme was one of the key government schemes to boost skill

development in India, with an aim to train 1 million candidates at an

approximate cost of INR 10 billion


30

6. Corporate Training

A foreign skill development company can also partner with Indian companies for corporate training

projects. An example of a foreign provider offering corporate training is presented below:

Name of Company Foreign

Partner Scope of the Project

Punj Lloyd Ltd (PLL) AVTEG In 2014, PLL awarded training contract to AVTEG to train

1,000 of its supervisors to enhance their productivity.

Training was imparted in two areas:

• Civil Engineering

• Mechanical Engineering

AVTEG aimed to deliver 10% improvement in productivity

through this training.


31

7. Government partnerships

The government has forged partnerships with several international private organisation's and foreign

governments to improve skill development infrastructure and training quality in India. The scope of these

partnerships includes technical assistance, knowledge partnerships, development of training curriculum

etc. Some of the examples are as follows:

Indian Partner Foreign Partner Scope of Project

Kerala Academy for Skills

Excellence (KASE)

It is the nodal agency for

skill development activities

of Kerala, setup under the

Labour and Rehabilitation

Department, Government

of Kerala

Senior Experten

Service(SES), Germany

• KASE plans to set up centres of excellence (COE)

for skill development in partnership with industry

players in sectors such as Nursing, Oil and Rig,

Construction and Infrastructure, Hospitality, High-

tech Automation and Mechatronics, Security Skills,

Multi engineering skills, Entrepreneurship,

Automotive, Retail, Aviation, Gems & Jewelry etc.

• KASE will provide the basic shell infrastructure

(built-up space), whereas the training, certification

and placement is the mandate of the industry

partner. Some of the industry partners include NMC

healthcare, Dubai for Nursing COE, Kalyani Group

for multi engineering skills

• KASE has signed an agreement with SES for

technical inputs in setting up the COEs in April

2015. SES will collaborate with various industry

partner and provide inputs on curriculum,

assessment, quality assurance etc. Further, German

companies such as Festo, TÜV Rheinland and

Siemens have signed letters of intent with KASE for

providing support to Kerala institutions on skill

development initiatives


32

7. Government partnerships

The government of India, through National Skills Development Corporation (NSDC) has entered into

collaborative arrangements with various countries in the recent times. Some of these include:

Country Scope of the MoU

Canada National Skills Development Corporation (NSDC) signed 13 MoUs with various

Canadian education institutes in April 2015.

The objective of the MoUs is to start academies of excellence for creating trainers and

assessors to work with the Canadian Sector Skills Councils for the creation of

transnational standards for skills development. Each Canadian college will be placed with

an Indian partner focused on specific sectors such as healthcare, aviation and agriculture.

The Indian partners will pay the colleges for their services.

France An MoU between the National Skills Development Agency (NSDA) and CNCP

(Commission Nationale de la Certification Professionnelle – CNCP), France was signed in

March 2015. The agreement will facilitate exchange of information regarding the

maintenance of National Skills Qualification Framework, India and the French National

Register for Vocational Certifications (RNCP).

USA MoU between US- India Business Council (USIBC) and NSDC in November 2014 to

facilitate US corporates to set up and support skill development centres in India.


Defining industry focus for UK based skill

development institutions targeting India

34

As mentioned in the previous sections, industry focus for a skill development company is an integral and

critical element of its business model.

In order to assess the Indian industries which offer maximum opportunity to UK based skill development

providers, we have used the following approach:

• Analysis of UK skill landscape to determine focus industries where UK skill development companies

have a stronghold

• Assessment of the existing skill gap in Indian industries

• Analysis of the priority sectors mentioned under Make in India campaign

The details of the three step process is as follows:

UK's preferred industry segments for Skill Development

The UK government has continuously focused on the importance of the STEM (Science Technology

Engineering and Medical) sectors due to higher than average productivity presented by this sector. The

government has identified that future growth will be driven by highly skilled STEM industries .

Additionally, there are other sectors that are of strategic priority for economic development in England.

