On Human Capital for Global Competitiveness

The success of the Indian IT industry is essentially a saga of

human capital development. From the humble beginnings of computing in India 50

years ago, when we experimented with a few computer installations in some

institutes, we have built what is now the world's largest repository of

computing talent.

The constant stream of quality technical talent produced by the

likes of IIT and regional engineering colleges has been significantly boosted by

several private institutes in India with one mission: to provide mass education

to people in information technology.

In the knowledge economy, human capital is the real

differentiator; it is therefore crucial to acquire, develop and retain the best

talent. Equally important is the need to harness knowledge, skills and

initiatives of people, and spur innovation and organizational growth. IT

companies are not focused only on making profits. They are pro-active in

contributing to the economic progress of the society. The organizational purpose

to create value for all the stakeholders stretches the capabilities of the

employees to continuously innovate and deliver results.

The emergence of a new order has given birth to new paradigms in

management. Organizational structure has lost its relevance as change leaders

have defined processes that support entrepreneurship and efficiency. The

conventional leadership styles have faded. Employer-employee relationship based

on shared vision has fostered a greater degree of ownership within the

employees. This radical transformation of the workplace has helped companies

become better 'developers of human capital'.

Though, the Indian IT industry has witnessed a steady growth in

the past few years, we need to gear up for the challenges that lie ahead.

The global demand for qualified technical resources will

potentially outstrip the supply in the next five years. However, India is

positioned well to address this global skills scarcity given its large pool of

qualified manpower. Half of our population is under 25 years and has the

potential to become a part of the global workforce. The surplus of Indian

working population vis-à-vis current G-6 countries such as the US and Japan,

can be translated into what economists call 'demographic dividend'. Our

government needs to take notice of this and give immediate attention to

providing primary and secondary education to the masses. There is also a great

need of aligning the existing education system with the needs of the industry.

The industry needs to collaborate with the government and

academic institutes to develop effective approaches, especially for tertiary

professional and vocational education. This is necessary for a beneficial 'demographic

transition'.

Today, we are faced with the challenges and issues associated

with the development of a global workforce. Globalization, rapid technological

changes, operational excellence and customer intimacy are of utmost importance

for Indian IT companies. Given this context, the role of HR practitioners will

evolve to becoming strategic partners contributing to the success of business

plans, by developing creative HR policies pertaining to recruitment, retention,

motivation, and reward.

As mergers and acquisitions become commonplace and offshore

services model matures into a global delivery model, globalization of HR will

become a major challenge. In this context, we will have to redefine our human

capital roadmap and reconstruct the value chain that is necessary to leverage

the multi-ethnic, multi-cultural workforce. We need to evolve a new HR

manifesto, which should include contribution to the success in global business,

integration of diverse cultures and innovation in HR processes, thus helping

India to emerge an economic superpower in the next 50 years.nn