Human Resource and Skill Requirements in the Electronics and IT Industry

Description
The global Electronics Hardware and Information Technology (IT) industry is valued at US $ 2.5 billion. Out of this, the global Electronics Hardware industry1 had a production of US $ 1.85 trillion in 2008. This is expected to reach US $ 1.86 trillion in 2009.





Human Resource and
Skill Requirements in the
Electronics and IT
Hardware Industry








Study on mapping of human resource skill gaps in  
India till 2022 
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 2 of 49

Table of Contents
1.  Environment Scanning and Competitiveness of Electronics and IT Hardware Industry...... 5 
1.1.  Overview of the Global Electronics Industry .......................................................................... 5 
1.2.  Overview of Indian Electronics and IT Hardware sector ........................................................ 6 
1.3.  Key segments in the Indian electronics hardware sector ........................................................ 8 
1.4.  Consumer Electronics ........................................................................................................... 10 
1.5.  IT Hardware .......................................................................................................................... 11 
1.6.  Telecommunication Equipment ............................................................................................ 13 
1.7.  Electronic Components ......................................................................................................... 14 
1.8.  Strategic Electronics ............................................................................................................. 15 
1.9.  Overview of Industrial Electronics and other products ......................................................... 15 
1.10.  Demand Drivers for the Electronics and IT Hardware industry ....................................... 16 
1.11.  Key Players and Major Production Clusters ..................................................................... 19 
1.12.  Key Success Factors and Risk Factors .............................................................................. 20 
1.13.  Industry Outlook ............................................................................................................... 20 
2.  Human Resource and Skill Requirement in the Electronics and IT Hardware Industry .... 22 
2.1.  Current employment pattern ................................................................................................. 22 
2.2.  Value chain of activities across various segments of the Electronics and IT Hardware
Industry ............................................................................................................................................. 24 
2.3.  Profile of people employed and Skill Requirements ............................................................. 25 
2.4.  Skill Gaps in the Electronics and IT Hardware Industry ...................................................... 34 
2.5.  Projected Industry Size and Human Resource Requirements ............................................... 41 
2.6.  Emerging Trends in Electronics and IT Hardware Industry and Implications on Human
Resource and Skill Requirements ..................................................................................................... 45 
2.7.  Focus areas for NSDC for Skill Building ............................................................................. 46 


Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 3 of 49
List of Figures
Figure 1: World electronics hardware production and major segments (in US $ billion) ...................... 5 
Figure 2: Share of major producers of Electronics Hardware ................................................................. 6 
Figure 3: Evolution of Indian Electronics and IT Hardware Industry .................................................... 7 
Figure 4: Electronics hardware exports in Rs. billion ............................................................................. 8 
Figure 5: Changing structure of the Indian Electronics and IT Hardware Industry ................................ 9 
Figure 6: Growth rates of key segments CAGR (FY 2002 to FY 2008) ................................................ 9 
Figure 7: Export contribution from various segments .......................................................................... 10 
Figure 8: Sale of STB (million units) .................................................................................................... 10 
Figure 9: Number of desktops sold ....................................................................................................... 12 
Figure 10: Number of laptops sold ....................................................................................................... 12 
Figure 11: Changing nature of household spending ............................................................................. 16 
Figure 12: Demand Drivers in the Electronics and IT Hardware industry ........................................... 17 
Figure 13: Distribution of human resource in the Electronics and IT Hardware industry .................... 22 
Figure 14: Value chain in Consumer Electronics ................................................................................. 24 
Figure 15: Value chain in IT Hardware ................................................................................................ 24 
Figure 16: Value chain in Telecommunication Equipment .................................................................. 24 
Figure 17: Value chain in Electronic Components ............................................................................... 25 
Figure 18: Profile of persons employed in the Production function ..................................................... 26 
Figure 19: Profile of persons employed in the Sales function .............................................................. 29 
Figure 20: Profile of persons employed in the Design and Development function .............................. 31 
Figure 21: Profile of persons employed in the Quality Assurance function ......................................... 33 
Figure 22: Skill Pyramid for the Electronics and IT Hardware Industry .............................................. 45 