The list of key sectors including the priority sector and the STEM sectors include the following:

• Manufacturing including Automotive sector

• Construction

• Life Sciences, Healthcare and Pharmaceuticals

• Retail

• Travel, tourism and hospitality

• Food Processing

• Nuclear related technology

• Marine

Identifying target Indian Industries for UK

based skill development companies

35

As per the NSDC skill gap studies, the total incremental manpower requirement over the period of c 2013-

2022 is estimated to be approximately 119 million. The incremental demand for top five sectors is as

follows:

Besides, the top five sectors as mentioned above, an assessment was conducted for the sectors where UK

companies have a stronghold. Thus, skill gap and incremental employment demand was determined for

sectors such as Pharmaceutical, Healthcare, Automotive, Tourism & Hospitality and Food Processing

41.6

31.1

17.4

11.7

10

7.2

0 5 10 15 20 25 30 35 40 45

Others

Building & Real Estate

Retail

Warehouse and Packaging

Beauty and Wellness

Furniture & Furnishing

Additional manpower requirement-2013-22 (millions)

Source : NSDC Skill Gap report



36

Focus sectors in 'Make in India' campaign

Make in India programme is an effort to attract investment for building best-in-class manufacturing

infrastructure by fostering innovation and protecting intellectual property. This will involve easing of

investment policies to assist foreign participation in India’s high value industrial sectors.

Make in India programme identifies a list of twenty five high priority sectors. Some of these sectors are

Construction, Healthcare and Pharmaceutical, Tourism & Hospitality, Food Processing, Leather, Mining,

Textiles etc.

Accordingly the intersection of the industries identified under the above offers maximum growth

opportunity.

UK Focus Sectors Shortlisted sectors

• Advanced Manufacturing

sectors such as Automotive

• Construction including

Building

& Real Estate

• Healthcare; Pharmaceutical

• Retail

• Travel, Tourism &

Hospitality

• Food Processing

India Skill Gap Sectors

Focus Sectors in

'Make in India' Campaign

The detailed profiles for the shortlisted sectors have been presented in annexure 1



Recent government initiatives and consequent

opportunities for foreign skill development

providers

38

Government Interventions - Recent

developments in the Indian skilling landscape

The most challenging task India faces is to make it's population employable. In addition to the overhaul in

the formal education system, the Government of India (GoI) has made significant efforts to set up a

robust vocational skills set up. Some of the recent measures undertaken are presented below:

National Policy on Skills Development and Entrepreneurship, July 2015

The Union Cabinet gave its approval for National Policy on Skills Development and Entrepreneurship on

2nd July 2015. The policy redefines the National Skills Policy, 2009. The policy is an umbrella framework

under the Ministry of Skill Development and Entrepreneurship and provides a clear and coherent policy,

which will link the existing skill development initiatives across the existing institutional arrangement. The

policy has four key thrust areas. It aims to make quality skill training aspirational for the youth. Further,

the policy seeks to align supply and demand for skills by bridging existing skill gaps and promoting

industry engagement. It provides an enhanced focus on skill development for socially/geographically

marginalised groups. It aims to educate entrepreneurs and foster a culture of innovation and

entrepreneurship.

Make in India, September 2014

The Make in India programme, launched by the Prime Minister of India in September 2014, involves

significant new initiatives designed to facilitate investment and build best-in-class manufacturing

infrastructure in India. It aims to increase the share of manufacturing in the country’s Gross Domestic

Product from 16% to 25% by 2022. Further, the government has identified skill development as one of

the critical factor to ensure success of the Make in India programme. Make in India programme aims to

create 100 million additional jobs by 2022 in manufacturing sector.

39

National Skills Mission, February 2015

Under the 2015 Union budget, Finance Minister, Arun Jaitley, announced the launch of the National Skills

Mission through the Ministry of Skills Development and Entrepreneurship. NSDC will work with Skill

Development and Entrepreneurship Ministry towards consolidating the skill initiatives spread across the

various ministries. It will also standardise procedures and outcomes across the 31 skill sector councils

(SSC).

A budget of INR 15,000 million has been allocated toward the Deen Dayal Upadhyay Gramin Kaushal

Yojana to upgrade the skills of the rural youth. Apart from creating jobs, the mission will also encourage

the youth to become job creators and encourage start-up initiatives.

Foreign contribution to National Skill Development Fund (NSDF) exempted

from FCRA (Foreign Contribution Regulation Act), April 2015

Foreign contribution to the National Skill Development Fund have been exempted from the FCRA, to

help boost funding for the vocational training courses in India. This would ensure smoother foreign

contribution into the NSDF, as government approval would not be required for any foreign direct

investment in the skilling sector in India.


developments in the Indian skills landscape

40

Linking of the skills development schemes across India, April 2015

NSDC has initiated a convergence process wherein all the ITI’s will come under the ambit of the newly

formed Ministry of Skills Development and Entrepreneurship.

