01 December, 2017

The Harbor Line - Mumbai Experiences

After 2 years in this Monstrocity, I finally completed my list of all scenic spots / experiences / activities in Mumbai. Below are my 22 favorite recommendations from the list.

1. Prithvi Theatre

Starting with a cliché. But clichés exist for a reason. I don't think anyone exits Prithvi Theatre as the same person as they went in after watching a play there. This place is yet to disappoint me in in terms of the quality of the plays they stage there.

Bonus tip: Go on a weekday and you'll probably find some great actor or musician from our times. If you're lucky, they'll be sitting in the cafeteria and performing for the crowd.



2. Drive an auto

Try it out in Bandra. Even the autowallas are cool in Bandra. Because if Salman Khan can do it, so can I (though I admit my driving skills are slightly better).


3. Drive on the Sea Link

I cannot explain the feeling of driving in Mumbai on a road without traffic. But if there was a highway to heaven, it'd have the sea link on it.


4. Breakfast at Taj Lands End

The finest spread of breakfast in Mumbai. Their Breakfast Lounge offers a view of an exquisite lobby and the most elaborate breakfast in the city. What better way to start the day?

Bonus tip: Try making a salad in a bowl.



5. Belapur Fort

Most of the fort is in ruins now. The only feature of interest is a long plank which goes a distance into the sea. Not for the faint hearted, try if you dare.


6. Kanheri Caves

It's not the destination that matters. It's the journey. Go through a single mountain cut by an ancient Buddhist civilization long before Mumbai was Mumbai. Built in the heart of a forest which in turn is in the heart of Mumbai, this never disappoints.


7. Global Vipassana Pagoda

If you've stayed in the city for too long, at some point you will want to get "away from it all". The Pagoda is the only place that offers a solace that is the very opposite of the nature of this city.

Bonus tip: They have 10 minute Vipassana sessions through the day. Try it out. Gives you a calm seldom bestowed upon a Mumbaikar.


8. Stay at Taj Mahal Palace

Unarguably the finest hotel in Mumbai. This hotel boasts not only of the guests of the highest order, but Sea Lounge which offers a view of the rising Sun in Mumbai, a carriage-parking-space converted to a swimming pool, and quite literally anything you can ask for will be delivered. They live to serve.

Bonus tip: Ask for the Indonesian rice at the Shamiana. You're welcome.


9. Film City

They conduct tours for the public but you need to book fast as there are limited spots everyday. The booking system is effective though not too professional or transparent. But they won't cheat you.

Bonus tip: Hang around the gates for a while. You're not allowed to smoke inside so you're likely to find your favorite actors coming out for a whiff.


10. UFO Revolving Restaurant

It's just a restaurant with a revolving floor. Not much novelty there. But if the concept excites you as it did me, you're going to make a trip to Kandivali. Though that might be the only thing you'd ever goto Kandivali for. #NeverNorthOfAndheriAgain


11. Kharghar Hills

They open it only for 2 hours in the morning between 5 - 7. And its completely worth the early morning trip to Kharghar. The most bautiful view of the city awaits you infront of a Sun rising from behind the mountains. If happiness had an image, it'd be there. At sunrise.

Bonus tip: Take the right from the diversion and walk. You'll know where to stop.


12. Esselworld

No. Not Imagica. Esselworld. 3 reasons. (1) It's every 90s kids dream. (2) It has "Top Spin". Imagica doesn't. (3) Esselworld mein rahunga main. Ghar nahi jaunga main.


13. Get Wet in the Rain

You haven't embraced Mumbai if she hasn't drenched you in her rains. At some point you need to let go and embrace her love and that day, you become a true Mumbaikar. I did it by Powai lake. Can't imagine a more appropriate place.


14. Trendy Taste

If you haven't gone to college in Vile Parle, then you are probably unaware of this place. Its a shop that promises to bring back memories for the 90s kids. And yes, there's a new discovery of twisty potatoes waiting for you that makes you say - French Fries, but better.


15. Mumbai Marathon

It's a one-of-a-kind unique experience in Mumbai. I admit I have only thought of running it and the mere thought has made me lose a pound of weight. I have since then tried to ride it on a bicycle but only managed half the distance. Then I just drove it.


16. Stand Up Comedy

No it's not going to a stand-up comedy show. Mumbai offers more. You can goto an open mike event and perform. Try it out. It'll be one of the most self-discovering experiences you ever have.


17. Comic Con

Presently the only city in India that offers Comic Con. The only place where geeks can hope to get laid. But don't let that be your only incentive. The energy at Comic Con is unlike any other.

Bonus tip: Get the VIP pass. It's worth the money.


18. Shadow Dabbawallahs for a day

By far the most challenging of my tasks. But to get a feel of the spirit of the city, shadow a dabbawallah for a day to understand a day in their life. It'll teach you a lot about respect, Mumbai, and ethic. A record of consistency takes sacrifices, discipline, and rigor. And no one does it better than a Mumbai dabbawalla.


19. DDLJ at Maratha Mandir

Every day at 10:30 AM DDLJ screens at Maratha Mandir. And every day scores of fans fill up the auditorium and whistle when Raj appears playing basketball in what is too short to be shorts. The fans still cheer when Simran catches the train and sing along with "na jaane mere dil ko kya ho gaya". The magic continues.

Bonus tip: Get the dress circle. Always get the dress circle.


20. Khotachiwadi

It's Mumbai's Diagon Alley. You won't find it if you're not looking for it. Hidden in a small alley at Grant Road, it's the remnants of about 26 bungalows from Portuguese times. They're slowly being torn down to give way to sky scrapers. So try it out while it lasts.