List of Tables
Table 1: Production and growth of Indian Electronics and IT Hardware Industry (in Rs. billion) ........ 7 
Table 2: Market size and growth of other IT Hardware Equipment in 2007 ........................................ 13 
Table 3: Key players in the Electronics Hardware sector (illustrative) ................................................ 19 
Table 4: Major production clusters ....................................................................................................... 19 
Table 5: Key Success Factors and Risk Factors ................................................................................... 20 
Table 6: Estimates for FY 2008-09 ....................................................................................................... 21 
Table 7: Estimates for FY 2009-10 ....................................................................................................... 21 
Table 8: Profile of human resource across various educational qualifications ..................................... 23 
Table 9: Profile of persons across various functional levels ................................................................. 23 
Table 10: Skill requirements in the Production function ...................................................................... 26 
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 4 of 49
Table 11: Skill requirements in the Sales function ............................................................................... 29 
Table 12: Skills required in the Design and Development function ..................................................... 32 
Table 13: Skills required in the Quality Assurance function ................................................................ 33 
Table 14: Skills required in the Service Support function .................................................................... 34 
Table 15: Generic Skill Gaps in the Production function ..................................................................... 34 
Table 16: Generic skill gaps in the Sales function ................................................................................ 37 
Table 17: Generic skill gaps in the Design and Development function ................................................ 39 
Table 18: Generic skill gaps in the Service Support function ............................................................... 40 
Table 19: Production in the Electronics and IT Hardware Industry in India ........................................ 42 
Table 20: Incremental human resource requirement in the Electronics and IT Hardware Industry (in
‘000s) .................................................................................................................................................... 42 
Table 21: Incremental human resource requirement – education-wise till 2022 (in ‘000s) .................. 43 
Table 22: Incremental human resource requirement – function-wise till 2022 (in ‘000s) .................... 44 
Table 23: Share of various regions in human resource requirement ..................................................... 44 
Table 24: Focus areas for NSDC for Skill Building ............................................................................. 47 


Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 5 of 49
1. Environment Scanning and Competitiveness of Electronics and
IT Hardware Industry
1.1. Overview of the Global Electronics Industry
The global Electronics Hardware and Information Technology (IT) industry is valued at US $ 2.5
billion. Out of this, the global Electronics Hardware industry
1
had a production of US $ 1.85
trillion in 2008. This is expected to reach US $ 1.86 trillion in 2009
2
. While the industry was on a
growth path, the recent rapid growth in industry production which was the result of strong
consumer spending backed by economic expansion in emerging economies came to a sudden halt
in 2008. It is expected that 2009 would see a single digit growth unlike the double digit growth
witnessed in the past.
The global market size and major segments are indicated below.
Figure 1: World electronics hardware production and major segments (in US $ billion)

Source: Japan Electronics and Information Technology Industries Association (JETIA) and IMaCS analysis
However, despite the current downturn, it is expected that the global Electronics Hardware industry
has a potential to clock US $ 3.2 trillion
3
in revenues in the next five years growing at a CAGR of
about 9.5% once the economy recovers.

1
Net of IT solution services
2
Japan Electronics and Information Technology Industries Association (JETIA)
3
BCC Research
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Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 6 of 49
The US is the market leader with a share of 26 % followed by Japan with a share of 19%.
Figure 2: Share of major producers of Electronics Hardware

With 5 out of top 10 countries, Asia dominates the electronics market. India has a share of mere 0.7%
of the total production.
1.2. Overview of Indian Electronics and IT Hardware sector
The evolution of India’s Electronics Industry from its initial forays into production of valves and
space technologies, till date, is presented below.
The consumption of Electronics was US $ 28 billion in 2005. It is estimated that the demand for
electronics (consumption) in India will be US $ 126 billion in 2010 and US $ 363 billion in 2015.
4

Out of this, the Indian Electronics and IT Hardware
5
sector production amounted to Rs. 947 billion in
2009
6
and has grown at a CAGR of 16.4% since 2002.



