Leveraging our Engineering Talent
--------------------------------------
I
have no quarrel with our ( about to be released ) “ Industry
Policy “ which plans to raise the share of “ Manufacturing Sector “ in
our GDP from the current 16 % to 25 % by 2022 ( - when GDP is targeted to reach
$ 5 Trillion )
No
doubt our Policy Makers must have figured out the CAPITAL INVESTMENT that will be needed to reach this target (
Land – Buildings – Machinery – Inventory etc )
It
would be interesting to know what “ Incremental
Capital Output Ratio “did they assume for the “ Manufacturing Sector “
They
might have , even some ideas on the possible SOURCES for these funds ( I hope ,
other than raising taxes ! )
But
, if “ Manufacturing Sector “ and “ Service Sector “ were two horses in the GDP
race , I would bet on the “ Service Sector “, especially from the following
view-points :
· “ Capital
Investment per Job created “ would be much lower ( may be 10 % of Mfg. Sector ? )
· Jobs created would be much higher ( may
be 5 times of Mfg sector ? )
· Time ( to create those jobs ) would be much
shorter ( months instead of years )
· Export of “ Services “ are much easier than export of “ Goods “
· Quality of our “ Services “ are comparable – or
even better – than from other countries
· We
will , soon , have the desired quality / quantity of Internet
connectivity , all over India
· We
are turning out thousands of Graduates each
year though some need “ Skilling “
· Salaries of our Engineers are 20 - 25 % of similar hires in USA – EU – Japan –
UK etc
HERE IS SOME EVIDENCE :
Highlights :
Years / No of MNCs
/ Centres / Employees / Total Spend ( $ Billion )
===============================================
2016 / 943
/ 1208 / 343,000 /
13
2017 / 976
/ 1257 / 396,000
/ 15
2018 / 1005 /
1295 / 435,000 / 17
------------------------------------------------------
The numbers do not include MNCs’ IT and BPM (
business process management )
Including these , Zinnov had estimated that there
were 1,571 centres and 815,000 employees in 2016
Types of Industries putting up Centres (
mentioned in this article ) :
· IT – Automation – Banks – Professional Services –
Telecom – Media – Entertainment
===================================================
Context :
Brain Inc
2.0 [
21 Aug 2017
]
Where I wrote :
·
5 lakh ( 500,000 ) engineers work in “ Tech R&D
firms “ in India
o
$ 22 Billion was the worth of their work in 2015-16
§ This
will nearly DOUBLE to $ 40 Billion in 2020
Now consider this :
· By
employing 5 lakh engineers , India’s “ Tech R&D Firms “ earned $ 22 billion
. That
works to a billing of $ 44,000 per man-year of
R&D ( Export of Services )
· I
presume that the “ Manpower Cost “ constitute approx. 50 % of
Billing Rate ( rest
being
OVERHEADS and MARGIN )
· Hence
, Indian R&D firms must be paying an average of $ 22,000
per year to its
employees ( approx. Rs 1.2 lakh per month )
· As
against this , both , Indian as well as American firms pay ( on an average ) ,
$ 88,000 per year to H1 B visa holders
· With
this kind of “ Cost Advantage “ , is there a possibility to do better
than the
projected earnings of $ 40 billion in 2020 ?
It is high time our Policy
Makers launch a new initiative ( of Export
of Intellectual Property ) , called :
INDIA : the
BRAIN
FACTORY of THE WORLD
During
an Interview with Business Line ( 16 April 2016 ) , the then CEO of Infosys , Vishal Sikka , said
:
“ We have to re-imagine the notion of
services “
In support
of my belief in the potential re-imagination of this “ Service Sector “ , allow me to quote Peter
Diamandis { https://www.diamandis.com/blog/topic/web-3-0 ]
:
·
The
Spatial Web is also giving way to “virtual company headquarters” and completely
virtualized companies, where employees can work
from home or any place on the
planet
·
Delocalize
with VR, and you can now hire
anyone with Internet access ( right next door or on the other side of the planet )
·
Web 3.0 is changing the way we work, where we
work and who we work with.
========================================================
13 Dec 2018
www.hemenparekh.in / blogs
No comments:
Post a Comment