Further, Training and Apprenticeship verticals of the Directorate General of Employment & Training

(DGET) have been removed and transferred to the ministry, allowing it to assess the skilling landscape in

India accurately and estimating the on job training requirement.

STAR scheme 2013

This scheme was proposed in 2013, in order to encourage the youth to develop skills and incentivise them

through monetary rewards on successful completion of a course. The scheme was implemented as a

Public-Private and Public-Public partnerships and NSDC was the implementing agency for the scheme.

Besides opportunities in candidate training, the scheme also provided an opportunity to foreign skill

development companies such as Manipal City and Guilds to provide certification and assessment services.

The scheme was a success with over 1.4 million trainees trained, involving fund disbursal of approximately

INR 8.2 billion. However, STAR was found to have operational inefficiencies, according to a study

conducted by National Skill Development Agency. Some of the key concerns which emanated from the

study included untimely disbursement of monetary reward and lack of review of training results.

Pradhan Mantri Kaushal Vikas Yojana 2015

The scheme was approved by the government under the Make in India programme. The scheme is similar

to STAR scheme but has a better monitoring mechanism. Under this scheme a target to cover 14 lakh

youth and 10 lakh worker has been set, with a focus on high school drop outs. The scheme with an outlay

of INR 15 billion will focus on imparting skill training to youth, improve curriculum, pedagogy and

instructor training. Under the scheme, a monetary reward is given to trainees on assessment and

certification by third party assessment bodies. It has been set up under the umbrella of newly established

Ministry of Skill Development and Entrepreneurship. The scheme will be implemented through NSDC's

187 partners across 2,300 training centres.


developments in the Indian skills landscape

41

New opportunities for foreign skill development

providers in India emanating from the recent

government initiatives

Our discussions with industry experts, representatives from Ministry of Skill Development and

Entrepreneurship, National Skill Development Council and an analysis of the recent government

initiatives, suggest the following new opportunities the which foreign skill development players could

address:

Opportunity for upgradation of vocational education framework

under National Skill Qualification Framework (NSQF)

NSQF is a quality assurance framework, developed by the Ministry of Human Resource

Development. It is proposed to be used for setting up common guidelines nationally for linking

various qualifications covering schools, vocational education and training institutes, technical

education institutions and universities.

NSQF proposes a system to measure skills and accomplishments on a scale of 1 to 10 from

entry to doctorate level. The government is planning to make NSQF certification mandatory

and proposes to not fund any training and education programmes that are not NSQF compliant

from December, 2016. NSQF will become mandatory for government jobs by 2020 to apply

for vacancy. All government recruitment rules will be amended to define position in terms of

NSQF levels.

Under NSQF there is opportunity for international collaboration for up gradation of the

vocational education framework and implement some of the best practices in other developed

nations. In April 2015, an MoU was signed between NSDA and the National Commission for

Vocational Qualifications, France for exchange of information to upgrade the NSQF.

The UK skill development industry already follows a similar framework for vocational

qualifications (FHEQ). The UK skill development institutions could use their experience of an

existing framework to engage in development and upgradation projects for NSQF.

1

42

Development of transnational standards for vocational education

India is poised to be the largest provider of skilled manpower to the globe. The Government of

India has also realised that it would not only need to train its population but also make them

employable in the global market. Thus, there is an urgent need to develop transnational

standards for vocational education in India. The Indian Government through NSDC has signed

numerous MOUs with various countries for this initiative.

MOU with Canadian Institutions

NSDC signed 13 MoUs with Canadian educational institutions in February 2014 for setting up

Academies of Excellence for training trainers and assessors and to work with Canadian Sector

Skill Councils for creation of transnational standards for skills development in India.

Each Canadian college will be paired with an Indian partner to focus on specific sectors such as

aviation, healthcare or agriculture. The Indian partner will pay the Canadian college for

curriculum development, education for trainers and assistance with accreditation system.

MOU with Department of Industry, Australia

NSDC signed MoU with The Department of Industry, Australia in September 2014 for

developing transnational occupational standards, qualifications and certification in priority

industry sectors.

MOU with US India Business Council

NSDC signed an MoU with the US Indian Business school council in November 2014, to set-up

a platform to support skill development centres in India. Under the agreement, Indian and US

will work towards building workforce of international quality and developing transnational

standards to strengthen skill mobility and facilitate greater access to labour .

There exists an opportunity for skill development providers to collaborate with NSDC for

specific industries in developing training curriculum and skill development frameworks.

