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Inclusive Growth

January 10

Inclusive growth remains a major goal for the Indian Government and industry. High GDP growth has to be accompanied by more balanced development, with the benefits of progress being shared by citizens at the grassroot levels. IT can play a major role in enabling the marginalised sections of the Indian society, integrate them into the mainstream and become a part of the market economy. The Indian IT-BPO sector then can be instrumental in bringing about financial, cultural, gender and digital inclusion.

Jaithirth (Jerry) RaoQ1 Why is inclusive growth becoming such a key priority for the IT-BPO industry?
Q2 Typically, what are some of the steps companies can take to contribute to inclusiveness, both at an organisational and at a national level

  1. India is today one of the six fastest growing economies of the world. The Indian economy has transformed into a vibrant, rapidly growing consumer market, comprising over 300 million strong middle-class with increasing purchasing power. However, despite this there is a large section of our society that is unable to avail of these opportunities. The IT-BPO industry is a modern and forward thinking sector that has consistently demonstrated its concern for all its stakeholders. The industry is, therefore, participating in inclusive growth, which requires that opportunities for participation in the growth of the industry becomes equally accessible to citizens from all backgrounds, whatever be their past handicaps. Whereas, efforts at social development could necessarily induce the consumption of various resources be it people or infrastructure; IT, on the other hand, can be brought in line for even rural developmental initiatives much faster, reaching out to more people. This leads us to taking development to the ‘Bottom of the Pyramid.’ It is keeping this notion in mind that NASSCOM Foundation’s CSR track, at the upcoming India Leadership Forum, is focusing on ‘Engaging the BoP’ as its theme. It is both a pressing humanitarian and business imperative to find solutions for this global concern.
  2. IT and BPO companies have a definite edge over others in terms of outreach. When a company hires people with specific skills, it also creates indirect opportunities for many others. In this regard, for starters, the industry needs to look more deeply into–and subsequently involve itself in – collaborative projects, which engage the corporate and NGOs and/or government initiatives in achieving the best balance for delivering on their social development commitments.

    On an organisational level, companies can leverage on the ‘trickle down’ effect – essentially by creating employment opportunities for individuals from lower socio-economic strata, and, in the process, empower individuals from similar sections of society but with different skill sets to engage in sustainable employment. For example, by setting up a BPO centre in a Tier-III location, a company would not only be providing employment for the persons involved in the process work, but also for individuals employed in facility administration, back office duties and other clerical work.

    On the national level, with the implementation of technology services, companies can contribute to extensive, large-scale sustainable development initiatives by providing services such as children’s education, bridging information gaps, rural employability and so forth. It, therefore, becomes essential for the IT-BPO industry to comprehensively grasp its full capability and take the necessary efforts to engage in developmental activities across geographical and social boundaries. Although, the Indian IT-BPO industry has till now made significant forays into such social initiatives across the board, there is indeed a long way to go.

Jaithirth (Jerry) Rao, Chairman, NASSCOM Foundation

  1. M D Pai As an industry grows, it needs to reflect societal composition so as to get the benefit of differential talent and capabilities. People from diverse backgrounds bring a rich mosaic of skills, which create a competitive advantage.
  2. Companies should create policies on recruitment, which are sensitive to origin, race, gender, ability, etc., to enable the inclusion of a diverse workforce. It is essential to have a set of policies, which note the needs of different sections so as to create a level field for people to perform. Also, an environment which is open, collegial and transparent, where voices are heard and respected, is important. Training becomes critical here, as all of us come with set notions and attitudes. At the national level, we need special laws to take care of marginal sections like the socially disadvantaged, the disabled and people who are subject to societal discrimination, to ensure that they get special help.

M D Pai, Head, Human Resources and Director on the Board of Infosys

  1. Harsh Singh LohitThere is a realisation in India’s English speaking population that the benefits of globalisation and prosperity over the past two decades of liberalisation have gone to a disproportionate few in our cities, and have bypassed the vast majority of our country’s people in the villages. We have realised that the feel good factor is limited to our immediate environs. Our successful industry is constituted largely by socially advantaged, urban educated, English speaking professionals. However, its very success is dramatically increasing the digital divide — between the urban haves and the rural have-nots. This divide must be bridged. If we are to unshackle the true genius of our people in the coming decades, the road to India’s future economic progress must pass through India’s villages.

    Today, the sad reality is that young rural India is effectively shut out from the system that the IT industry recruits from. The vast majority of rural students continue to be marginalised and remain mostly unemployable.

  2. There is need to increase the IT industry’s ‘Rural Quotient (RQ) through affirmative action. Our industry can help bridge the digital divide through an apprenticeship programme for promising students from rural background, who are seen to possess drive, initiative and a passion to extricate themselves from their current situation that harnesses the benefits of contextual performance.

    At the end of the 12 months apprentice period, chances are that these RQ-enhancing students will have obtained sound skills in programming; learnt English sufficiently to commence work life in a software company; and will be low-cost resources for the company that hires them; and will be dedicated to the company substantially longer than the educated urban graduate. Companies may evaluate instituting ‘bonds’ with these individuals, depending on company culture. Headstrong India has undertaken such a programme for the past decade, and the alumni of this RQ effort are with the company and across the industry today.

Harsh Singh Lohit, Managing Director, Headstrong

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