Framework for Developing Human Capital for IT Local Content in Nigeria

1. Framework for Developing Human Capital for IT Local Content in Nigeria SB Junaidu (sahalu@abu.edu.ng) Professor & Director IyaAbubakar Computer Center Ahmadu Bello University, Zaria, Nigeria

2. Outline • Introduction • Goal & Motivation • Requirements for Realizing Goal • Quick Internal Audit • Learning from other Countries • Developing Human Capital for IT Local Content • Conclusion November 20, 2012@Transcorp Hilton, Abuja

3. Introduction • Framework • a logical structure, plan or frame of reference that describes/guides the realization of something • A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality • Human Capital • Human Capital or Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy November 20, 2012@Transcorp Hilton, Abuja

4. … Introduction My charge in simple terms: To develop workable strategies for creating a pool of skilled personnel in appropriate numbers with adequate skills, in line with the requirements of the ultimate users such as the industry, trade, and service sectors November 20, 2012@Transcorp Hilton, Abuja

5. Goal Develop domestic outsourcing industry to support local businesses and government services Become an offshoring hub for international investors Develop a knowledge economy driven by ICTs Increase security & enhance national development November 20, 2012@Transcorp Hilton, Abuja

6. Motivation • In Nigeria today, our knowledge-base and technology environment especially in the area of ICT is greatly dominated by foreign technologies • enhance Nigerian content in IT products and services • Arrest capital flight from our local industries • empower indigenous IT entrepreneurs in order to contribute to Nigeria’s GDP November 20, 2012@Transcorp Hilton, Abuja

7. … Motivation • The service sectors contributed most in countries that have grown & sustained their rapid growth • The global service market has been growing at 30% annually between 2003 and 2010[2] • Outpacing growth rate in goods trade and even other services trade • The percentage of total the workforce engaged in services is expanding at a rapid pace November 20, 2012@Transcorp Hilton, Abuja

8. … Motivation • The services sector now accounts for [5] • 70 % of employment and 73% of GDP in developed countries and for • 35% of employment and 51% of GDP in developing countries November 20, 2012@Transcorp Hilton, Abuja

9. Fair Dream! • The problem is real • Absence of appreciable Nigerian content in solutions for government and industry services • The market is there • Global demand for services, growing by about 30% annually • The potential is there • Large population with comparatively high literacy rate • So, the dream is justified! November 20, 2012@Transcorp Hilton, Abuja

10. Requirements for Realizing Goal • Reasons for outsourcing/offshoring • To reduce labor costs • To increase productivity and competitiveness • To expand operations and broaden customer base November 20, 2012@Transcorp Hilton, Abuja

11. … Requirements for Realizing Goal • Favorable costs (staffing, facilities, telecomms, etc) • Financial incentives • Good human resources (availability & quality) • Functional business environment (available, quality and reliable infrastructure, legal and political systems) • Infrastructure • Regulatory policies • Economic stability • Political stability November 20, 2012@Transcorp Hilton, Abuja

12. Importance of Employable Talent • The availability of employable talent is the single most important determinant for the growth of the IT services and ITES industries in the long term • After access to high-bandwidth telecommunications infrastructure • Nigeria must trade locally & globally on its human capital endowment! November 20, 2012@Transcorp Hilton, Abuja

13. Talent Pool Assessment • Talent pool assessment begins with the annual number of university graduates • in each of several subjects that are of interest to IT/ITES firms. • This number is then whittled down to understand how many of these graduates are • suitable for employment • willing to work in this industry • Accessible • trainable November 20, 2012@Transcorp Hilton, Abuja

14. Talent Supply in Low-Wage Countries • The potential supply of talent in low-wage countries is large and growing rapidly • Only 13% the potential talent supply in low-wage nations is suitable to work for multinational companies • Reasons • lack of necessary language skills; • low quality of significant portions of the educational system and its limited ability to impart practical skills; and • low interpersonal skills and attitudes towards teamwork and flexible working hours. November 20, 2012@Transcorp Hilton, Abuja

15. Talent Supply in Nigeria [6] • Nigeria lags other offshoring destinations in tertiary education enrolment • Nigeria continues to under-invest in the education systems • Compared to South Africa, India and China • Nigeria has very few specialized technology, IT and management colleges • Effectiveness of existing ones hampered by financing and human capacity constraints November 20, 2012@Transcorp Hilton, Abuja

16. NEEDs Report on Nigerian Universities [4] Nigerian universities are grossly under-staffed Most state-owned universities rely on visiting lecturers to run their academic programmes Many Nigerian universities depend heavily on under-qualified “recycled staff as visiting, adjunct, sabbatical and contract lecturers.” November 20, 2012@Transcorp Hilton, Abuja

17. … NEEDs Report on Nigerian Universities [4] Only 43 percent of them have PhDs with only 44 percent in the required bracket of senior lecturers to professors Out of the 124 universities in the country, only seven have up to 60 percent of their teaching staff with PhD Nigeria has one of the highest lecturer/student’s ratio November 20, 2012@Transcorp Hilton, Abuja