2




43

Development of online assessment tools and training curriculum

Online skill training platforms and digitisation of assessment is at a very nascent stage in the

Indian skill development industry. Online training and assessment has significant potential in

India as it is not always feasible for companies to have infrastructure to train and assess

candidates in the remote areas of the country. Some examples of digital assessment companies

and their collaboration is presented below:

• As part of the STAR scheme, Automotive Skill Development Council (ASDC) collaborated

with Mettl in 2014, a start-up specialising in online skill assessment platform for companies.

The organisation assisted ASDC in creation of a platform to assess candidates who have

undergone skill training under them

3




The way forward for UK based skill

development providers

45

As part of the research, interviews were conducted with industry experts to understand the key challenges

and solutions in setting up a skill development business in India. Further, several foreign skill development

providers were invited to share their experience in setting up sustainable skill development operations in

India. We list down below the key points to be considered by the UK based skill development providers

during the course of setting up operations in India

The way forward

First point of contact for on ground checks

Foreign companies wanting to set up operation have often faced significant challenges in getting

appropriate guidance on how to commence their business. With respect to skills development, the

foreign providers could consider contacting the following organisations for initial prospecting:

• UK based skill development companies could approach organisations such as UKIERI,

UKIBC, UKTI

• Ministry of Skills Development & Entrepreneurship, India

• National Skills Development Corporation (NSDC)

• DGET under the Ministry of Labour & Employment, India

• Skill development departments at the respective state governments

• Industry associations like CII, FICCI, NASSCOM etc.

Establish partnerships with domestic players

Foreign skill development providers should leverage partnerships with domestic players to attain

local intelligence and enable government schemes. Further, strategic partnerships with domestic

skill development players enable foreign skill development players to capitalise on existing training

infrastructure. This could lead to reduction in capital expenditure initially, as the centres would be

set up in collaboration with domestic players. Further, partnership with local player will enable the

foreign skill development provider to develop a better understanding of aspects such as taxation,

regulatory and compliance related matters.

A

B

46

Offer diversified services portfolio, thus reduce dependence on student fees

Foreign skill development operators should explore and plan a diversified portfolio of solution

offerings to hedge business model and reduce dependence on student fees. Further, the skill

development operators should align their service portfolio to the skill development operator's

expertise and the existing gaps in Indian skill development ecosystem. Some of the service

offerings to be explored by foreign skill development providers include train the trainer

programmes, assessments and certifications, consulting projects, advisory assistance to

government departments, corporate upskilling.

Evaluate government schemes and incentives to reduce financial stress

During our analysis, majority of the successful foreign skill development operators had secured

financial assistance from government for their skill development operations in India. The funding

improved the financial viability of their projects and was a key factor in establishment of

sustainable operations for foreign skill development providers.

Define the industry focus offering for establishing skill development operations

There exists a significant demand-supply gap for skilled manpower in India; however, this should

not be the only premise to set up a skills development training institute in India. The foreign

players should conduct assessment of incremental demand requirement for the sectors planned.

Further, a detailed analysis of key trades and job roles for the shortlisted sectors should be

conducted.

Explore opportunities in niche domains

Besides, the sectors with significant manpower demand over the 2013-22 period, there exist niche

domains that the foreign skill development providers should explore.

As domestic players have limited presence in some of these segments such as sports & fitness,

robotics, digital assessments, quality assurance, the foreign skill development providers could face

limited competition. Further, foreign skill development providers could capitalise on the

opportunity and take the lead in establishing curriculum, training and assessment standards in

these segments.

C

D

E

F

The way forward

47

Define the geographical focus for establishing skill development operations

Geographic impasse and cultural disparity make India a complex nation to conduct business in.

While assessing the target audience for skill development, identifying the geography to focus on is

critical. The foreign players should undertake assessment of demand supply gap, employability

potential and key trades in the target region.

Additionally, the industrial development in India is characterised by concentration of companies in

industrial clusters. Mobilisation of students is a major concern due to the low willingness to migrate

and low salaries at the entry level. Hence, the foreign skill providers should evaluate the

concentration of industries in the target geographies and plan their expansion accordingly.