4
Council of Electronics Hardware Associations (CEHA)
5
Henceforth, the use of the terms ‘Electronics’ and/or ‘IT Hardware Industry’ in the Indian context refers to
‘production’ in India during the course of this report, i.e., domestic production for local consumption and
exports.
6
Annual Report 2008-09 of Department of Information Technology, Government of India
US
26%
Japan
19%
South
Korea
9%
Germany
6%
Malaysia
5%
Singapore
4%
UK
4%
Taiwan
4%
France
3%
Rest Of the
World
20%
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 7 of 49
Figure 3: Evolution of I ndian Electronics and I T Hardware I ndustry

Source: IMaCS analysis
The high growth rate has been supported by healthy Foreign Direct Investment (FDI) inflows. FDI in
Electrical Equipments (which includes Electronics) has varied between 17% to 22% of total inflows
and is estimated to be US $ 4.2 billion in 2007.
Table 1: Production and growth of I ndian Electronics and I T Hardware I ndustry (in Rs. billion)
2002 2003 2004 2005 2006 2007 2008 2009 CAGR
Consumer Electronics 127 138 152 168 180 200 226 260 10.8%
Computers
7
36 43 68 88 108 128 159 135 20.8%
Telecom Equipment 45 48 54 48 70 95 187 260 28.5%
Strategic Electronics 18 25 28 30 32 45 57 68 20.9%
Components 57 66 76 88 88 88 96 96 7.7%
Others
8
45 56 61 83 88 104 119 128 16.1%
TOTAL 328 375 438 505 566 660 844 947 16.4%
Source: Annual Report 2008-09 of Department of Information Technology, Government of India

7
Also referred to as IT Hardware
8
Mainly consists of the Industrial Electronics’
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 8 of 49
India exports around 17% of its total electronics hardware production. Exports in FY2008 were
Rs.127 billion
9
. Indian Electronics Hardware exports have shown steady growth rates of 15% (CAGR,
between FY 2001 to 2008), yet India remains a net importer with electronics imports of over Rs.700
billion in FY 2008.
Figure 4: Electronics hardware exports in Rs. billion

Source: ELCINA

1.3. Key segments in the Indian electronics hardware sector
The Indian Electronics and IT Hardware sector has 6 key segments, namely Consumer Electronics,
Industrial Electronics, IT Hardware, Telecommunication Equipment, Electronic Components, and
Strategic Electronics. Consumer Electronics and Telecom Equipments are the largest segments with
about 27% share each in total production.
The table in the previous section gives the size and growth rates of individual segments.
As can be seen from the figure below, while Consumer Electronics has traditionally been the largest
segment, Computers and Telecommunication Equipment have increased their share in the industry in
recent times.

9
ELCINA, Annual Report 2007-08, Department of IT, Government of India
47.88
58
56
77
80
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127
2001 2002 2003 2004 2005 2006 2007 2008
CAGR -15%
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 9 of 49
Figure 5: Changing structure of the I ndian Electronics and I T Hardware I ndustry

Source: Department of IT and IMaCS analysis
Telecommunication Equipment and IT Hardware are the fast growing segments with CAGR (FY 2002
to 2008) of 21% and 29% respectively. These segments have witnessed high growth rates due to the
advent of IT and growth in the Indian Telecom Industry.
Figure 6: Growth rates of key segments CAGR (FY 2002 to FY 2008)

Source: IMaCS analysis
The share of the segments in exports has remained largely unchanged from 2003. Electronic
components constitute the major proportion of exports with a share of 45% in FY 2008.

