Reprogramming to Upgrade

Pankaj Jalote
Professor
Department of Computer Science and Engineering
Indian Institute of Technology
Kanpur - 208016

For India, there is an unique opportunity now to produce wealth and enhance national pride through the high-tech activity of software development. Though so far Indian software industry has been able to achieve good growth and has established a reputation and presence in the world, the much heard about Indian software industry is still less than a 1% player in the global software scenario. With this kind of volume, the current reputation and edge can be lost very rapidly, if we let the window of opportunity slip by, which is what we seem to be heading towards.

The current profile of sales the software industry reveal that less than 10% of the revenues are from software products. Though many companies are trying to increase this percentage to about 20-30% by the turn of the century, it is clear that the Indian software industry will stay predominantly a service provider in the near future.

The most critical resource in the software industry, particularly the one that is service provider, is the software professional. With the rapid pace with which technology is changing in the IT industry, software providers will have to keep developing skills and knowledge to develop software with and for new technologies. For this the software professional not only has to be well trained in current technology, but needs to have the ability to quickly absorb and use new tools and technology. This requires people with solid technical background, besides having skills for current technology. This need will even be more acute in future as the Indian software industry is consistently advancing towards executing software development projects of higher value and complexity.

Currently, most of the software professionals in the Indian software industry have engineering or computer science background. MCAs and graduates from not-so-good institutions, have not provided the quality manpower that is needed. The need of the hour is high quality manpower, not just manpower with some programming skills. That is why, given a choice, there is no doubt that most software companies will prefer graduates from IITs, RECs, and other good engineering colleges.

Let us understand the manpower need for the future. Current turnover of the Indian software industry is about $1 Billion, almost half of it coming from exports. With the average billing around $20K to $30K per person-year, this translates to about 30,000 to 50,000 software engineers currently employed in the software industry. If the industry grows by 25% each year (a very conservative estimate for an industry that has been consistently growing by 40-50% for the last many years), or double its turnover by year 2000 (which is the projection of NASSCOM), it will need to hire approximately as many new software professionals as it currently employs, in the next few years. That is, it will need 30,000 to 50,000 high quality software professionals in the next 3-4 years!

Where will these people come from? Most of the good engineering colleges like IITs and RECs produce about 300 engineers per year. In other words, the current production of all engineering disciplines from the top 40 engineering colleges will be approximately 12,000 per year. Hence, to achieve the targets, the software industry will have to hire almost all the graduates of the top 40 engineering colleges each year for the next many years! Needless to say, this will not be possible.

Due to the need for high quality, most software companies will not like to hire graduates of lower rung colleges, specially the companies that want to execute high value software projects. Let us illustrate this point. Infosys, one of the largest and most reputed software companies in India, is also one of the largest recruiters. Currently, of all the job offers it makes, over 250 are made to IIT graduates, and about 75 are made to graduates from RECs, and no offers are made to graduates of lower quality institutions. A report done by Tata Consulting Services (TCS), the largest software house in the country, states that there are no more that 40-50 institutions in the country whose graduates have adequate background to be of ``any real use in the software industry''.

So what should be done to solve this fundamental problem that the software industry is bound to face? There is no doubt that given the reputation of the software industry and the potential of demand in India itself, the industry can grow with this rate (or even more) if only it can get the necessary manpower. It also follows that if the manpower does not become available, the window of opportunity will be lost.

Clearly, as a nation, if we are to exploit this unique opportunity, then we need to produce a lot more high quality engineers that are well trained in computing and technology, and many more computer scientists. Unfortunately, this is easier said than done.

To produce good quality engineers, good quality engineering institutes are needed. The hallmark of all the good educational institutions is the high quality of faculty they have. And quality of faculty in a technical institute cannot remain high if the faculty is not engaged in R&D activities, as interest and involvement in R&D is the primary means of faculty staying abreast of latest developments in the fast changing technological scenario. Unless a faculty member is activily interested in R&D, he or she is likely to get obsolete rapidly. This implies that the high quality educational institutes must necessarily have a reasonable post-graduate program (as PG programs form the backbone of R&D activities). In addition, most qualified persons who are interested in academics are not likely to join an institute if it does not have research and PG programs. Technically qualified people join academics, despite considerably lower salaries than prevailing in the industry, largely because academics also offers opportunities for research. It is primarily due to reasonable PG programs and R&D orientation that places like IITs, IIMs, IISc, Delhi school of Economics, etc., have been reasonably successful in attracting competent faculty. It follows then, that private engineering colleges, which, in India, are primarily set up as money-making ventures, and therefore do not generally support R&D, will not be able to attract qualified faculty and hence will not be able to produce the quality graduates that are needed. Also, as getting highly qualified engineering faculty is extremely hard these days, it is almost impossible to set a high quality educational institute in a short time, even if resources are provided.

The most efficient, quickest, and obvious way to produce the software manpower (engineers with good background in software and technology, and computer scientists) in the desired numbers is to leverage the currently existing high quality engineering institutes to produce more. This means that these institutes will need to dramatically increase their intake of computer science students and provide more software and computer science training to students of other engineering disciplines. >From the point of view of faculty, which is the most critical resource in high quality education, this is eminently feasible. An earlier study had shown that the student faculty ratio at IITs, for example, is far lower than even some of the best universities in the US, and the ratio can be easily increased up to four times, provided the necessary resources are pumped in for this growth (Current Science, Feb 94; Economic Times, Nov 8, 1993).

Though this is the most optimal method of producing the quality software manpower, this approach will also require substantial investment to enhance the infrastructure of these institutes to support the increased intake and to suitably increase the computing resources. In addition to this, incentives have to be given to these institutes to undertake this expansion. Otherwise, why would an institution and its employees undertake extra work upon themselves when the benefit of their labor will be reaped by the software industry. Without proper incentives, most will find ways to stall the needed expansion.

It has been estimated (Economic Times, April 22, 1995), that for increasing the output by about 500 engineers per year, the cost of additional hostels and some infrastructure will require a capital expense of about Rs 10-15 crore, and recurring expense of about Rs 1-2 crore per year for replacing computing equipment. In other words, for increasing the output by about 5000 engineers per year (which is about the minimum increase that will be needed), a capital investment of 100-150 crores will be required. In addition, a recurring expense of about 10-20 crores per year will be needed.

Where is this money going to come from? The investment must necessarily be made if we are not to miss our opportunity. Hence, there is an urgent need for the three concerned parties - the software industry, the government, and the academia - to get together to decide how the good institutions in the country are to be funded for increasing their output. As an example, if just 1% of the turnover of the software industry is plowed back for this purpose, then with a matching grant from the government, it will translate to about Rs 70 crore per year (at present turnover levels) - enough to fund a phased-growth in the top 10-20 engineering institutions in the country.

If something like this is not done almost immediately, the top educational institutes will continue producing engineers and computer scientists at the rate they are producing, software industry will keep complaining about manpower shortage and keep looking for quick and cheap solutions to a problem that has no cheap and quick solutions, and our Nation will miss the rare opportunity circumstances has provided.

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Pankaj Jalote Tel: +91-512-597619 (o) Professor and Head Tel: + 91-512-598501 (r) Dept. of Computer Sc. and Engg. Fax: +91-512-590725/413 I. I. T. Email: jalote [AT] iitk.ac.in Kanpur - 208016 URL: www.cse.iitk.ac.in