Computerized Vocational Training

1
Computerized Vocational Training Employable
Skills

• Uncommon Opportunities Roadmap for Employment,
  Food Global Security
• November 21, 2004
• The Mothers Service Society
• Pondicherry, India

2
Employable Skills

• 50 of firms in developing and industrialized
  countries report severe shortage of skilled
  workers.
• Indias problem is not lack of employment
  opportunities but lack of employable skills.
• Skills create employment and self-employment
  opportunities.

3
Vocational Skills Gap

• Only 5 of Indias workforce (20-24 years) have
  vocational training compared with 28 in Mexico
  and 96 in Korea.
• By 2010 major labour shortages will emerge in the
  industrialized nations forcing movement of both
  manufacturing service jobs to wherever the
  skills are best.
• Upgrading skills essential to tap global markets

4
Vocational Training in India

• 4200 ITIs
• 1,654 government run
• 2,620 private
• Courses offered
• 43 engineering 24 non-engineering trades
• Capacity 6.3 lakhs
• State enterprise programmes 1.7 lakh
• Including agriculture other 20 lakh

5
Vocational Training Deficit
Students completing 8th-9th standard 300 lakhs
Students entering 10th-11th 150 lakhs
New entrants to workforce (per year) 70 lakhs
Vocational training in engineering, agriculture other fields 20 lakhs
New entrants to workforce w/o training 50 lakhs
Existing unemployed youth (15-29) of which 80 are educated up to 10th 150 lakhs
Existing workers to be trained to raise non-ag skilled portion to 25 350 lakhs
6
Three Models

• Farm Schools in every revenue village
• Vocational Schools
• Computerized Televised Vocational Training

7
Vocational Schools

• Promote vocational institutes at block and
  district level
• 5000 govt
• 50,000 private
• Conduct exams for every skill as for drivers
  licenses
• Certify approved training centres, e.g. BPO
• Provide scholarships incentives for trainees

8
Computer-based learning is twice as fast _at_ half
the cost

• Multimedia
• Interactive
• Immediate Feedback
• Self-paced learning
• Eliminates need for trained teachers
• Responds rapidly to changing skill needs
• Uniform testing

9
Computerized Vocational Training

• Establish 1 lakh CVT Institutes like internet
  cafes
• 50,000 in private sector
• 50,000 training centres at engineering and arts
  colleges, ITIs, polytechs, high schools, NGOs,
  etc.
• Partnership with industry to develop multimedia
  training software
• Provide training to a minumum of 4 million
  students per annum
• Government certification of courses
• Generate self-employment opportunities for 50,000
  entrepreneurs

10
Multimedia vocational courses
RWH Child care Nutritionist
Selling skills Real estate Law clerk
Telemarketing Insurance agent Quality manager
Catering Video editing Furniture design
Farm mgmt Pharma rep Textile design
Reporter Dry cleaning Electrical repair
Travel agent Internet research Graphic design
Bookkeeper Organic farming Interior design
11
Vocational Skills

• 50 of firms in developing and industrialized
  countries report severe shortage of skilled
  workers.
• Indias problem is not lack of employment
  opportunities but lack of employable skills.
• Skills create employment and self-employment
  opportunities.

12
Vocational Skills Gap

• Only 5 of Indias workforce (20-24 years) have
  vocational training compared with 28 in Mexico
  and 96 in Korea.
• By 2010 major labour shortages will emerge in the
  industrialized nations forcing movement of both
  manufacturing service jobs to wherever the
  skills are best.
• Upgrading skills essential to tap global markets

13
Vocational Training in India

• 4200 ITIs
• 1,654 government run
• 2,620 private
• Courses offered
• 43 engineering 24 non-engineering trades
• Capacity 6.3 lakhs
• State enterprise programmes 1.7 lakh
• Including agriculture other 20 lakh

14
Vocational Training Deficit
Students completing 8th-9th standard 300 lakhs
Students entering 10th-11th 150 lakhs
New entrants to workforce (per year) 70 lakhs
Vocational training in engineering, agriculture other fields 20 lakhs
New entrants to workforce w/o training 50 lakhs
Existing unemployed youth (15-29) of which 80 are educated up to 10th 150 lakhs
Existing workers to be trained to raise non-ag skilled portion to 25 350 lakhs
15
Three Models

• Farm Schools in every revenue village
• Vocational Schools
• Computerized Televised Vocational Training

16
Vocational Schools

• Promote vocational institutes at block and
  district level
• 5000 govt
• 50,000 private
• Conduct exams for every skill as for drivers
  licenses
• Certify approved training centres, e.g. BPO
• Provide scholarships incentives for trainees