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Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 11 of 49
The air conditioner (AC) market has seen steady growth with a strong preference for split AC units
over window AC units. Split ACs account for about 64% of sales of ACs (in value terms).
DVD players segment continued to grow with sales of 7 million units in FY 2007 to 2008.
Introduction of CAS and expansion of DTH has fuelled demand in STB and home theatre segments.
Apart from manufacturing, the functions of marketing, sales and distribution are major components in
the value chain in Consumer Electronics. After-sales support and spare parts sales are continuous
sources of revenue in consumer durables such as washing machines, water purifiers, lifts, and ACs.
Most manufacturers offer annual maintenance contracts to consumers.
Despite the recent economic downturn, the Consumer Electronics Industry has been on a growth path
and is expected to achieve sales growth of 15% over the previous year and clock Rs. 260 billion in
revenues in 2009
10
.
1.5. IT Hardware
IT Hardware is one of the fastest growing segments with CAGR of 21% (FY 2002 to 2009). The
production of this sector in FY 2008 was Rs. 159 billion. In FY 2009, this came down to Rs. 135
billion on account of the economic slowdown.
IT Hardware segment includes personal storage devices, printers, servers, Personal Computers (PCs),
supercomputers, data processing equipment and peripherals such as monitors, keyboards, disk drives,
plotters, SMPS, modems, networking products and add-on cards.

1.5.1. Personal Computers
PCs consist of desktops and laptops/notebooks. Total PC sales are expected to be about 7.2 million in
FY2009. About 70% of PCs demand is from office segment and 30% from home segment. In half-
year terms, PC sales recorded a 12% growth over H1-2007-08 but declined by 9% over H2-2007-08.
Desktop sales are expected to dip to 5.3 million in 2009. Sales in desktops are recording much lesser
growth (6%) as compared to laptops (growing at well over 100%) in the last three years.


10
Outlook India, March 26, 2009
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 12 of 49
Figure 9: Number of desktops sold

Source: MAIT

In half-year terms, the sale of laptops increased 13% in H12008-09 to touch 0.77 million units.
However, this was 32% lower as compared to H2-2007-08. In the long term, notebooks will grow at a
much faster pace than desktops.
Till recently, this segment was dominated by local assemblers and some branded Indian companies. A
number of MNCs (such as Compaq, HP, IBM, and ACER) are now assembling PCs locally and have
started focusing on satellite towns and cities for sales. Wipro and Zenith are the domestic market
leaders.
Figure 10: Number of laptops sold

Source: MAIT
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Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 13 of 49

Increasing incomes, education requirements, e-Governance initiatives, Common Service Centre
(CSC) schemes, and the penetration of internet and broadband services have fuelled the demand in
this sector. This segment was dominated by local assemblers and some branded Indian companies
until recently. A number of MNCs (such as Compaq, HP, IBM, DELL and ACER) have entered the
Indian space.

However, it should be noted that much of the production of IT Hardware in India is still largely
dominated by assembly and packaging, and not production of high end IT sub-assemblies.

1.5.2. Other I T Hardware Equipment
The following table presents the market size and growth for various other products in the IT Hardware
sector in 2007.
Table 2: Market size and growth of other I T Hardware Equipment in 2007
Product Market Size Growth
Servers 90,000 units About 1%
Routers and Switches US $ 320 million and US $ 440
million respectively
36% and 25% respectively
Networking Products
Hubs 192,000 units 33%
Network Interface Cards 4.2 million units 15%
Modems 0.85 million units 43%
Source: MAIT