21. Vasai Fort

Some people find ruined forts haunted. Some find them romantic. It's definitely Mumbai's most preferred pre-wedding shoot location. But if walls could tell a story, you'd find them shouting in Vasai Fort.


22. Nehru Science Center

There's nothing too special about the overall place. It's a science museum, if such a thing interests you. But there's a "giant heart" which you can step into. Now what can be better to kiss someone inside a giant heart?

No pictures for this one. Go see it for yourself.

02 November, 2017

Strategic Workforce Planning

Imagine knowing that your right hand person, is at a high risk of leaving. Imagine if you could predict who was at a high risk of leaving your organization, 12 months before the resignation arrives, regardless of location, department, level, gender, ethnicity and person. Imagine if you could easily find your 10 leading performers who are at risk of leaving. What if you could know not only who is at risk of leaving but also why? And how much it is expected to cost you? What if you could know that one more hour in the day or one more vacation a year could keep your employees engaged and improve your bottom-line? Strategic Workforce Planning takes you to the future by helping you find this information. Let us begin by understanding the concept of Strategic Workforce Planning through a small Case.

Plan Appétit is a newly opened 100 seat restaurant in the financial district of Vancouver. Based on a market study, the restaurant anticipates reaching full capacity at the end of its first year. All full capacity, the restaurant would serve about 900 patrons per day, or 6,300 patrons per week, or 25,200 patrons per month. As per the planned marketing effort, the restaurant anticipates a 10% increase in clientele each month. With these marketing insights, the restaurant manager creates a staff augmentation plan. The restaurant manager now knows how many staff members will need to be added each month. This means the restaurant can conserve funds by not hiring all the staff all at once. It can instead divert those funds into other activities to grow the business.

Strategic Workforce Planning is understood as a core process of human resource management that is shaped by the organizational strategy and ensures the right number of people with the right skills, in the right place at the right time to deliver short-and long-term organization objectives. Sibson Consulting uses this definition to construct a framework to implement Strategic Workforce Planning as shown in Exhibit 1.

It typically starts with the organization’s business strategy, operations plans, and people management strategies. This implies that organizations engage in rational planning activities – or at least are in a position to articulate some elements of these strategies in structured coherent ways. Qualitative and quantitative workforce information is then gathered which should assist in providing an understanding of the current situation and what needs to be change to meet these strategic requirements in the future. Such information includes the number of staff that the organization estimates will be required, their location, and their skill requirements.

The next stage involves data analysis and clarification of the picture. This typically sees HRM and business managers contributing their observations and predictions around resourcing requirements. These discussions should result in agreement about what the plan is trying to achieve, which is then reviewed against available resources. To do this, planners will need to review the supply of labor, internally and externally, assess the potential capability of the workforce to develop any requisite skills, and then identify areas where recruitment will be needed. An example of this process in action at Siemens, along with the role played by the HR function, is outlined below.

Siemens is a global engineering and technology services company employing over 400k employees worldwide with revenues of nearly €73.52 bn in 2010-11. Business environment analysts identify the markets that are attractive to Siemens and as the company develops its strategies to take advantage of market opportunities, people implications are identified on either a business unit or geographic basis. The workforce plan is used to identify not only people resources to deliver business objectives, but also the HR resources needed to support this. The HR business partner engages business unit management teams on workforce planning implications of their business strategy, examining the type of competence that will be required in the next year and making an assessment of their availability in the marketplace. The HR specialists establish the process for workforce planning, the consistent application of tools and systems across business units, and performance/progress reports over the period of the plan.

Whilst the literature concerning workforce planning is dominated by strategic concerns, the success of the process is underpinned by good relationships between business and workforce planners at the strategy level and between HR business partners and an organization, which drives the process, and securing line manager input, i.e. those who know locally and operationally whether plans are realistic, can be challenging, especially for geographically diversified organizations. Given that line managers are usually tasked with the delivery of the workforce plan, they will need to be clear as to the future direction of the organization and how it will impact their team/department. Consequently this will require them to have a vehicle for creating dialogue with managers concerning these micro-needs.

Finally workforce planning increasingly has to account for wider demographic issues that are beyond the control of the organization. Different stages pose complex work-life challenges for employees which have implications for workforce planning. Where older workers are concerned, they possess a range of attitudes towards retirement and planning for it and that a “one size fits all” approach is not possible. This highlights the tensions organizations face in meeting work-life requirements and operational requirements within existing resource capabilities.

References
1. CIPD (Chartered Institute of Personnel Development) 2010, Approaches to change: building capability and confidence. CIPD, London.
2. CIPD (Chartered Institute of Personnel Development) 2010, Workforce Planning: Right People, Right Time, Right Skills. CIPD, London.
3. Sibson Consulting 2009, Strategic Workforce Planning. The Segal Group Inc., New York.
4. Gilmore, S & Williams, S 2009, Human Resource Management, 2nd edn. Oxford University Press, Oxford.
5. Acas 2014, Age and the workplace. Acas, London.
6. Malik F, McKie, L, Beattie, R & Hogg, G, 2010, A toolkit to support human resource practice. Personnel Review, 39/3: 287-307, Bingley.
7. Flynn, M, 2010, The United Kingdom government’s “business case” approach to the regulation of retirement. Ageing and Society, 30/3: 421-43, Champaign.

.

Indian Girl in a Foreign Land

Written as a Ethics Case Study for business-school discussions and deliberation.

