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Global Opportunities for Engineers and S & T Professionals. By Dr T.H. Chowdary * Director, Center for Telecom Management & Studies * Chairman, Pragna Bharati (Intellect India), AP * Former Information Technology Adviser , Government of A.P Chairman & Managing Director
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Global Opportunities for Engineers and S & T Professionals By Dr T.H. Chowdary * Director, Center for Telecom Management & Studies * Chairman, Pragna Bharati (Intellect India), AP * Former Information Technology Adviser, Government of A.P Chairman & Managing Director Videsh Sanchar Nigam Ltd., Bombay T: +91 (40) 2784-6137/6667-1191(O) F: +91 (40) 2789-6103/6667-1111 (O) thc@satyam.com Talk @ Nalanda:Vijayawada on 12 Sept 2008
Taking offWorld GDP per Person, 1000=100______________________________________ 3500______________________________________ 3000______________________________________ 2500______________________________________ 2000______________________________________ 1500______________________________________ 1000______________________________________ 500______________________________________ 01000 1200 1400 1600 1800 2000Sources: Angus Maddison; J.P. Morgan S394 Sep 2008
World Population and the Poor Year Population % of the Poor 1820 1.1 billion 85% 1980 5 billion 30% 2000 6 billion 20% 2007 6.5 billion 18% S394 Sep 2008
Growth of GDP; Population; Per Capita Income (PCI) & Years for doubling PCI • Lesson from China: Control population during period of growth [JRD’s advice to Nehru in 1950s dismissed.] • BPL ratio is the index: in India it came down from 70% in the 1950s to • about 30% now [BPL ratio in A P is 85% according to white ration cards & increasing.] S394 Sep 2008
Content of GDP(Figs. in %) S394 Sep 2008
The Earth is Flat –Thomas Friedman • 2.5 bln, educated, low wage people added to work in the global economy after the Collapse of the Berlin wall ( 9-11-1989) and the USSR’s empire (1991) • Service occupations opened to competition by emergence of digital economy and the global spread of broad-band • Out-sourcing; Off-shoring; Not only software, BPO but also KPO! • Out-ward looking international economic policy-relations with trade/market partners • Bold and sustained political support for education; S&T & Entrepreneurship S394 Sep 2008
Science & Engineering Education • India has 12.1 mln science grads & diploma holders ( 14% in A P highest in India; 2nd Tamilnadu; 3rd Maharastra) • 10 mln age group ( 17 to 22) in the Universities • Population with 10th/12 class study 1991 2004 69.7 mln (8.2%) 246.9mln (23%) • Graduates & above 1991 2004 20.5 mln (2.4%) 48.7 mln (4.5%) • About 24% of graduates are in sciences • Of about 10 mln P.Gs in 2004 - 20% are in sciences S394 Sep 2008
Engineering & Business Professionals / year S394 Sep 2008
How Equipped is India for Higher Education • *Suggest: Begin having a University for each District • * Every Private Engineering College should be required to grow into a University within 8 years of wind up. • Corporates to found.fund ‘Varsities’. • In India we have 8.8 mln. or 5% of the young in the age group 18 to 23 yrs. in Universities S394 Sep 2008
S &T Personnel(per 1000 persons) S394 Sep 2008
Quality of Education (1) Number of Research Papers Published India South Korea Israel Brazil China 25,000 20,000 15,000 10,000 5,000 Source: Business World, 30 Jan 2006 No. of Papers 0 1980 1990 2000 Years S394 Sep 2008
Quality of Education (2) Number of PHD Degrees in Engineering China South Korea Taiwan India Japan 4,000 3,000 2,000 1,000 500 0 Source: Business World, 30 Jan 2006 No. of Degrees 1975 1975 1999 Years S394 Sep 2008
Knowledge Production- China S394 Sep 2008
Brain Gain in Developed Countries S394 Sep 2008
College Grads ( Professions) Leaving Country (%) S394 Sep 2008
Decline in the USAOur Opportunity (1/3) • US 18 to 24 Y olds receiving science degrees has fallen to 17th position in the world from 3rd, three decades ago. • World-wide Bachelor degrees in Science & Engineering 2.8 mln in Y 2003 Asia EU USA 2.1 mln 830K 400K • Asian Universities produce 8 times more Engineers than the USA S394 Sep 2008
Decline in the USAOur Opportunity (2/3) • S&E degrees (out of all Bachelor degrees) China Korea Taiwan USA 60% 33% 41% 31% • Engineering Bachelors graduating every year USA Russia China India 5% 25% 46% 4% S394 Sep 2008
Decline in the USAOur Opportunity (3/3) • Foreign born S&E graduates in the US (Brain gain) S&E Bachelors Masters Ph.Ds 1999 11% 19% 24% 2000 17% 29% 38% S394 Sep 2008
Indian Talent Works for Others • GE- largest R&D center outside USA in Bangalore 2300 • double that in Shanghai • $ 80 mln Bangalore center • Filed for 260 patents (37 appvd.) • Motorola: 1700 employees • 40% of software in its mobiles from India • The Internet Browser and multimedia messge system conceived & developed for 3G,GSM, engineered • Global automakers ( 3 to 5)% on R&D • India: 150K computer graduates • HUWAI & ZTE…. S394 Sep 2008
Indian Software Industry Exports ( $ mln ) S394 Sep 2008
Employment in Indian IT sector*,’000 2.5 mln 20 mln 2008 (* Years ending March; + Estimate @ break-up: NA) S394 Sep 2008
