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Nature of work, Quality of Employment and Working Condition in ICT sector: A Case of India

Nature of work, Quality of Employment and Working Condition in ICT sector: A Case of India Balwant Singh Mehta Sponsored & Coordinated By. Institute For Human Development New Delhi, India. Outline of Presentation. General Background: Indian Economy and ICT Objectives & Methodology

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Nature of work, Quality of Employment and Working Condition in ICT sector: A Case of India

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  1. Nature of work, Quality of Employment and Working Condition in ICT sector: A Case of India Balwant Singh Mehta Sponsored & Coordinated By Institute For Human Development New Delhi, India

  2. Outline of Presentation • General Background: Indian Economy and ICT • Objectives & Methodology • Main Findings • Socio-Economic Characteristics of ICT Workers • Nature, Quality of Work & Working Conditions (Decent Work Framework & ICT) • Challenges& Conclusion

  3. Indian Economy and ICT • Growth rate of Indian economy (8.40 % annual average from 2004-2010) • Contribution of service sector to the economy : • 44% Share in total FDI inflow,2010-11 • 28% Share in total export, 2010-11 • Source: Economic Survey, 2010-11

  4. Contribution of ICT Sector in National Economy • 20% share to total export (58.9 billion in US$), 2010-11 • 2.5 million direct & 8.5 million indirect employment 2010-11 • Fastest growing sector in the Indian economy (with CAGR of 22.5 % from 2004-05 to 2010-11) • Tremendous potential to address educated unemployment problem • Source: Economic Survey & NASSCOM, 2010-11

  5. Objective & Methodology • A very important emerging sector in Indian Economy • Limited studied of employment in ICT sector • Objective: • Study explore ‘Nature and Quality of Employment in ICT sector in India’ • Within the ‘Decent Work**’ framework of the ILO • Methodology: • Primary Survey in Delhi and NCR region • Semi-structured interview questionnaire & case studies • Sample Selection: • Stratified random based on: • firms size (small, medium, large); • employment levels (executive, middle, top level) and gender • Total 300 workers (150 IT & 150 ITeS sub-sector)with 36% (108) female covered **“Opportunities for women and men to obtain decent and productive work in condition of freedom, equity, security and human dignity” : Juan Somavia’ 1999

  6. Socio-Economic Profile of Sample Workers • 66 % from urban/metros • 64% from upper social caste • 84% from services & business class with high income level • 87% were young (20-30 years) • 69% were single • 95% were graduate+ • Mostly from upper caste/class, higher/middle income families and metro and big cities • Very few from rural background

  7. Decent Work Agenda & ICT The concept encompasses four inter-related dimensions: 1) Employment and Income Generation 2) Working Conditions 3) Social Protection and Social Security 4) Social Dialogue

  8. Employment and Income Generation: Highly Skill Oriented • High women participation in ICT (around 33% in 2009-NASSCOM) • Working at executive and middle level (low skilled jobs)

  9. Employment and Income Generation: High Return to Skills

  10. Employment and Income Generation: Nature-Mostly Contractual • Regular (95%), ICT workers perception • Fallacy of regular work • 77% engaged in the job for a period of one/two or three years

  11. Employment and Income Generation: High Income & High Inequality • High salary in ICT (higher than other traditional sectors) • Very high inequality : Within sector (among executive, middle and top level) • Very high inequality:Between IT and ITeS sub-sector • Little gender difference in Income • Avg. annual salary Male: (323 thousands) • Female: (314 thousands

  12. Working Conditions • Less number of annual leaves ( only 25 days) • High working hours (9 hours daily) • High pressure of work and target based (86%) • Shift based work (Very high night shift in ITeS-82% ) • Safety problem (due to night shift, especially for women-33%) • High mental and physical health problems (84%)

  13. Work Related Facilities • High performance incentives • Pick and drop Facility • Health & recreation club • Purified drinking water • Cleanliness • Refreshment • Higher education and training

  14. Social Protection/Security* • Low level of SS benefits (21%) • Contractual job (1 to 3 years) • Very high rate of attrition (40%) • Job hopping very high ( average 3 in a year) • [*Health care, provident fund, gratuity , maternity/paternity benefits]

  15. Social Dialogue • Complete Lack of Union/Associations (only 4%) • Employers discourage formation of any union/association • Little organised dialogue between the employer and employee

  16. Challenges/Conclusion • Exclusion of large number of educated youth from rural areas • Low level of social security measures • Adverse Working Conditions & high attrition rate • Creating more employment opportunities for rural and disadvantage class by skill generation. • Extending the social security benefits and working conditions for the overall development of ICT sector in the country. • Mobilization of workers for better job conditions

  17. THANK YOU!!!!

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