1.6. Telecommunication Equipment
Telecommunication equipment is the second fastest growing segment after IT hardware. The
estimated production of this segment in FY2009 was Rs. 260 billion.
The segment includes digital exchanges (EPABX, RAX, TAX and MAX), transmission equipment
(HF/VHF/Microwave trans-receivers), satellite communication terminals, optical fibre
communication equipment, two-way radio communication equipment.
Communication technology has taken a big leap forward and received national recognition as a key
driver for development and growth. India has taken a leading position in the mobile handsets market.
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 14 of 49
Mobile subscriber base has crossed 300 million and is expected to touch 500 million by 2010. The
number of active internet entities
11
is expected to be 8.6 million in March 2009.
Some of the world renowned mobile set manufacturers, like Motorola, Samsung, Sony Ericsson and
LG have set up production bases for mobile handsets in the country.
Recently, the segment has seen a number of service providers such as MTS, Swan, and Virgin
entering the segment, increasing the demand for telecommunication infrastructure products and
services.
1.7. Electronic Components
The electronics components segment primarily supplies to consumer electronics, telecom, defence,
and information technology sectors. The components produced in India at present include TV picture
tubes, monitor tubes, diodes and transistors, power devices, ICs, hybrid microcircuits, resistors,
capacitors, connectors, switches, relays, magnetic heads, DC micro motors and tape deck mechanism,
Printer Circuit Boards (PCB), crystals, loudspeakers and hard and soft ferrites. The growth of
electronic components depends on the growth of the other constituents of IT Hardware and
Electronics sector to which it supplies.
The world’s top five mobile handset makers - Nokia, Motorola, Samsung, Sony-Ericsson and LG
have their manufacturing bases in India. Presence of global majors like Flextronics, Jabil and Elcoteq
is creating potential for a quantum jump in hardware manufacturing in India and should have a
downstream impact by stimulating demand for components and assemblies.
Most of the top global semiconductor companies have set up their chip design centres in India. The
semiconductor products that are expected to drive the revenues are:
Microprocessor driven by desktops, notebooks and telecom equipment
Analog driven by mobile phone, monitors and UPS
Memory driven by desktops, notebooks, servers and telecom infrastructure
Discrete driven by TV and audio systems, energy meters and converters, mobile and telecom
infrastructure.
While India’s presence as a base for manufacture of high end components is still underway, by nature
of its growth in the IT/ITES industry, India has already established a presence in the R&D for
components with global electronics majors such as Texas Instruments, Intel and others having their
research facilities in India.

11
Entities are establishments/Households with internet connection; an entity may house multiple user/s or
connections
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 15 of 49
Adoption of semiconductor technology/manufacturing, nanotechnology, Surface Mounted Technology
(SMT), and increasing miniaturisation will be key to industry competitiveness in the medium term.
1.8. Strategic Electronics
The strategic electronics segment consists of satellite base communications, navigation and
surveillance, underwater electronics and infra-red based detection, disaster management and GPS
based vehicle tracking systems.
The Government feels that it is desirable to focus on production in the strategic electronics sector to
ensure acquisition of the state-of-the-art technology. The sector is increasingly facing problems in
attracting and retaining talent. There is also a trend towards outsourcing/sub contracting and
privatisation. At the national level, various research institutions are developing strategic systems and
public sector undertakings and some private agencies are contributing towards production. Estimated
production of this sector in 2008-09 was Rs. 68 billion.
1.9. Overview of Industrial Electronics and other products
Industrial electronics is the second major export segment after electronic components with a
significant share of 25% in total Electronic Hardware exports in FY 2008.
The segment includes products that are used by other industries, such as process control
instrumentation, electro-mechanical systems, test and measuring (T&M) instruments.
Electro-mechanical systems is a major product group driving sales in this sector with a share of more
than 30% of total industrial electronics sales. Products include industrial electronics equipment and
systems, automation technologies, networking systems and other stand-alone instrumentations used in
manufacturing industries like Steel, Textiles, Cement, Power, Chemicals and Refineries etc.
This segment continues to be an important constituent from the perspective of applications for
electronics and IT. Manufacturing of related hardware in technology areas like PLC, distributed
control systems, UPS, varied power electronic equipment and systems has been increasing in the
country. Newer technologies involving wireless sensors and sensor networking are rapidly emerging
as potential application in the field of industrial electronics on account of ease of installation and cost
competitiveness.
Heating, ventilation and cooling solutions/products another major growing product group has seen a
boost in demand with the establishment of SEZ and government focus on infrastructure development
like airports, metro rail projects, medical tourism and the upcoming Commonwealth games to be held
at New Delhi in 2010. Medical equipments are also likely to drive growth of this sector.
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 16 of 49
1.10. Demand Drivers for the Electronics and IT Hardware industry
The major demand drivers for the Electronics and IT Hardware industry are outlined below:
Consumer Electronics would be predominantly driven by growth in household spending,
especially in areas such as Education (growth of 9%), Communication (12%), Housing and
utilities (4.7%) between 2005 and 2025
12

13
. This would have spin off effects in
Telecommunications and IT Hardware as well and is evidenced by the current growth trends
in Private Final Consumption Expenditure (PFCE) in these areas.