Share of India in GlobalBPO & KPO Markets Year 2003-’04 2010-’11 BPO 36% 55% KPO 56% 71% Leaders: Eng. Design Basic Data Biotech & Search Pharma Integration & Mgment 400m $ 300m $ 280 Education coming up S394 Sep 2008
Foreign Companies Engaging Indian intellect • GE – Largest R&D center outside USA is in India in Bangalore with 2300 researchers, double that in Shanghai • GE put in $ 80 mln in the Bangalore R&D facility • GE’s Bangalore R&D field for 260 patents in the USA (37 already approved) • Boeing USA is outsourcing Aircraft design to Russia ( $ 120/ Hr) • Russians are outsourcing parts of the design to HAL (BG) at $ 30/Hr • Gorbachev went to USA to recommend Moscow as Bangalore’s rival! • An Indian retained does the work of 2 or 3 Europeans; does not take 6 weeks of holidays & costs one-fourth S394 Sep 2008
Some Foreign Companies’ Employees in India S394 Sep 2008
A New Business: Education • NIIT trains 45,000 students/year • Has tie-up with 35 Universities in China • Entered China in 1997, has 10 training centers in 25 provinces • Offers courses in Arabic, Spanish, Russian, Chinese, French and English • Took loan from World Bank and gives education loans & scholarships S394 Sep 2008
E-tutors • Kochi tutors teach 20,000 US Students in Maths and Science online ( audio, video interactive) • IIT Chennai students help students in Singapore, grades 6 to 12 on their Maths homework • Teachers develop lesson plans to teach Maths • Company is Heymath.com S394 Sep 2008
Satyam/ Byrraju – GramIT; work to villages S394 Sep 2008
Work taken to Villages: GramIT • While US, EU, Oceania outsource to Hyderabad, Hyderabad out-sources to villages. • Satyam Computers & Byraju Foundation • 200 Resident village graduates ( BA, B.Com, B.Sc) trained in Ameringlish; imparted computer & Internet skills • Satyam (Hyderabad HQ) outsourced its own internal work (pay-roll, accounting; travel; training; MIS • Satisfied,work from abroad moved to villages S394 Sep 2008
Work taken to Villages: GramIT (2) • Broad-band telecom (optical fiber) 512 kbps extended from point of presence (POP) to work-site by PMP wireless • Called Gram ITs, these offer transaction processing services (accounting, bulk mlng; records digitisation, reminder and follow-up and travel support). • A whole Gram IT can be dedicated to a customer (like twinning of cities across continents; city com@Gram.IT twinning) S394 Sep 2008
Work taken to Villages: GramIT (3) • Gram IT-team contributed part of profits for village development scheme designed by them – Independent and local initiative • Rural Pressure group to demand and get quality infrastructure and services such as roads, retailing, education, health S394 Sep 2008
Social Impact of Gram IT • Reverse migration ( 5% within 6 months) • Educated house-wives (lost resource) join work force (no travel)-20% now • Un-married girls: better spouses S394 Sep 2008
India’s English Speaking Advantage This is an excerpt from an essay written by a candidate from Bihar in the UPSC (IAS) examination. We are informed that the candidate has passed the exam: The cow is a successful animal. Also he is 4 footed, and because he is female, he give milks, ( but will do so when he is got child). He is same like God, sacred to Hindus and useful to man. But he has got four legs together. Two are forward and two are afterwards. His whole body can be utilised for use. More so the milk. Milk comes from 4 taps attached to his basement. His motion is slow only because he is of lazy species. Also his other motion (gobar) is much useful to trees, plants and as well as for making flat cakes ( like pizza), in hand, and drying in the sun. His only attacking and defending organ is the horns, specially so when he is got child. - (Contributed by Vipin Buckshey, New Delhi, H.T 31.1.04) S394 Sep 2008
Improvements We Need (1/2) • We need great teachers 70% of living Nobel Laureates are teaching in the top 50 US Universities • Quality of education; learning; creativity; analytical & communication abilities • Examination talent X Knowledge talent • Competition among colleges & universities • Private Universities – Government to back off • End the farce of “minority” colleges S394 Sep 2008
Improvements We Need (2/2) • Great companies, not MLAs, Real-estate men to found colleges & varsities • Post graduation/ Research & work for a few years in the top six of the OECD countries • Markets/Clients abroad • Wealth creation here & jobs for Indians • MIT graduates founded 4,000 companies, created 1.1mln jobs, generated sales of $232 bln (Rs. 10,43,000 crores) S394 Sep 2008
Foolish Questions • Are we producing cyber-coolies • West exploiting Indian talents & profiteering • Digital Divide: Rich-poor gap between nations & within India S394 Sep 2008
Bharat Mahan !! Indians in the US • There are 3.22 Million Indians in America • 38% of Doctors in America are Indians. • 12% of Scientists in America are Indians. • 36% of NASA employees are Indians. • 34% of MICROSOFT employees are Indians. • 28% of IBM employees are Indians • 17% of INTEL employees are Indians. • 13% of XEROX employees are Indians. S394 Sep 2008
Dhanyawad:Thank You S394 Sep 2008