18. Other Concerns: Outsourcing Fears • Poll on 25 Most Dangerous Cities for Outsourcing in 2010 [1] • Lagos, Nigeria, Lahore, Pakistan, and Medellin, Colombia were the least safe in terms of violent crime and police protection • Lagos, Lahore and Medellin were thought to have the least secure IT infrastructure • Even the perception of risk factors such as high crime, corruption or terrorist threat can paralyze a region's offshore business momentum • Doug Brown, Datamonitor Research Director November 20, 2012@Transcorp Hilton, Abuja

19. Learning from other Countries: India • Long-term investment in world-class technology institutes • produced a critical mass of technology leaders able to compete globally • Liberalized entry of private technology institutes in the tertiary education market • multiplying the number of engineering graduates available for the IT sector in only a few years. November 20, 2012@Transcorp Hilton, Abuja

20. … Learning from other Countries: India • Launched the Software Technology Parks of India (STPI) initiative in 1991 • to overcome infrastructural and procedural constraints by providing data communication facilities, office space, and “single window” statutory services were extremely beneficial • India’s telecommunications policies of 1994 and 1999 also allowed private sector investments into the sector November 20, 2012@Transcorp Hilton, Abuja

21. … Learning from other Countries: India Captures about 60% of the global offshoring market India has a Ministry for Human Resource Development India has a talent pool of three million graduates passing out of universities every year November 20, 2012@Transcorp Hilton, Abuja

22. … Learning from other Countries: India • India’s Eleventh Plan gave a very high priority to Higher Education with initiatives such as • establishing 30 new Central universities • 5 new IISERs, • 8 IITs, • 7 IIMs, • 20 IIITs, etc. November 20, 2012@Transcorp Hilton, Abuja

23. Developing Human Capital for IT Local Content Assess ICT skill needs/deficits in partnership with industry & academia Develop a strategic plan of action to meet the needs in a finite time frame Delineate clearly the roles to be played by Government, Industry and Academia in reaching the set targets November 20, 2012@Transcorp Hilton, Abuja

24. … Developing Human Capital for IT Local Content • Establish a National Skills Portal for exchange of information b/w employers and employees • A National Skills Inventory DB • A National DB for Skill Deficiency Mapping • Helps to aligning skills development with the needs and requirements of the industry • the most important factor for success November 20, 2012@Transcorp Hilton, Abuja

25. … Developing Human Capital for IT Local Content • Introduce standardized national level tests similar to SAT, GRE, etc • for benchmarking of students seeking admissions • Introduce a common nation-wide benchmark for assessing graduating students • In partnership with industry stakeholders November 20, 2012@Transcorp Hilton, Abuja

26. … Developing Human Capital for IT Local Content • Establish Skills Development Centers to compliment other education outfits • Both bricks-and-mortar as well as virtual • Create task forces to provide specialist retraining of graduates in electronics and computer science • to boost the capability of responding to industry needs November 20, 2012@Transcorp Hilton, Abuja

27. … Developing Human Capital for IT Local Content • Reorient accreditation away from regulation to performance measurement • Rate and rank institutions on standardized outcomes like % graduates placed, dropout rates, etc November 20, 2012@Transcorp Hilton, Abuja

28. … Developing Human Capital for IT Local Content • The government must refocus its attention and resources on education • development of a first class educational and scientific research establishment • non-traditional colleges responding to market demand for business and technical training • Refocus stakeholding in Education, nationally November 20, 2012@Transcorp Hilton, Abuja

29. Summary Presented the needs & motivations for Nigerian content in ICT services, locally and internationally Gave passing justification why such a move is valid Mentioned the requirements for Nigeria to be a competitive outsourcing/offshoringlocation Provided some strategies for developing Human Capital for IT Local Content in Nigeria November 20, 2012@Transcorp Hilton, Abuja

30. References Datamonitor Group (2010), Offshoring: 25 Most Dangerous Cities for Outsourcing in 2010. McKinsey Global Institute, 2005. “The Emerging Global Labor Market: Part III—How Supply and Demand for Offshore Talent Meet,” McKinsey: San Francisco, p. 19. A.T. Kearney, 2009. “Geography of Offshoring is Shifting,” Global Services Location Index. National Economic Empowerment and Development Strategy (NEEDS) Committee, NEEDS report:Nigerian varsities grossly under-staffed, BluePrint Newspaper, November 12, 2012, http://blueprintng.com/2012/11/needs-reportnigerian-varsities-grossly-under-staffed/. Accessed, November 17, 2012 UNCTAD (United Nations Conference on Trade and Development). 2008. Globalization for Development: The International Trade Perspective. New York: United Nations. http://www.unctad.org/en/docs/ditc20071_en.pdf. November 20, 2012@Transcorp Hilton, Abuja

31. … References I. Radwan and N. Strychacz, Developing an African Offshoring Industry: The Case of Nigeria, Africa Trade Policy Notes, Note #3, May 2010. November 20, 2012@Transcorp Hilton, Abuja

32. The End Thank You November 20, 2012@Transcorp Hilton, Abuja