G

The way forward

Annexure I:

Skill gap assessment – Sector wise

49

Manpower demand projections

• The total incremental manpower requirement in the auto and auto components industry over the 2013-

22 period is estimated to be 3.9 million

• The auto industry can be divided into four broad segments, original equipment manufacturer (OEM),

auto component manufacturers, service centres and dealerships. The highest demand is expected to

arise in the auto component manufacturing sector. The detailed estimates of demand are given in the

following table:

Sub-Sectors Incremental Employment Demand (millions)

2013-17 2017-22 2013-22

OEM 0.2 0.2 0.4

Auto component

manufacturers 1.2 1.3 2.5

Service centres 0.3 0.3 0.6

Dealerships 0.2 0.3 0.5

Overall 1.8 2.1 3.9

Source: NSDC Skill Gap report

Target Sector 1: Auto & Auto Components

50

Skill gaps in the sub-sectors

Sub-Sectors Skill gap

OEM • Insufficient technical and industry knowledge pertaining to vehicles

• Limited skills to handle sophisticated software’s like Pro-e, Catia, Unigraphics

• Inadequate skills for improving operations such as Total Productive Management (TPM)

and Computerised Numerical Controllers (CNC)

• Limited knowledge of concepts such as Kanban, Just In Time (JIT)

Auto

components

manufacturing

• Inadequate understanding of advanced engineering drawings, system designs etc.

• It is observed that the entry-level operators lack the necessary skills and training for the

auto component industry

Service centres • Limited knowledge of the various accessories in the market and the impact of quality

reduction by the use of spurious parts

• Inability to perform engine diagnostic tests and limited knowledge of using the monitoring

tools

Dealerships • Limited MIS reporting and IT skills

• Inadequate product knowledge, resulting in poor customer service

• Limited technical knowledge pertaining to vehicle service

• In order to design a relevant curriculum, it is imperative to understand the key skills required in the

industry targeted. The following table highlights the key skill gaps in the 4 major sub-sectors in the

automotive industry:


51

Key Auto Industry Clusters

India's diversity, cultural, social and vernacular peculiarity needs to be considered while selecting a

geography for setting up a training centre. Additionally, the location of target prospective companies for

placing the trained candidates must also be considered. The map below illustrates the geographical spread

of the auto and auto component industry.

Major OEMS

Major Auto

components

manufacturers

Gujarat

Vadodara and Sanand in Gujarat are also emerging as major automotive hubs in India. Tata Motors has a

manufacturing facility at Sanand.

Maharashtra

The automotive sector in Maharashtra employs about 40% of the total manpower in the industry with the

clusters located primarily in Nasik, Pune, Aurangabad and Nagpur. The major manufacturers present in

the state include Tata Motors, Skoda, Mahindra and Mahindra etc.

Karnataka

The automotive manufacturers in the state are present primarily around Bangalore and Dharwad and the

major manufacturers include Volvo, Toyota and Tata Motors.

Tamil Nadu

The main cluster is located around Chennai and the major manufacturers in the state are Nissan, Ford and

Hyundai.

Haryana accounts for 50% of the total production of manufacturers and total passenger car production.

Maruti Suzuki which is the market leader in the car segment, is based out of Gurgaon and Manesar. In

addition, the largest two-wheeler producers in India i.e. Hero Honda, Yamaha and Escorts also have a

manufacturing base in the state.

Haryana


52


• The total manpower requirement in the healthcare sector is estimated to be 3.83 million over the

period of 2013-2022 . The various skills needed are summarised as below:


2013-17 2017-22 2013-22

Doctors (Allopathic) 0.1 0.1 0.2

Specialists 0.0 0.1 0.1

Dentists 0.0 0.0 0.0

Nurses and Midwives 0.8 1.9 2.7

Pharmacists 0.0 0.1 0.1

Allied and other healthcare

professionals 0.2 0.5 0.7

Overall 1.1 2.7 3.8

Source: NSDC report

Target Sector 2: Healthcare Services

Geographical distribution of healthcare facilities in India

• Gujarat, Karnataka , Maharashtra and West Bengal have the maximum number of hospitals

• Southern states like Andhra Pradesh, Karnataka and the Union Territory of Punducherry have a high

population per hospital ratio

• Andhra Pradesh, Karnataka, Kerala, Maharashtra and Tamil Nadu have good education

infrastructure in place and account for ~ 58% of medical colleges and ~63% of the nursing colleges

States with maximum hospitals in India

53


• As of 2012, the Indian Retail industry estimated at to be at USD 435 billion, is expected to witness a

CAGR of 18.1% over the next 4-5 years and reach USD 848 billion

• As per the 68th round of National Sample Survey conducted in 2011-2012, the distribution of

workforce in the industry is concentrated. Top five states (Uttar Pradesh, Maharashtra, Andhra

Pradesh, West Bengal and Tamil Nadu) account for over 45% of the total employment in India

