Presentation Transcript

1. For Private Circulation only Ensuring Sustainable Offshore Delivery : India’s Skills Development Model : Opportunities for India Australia Partnerships 25th July 2012 Melbourne, Australia Dilip Chenoy CEO & MD
2. Agenda Overview Government Initiatives in Skill Development in India NSDC Model: Encouraging Public Private Partnerships Areas of Collaborations and Key Recommendations
3. India: Land of World’s Largest Young Population Age 1991 2001 2011 2021 Where the Population of rest of the world is relatively old, India has a great opportunity to harvest its ‘Demographic Dividend’ Government’s policy to ensure that working population are skilled to meet requirements of the industries. 70% of the population will be in working age group by 2021
4. However, plagued by inadequately skilled manpower 1 3 High drop outs in the education space Very low enrolments for VET Skilling should Become a major Policy Focus going forward 4 2 Employability of the skilled a challenge In service training levels very low in India Only one in four engineering graduates in India is employable, based on their technical skills, English fluency, teamwork and presentation skills and of the 4 lakh odd engineering graduates, who graduate each year, only about 20% is good enough for India Inc. - NASSCOM
5. Industry requires 347 million skilled manpower over 10 years for sustaining it’s growth Source: IMaCS analysis
6. The National Skills Policy 2009 targets skilling 500 million people through 4 pronged approach male/female rural/urban organized/unorganized employment traditional/contemporary workplace A framework for better coordination among various Ministries, States, industry and other stakeholders Approach adequately communicated and implemented Policy coordination and coherence High inclusivity India needs to create 500 million skilled workers by 2022 Choice, competition and accountability No discrimination between private or public delivery Importance on outcomes, users choice Competition among training providers Promote excellence Meet the requirements of knowledge economy. Dynamic & demand- based system planning
7. New approach to addressing the gap Social Appreciation of Skills As a Livelihood Asset Linking Education to Employability in the Global Knowledge Economy. No One Solution. Every Region demands an innovative approach. Undertake fundamental reforms across the education system (primary, secondary and higher) to improve overall quality / outcomes, increase retention and ensure seamless integration with vocational training Significantly enhance Government-driven vocational training efforts Increase scale of PPP initiatives to better utilize Government infrastructure 4. Foster Private sector / Industry participation in skill development
8. Government’s Co-ordinated Action in Skills Space Multilateral , bilateral and private sector funding to NSDF
9. Why the “ New” Partnership Model For identifying the competencies and setting up standards as per Industry requirements For delivery of training, monitoring and evaluation For participation in examination and certification For participation in affiliation and accreditation process For facilitating training of trainers For facilitating employment of trained persons Skill demand analysis and curriculum development Sharing of work place experience, machinery and equipment Support by way of physical, financial and human resources
10. Agenda NSDC Model: Encouraging Public Private Partnerships Overview Government Initiatives in Skill Development in India Areas of Collaborations and Key Recommendations
11. NSDC – a unique model created with a well thought through underlying philosophy Key elements of NSDC’s underlying philosophy Create:Proactively catalyze creation of large, quality vocational training institutions Fund:Reduce risk by providing patient capital Improve returns by providing viability gap funding Enable:Support systems required for skill development Sector skill councils Quality Assurance Information system Train-the-trainer Set Standards 1 2 3
12. Create : Inviting Private Sector to Make it Sustainable and Scalable Go beyond the training, address issues of the ecosystem Develop partnerships, move beyond a pure funding relationship Focus on outcomes Response to Demand Develop a strategy Create a knowledge base Excite entrepreneurs by bringing out the opportunity Share the risk Provide patient capital Develop non intrusive robust monitoring programmes Trust and transparency in the system Eco system to support the organization Attracting Industry players: Start ups, Social Entrepreneurs, NGOs, Medium Size Training Organizations and Large Corporates into Skill Development.
13. Driving vocational training business models by providing patient capital Elements Description Any organization with scalable, sustainable business model that ensures employability of the resources trained Including start ups Including Indian partnership with Australian Companies Who gets funded? What is the amount of funding? ~Upto 75% of the project cost Debt at subsidized rates ; other features like moratorium built in depending upon nature of project Equity Grant funding (only in very select cases) What is the form of funding ? NSDC is looking to fund businesses that seek to create employable people across all sections of the society Is there special focus?
14. Robust process designed to ensure rapid turnaround in the process Board Representatives of key stakeholders – both government and private sector Active involvement of Government, Industry Leaders and leaders from Social Sector for approving projects, ensuring interest of all stakeholders. Proposal Approval Committee (PAC) Diverse representation from the Government, private equity, NGOs, industry Proposal Evaluation Committee (PEC) Due diligence partners NSDC team Proposal Introduction and evaluation – test of responsiveness, technical, financial and legal due diligence Turnaround of < =3 months targeted for proposals
15. Private partners from Industry, NGOs, Start Ups form NSDC Portfolio Training providers In the education business Technable GOLS In unrelated businesses Total Ten Year projections of 67 Million Large established corporates Start ups
