III. IT HUMAN RESOURCE
The Recommendations of the
Working Group on IT Human Resource Development are given
The National Task Force on
IT and Software Development, constituted by the Prime
Ministers office, has envisioned India emerge as an
IT Superpower in the world by 2008. The Task Force has
already submitted two reports to the government catering
to the policy level initiatives required to be taken for
developing Software and Hardware industry in the country.
The first report of the Task Force, called IT Action
Plan, Part I, dealing with Software sector, has
already been accepted by the government. Number of
initiatives recommended in this report have already been
implemented by the concerned ministries/departments. Task
Force has set a target of US $50 billion for software
export from India by 2008. Adding hardware exports and
domestic sector requirements in hardware and software,
the total size of IT industry is estimated to reach a
level of US$ 100 billion by 2008. That will need a
Compounded Annual Growth Rate (CAGR) of about 40%, a
figure which has been regularly exceeded by the Indian IT
industry for several years.
One of the key issues in
achieving the targeted level of around US $100 billion
for the IT sector in next 10 years is the availability of
quality manpower in IT as well as IT-enabled sectors in
adequate numbers. Currently, the productivity in IT
industry is much less compared to international
Role of IT Companies in
IT companies will be
encouraged to play a significant role in IT education.
Following steps will be taken in this regard:
- IT HRD, including IT
Education and Training, in formal as well as
non-formal sector, will be treated as a Service
industry. For this purpose, in the IT Action Plan
(Part I) approved by the cabinet and
notified in the Gazette of India, Extraordinary,
No. 160, Part I, Section I, dated
July 25, 1998, wherever IT Services"
are mentioned, they shall be redefined to include
IT manpower development including IT Education
and Training. As the IT HRD companies have
presently the greatest propensity for becoming
Indian multinational companies around the world,
the provisions of the IT Action Plan Policy Nos.
19, 21, 23 to 25, 27 to 42, 45 to 53, 55 to 57,
58 to 80, 88, 96, 98 and 99 fully apply to IT HRD
companies, public institutions, autonomous
institutions and private societies, with the
following additional qualifications:
Service/service and IT enabled
service/enabled service will ipso facto
include IT HRD/IT Education/IT Training
Software will ipso facto include IT
Training materials in Program/Program Text/
learning, software and associated databases.
networks will ipso facto include networks as
carriers for distance learning networks and
satellite based/ optical fibre cable based
delivery mechanism for Education-to-Home
(ETH) services/ Education-to-Community
Centres (ETCC)/ data broadcast systems and
services delivering educational contents and
and Private STPs will ipso facto include
Technology parks combining any subset of
services at (a), (b) and (c) above.
- IT Software and
IT service exporters and joint ventures/
purchase of companies abroad will ipso facto
cover IT HRD/ Education/ Training Services
export and/or NRI companies primarily
registered in India or with India as the
primary operational base or having
headquarters in India.
and Financial Institutions (FIs) will be allowed
to float special bonds, to be called Vidya Dhan
(Education Bonds), to raise capital for
investment in IT Education and Training sector.
The investment in Vidya Dhan will be treated at
par with Infrastructure Bonds.
and Fis will make this fund available to IT HRD
companies and institutions on low interest rates.
entrepreneurs, including NRIs, will be offered
special financial packages, including venture
capital, to set up IT education facilities by
Banks and FIs.
HRD companies will engage themselves in industry
oriented as well as basic research in specific
areas relevant to achieving the growth targets
set for the industry.
Vidya Kalyan scheme should be introduced to marry
the infrastructure that the state can provide
with the working capital (both physical and
human) that private enterprise can offer to
optimize available national resources for IT
education. Under this scheme, academic
institutions in the country offering IT education
in the formal sector, such as universities,
colleges, polytechnics and it is etc. will be
given full autonomy to tie up with IT industry to
jointly offer education and training programs.
For this purpose, they may float an IT Education
and training company under section 25, or as a
Society, wherein the contribution of the academic
institution in terms of infrastructure, such as
building and faculty and other resources, will be
treated as its equity to this company. National
Council for IT Education (NCITE), as envisaged in
IT Action Plan (Part I) will prepare
guidelines to facilitate this.
institutions should be given adequate autonomy to
attract and utilize community funds, and fees
should be linked to per capita income so that
they get automatically upgraded every year.