• The estimated addition to demand over the period of 2013-22 is 17.35 million. Further, highest

growth is expected in three sub-sectors; grocery retailing, luxury retailing and apparel retailing


2013-17 2017-22 2013-22

Food & grocery 1.8 3.1 4.8

Health & personal care 0.2 0.4 0.6

Home improvements 0.7 1.5 2.2

Leisure 0.0 0.1 0.1

Lifestyle 0.7 0.9 1.6

Auto 0.2 0.3 0.5

Jewelry 0.5 1.1 1.6

Food services 2.5 3.4 5.9

Overall 6.5 10.8 17.3

Source: NSDC report

Target Sector 3: Retail

54

Job Role Skill gap

Customer

Service

Associate

Inadequate product knowledge, resulting in little or no support to customers in purchase, poor

customer service orientation, poor numeracy skills, often in combination with lack of computer

knowledge and inadequate grooming and hygiene.

After-Sales

Service

Associate

Inadequate communication skills, with ineffective demonstration and marketing of products,

poor customer empathy, with weak after-sales support and customer feedback mechanism,

poor adaptation to changing technologies, hindering marketing via digital media, etc.

Cashier Inadequate operational knowledge of POS terminals and payment processing, inadequate

book-keeping/ accounting skills and product knowledge.

Supervisor,

Assistant,

Department

Manager

Inadequate communication, people management and leadership skills, inadequate coordination

skills, especially during peak seasons or high attrition periods, poor grievance handling skills.

Skill gap requirements


55

Retail clusters in India

• Although the Indian organised retail

sector is primarily concentrated in

the tier 1 or metro cities, the rising

disposable income of consumers in

tier 2 and tier 3 cities present a

significant potential opportunity.

• Amongst the key cities, Bengaluru

and Ahmedabad are estimated to

register highest growth in human

resource requirement of about 58%

and 55% respectively over the

period of 2011-21.

High growth cities

Emerging potential cities

Metropolitan cities


56


• The estimated incremental demand for manpower over the 2013-22 period is 31.1 million. Key factors

such as strategic location, upcoming infrastructure projects and proximity to office spaces play a vital

role in rapid real estate development in selected regions in the country.

• Major demand centres are Mumbai, Delhi and National Capital Region

• Satellite towns around the above mentioned areas and tier 1 would see significant growth

Segment (Millions) Incremental Employment Demand (millions)

2013-17 2017-22 2013-22

Building, Construction & Real Estate 11.8 14.7 26.5

Infrastructure 2.2 2.5 4.7

Overall 14.0 17.2 31.1

Functions Key job roles

Operations

The key personnel required in the operations area are:

Project Mangers, Engineers/Supervisors, Foremen, Accounts/Billing, Planning, Surveying,

Quality/lab, Safety, Support functions

Project

Management Procurement, Designing, Scheduling and Overall Planning Managers

Others HR, Administration, Finance, Communications, IT

Skill gap requirements

• In order to design a relevant curriculum, it is imperative to understand the key skills required in the

targeted industry. The following table highlights the key skill gaps in the major job roles in the building,

construction and real estate industry:

Target Sector 4: Building, Construction and

Real Estate centres

Source: NSDC report

57

Geographical clusters for real estate and construction in India

• The majority of the labour force in the construction sector comes from the north eastern states such as

Bihar, Chhattisgarh, Orissa, West Bengal and Jharkhand

• In terms of skills, the jobs for technicians/foreman have the highest growth rate at 95% followed by

unskilled worker at 34% over the period of 2005-2011

Key regions for real estate investment

• The investment in the real estate sector is majorly concentrated in the tier 1 cities with maximum

investment in Delhi, NCR and Mumbai

• Satellite towns around the major centres are also expected to experience significant growth in

investment

Target Sector 4: Building, Construction and

Real Estate

58


• The total demand for manpower in the industry has grown by 24% in the year 2013-14, indicating high

employment growth in the sector. The overall employment in the industry is estimated to reach 3.5

million by 2022

• The pharmaceutical industry sector can be divided into four sub-sectors i.e., manufacturing, research

and development, wholesale sales, pharmaceutical retail. Out of these four segments, the highest

demand is expected to come from pharmaceutical retail. The detailed estimates of demand are given in

the following table:


2013-17 2017-22 2013-22

Manufacturing 0.2 0.3 0.5

R&D 0.0 0.0 0.0

Wholesale Sales 0.1 0.1 0.2

Pharma Retail 0.4 0.6 1.0

Overall 0.7 1.0 1.7

Target Sector 5: Pharmaceuticals

59


Job Roles Skill gap

Medical

Representatives,

Territory Manager

There are lack of structured training programmes for this job role. The workers lack

training required to do the job and possess theoretical knowledge. This creates a

mismatch between teaching and industry requirements

Area Sales Manager,

Regional/Zonal Sales

Manager, National sales

Manager

The managers in this job role lack people management skills and technical skills.

