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Globalisation,
India''s growing strides in IT and a strong educational
system are increasing the pace of the ICT revolution,
causing a demand-supply shortfall of networking
professionals in the country, says, Ranajoy Punja,
VP, marketing, Cisco Systems, India and SAARC.
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The
advent of globalisation, India''s prowess in Information
Technology and a strong educational system are increasing
the pace of the information-communications- technology
(ICT) revolution. The signs are everywhere; the phenomenal
rate of mobile adoption, increased ICT investments by
enterprises for competing effectively, small and medium
business investing in ICT to become suppliers to global
MNCs and state governments looking to bridge the socio-economic
disparity and providing effective citizen-centric services
are some examples.
All
of these are showing signs of an unprecedented impact
on the economic development of the country. Interestingly,
this is just the tip of the iceberg. Looking ahead, Gartner
predicts that Indian ICT spending will surpass $54.8 billion
by 2008, and achieve a compounded annual growth rate (CAGR)
of around 19 per cent. With this growth comes the challenge
of a growing shortfall of networking professionals in
the country. Networking forms the backbone of the ICT
revolution.
A
networking professional can be defined as a person capable
of installing, configuring and troubleshooting network
devices for the internet and server connectivity. This
would include planning the basic wired infrastructure
to support network traffic and monitoring network performance
and isolating failures
While
there has been a growth in the number of IT professionals
in India there is an increasing shortfall of networking
professionals. This is likely to have a detrimental effect
on ICT adoption across all sectors in the future. The
industry and the government need to work together to address
this shortfall and sustain the ICT revolution that will
take India into the next phase of economic growth and
development.
Let''s
take a look at some of the sectors that are driving the
demand for networking professionals and reasons for it.
Government
Increased focus on e-governance under the ''national e-governance
action plan (NEGAP), state-level wide area networks (SWANs)
have been identified as part of the core infrastructure
for supporting these e-governance initiatives and the
Department of IT (DIT) has earmarked a significant outlay
for supporting this activity, which will cover the entire
cost of establishment, operation and maintenance of state-based
WANs. The next few years will see a lot of state governments
invest in building SWANs that will be the backbone for
delivering e-governance.
ITeS
/ BPO
During the course of 2004-05, the ITeS-BPO sector in India
witnessed a growth of 44.5 per cent to reach $5.2 billion.
The ITeS-BPO segment contributes nearly 30 per cent of
the total IT-ITeS exports from India and is expected to
clock revenues of $7.3 billion in FY 2005-06. Besides,
a new high-end knowledge-based BPO called knowledge process
outsourcing (KPO) has also emerged.
Areas
with significant latent potential for KPO in India include
healthcare (pharma and biotechnology), legal support (intellectual
property - R&D) and the entertainment sector (animation
and graphics). Networking technologies will form the fundamental
foundation for growth in all these areas.
BFSI
The Banking and Financial Services (BFS) sector has traditionally
been a high IT spender and contributed 22 per cent of
the total IT spends India during the course of 2004-05.
This amounted to totaled $1.63 billion. As banks move
on to the next stage of automation and operate in a more
global framework, this vertical is expected to see a substantial
increase in spends on IT and networking technologies.
Telecom
In April 2005, India crossed the figure of 100 million
in terms of number of phone lines, thereby becoming the
fifth-largest telecom network in the world. As of end
October, 2005, India''s tele-density (fixed and mobile
combined) stood at over 10 per cent and is expected to
reach a level of 25 per cent by 2010. Add to this the
fast rollout of broadband networks by operators to provide
triple-play services.(See: Convergence:
Triple play broadband) All of these highlight
the growing demand for networking professionals to deploy,
maintain and run these telecom networks.
Retail
AT Kearney has identified India as the second most attractive
retail destination from among 30 emerging markets (October
2004 FDI Investment Confidence Index). Although estimates
may vary, AT Kearney estimated it to be $90.25 billion
and poised to double by the end of 2005. Further, projected
investments in this sector have been slated as being between
$451.23 million and 564.04 million in the next two-three
years and over $4.51 billion by 2010. With the government
contemplating measures to open up the sector through phased
FDI, one can expect a boom in Indian retail - which will
also see a greater role of networking technology and applications.
(See: Retail''s
IT hook).
Having
identified the key sectors that will drive demand for
networking professionals, let''s look at the shortfall
and how it''s likely to increase.
A
recent report by e-value serve suggests that the current
demand for networking professionals in India stands over
two lakhs. However, only 140,000 are currently available
indicating a deficit of more than 50,000 professionals.
This deficit is expected to grow at a CAGR of 21.64 per
cent till 2010.
In
short, this current demand-supply gap is expected to widen
further, posing serious concerns for the growth of BFSI,
telecom and BPO / ITeS verticals in the country. BFSI,
which currently accounts for 20 per cent of the total
demand networking professionals is expected to witness
an additional demand of over 41,000 networking professionals
during 2005-10, driven by regulatory compliance.
Telecom
sector, which currently accounts for around 16 per cent
of the total demand of networking professionals, is expected
to witness an increasing adoption of disruptive technologies
creating an additional demand of over 75,000 professionals
during 2005-2010. BPO / ITeS is the segment that will
witness the highest growth in the demand for networking
professionals, growing at a CAGR of 35 per cent during
the period 2005-2010. Due to an increase in technology
adoption, the demand for networking professionals in the
retail sector is also expected to increase considerably.
With
the aim of bridging the demand-supply gap, Cisco Systems
and Jawaharlal Nehru Technological University in February
2006, signed a memorandum of understanding to provide
the Cisco Networking Academy Programme in non-profit educational
institutions across Andhra Pradesh.
As
per agreement, Jawaharlal Nehru Technological University
Colleges of Engineering in Hyderabad, Anantapur and Kakinada
will be accredited as Regional Academies. These academies
will further identify and accredit 250 non-profit educational
institutions as Local Academies under them within a period
of two years. The academies will impart networking education
to around 25,000 students every year.
There
is an urgent need to address this shortfall in networking
professionals if India is to sustain
the ICT revolution growth and subsequent economic growth.
It is imperative that we re-look at the prevalent education
system and the technical curriculum being taught at our
universities. It is also important that the industry and
the government collaborate to address this shortfall.
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