Figure 11: Changing nature of household spending

Source: McKinsey Global Institute

Telecommunication Equipment would be mainly driven by increasing mobile penetration to
B and C circles with mobile connections expected to touch 500 million by 2010. Further,
increasing number of wireline and wireless broadband (Broadband Wireless

12
McKinsey Global Institute
13
Figures in brackets indicate growth rates in real terms
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e 17 of 49
d Fibre to
s well as
ational e-
va Siksha
defence
roup and
GDP and
driver of
mand for
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t markets

Human R


Source: I

Resource and
IMaCS analys
Skill Requirem
sis
ments in the EElectronics and d IT Hardwarre Industry
Page e 18 of 49

Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 19 of 49
1.11. Key Players and Major Production Clusters
Electronic Hardware sector has large number of players who operate across their respective value
chains. A number of large MNCs operate are in the Consumer Electronics, IT Hardware and
Telecommunication Equipment segments. Electronic Components and Strategic Electronics segments
are still relatively in the nascent stage consist of a number of small players or large PSUs.
Table 3: Key players in the Electronics Hardware sector (illustrative)
Segments Key players
14

Consumers Electronics Videocon, LG Electronics, Blue Star, Philips, MIRC, Samsung
IT hardware HCL Infosystems, WIPRO Infotech, D-Link (India)
Telecommunication equipment
Avaya Global, Bharathi Teletech, Himachal Futuristics
Communications Ltd., Reliance InfraTel
Electronic components Samtel, Flextronics India Ltd., AT&S India Ltd., Jabil
Strategic components Bharat Electronics Ltd
Industrial electronics and others Siemens, Voltas, Tektronix, Philips
The production clusters in India are fairly well spread out. The oldest clusters are the ones in
Maharashtra, Gujarat and the National Capital Region (NCR – Delhi). The clusters in Karnataka and
Andhra Pradesh have come up mainly due to the success of the IT/ ITES industry, to meet the demand
for electronics from this sector. Other clusters have come up due to planned interventions, i.e., the
Government granting facilities and benefits to producers/exporters.
Table 4: Major production clusters

Source: UNIDO cluster database


14
A player can have presence in multiple segments as well
City State
Ahmedabad Gujarat
Bengaluru Karnataka
Gurgaon Haryana
Hyderabad Andhra Pradesh
Mumbai Maharashtra
Noida Uttar Pradesh
Pune Maharashtra
Chennai Tamil Nadu
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 20 of 49
1.12. Key Success Factors and Risk Factors
The major success factors and risk factors
15
for some of the Electronics and IT Hardware industry are
detailed below.
Table 5: Key Success Factors and Risk Factors
Segment Key Success Factors Key Risk Factors
Consumer
Electronics
Ability to offer innovative products
Keeping abreast with technological
changes
Local and efficient manufacturing to
reduce cost
Effective regional distribution model
Competition
Large number of well
established Indian and MNC
companies
Overcapacities in China,
Taiwan, Malaysia, etc.

IT Hardware Newer and sleeker products
Effective distribution model
Competitive pricing
Easy replicability
Large number of fakes
Grey market
Excess capacities in Taiwan,
Malaysia, etc.
Others common to
the industry
Design capabilities and R&D
Addressing export markets through
EMS
Quick adoption of high tech
manufacturing (SMT, nanotechnology,
etc.)
Developing capabilities beyond low end
manufacturing and assembly, moving up
the value chain
Regulatory risks (especially
telecom)
Managing electronic waste
and consequent
environmental hazards

Source: IMaCS analysis
1.13. Industry Outlook
Near Term: The near term is likely to see a softening of demand due to recessionary trends (as was
observed while describing the segments earlier). As an illustrative case, the demand expected in the IT
Hardware sector is shown below.


