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