(1)

Vats was not a frequent bar visitor. He was rather known as an introvert and kept to himself. Some people did have the luxury of his time, but when it got too much for him he’d play songs by Rebecca Black and Justin Bieber just to shoo people away from his room. He didn’t have too many close friends, neither did it seem that he wanted to make any. However, when Pasha, one of the few who had been able to penetrate into his shell asked him to join the gang for a night at the local bar, Vats conceded. After all, another mad week of presentations and assignments had ended and Vats didn’t have anything better to do. Besides, he thought it good to remind himself every once in a while why staying aloof was the right way.

It was another crazy night at Hembrom’s. The entrance proudly held the title, “Divided by boundaries, united by spirit.” Pretty appropriate for a bar frequented by international tourists, Vats thought. He took a seat at the corner of the table, his brain trying to understand that of others. Pretty soon, a very elated Adra joined the table by his side. Vats didn’t particularly like Adra. To a very reserved Vats, Adra seemed like Daddy’s spoilt showboaty child who hadn’t been slapped by life yet. The thought was confirmed when he smelled fumes of smoke which had left Adra’s lips moments ago. No matter how cute this girl was, smoking was a huge turn-off for Vats. Cursing himself for being there, Vats relented. Yet he was unable to conceal his frown when Adra could not help expressing the heights of ecstasy she’d managed to reach in that one puff. Thankfully, Vivek took the cigarette away.

Vats could see that Adra was drunk, or atleast acting as if she was. She never looked in Vats’ direction, engulfed in her own happy world. When the group moved to the dance floor, Vats noticed Adra stepping aside to talk to the old bald Asian man at the bar. He tried to point it out to Pasha, who was absorbed in his own world. Vats decided to move to Adra’s side, ‘just in case,’ he thought.

As Vats approached her, he noticed Pushpam already by her side. They introduced Vats to what turned out to be a very drunk Japanese businessman. The conversation, atleast from Pushpam’s side, remained confined to a selection of cuss words in Hindi, which the Japanese man found very delightful. Vats rolled his eyes as the old man excused himself to make a trip to the washroom. As he left, Adra continued with Pushpam’s train of words. If it weren’t for the loud music, someone sober enough would’ve come to shut her up. But then, it was a Friday night and no one really cared. Leaving Adra beside a known friend, he returned to the dance floor.

Meanwhile, another chain of events occurred there. Christine, one of the Americans in the group, was having what Vats was told a “bad headache.” Someone sober and willing had to take her back and Vats quickly volunteered. So did Aaron. As the three of them were about to leave, Vivek called them back and asked them to take a very jumpy Adra along. Unwillingly, Adra sat in the cab and they were off.

Vats had always liked the front seat of the cab. The drivers never spoke and he was away from all the chatter behind. He could easily ignore everything on the backseat and focus on his thoughts. Why did he decide to visit the bar tonight? Was it out of desperation arising from self-inflicted loneliness? Or was it just an attempt to invite some welcome change? Why did all these people go to bars? Did everyone there like to be there? Why don’t cafés and bookstores attract such crowds? What is it about alcohol that makes people lose control and think that they are having a good time? Vats saw the roads going by, oblivious to voices falling in his ears. Before he could think of answers to his questions which would satisfy him, they were back at the campus entrance. The hostel was a small walk away.

As soon as Adra was able to put her high-heeled sandals on the ground, she ran and jumped on the rock near the campus gate. Vats and Aaron looked at each other, neither knowing what to do. Christine stepped in. She lovingly took Adra by her side and they started walking hand-in-hand, like sisters. But even Christine couldn't keep Adra’s mouth shut while Adra went on babbling about the hot guy in the group whom she could want to “do.” After a moment’s pause Adra clarified that she would never cheat on her boyfriend, even if for the hot guy who looked like a movie-actor. She went on to describe how much she loved her boyfriend who also, she pointed out to Vats, was “IIT.” ‘It’s IITian not IIT,’ Vats considered explaining, but then thought better of it. As they headed towards their wing, Adra mentioned that she wanted to say goodnight to Olzhas. Christine asked Adra to speak to him the next day. Adra explained that Olzhas often came drunk to disturb her in the middle of the night. She wanted to return the favor. Vats considered demanding Adra to go back, but that would only result the drunk Adra to abuse him and send him back. After all, who was he to command her? Vats asked Aaron to escort Christine back, while he accompanied Adra to Olzhas’ room. As soon as Christine and Adra went out of sight, Adra conjured a small perfume bottle from her white leather handbag. Vats wasn’t used to girls carrying even tissue papers in their bags, let alone liquid fragrances. But then, this was a part of the new culture he was here to experience. He watched as Adra emptied his month’s supply of deodorant on herself. This was going to be more than a simple goodnight, he thought.

Despite a waiting elevator, Vats followed a galloping Adra on the stairs. When they reached, Adra looked confused for a moment, and asked Vats to stand hidden. Vats didn’t ask why, but agreed. He was curious to see what happens. Vats hid himself beside the door. He saw the door open and heard Olzhas’ deep husky voice, ‘get in here.’ The door closed.