16. Some early signs of success… Note: *Pratham’s EFE centers.
17. Multiple initiatives being taken by NSDC to develop the skills ecosystem, 2011-12 (I) 4 3 1 2 National Qualification Framework Financing for vocational training Sector skill councils Knowledge Base NSDC, IAMR and States have been involved by MHRD in evolving the NVEQF document from Dec 2010, and a Draft Note has now been prepared for Cabinet Approval. Funding for a pilot in schools of Haryana and Bengal has been released. Four SSCs are engaged in this Pilot Vocational Loan on a Pilot basis Loan would in the range of Rs.5000/- to Rs.1,50,000/- Operate through tripartite agreement amongst Student (Trainee), Training Provider and the Bank NSDC would stand as a guarantor for a certain percentage of the default 11 SSCs approved by NSDC 9 proposals getting evaluated; pipeline of about 10 proposals Slow but sure interest by industry District wise skill gap studies undertaken for the 8 NE states, Odhisa, Bihar, AP, Bihar, MP, Rajasthan, West Bengal and Karnataka In addition to 20 high priority sectors, sectors skill gap studies for infrastructure and sports sector A study on train the trainers conducted
18. Multiple initiatives being taken by NSDC to develop the skills ecosystem , 2011-12 – (II) 8 7 5 6 Work with international organisations MediaCampaign World skills competition Business Plan competition Multiple international organizations being engaged with to leverage existing skills and knowledge base UKIERI ILO AIEC UKCES EU DFID Work on- going on a media campaign to make skills aspirational NSDC acted as nodal agency for the World Skills Competition hosted in London Results limited but good learnings Preparation underway for the 2013 competition “Power to Empower” – India’s first Skills enterprise competition organised by NSDC and CII jointly 71 educational institutions and over 3000 students participated in the competition
19. Sector Skill Councils : Ensuring Industry Involvement TRAINING NEED ANALYSIS CURRICULUM DEVELOPMENT ROLLOUT OF TRAINING ASSESSMENT AND CERTIFICATION Creation of Occupational Standards Towards National Vocational Qualification Framework Labour Market Information System Skill Development Plan Accreditation of Training Institutes Academics of Excellence Training of Trainers Guidelines and Participate in Assessments and Certification of Trainers and Trainees Sector Skill Councils (SSC) consists of representation from Industry Member, Government Bodies, Industry Associations, Business Leader and Training providers to ensure participation of all ecosystem members. Till now 11 SSC have been approved in main high growth sectors such as Automotive, Retail, IT/ITES, BFSI, etc.
20. 13 SSCs approved and a strong pipeline – June 201220 of the high priority sectors covered, move towards large and informal sectors Priority Sectors Large Workforce Informal Sector
21. NSDC also receiving support from multiple international organizations in SSC incubation
22. Agenda NSDC Model: Encouraging Public Private Partnerships Areas of Collaborations and Key Recommendations Overview Government Initiatives in Skill Development in India
23. Current Collaborations with Australia:Several MOUs Signed between Australia and India MOU between XLT and JaypeeGroup: Training to focus on metals, construction, automotive and mining TAFE NSW- Sydney Institute  and HeraudInc:MOU to provide services to proposed College, facilitating academic collaboration, professional development, study tours, student and teacher exchange, and international student recruitment. Central Institute of Technology (Australia) and the Central Board of Secondary Education (CBSE):  To develop models of VET engagement to help students to complete school with both a secondary school certificate and job oriented and job linked skills. Pilot with delivery of 4 courses- Design, Retail, Music production and Beauty therapy. Australian Vocational Training  Employment Group (AVTEG) and JIS Group College of Innovation and Industry Skills (CIIS) and JIS Group Kangan Institute in Australia to support training of 425 ITI teachers in Karnataka and Maharastra.
24. Possible areas of collaboration To set up skill development programmes in cooperation with NSDC or NSDC Partners Industry based curriculum development Training of Trainers including NSDC Partners Sharing of best practices in training particularly in sectors such as Mining, Construction, Retail, Healthcare, Hospitality etc. Training in Agriculture: Sharing International standard training modules for India to learn.
25. Possible areas of collaboration: Sector Skill Councils Capacity building and organizational support for Sector Skill Councils Sharing standards in development of Occupational Standards Development of Curriculum Framework Sharing best practices in assessments, certifications and accreditation. Development of Labour Market Information System Development of Qualification Framework
26. Multiple forms of interventions possible on the skill development space Build capacity to train and skill people Own capacity Build capacity Use expertise in certain areas to provide curriculum and training material in select areas Leverage and consolidate existing capacity to deliver quality training Leverage existing capacity Standards and Curriculum INTERVENTIONS Community based interventions Systematically focus on areas and create skill led community interventions
27. Different business models can be builtIllustrative : Single Entity with different Centre's Option 1 Key activities Research and development of content Methodology Train the trainer Overall strategy and management Skills Centre Sector specific centres of excellence Focus on sector requirements Regarded as best in class training centres for a particular sector/ function COE for Sales COE for Sector 1 Corporate training for Sector 2 …. Innovative models can be developed depending upon requirements of the secotr Learning centres (owned) dispersed all over the country for sector/ functional expertise Learning centre 1 Learning centre 2 Learning centre n
28. Different business models can be builtIllustrative : Multiple corporate / Training entities partnering Option 2 Key activities Research and development of content Methodology Train the trainer Overall strategy and management Holding Entity : Lead player Sector/ area specific centres of excellence led by different firms Focus on sector requirements Regarded as best in class training centres for a particular sector/ function COE for Sales Entity 1 COE for Customer Service Entity 2 COE for Sector Entity 3…… …. Innovative models can be developed depending upon requirements of the secotr Learning centres (owned) with different entities dispersed all over the country for sector/ functional expertise Learning centre 1 Learning centre 2 Learning centre n
29. Take Charge Leaders! A LEADER IS ONE WHO TAKES THE FIRST STEP TOWARDS A GOAL HE DEEPLY CARES ABOUT, IN WAYS THAT OTHERS WISH TO FOLLOW Source: BCG Analysis
30. dilip.chenoy@nsdcindia.org