Companies, in IT as well as other sectors, will
be encouraged to set aside 6% of their value
added revenue (sum of salaries, perquisites and
net profit) to support IT HRD sector in offering
IT as well as IT-enabled education through
investment in infrastructure establishment/
upgradation in educational/ training institutes,
providing endowment, catering to the recurring
expenditure of the institute such as on salaries/
honorarium to faculty, scholarships to students,
providing part-time instructors, etc. These
companies will have full freedom to allocate such
funds to any institution of their choice and to
be utilized specifically in the manner desired by
in collaboration with IT HRD companies will aim
to achieve 100% IT literacy at senior secondary
level (10 + 2) in 5 years and at secondary level
in 10 years.
institutes offering engineering education,
including Polytechnics and it is, will ensure
that within 3 years all engineering students in
the country will graduate with IT knowledge to be
able to serve in IT enabled Services sector
besides serving in IT industry directly.
HRD sector will aim to achieve an export target
of US $5 billion by 2005. Towards this objective,
government will provide extensive support to
leading Indian companies in this sector to help
them emerge as large Multinational Companies
of Turnkey Structures will be
prepared jointly by the government, IT industry
and the IT HRD companies to evolve structure for
facilitating emergence of Indian MNCs in IT HRD.
A tripartite committee will be set up by the
government to develop such templates.
of national importance such as IITs, IISc and
IIITs will be allowed to collaborate with IT HRD
companies in their efforts in emerging as Indian
MNCs in this sector.
a view to bring stability in the sector with
respect to minimize the rate of attrition of
trained manpower from companies due to shortage
of skilled manpower in the industry and be able
to plan a massive growth in domestic as well as
global market, IT HRD companies will be allowed
to offer special financial incentives to its
employees such as Employee Stock Option (ESOP)
and Sweat Equity as per recommendations 58 and 59
in the IT Action Plan (Part-II).
IT HRD Enterpreneurship Training Programs will be
organized by the IT HRD sector in collaboration
with IIMs and other leading management institutes
for entrepreneurs and financial institutions.
HRD policy should be so designed that it is
effectively affordable even by the poor and
should cover all parts of the country including
programs should be instituted to
support/encourage higher end of IT education.
HRD companies/institutions may seek affiliation
to one of the Universities, Central, State,
foreign university, or any other such
institutional structure, existing or which may be
created from time to time, for award of degrees.
In case of affiliation to a foreign university,
it will be ensured that the foreign university is
recognized by the Association of Indian
Universities (AIU) and the degree for which the
affiliation is being sought is recognized by the
university in its own country.
fee colleges should be permitted to admit only
the number that can find employment. In
government institutions, state support should be
limited in the same manner to the number that can
private educational institutions, irrespective of
who runs them, should have the same autonomy that
is currently enjoyed by minority institutions and
have that autonomy even when they are aided by
from training in software and hardware skills,
increasing attention should be paid to education
in basic principles of computer science.
reward package for IT professionals (particularly
teachers) should be upgraded so that there will
be little need nor temptation to migrate.
Institute of Computer Professionals of India
(ICPI), as envisaged in the IT Action Plan
(PartI) and to be nucleated by NASSCOM with
initial financial support from the industry and
the government, will function as a voluntary
association, with various accreditation
institutions as its members.
IT HRD companies/institutions will be expected to
widely disseminate information on academic
performance of their students as well as their
placement in the industry. These institutions
will maintain a register, freely available to
public, of their alumni and the kind of
employment secured by them as an indicator of the
value of the education imparted by them. A system
of credit rating agencies is expected to evolve
in the country for evaluating IT HRD institutes.
R&D laboratories in the country will be given
accreditation for IT HRD programs, particularly
at the post graduate level.
special program should be organized to develop
instructional material employing IT as a tool in
all courses and at all levels from elementary
aptitude tests, on the pattern of GATE, will be
conducted by NCITE and other similar
organizations, at different levels to evolve a
process of all India ranking of students with
aptitude for IT education. The percentile score
in these tests will be used as short listing
criterion for admission to various IT HRD
programs in the country. Preferably, the
percentile score in the institution in which the
candidate has studied should also be used as an
additional short-listing criterion. That way, the
handicap, students have in backward areas, will
be mitigated. As these aptitude tests will not be
rejection tests (the way entrance examination
tests presently are), it is permissible to make
questions public in these tests through a large
tests like GATE should be organized in a
transparent manner with questions disclosed in
advance. The tests may be conducted twice in a
year and the candidates should be free to take
them as many times as they desire. In order to
ensure that the candidates are fully cognizant of
all the basic information needed for desired
program of further education, they should be
expected to answer all questions correctly and
the ranking will depend on how fast they do so.