Vats could hear muffled sounds from inside, and it didn’t sound like a simple goodnight. After 2 minutes, Vats wondered if he should knock, wait, or leave. He considered the dignity of a drunk committed Indian girl in a foreign land, his own responsibility and his friendship with Olzhas. He raised his hand to knock, but then decided against it. If she was old enough to drink, she was old enough to take care of herself after drinking. After all, she was 2 years elder to him. Age doesn’t translate into maturity, he thought. As the voices from inside started taking a course which he did not wish to listen to, Vats turned and started walking back. After 5 steps he heard the door open and Adra came appeared. Vats noticed her clothes – intact. But she’d left her handbag inside. ‘You go. I’ll come later,’ Adra said. Vats wanted to say that he was going anyways, but decided against it. Adra went inside again and before Vats could hear anything, he left.

(2)

Vats returned to his room, not knowing what to do. He could go back to Olzhas’ room and force Adra to come back. But he was her peer, not her superior. He could physically carry her back, but what would stop her from rushing back as soon as he left her. He could drag her back and forcefully keep her until Pasha or Vivek returned. That seemed like the most reasonable option. But Vats hadn’t ever physically forced a girl for anything against her will. At some level, this seemed inappropriate. But he could also not let her be. If not for her then for the boy who loves her and believes that his girl will take care of herself. But why should Vats even consider this? The girl was old enough to make her own decisions. Wasn’t she? She was drunk. And Vats was given the responsibility to take her back to her room. Vats failed at that. Did getting drunk give a person the right to make stupid decisions? Did her getting drunk make Vats liable to take care of her?

Vats realized this was a confusion he could not handle and waited for Pasha to return. Vivek, his girlfriend Arshita, Kaushik and Pasha came back together. Vats called Pasha aside and told him the situation. The first thing Pasha did was take Kaushik and Vats up to Christine’s room and make sure she was safe. ‘You can’t trust Aaron,’ Kaushik angrily said. Then they all assembled at Arshita’s room and took a detailed account of what happened from Vats. Vats could not help feeling guilty. He was given one job and he failed. But he truly didn’t know what to do. Maybe Vivek or Kaushik would have done something better. But Vats faced this issue the first time and caved. Maybe he should have banged Olzhas’ door and made sure Adra was not left alone with him. None of them was paying any attention to Vats, he didn’t understand if it was because there was a larger issue at hand or because they blamed him. If they did, they wouldn’t tell him.

Arshita called Adra’s phone and put it on speaker. A tired sleepy voice replied. Arshita asked where she was. Adra replied that she was in her room. They all knew it was a lie. Arshita asked Adra to come to her room. Adra said she’d be there in 10 minutes. Adra lived next door to Arshita. It shouldn’t take her 10 minutes to walk 2 steps.

As they waited, Vivek said that people lose some control on getting drunk, but not so much. Kaushik explained that Adra had too many shots and mixed drinks. Vivek maintained that you could never be so drunk to not give a thought about whom you share a bed with. He mentioned that Adra knew what she was doing and by her moral standards, she wasn’t doing anything wrong. She had the right to live her life by her own choices and she was doing so. There was nothing wrong in that.

Kaushik mentioned that if she was old enough to drink, she was old enough to take her own decisions. At 24, living in a foreign land away from her family, she should have the responsibility to take these decisions herself. No one was obligated to take care of her when she was drunk.

Arshita didn’t speak too much. She said that had she been in Adra’s place, she’d have expected Vivek or any of her friends to come for her. But when asked would she ever have been in Adra’s place, she had no reply.

Pasha wanted to go and bring Adra back. He said by any moral standard or opinion, what was happening was wrong and someone should correct it. But Vivek was able to stop him saying that confronting would be worse than letting it be.

Vats stayed in a corner, dejected, listening to everyone’s opinions. He only thought whether it was his fault or not, and what he could or should have done differently to avoid it.

They waited for two-and-a-half hours, but Adra never came. Not knowing what to do, they dispersed back to their rooms.

(3)

The next day, Vats looked back on the matter. He thought Kaushik and Vivek were right in their arguments. After all, it wasn’t his fault she wanted to “do” someone. She was old enough to smoke, drink and abuse. Vats was in the same environment as her, and he made different choices. He decided it wasn’t his fault, but he’d stay away from Adra hereon.

No one spoke of the incident for a few days. At one point Chen did mention that he heard footsteps in the corridor at 7 AM, which was unusual on a Saturday morning. But Olzhas’ friend Michan said he was up and went to get some water.

Few days later Vats found Olzhas at the dinner table alone and taking the opportunity, asked him what really happened that night. Olzhas replied that Adra came to him depressed, saying she felt very lonely in the foreign city. They talked for half-an-hour and then Adra went back. Vats didn’t pursue the topic. Nevertheless, he started noticing a change in Olzhas’ behavior when he was around Adra. He’d hug her more often and keep an arm around her. Adra would seldom run her palm across his arm. The way they looked at each other also seemed to be different from how people normally looked at friends. But Vats had decided to keep himself away from this.

‘I have better things to do,’ Vats thought, and returned to his quiet little world where there were no bars, drunk girls, or friends with opinions.

06 October, 2017

Gamification

A Revolutionary Phase for HR Management or a Myth?

Since the dawn of the 2nd decade of the 21st century, Gamification has emerged as a concept to induce certain types of behavior in participants. It is the construction and use of rules, often called game mechanics, to engage participants in the game. It is based on the belief that human beings possess a natural aptitude for competition, success, position, assertiveness, justice, and cessation.

We see a new trend emerging in India of the movement of services to products.1 Customers today are not paying for commodities, but the value, i.e. the contribution of the product to make their lives easier. This phenomenon encompasses the HR industry which performs the crucial role of providing learning to today’s workforce.