There is a need to regularly train them to stay updated with the current norms

Product Executives Need for structured training programmes focusing on pharma marketing. The

candidates for this job role lack the required technical skills and market acumen

Production Manager

(R&D)

Lack of PhDs and Post-Doctoral fellows, which has led to lesser research and

innovative ideas in the industry

• The following table highlights the key skill gaps in the 4 major job roles in the pharmaceutical industry:


60

Karnataka

Bangalore accounts for 50% of the total revenue in the national biotechnology sector. The south and west

Indian region account for 45.72% of entire industries revenue as of 2011-2012.

Gujarat

This state has been encouraging new investments in the industry. It currently employs 52,000 people in the

pharmaceutical sector and has 1,526 manufacturing units.

Maharashtra

It is an attractive destination for pharmaceutical companies due to their infrastructural facilities, enhanced

support from small-scale companies and favourable industrial atmosphere. It has total 3,139 manufacturing

units.

Himachal Pradesh and Uttarakhand

These state are tax-free for the industry and therefore seen as an attractive option. Himachal Pradesh and

Uttarakhand are among the states with fastest growing pharmaceutical industry.

Major manufacturing units

Major biotech clusters

• The map bellow illustrates the key states in the pharmaceutical industry in India:

Geographical clusters for pharmaceutical industry in India


61


• The total incremental manpower requirement in the food processing industry in India over the 2013-

2022 period is expected to be 4.4 million

• The food processing industry can be divided into six broad segments namely fruits and vegetables, milk

and milk products, meat and marine products, grain and oilseed, packaged food and beverages. The

highest demand is expected to arise in the grain and oilseed and packaged food sub-sectors. The

detailed estimates of demand are given in the following table:


2013-17 2017-22 2013-22

Fruit and vegetable 0.0 0.0 0.0

Milk and milk products 0.1 0.1 0.1

Meat and marine products 0.2 0.3 0.6

Grain and oilseed 0.7 1.1 1.8

Packaged food 0.6 1.0 1.6

Beverages 0.1 0.2 0.3

Overall 1.8 2.7 4.4

Source: NSDC report

Target Sector 6: Food Processing

62



Meat and

Marine

Products

• Electrical/refrigerator technician - maintaining and operating cold chain and machinery

• Microbiologists – enhance knowledge of quality standards, certification in hygiene

• Supervisors – inexperience in managing people and communication skills

Grain and

Oilseed

• Commodity buyer – lack of knowledge about quality, colour and properties for

procurement

• Miling operator – limited availability of trained personnel with knowledge to operate

machinery, adapting to new technology, no certificate courses in milling

• Packaging machine operator - lack of customisation in packaging

• Electrician – inadequate knowledge of imported machines, lack of rigorous course

curriculum in food milling machinery

Packaged Food • Process Line operators – Unavailability of specific courses in food-tech machinery,

dehydration and frozen foods

• Chef – Inadequate awareness of buyer's behavior and culinary trends

• Nutritionists – lack innovation skills, lack of awareness on technological development

• The following table highlights the key skill gaps in the 3 major sub-sectors in the food processing industry:


63

Geographical clusters of the food processing sector

India's diverse geographic and agro-climatic conditions has steered the development of food processing

segments in various states. The following map depicts major clusters with the highest number of factories

and personnel engaged.

Andhra Pradesh

Andhra Pradesh accounts for 13% of food processing units in India. It is one of the major employment

clusters with total employment base of 1.3 million. The state is expected to be one of the major employers

by 2022, due to favourable government policies and supply of good raw material in the region.

Maharashtra

Maharashtra accounts for 13% of food processing units in India. The state has production units of all the

major sub-sectors. Paithan Mega Food Park is present in the state, where the entire value chain of food

processing is integrated. The state is growing on account of high urbanisation, which leads to high demand.

Tamil Nadu

Karnataka accounts for 17% of food processing units in India. There are approximately 36,996 units in the

state with an estimated employment of 1.9 million people.