A variety of such standardization tests should be
organized to meet every level of education.
current system of external examination should be
abolished at least for IT courses. Instead
continuous evaluation that will test the multiple
dimensions of intelligence needed by IT
professionals should be allowed to be organized
by each institution on its own.
and ICPI will establish and promote national IT
Competency Examinations (ITCEs) to certify
competency level of the students in various areas
and at various levels. Regulatory systems should
be evolved to monitor the quality of courses
provided by private (and state-run) institutions
and devised in such a manner that they will not
curb in any way individual initiative.
should frame guidelines in such a manner so as to
provide full administrative, financial and
academic autonomy to state-run and state-aided
institutions, in the manner enjoyed by IITs and
IISc, to devise their own courses and modify them
as frequently as progress in the field demands.
will have freedom to accumulate grades in various
subjects from different IT HRD
companies/institutes and then appear for
completing IT Competency Examinations.
bodies such as CSI, IETE and India Chapters of
ACM and IEEE, etc will be invited by NCITE and
ICPI to play an active role in collaboration with
the industry in the process of evolving
professional ethics and standards in IT HRD.
organizations like NASSCOM, MAIT, CII, FICCI,
ASSOCHAM and the like may be invited to set
standards for evaluating the output of HRD
for IT HRD
high-speed national network backbone, referred to
as Vidya Vahini, will be established within next
2 years by government and the industry as a joint
investments in Vidya Vahini will be treated at
par with investment in infrastructure sector and
will thus be eligible for all the financial
schemes as applicable to infrastructure sector.
sector will be encouraged to invest in the
arteries of Vidya Vahini at local and regional
levels. Such investments will also be treated as
made in Vidya Vahini and will entitle the company
to avail all the relevant financial packages.
HRD companies will be allowed to use satellite
and cable TV based networking, including Data
Broadcast and Direct To Home (DTH) services over
C band, Extended C band, Ku band, Ka band and
other emerging satellite systems, for
broadcasting educational and training programs
and services over these networks without any
companies specializing in producing contents for
Vidya Vahini, such as network based educational
programs and services will be treated as
educational companies at par with IT HRD
imports for establishment of infrastructure,
including hardware and software tools and
preparation of educational programs and services,
for IT HRD will be covered under R& D
registered under Section 25 for IT HRD will be
automatically entitled for imports under R &
D projects on self-declaration basis without
requiring a separate certification by a
HRD companies covered under Small Scale sector
will be allowed to have investment from companies
in large sector without any ceiling.
investments, including equity investment, by
individuals/companies in IT HRD
companies/institutions will be eligible as
deductible expenses to the extent of 133%.
made by companies on IT education and training of
their employees will also be eligible as
deductible expenses to the extent of 133%.
royalty payments received on account of IT
education and training services in STPI and S-BIT
scheme of IT Action Plan (Part I) will be
covered under Section 10A of Income Tax act.
depreciation in a year will be allowed to any
company, IT or otherwise, to donate computer
systems including software to the recognized IT
HRD institutions. The value of systems so donated
will be allowed as deductible expenses to the
extent of 133%.
provision will be made to enable government
organizations to donate computer systems
including the software after two years of
procurement to the recognized IT HRD institutes.
opting for IT HRD programs will be provided loans
by banks and financial institutions at low
interest rates by treating this as a
"priority area" for lending. Poorer
sections of the society will be provided
attractive financial packages for IT education by
Banks, FIs and IT HRD companies. However, such
loans should normally be made available only in
those institutions where there is a reasonable
certainty of future employment.
schemes offered by IT companies in academic
institutes will provide flexibility to offer
higher amounts to faculty under the scheme
compared to normal salary structure.
Women in IT Sector
will be allowed to professionally qualified women
in IT to facilitate their continued association
with their work place in case they are not in a
position to attend to the job in office on a
regular basis due to family constraints. Such
women will be offered special loans/financial
grants by the companies to set up infrastructure
at their homes to be able to telecommute.
- Virtual institutes
will evolve special HRD programs to help educated
women to enter the field of IT-enabled services.
- Banks and FIs will
offer special financial packages on a pro-active
basis to support enterprising and professionally
qualified women to set up home based IT services
in various areas of IT-led economic activities.