Consider the numerous emerging educational websites in the world such as Alison and Coursera.2 They are breaking existing models of how learning is delivered. They propose a model where classrooms are used not for content delivery by teachers but for discussions. Coming to social media, enterprises are trying to make their presence felt on Facebook and Twitter which were initially deemed to be for consumers.

These new phenomena require new learning methods for employees and companies must adapt to newer techniques to train their employees. Traditionally, companies in India have had an assembly line approach to learning. An employee enters the organization, gets stamped with certain course delivery and certifications, and is made a part of the workflow.

Today each action that a company takes, including learning, is questioned by the management and stockholders alike in terms of how that action provides the company with a strategic advantage. Every action the company takes needs to make it a differentiator and give it some strategic advantage. In this space, commodity learning is hardly going to help. With the influence of these factors, we see 2 trends emerging.

1.       The spending on learning is increasing
2.       Technology is enabling agility in learning

So what if learning could be productized, so as to stop redesigning it every time? What if social gamification and mobile concepts could be incorporated in training? What if India could come up with entrepreneurs providing solutions to help the CLOs (Chief Learning Officers) and CEOs address learning as a strategic imperative as opposed to a process checkpoint. Innovation will come from companies which don’t have a very large hiring volume, but the impact of each employee in those organizations is very high. Companies such as SAP SE, Yahoo!, which put a lot of value to the impact each person brings to the table naturally spend a lot of time ensuring a high productivity and efficiency of the employees. Another trait of such organizations is that they spend a lot of time in recruiting their employees.

Traditional business houses such as Tata, Bajaj, etc. are starting to put their confidence in such concepts.3 Some Indian segments fall in a Goldilocks zone for innovation, such as the BPO industry. Although hiring is done in large numbers, the assets are the people themselves.

The social layer of Gamification has already been built.4 This resonates when an enterprise incorporates Gamification and amplifies the value creation.

Today a lot of CHROs (Chief Human Resources Officers) are on notice from the CFOs. CFOs are increasingly asking the CHROs to either prove that HR is a strategic function valuable for the company, or be outsourced.5 HRs today are looking at 3 goals.

1.       How can the companies be more connected?
2.       How can neutral networks of learning be created inside the organization?
3.       How can performance be improved?

An excellent example of innovating in the area of performance management with Gamification was at Rypple before it was acquired by Salesforce.com. Rypple questioned why feedback has to be given annually or semi-annually rather than a regular process.6 As the CHROs face outside pressure to demonstrate strategic value, they look at the norm and experiment while breaking the norm. During these experiments, some would indeed work and come out as the best industry practices for current times. Some experiments may not work, but that will only open doors for more innovation.

A CHRO who has had a certain pedigree, probably had the best training at the best schools. But that becomes irrelevant for current times. Earlier their knowledge would have been relevant for 20 years, but today they have to reinvent themselves and their thinking every few years. Already, new forums such as LinkedIn groups are emerging where CHROs and CLOs get together and engage with academia and trainers. This has been possible due to democratized access to information which is growing at an exponential rate. Some roles are bound to go extinct in this process, but this will help create a better evolution of the CHRO.

References

1. Ganesh V, 28 July 2013. Moving away from IT services to products. Business Line, The Hindu.
2. 11 July 2014. True Activist.
3. 20 May 2014. Tata Interactive Systems recognized among ‘Top 20 Content Development Companies 2014’ globally. TATA Interactive Systems.
4. 19 July 2013. The Landscape of Learning: Gamification in Indian HR. People Matters Online.
5. Benko C, Gorman T, Steinberg A R, 2014. Disrupting the CHRO: Following in the CFO’s footsteps. Deloitte Review, Issue #14.
6. Debow D, 20 June 2011. Rypple Re-invents the Performance Review. Performance Reviews, Saesforce Work.com.

03 September, 2017

Collectivization In The Indian IT Sector

The Indian IT Industry exists in a country obsessed with socialism and plagued with policy paralysis. In such a scenario, collectivization of the industry takes into account the present unions, diversity existing across the industry and merits of collectivization itself.

INTRODUCTION

Collectivization as a concept came into being between 1890-95. Collectivization essentially means the organization of an economy, industry or enterprise by forming collective communities where property and resources are owned by the community and not individuals.[i] Most famously, collectivization was a policy adopted in erstwhile Soviet Union under Joseph Stalin between 1928-40 where peasant farms were replaced by collective ones to increase food supply. This was seen as a solution to the agricultural distribution crisis faced by them since 1927.[ii]

The Indian IT Industry is highly decentralized in in terms of geographical distribution as well as the profile of work. Thus far, the National Association of Software and Services Companies (NASSCOM) is the largest organization association in the industry.

Industry overview

The Information Technology Industry in India primarily consists of two broad horizons – IT Services and Business Process Outsourcing. Other areas such as Software, ER&D and Hardware also account for a fraction of the industry. The industry has seen a robust revenue growth in both domestic and international markets. Between FY 1998-2012, the share of the IT sector in total Indian exports increased from less than 4% to about 25%.[iii] The booming industry with its vast export market also contributed strengthening ties with both the USA and the EU.