Major clusters

Gujarat

Gujarat accounts for 10% of food processing units in India. The state has production units of fruits and

vegetables, milk and milk products and packaged foods. It has over 30,000 food processing units, providing

employment to approximately 1 million people.


64


• The additional manpower demand in the travel, tourism and hospitality industry in India over the 2013-

2022 period is expected to reach 6.5 million

• Travel, Tourism and Hospitality industry can be divided into three broad segments, namely Hotels &

Restaurants, Food Services, Travel Agents and Tour Operators. The highest demand is expected to

come from the restaurant segment. The detailed estimates of demand are given in the following table:


2013-17 2017-22 2013-22

Hotels & Restaurants 0.2 0.2 0.4

Food Services 2.5 3.4 5.9

Travel Agents and Tour

Operators 0.1 0.1 0.2

Overall 2.7 3.8 6.5

Source: NSDC report

Target Sector 7: Travel, Tourism and Hospitality

65



Hotels &

Restaurants

• Inadequate people and team management skills

• Lack skills to ensure standardised service

• Inadequate communication skills and problem solving skills

• Insufficient ability to take quick decisions

Food Services • Poor soft skills - communication, self-presentation and the ability to respond to guests

appropriately

• Inadequate ability to manage large member teams and ensuring they work as cohesive

units

• Inadequate cooking techniques and lack of basic hygiene/sanitation

Travel Agents

and Tour

Operators

• Inadequate customer service orientation towards establishing a cordial relationship with

the customer

• Inadequate skills to manage situations such as urgent ticket changes, change in itinerary

etc.

• Limited cultural awareness

• Lack of ability to make full use of central software towards bookings and cancellations

with in-depth knowledge of fares and charge components

• The following table highlights the key skill gaps in the 3 major sub-sectors in the Travel, Tourism and

Hospitality industry:

Source: NSDC report


66

India's diversity, cultural, social and vernacular peculiarity needs to be considered while selecting a geography

for setting up an establishment. The map below illustrates the geographical spread of the travel, tourism and

hospitality sector.

Mumbai

Mumbai, being the financial as well as the talent capital of the country attracts several industries such as

pharmaceutical and IT. The central and the northern parts are estimated to see an increase in number of

hotels and restaurants.

Delhi

Delhi-NCR is known to be the largest commercial hub in India. The current boom in the infrastructure

and establishment of industrial hubs in the vicinity indicates a huge room for this industry, which in turn

would lead to a rise in manpower demand.

Kolkata & Bangalore

The rise of PSU's and domestic companies along with the existing IT base is expected to increase the

demand for upscale and mid-market segments.

Chennai

The investments in infrastructure projects coupled with the industrial growth is expected to drive demand.

Goa

Goa is the premier vacation location for tourists and natives likewise. The rise in demand for Ayurveda,

destination weddings and business opportunities is expected to favourably benefit tourism industry.

Major hotels & restaurants

Major tour operators & travel agents

Pune

The growth in automobile manufacturing and the information technology sectors will prove to be a

significant demand driver for the travel, tourism and hospitality sector.


67

UK-India Education and Research Initiative (UKIERI) started in April 2006 with the aim of enhancing

educational links between India and the UK. UKIERI has been recognised as a key multi stakeholder

programme that has strengthened the educational relations between the two countries and has been

successful in covering all segments of the education sector. UKIERI Phase 1 (2006/07-2010/11) set out

to establish UKIERI as a framework to enable a step change in the bilateral relationship on education and

research. UKIERI Phase 2 (2011/12-2015/16) narrowed the focus by working on thematic areas of

national concern to both countries. It supported partnership under leadership, innovation, skills

development and mobility with the aim to drive value through strategic and system driven projects. Since

its establishment in 2006, UKIERI has supported over 1000 UK/India partnerships in education and

research, and 25000 exchanges of academics, researchers, staff and students.

UKIERI is a multi-stakeholder partnership programme funded by the UK from the department of

Business, Innovation and Skills, Foreign and Commonwealth Office, British Council, Department for

Employment and Learning, Scottish Government and Welsh Government; and from India by the Ministry

of Human Resource Development, Ministry of Skill Development and Entrepreneurship, Department of

Science and Technology, University Grants Commission and All India Council of Technical Education.

For more details, visit www.ukieri.org

Or

Contact

UKIERI Secretariat

British Council

17 Kasturba Gandhi Marg

New Delhi

Email: [email protected]

About UKIERI

skill development landscape in india: a perspective … development landscape in india: a...

Documents