17
Computer-based learning is twice as fast _at_ half
the cost

• Multimedia
• Interactive
• Immediate Feedback
• Self-paced learning
• Eliminates need for trained teachers
• Responds rapidly to changing skill needs
• Uniform testing

18
Computerized Vocational Training

• Establish 1 lakh CVT Institutes like internet
  cafes
• 50,000 in private sector
• 50,000 training centres at engineering and arts
  colleges, ITIs, polytechs, high schools, NGOs,
  etc.
• Partnership with industry to develop multimedia
  training software
• Provide training to a minumum of 4 million
  students per annum
• Government certification of courses
• Generate self-employment opportunities for 50,000
  entrepreneurs

19
Multimedia vocational courses
RWH Child care Nutritionist
Selling skills Real estate Law clerk
Telemarketing Insurance agent Quality manager
Catering Video editing Furniture design
Farm mgmt Pharma rep Textile design
Reporter Dry cleaning Electrical repair
Travel agent Internet research Graphic design
Bookkeeper Organic farming Interior design
20
CVT Job Shops

• Privately owned, self-employment
• Each centre with 1 to 10 computers
• Stocked with a library of training software
• Training material on CD-Rom format
• Fees based on an hourly rate

21
CVT Job Shop Assumptions

• Three computers per Job Shop
• 20 training programmes per Job Shop
• Each computer utilized 300 hours per mo
• Operating expenses for rent, two paid employees,
  phone, electricity may range from Rs 15,000 to
  20,000 per month

22
CVT Job Shop Economics

• Capital investment Rs 1.5 lakh.
• Cost of operations per computer hour Rs 20 /
  hour.
• Cost of amortising of computers and software over
  two years Rs 14 per hour
• Average cost of training Rs 35 per hour
• Average retail price of training Rs 50 per hour
• Net profit Rs 15 per hour or Rs 1.5 lakhs / yr
• 50 hours of computerized vocational training,
  equivalent to about 250 hours of classroom
  training, would cost the student only Rs 2500.

23
Training Software Economics

• Cost Rs 50 lakhs per course
• Retail price Rs 1000 per set
• Sale of 10,000 sets generates Rs 50 lakhs profit
• Offer 50 government subsidy for development of
  approved courses

24
CVT Action Plan

1. Delivery CVT through all state-owned engineering
   colleges, ITIs, Polytechnics, liberal arts
   colleges, high schools, other institutions.
2. Provide financial assistance/ incentives under
   Central Government self-employment schemes to
   promote private training institutes.
3. Encourage financial institutions to provide loans
   to entrepreneurs.
4. Negotiate with computer software companies to
   develop a wide range of vocational training
   courses.
5. Recognized institutional authorities to certify
   course contents.
6. Finance bulk purchase of approved training
   software with 50 subsidy to minimize the cost of
   training.
7. Train entrepreneurs to set up/manage private
   institutes.
8. Provide scholarships to low income youth to cover
   training fees.

25
IT Incubator Business Parks

• Computerised vocation training
• Computerised tuitions institutes
• Computerised language training
• Software training
• Video-conferencing services
• High speed data transfer services
• Web, graphic and animation design services
• Computer repair and maintenance services
• International Internet telephony
• Computer hardware parts manufacturing and
  assembly
• Customer and technical support call centres
• Back office processing
• Medical transcription
• Digital photography, scanning and image
  processing
• Internet research services
• Accounting services
• Computerized testing laboratories

26
Who creates enterprises?

• Skilled experienced workers leaving existing jobs
  create enterprises
• Machinists
• taxi drivers
• hotel servers
• bus cleaners
• Printers
• tailors
• Do entrepreneurial training programmes work?

27
Promoting Entrepreneurship

• Extend bank credit seed capital to employees
  with 5 years experience
• Require training certification for new
  enterprises to reduce failure rate
• Existing entrepreneur to sign as guarantor
• Insurance companies can ensure loans based on
  qualifications

28
Issues for Study

• Natural job creation
• How many jobs are being created?
• In which sectors fields?
• By what process?
• How can the natural process be magnified and
  accelerated?
• How are rural migrants absorbed in the cities?
• Occupational demand
• Identify high growth occupational categories at
  all levels
• Measure growth in pay/income levels by category
• Emerging Activities
• Identify emerging occupations in all sectors,
• Farm managers Soil technicians
• Servicing for cell phones, ACs, computers, VCDs,
  etc.
• Home delivery, floor cleaner, masseuse
• Skills for national development
• Compile a complete list of skills needed for
  Indias development to next higher level
• Job creation in other countries
• Study which job categories grew rapidly in US
  during a comparable period?
• Efficacy of Entrepreneurial Development
  Programmes