The IT-BPO industry is a net employment generator. In FY2012, the industry added 230k jobs totaling to a direct employment to about 2.8m while indirectly employing 8.9m people.[iv]

The Indian IT sector currently specializes in providing low-cost business solutions. Only a few companies have the competency to take up projects involving high end SLDC (Software Development Life Cycle) processes such as requirement analysis, architectural design and product development. However, there has been a slow upward trend in this direction. A problem which the industry faces is the lethargic attitude of the government in providing a telecommunication infrastructure which slows growth.[v]



The landscape of the Indian IT industry is marked with the coexistence of two diverging yet prominent features – diversity and concentration of power. NASSCOM figures show that there are over 1.3k start-up firms in the IT sector, primarily in e-Commerce, Education and Internet services. The industry itself comprises of over 16k companies. However, more than 40% of the revenue generated is attributed to the top 11 players while an odd 15k companies are able to attract only 9-10% of the revenues. Moreover, the industry draws a major chunk of the working population equipped with many different skill-sets and educational qualifications. It is in the background of this concentration and diversity, we address the issue of collectivization in the sector.

Nasscom

The NASSCOM is a non-profit trade association of the Indian IT industry and allied sectors registered under the Indian Societies Act, 1860 with its headquarters at New Delhi. Among its 1,500 members, about 17% are companies from the US, EU, Japan and China. The companies registered with NASSCOM represent 95% of the industry revenues and have commanded ingenuities to shape the industry in India as well as globally.[vi]

NASSCOM plays a role in the enforcement of Intellectual Property Rights in the Indian Software and BPO industry. The organization also provides a mentorship programme for mid-sized companies, i.e. a 6-month engagement which helps organizations to develop a better assessment of their strengths and weaknesses. The members can participate in opportunities for global networking and build business at NASSCOM's global events, and through delegations and road shows.

CURRENT STATUS

The IT Industry has a framework in place for advisory, technology growth and networking initiatives. However, there are no frameworks in place to pool resources or revenues for the sector. Cooperative solutions to address key industrial challenges are encouraged to drive industry growth. Furthermore, 8 councils consisting of Directors, CEOs and senior Executives of major IT companies tailor to the requirements of sundry sections of the industry and aim to create detailed programs which may assist these sections to realize the opportunities and share the best practices. These councils act as advisory groups to the industry members for modelling the programme on a regular basis and take control on particular ingenuities. They also hold an annual product conclave showcasing innovative product companies. The advisory groups have been formed for the following sectors:

In addition to this, 6 Regional Councils have also been formulated to function across different cities. The aim of these councils is to construct strategies, address indigenous disputes, allow intra-industry networks and share best practices. Moreover, these Regional Councils also contribute towards the development of the industry in tier-2 cities where the industry has significant presence but has strong growth potential namely Coimbatore, Indore, Kochi, etc. Another motive of forming these Regional Councils is to lobby with local governments for policy advocacy.[vii] 

10,000 Start-ups Initiative

One of the most interesting and exciting developments in the IT industry in recent times has been the advent of a large number of entrepreneurial innovative companies in the space of IT driven by young entrepreneurs bubbling with new ideas. The 10,000 start-ups programme is an early stage incubation program NASSCOM has put together to help faster growth of the entrepreneurial ecosystem in India. Entrepreneurs who have ideas are often desperate searching for someone who can guide them on issues like how to run a start-up, how to grow a business, etc. The initiative is partnered by large enterprises like Google, Microsoft, Kotak, etc. aims to make the bright young talent of the country look for more than just their next job. Entrepreneurs are given an opportunity to meet with mentors, potential investors, and fellow entrepreneurs.

A start-up warehouse programme identifies some of the best start-ups and provides mentorship, space, customer connects, etc. Some of the start-ups participating in the programme have been able to connect with large platform players like Intel, Google, Microsoft; some of the largest retailers in the world – Walmart, Tesco, Target, etc.

At a very early stage a start-up requires capital and connections which is exactly what is provided. Entrepreneurs gain exposure by talking to investors in accelerator programmes. Selection by such programmes gives a lot of validation to the product-concept. The power is shifted from the investors and accelerators towards the entrepreneurs. Initially the focus was only on creating a database of start-ups but has evolved since. Awareness around the massive set of opportunities that existed for entrepreneurs in India to build technology start-ups was increased. The platform primarily provides support for funding, acceleration, mentoring, enterprise connections, recruitment support and prototype development.

A lot of knowledge and initiatives is driven in the deep-hearted start-up communities of tier-2 and 3 cities which are hitherto unknown to the ecosystem outside.

A momentum has already been build which is continuing. Now the initiative looks to address some constraints which are emerging. A number of policy inputs based on the funding requirements, regulatory issues, infrastructural support, etc. which have emerged through this process allow for policy inputs to the government so that government policies are also supportive of this ecosystem.

In its first 9 months, the programme has impacted over 200 start-ups directly and touched over 25k entrepreneurs.[viii]

Policy advocacy

In 2013, the IT industry as a whole was able to work with the Government of India to change and release Safe Harbor Rules which lays out amendments in taxation policies, SEZ rules in tier-2 cities, service tax refunds, etc.

In recent times, the Judiciary and tax department have been burdened with accumulating litigations and cases. As per new norms, Government would notify the tax norms relating to the industry which would help attract new investment from previously concerned MNCs, expansion of existing centers and offer certainty. The rules are to be applicable for 5 assessment years beginning from 2013-14.[ix]

In the realm of Global Trade Development, the US Immigration Bill when came into place was seen as discriminatory and detrimental to the Indian IT Industry. The bill tabled immigration reforms addressing America’s problems. This challenged the influence of the Indian IT industry on the US economy in terms of taxes and social security, creating employment, and renovating companies by making them more competitive.


Moreover, the unemployment in the IT sector in the US was 2.2% in 2013 Q1[x] while the headline unemployment rate stood at 7.6%.[xi] Further restricting immigration would only add to the existing problem of finding talent in the sector making it difficult for all organizations to hire locally. Another finding by the National Foundation for American Policy states that the top 25 India-based companies utilized 20% of the H-1B visa approved for initial employment in FY2012 representing only 0.017% of the US labor force.[xii]

These issues were raised with the Indian Government. Subsequently, the Finance Minister, Commerce Minister, and the Minister of External Affairs raised these concerns with US authorities. In addition to this, NASSCOM connected with international firms, associations and others on expressing the influence of these deleterious provisions on the US industry and the trade relations among the two nations. The Global Trade initiative also deepened its emphasis on building new market prospects in emergent markets such as Japan, China and Africa.

Skill Identification

Regularly, IT-ITeS Industry Occupational Analysis Reports are released which ascertain unique professional roles in the industry for entry, middle and leadership levels. Enactment of these standards aid in better defining of skills and proficiencies for the industry. The reports intend to normalize and simplify the practice for employing and training talent and will assist the sector to shape rightly-skilled, high class, job-ready and employable manpower.

The four sub-sectors included in the Occupational Analysis are IT Services, Business Process Management, Engineering and R&D & Software Products and 67 unique entry-level job roles have been acknowledged in the purview. The reports concerning knowledge, abilities and conducts, vital for performance in a specific occupation have been recognized in the analysis.

“India is at the cusp of a great opportunity and is entering an era of becoming the workhorse for the world. Reports like these are the first steps towards creating an understanding for the skills and behaviors required for the IT-BPM industry. The Government of India has set a target of skilling 500 million people by 2022; to be able to deliver this target, a structured approach involving all stakeholders is imperative. This is a starting point in the direction of imparting skills for the relevant jobs. These reports give us a clear understanding of the opportunities of the industry.”

-          Mr Shashi Tharoor, erstwhile MHRD, GOI[xiii]

The Indian IT-BPM Industry currently employs about 3M people directly and about 9M indirectly. The Industry holds a potential to provide 30M employment opportunities by 2020. Training professionals in the identified courses may lead upto 60% increase in employability. The Government of India has set a goal of skilling 500M people by 2022. To be able to achieve this a planned method linking all stakeholders is vital.

CONCLUSIONS

In an era of policy paralysis and upcoming start-ups, collectivization of knowledge and networks does produce a faster growth curve. It speeds up the learning curve of new entrants in the arena for both individuals and corporations. However, pooling of resources might do more harm than good. One of the major competencies of the Indian IT sector is its cost-effectiveness which is guided by the violent competition within the industry. Other Asian nations having abundant cheap labor do not enjoy this thrill of in-competition which contributes to the growth of the industry.

Diversity

As already seen, the Indian IT industry is vastly diverse in terms of geography, size of operations and verticals of competency. While they make collectivization difficult, they also provide specialization in various fields the constantly evolving industry demands. Collectivization also entails scientific management where one correct way of doing things is found. However, the industry continues to grow and evolve in unchartered areas in the beginning of the 21st century making it very difficult to have a stringent procedure. Collectivization may kill the creativity which is a prime feature of this industry.

Even the new players in the field do not define the one growing vertical of the industry. The two leading areas continue to be education and ecommerce which themselves create space for further concentrations. Even the largest exporting sector, i.e. IT services accounts for only 30% of the total exports creating a vast space for other areas such as BFSI, healthcare, utilities, etc.

Even the revenues of the industry have shown stark imbalance where 40% of the returns are enjoyed by the big 11 firms while 1.5k firms share 10% of the proceedings. In such a scenario, collectivization is sure to kill off the small growing players. This has two adverse consequences. One, it kills the entrepreneurial spirit which has been industriously nurtured in the country. Two, it would cause people falling out from one of the biggest employing industries for young educated Indians.

All successful IT companies in India share a culture of a healthy hierarchy and manageable size. It has been seen that companies usher their own doom by becoming too big to manage. In the absence of strong resource databases and knowledge-sharing systems, the industry might face similar consequences on collectivization. Already, the industry faces a management to employee ratio of 1:25 while the recommended average of a large industry is 1:40. The reason why the industry is able to sustain this number is due to the small size of organizations and high number of start-ups where management and employee roles are mixed. As of now, the Human Resource Capital of the industry in India does not allow for efficient collectivization.

Collectivized Rights

Collectivization poses the problem of Collectivized Rights. In a collectivized industry the system is ruled by the requirements of the leader, i.e. the majority gang leaving no space for minority interests. Just because the collectivized industry chooses to pursue a certain product or service, does not mean it is the right or required thing to do. Collectivized rights put too much might with the leader which poses the risk of destroying the industry at once.
                       
Collectives need to take into account the needs of all individual participants. The collectivized rights need to be derived from the rights of its members through voluntary, individual choice and contractual agreement. Every legitimate group undertaking should be based on the participants’ right of free association and free trade. Forcing participation would not count as legitimate collectivization. As we have seen, the IT industry is extremely concentrated in power making it easy to forecast the power balance in a state of collectivization.

Currently the IT industry enjoys the right of engaging or not engaging in businesses which is derived from the right of the owners to invest their money in a productive venture, the right of a firm to hire employees, the right of the employees to sell their services, the rights of producers to produce and sell their products and the right of the customers to choose and buy those products. Every link of this chain of contractual relationships rests on individual rights, choices and agreements. The notion of collectivization in the IT sector would leave these rights to some firms and take them away from others, which would rest on the power of lobbying.

Collectivization takes away the freedom the IT industry currently enjoys. There need to be some norms which help avoid criminal activities, i.e. violating the rights of others, but collectivization may lead to an industry where small players become pawns in a bigger game. The law must not give anyone the right to this. IT would not matter whether the smaller players are bullied by force or voting, the fact would remain that they would lose their rights. Again, it is not the duty of the big companies to nurture the younger players at their expense. This cannot be done until some vested interests are first taken account of. The big firms must only help the smaller ones if and when they choose to do so. Even in a state of collectivization, the leaders must have no right to violate the rights of the smaller firms.[xiv]

Benefits of Collectivization

It is difficult not to see the benefits of Collectivization in the Indian IT industry. It is easily seen that the growth of the IT industry follows the growth of NASSCOM. It also helps in identifying talent and training them according to broad industry needs while growing the industry itself in important sectors. Infact, some prefer collectivized decisions which protect the smaller firms from eradication as opposed to a capitalist environment which makes it impossible for start-ups to survive. Collectivization also assures obligatory employment. Most professionals are unable to find employment in the fiercely competitive market. Collectivization ensures the industry as a whole taking care of everyone where the needy would be supported by those with means. In a country like India where unemployment increases year-on-year, collectivization in one of the fastest growing industries may help to curb this problem to a large extent. The workers face constant exploitation and low salaries. In recessive cycles, layoffs are seen as an easy way of cost-cutting. Such problems would not exist in a collectivized industry. Some argue that collectivized industries leave little to wish for the workers and they are able to focus better or the work rather than other aspects of their lives.
                              
Moreover, larger resources such as bandwidth and allied infrastructure can be more efficiently provided by the Government equitably through collectivization. Experts could help the industry to grow in modern ways resulting in better quality and quantity of products and services. It would also become much easier to procure resources. There would be fewer supply points in the industry. Also, collectivization aligns itself with the goals of the Indian Republic, i.e. to be a socialist state. There cannot be a socialist state where the majority of firms are private who can sell their products on the market. Collectivization would socialize the industry raising the overall standard of living.

Demerits of Collectivization

It has repeatedly been argued that collectivization would lead to the death of the Indian IT industry by convergence of the industry diverging from the present dynamic model. It can easily be seen that a collectivized industry will fail to cater to the needs of niche markets which might grow over time. Moreover, collectivization would lead to lower labor requirements releasing unemployed populace in an already struggling economy. The bureaucracy in such a condition would move ferociously fast in a mad competition to see who could get most firms into collectives. The Government, which lays the laws, would have little control over the happenings in the districts. Over the course of history, it has been invariably seen that collectivization leads to a rise in prices, later liberalization, tax reduction and advance cash payments to incentivize production for niche markets. However, this charade leaves the industry crippled and incompetent against international players and with a huge labor force. Ironically, international competitiveness is what the Indian IT industry is known for. Small private firms grow in size and provide for much of the production of the industry. With IT guiding the economy of India to a large extent in the present day, we would not like to risk the entire economy of India by collectivizing such a key industry.

Impact on Entrepreneurs

In a collectivized industry, most enterprising professionals cannot survive. Most new small firms would be shut down in such a scenario. Entrepreneurs who wish for their own profits would resist working for a collective. Also, it is difficult to place trust in to what extent would their resources be collectivized, refraining small players to share their knowledge to the market. Once profits have been made, entrepreneurs would find it difficult to fight the larger collective to preserve their fair share and have to pay a terrible price for their resistance and lack of cooperation.

Another problem is lack of incentive. The entrepreneurs have nothing to work for. The profits generated by collectives cannot assure anything left for them. In this environment, apathy, neglect and petty insubordination grows. No manager can perform with such employees at hand.

FINAL WORDS

The study shows a mixed picture. While Collectivization looks like a good measure to standardize and grow the industry in a state of policy paralysis and low domestic revenues, the human costs may turn out to be horrendous. It comes down to a choice which the economy has to make whether to be dominated by the private market or be at the mercy of a few large players.


REFERENCES

[i] Collectivization. Dictionary.com.

[ii] McCauley, Martin, Stalin and Stalinism, p.25, Longman Group, England, ISBN 0-582-27658-6.

[iii] Gartner Says Top Five Indian IT Services Providers Grew 23.8 Percent In 2011. Gartner. Mumbai, India. 7 May 2012.

[iv] India IT-BPM Overview. NASSCOM. December 2012.

[v] MohanRaj, Prasanna; Niranjan and Snighdha. "Indian I.T Industry - A Model based approach to a shift towards a Prominent Presence in the Global Market". Research Journal of Economics and Business studies. May 2014.

[vi] "Vision and Mission". NASSCOM. Retrieved 2012-01-13.

[vii] Councils. NASSCOM.

[viii] NASSCOM 10,000 Startups Celebrates One Year. 10,000 Start-ups - a NASSCOM initiative.

[ix] SAFE HARBOUR RULES FINALIZED AFTER CONSIDERING COMMENTS OF VARIOUS STAKE HOLDERS. PRESS INFORMATION BUREAU. GOVERNMENT OF INDIA. New Delhi: September 18, 2013.

[x] Tech Employment Snapshot. Dice.

[xi] Labor Force Statistics from the Current Population Survey. Bureau of Labor Statistics. June 28, 2014.

[xii] Indian techies creating jobs in US: Study. Press Trust of India, 3 May 2013.

[xiii] Aimed at standardizing the process for hiring and training talent. 11/14/13. RSSING.COM

[xiv] Collectivized Rights. The Virtue of Selfishness. Ayn Rand. June 1963.