15
Illustrative
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 21 of 49
Table 6: Estimates for FY 2008-09
Product FY 2007-08 FY 2008-09
Estimates
Expected Growth
Dot Matrix 374,700 475,000 27%
Inkjet 590,479 575,000 ~ Flat
Laser 387,000 275,000 - 29%
UPS 1,620,738 1,550,000 ~ Flat
Source: MAIT
Table 7: Estimates for FY 2009-10
Product FY 2008-09 FY 2009-10
Projections
Expected Growth
Desktops 5,279,648 5,400,000 2%
Notebooks 1,516,459 1,900,000 25%
Total 6,796,107 7,300,000 7%
Source: MAIT

It is expected that increased demand for Notebooks would mark the end of the economic slowdown in
the PC segment. Other segments such as Consumer Electronics have demonstrated a double digit
growth of about 15% and is likely to do in the future too due to buoyant demand. This trend is likely
to result in further improvement after the next 3 to 4 quarters for the industry.
Long Term: The long term growth outlook for the Electronics and IT Hardware industry remains
positive. It is expected that the Indian Electronics and IT Hardware manufacturing industry can target
upto US $ 155 billion in revenues in the next 8 to 10 years. A growth rate of about 20%
16
would be
possible subject to sustained action by stakeholders for the development of this sector.


16
IMaCS analysis
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 22 of 49
2. Human Resource and Skill Requirement in the Electronics and
IT Hardware Industry
2.1. Current employment pattern
The human resource directly employed in the industry is estimated to be approximately 770,000
17
in
2007. This is expected to be about 0.9 million currently
18
.
Figure 13: Distribution of human resource in the Electronics and I T Hardware industry

Source: IMaCS analysis
The profile of persons employed in the industry across various education levels is shown below.


17
CEHA
18
In FY2009, IMaCS analysis
Consumer
Electronics, 24
%
Industrial
Electronics, 17
%
Computers, 21
%
Telecom
Equipment, 12
%
Strategic
Electronics, 7%
Components, 18
%
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 23 of 49
Table 8: Profile of human resource across various educational qualifications

Ph. D/
Research
Engineers
Diploma or
equivalent
certification
by other
agencies
ITI and
other
vocational
courses
Other
graduates
CA/MBA/etc.
12th/10th
standard
Consumer
Electronics
3% 9% 10% 7% 27% 22% 22%
IT related
hardware
4% 20% 25% 10% 19% 6% 16%
Telecom
Equipment
5% 40% 20% 7% 15% 6% 8%
Strategic
Electronics
6% 37% 22% 10% 10% 5% 10%
Components 6% 28% 13% 16% 3% 2% 32%
Manufacturing 1% 20% 15% 20% 2% 2% 40%
Design 25% 60% 5% 0% 8% 1% 1%
Source: MAI T Report on mapping the manpower skills in the I T Hardware and Electronics Manufacturing
I ndustry
The profile of persons employed at various functional levels is shown below.
Table 9: Profile of persons across various functional levels
R&D Manufacturing Sales After-sales
support
Administration
Consumer Electronics 4% 50% 27% 14% 5%
IT related hardware 3% 21% 25% 41% 10%
Telecom Equipment 4% 30% 30% 30% 6%
Strategic Electronics 12% 46% 8% 20% 13%
Components 16% 62% 8% 6% 8%
- Manufacturing 0% 78% 8% 7% 7%
- Design 81% 0% 8% 0% 11%
Source: MAI T Report on mapping the manpower skills in the I T Hardware and Electronics Manufacturing
I ndustry
Human R


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The foll
and IT H
Resource and
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Figure
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Figure 16:
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igure 15: Va
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across va
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Page
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e 24 of 49
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Page
ponents
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e 25 of 49

ns in the
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 26 of 49
2.3.1. Skill requirements in the Production function in the Electronics and I T
Hardware I ndustry
Figure 18: Profile of persons employed in the Production function












The skill requirements in the Production function are illustrated below.
Table 10: Skill requirements in the Production function
Level Skills Required
Production Manager Project management skills, including excellent organisational
and planning skills in order to plan, monitor and alter
production schedules when necessary
Ability to identify and encourage innovative and productive
activities among workers/methods of production
Strong knowledge of the production process and ability to
oversee all parts of the production process including logistics
and quality control
Ability to liaison with suppliers regarding quality, price,
delivery times and ethical standards, including finding new
Production
Manager
Key Role: Overall management of employees/processes, planning high level targets and
ensuring smooth operations
Qualification: BE & MBA, BE/B. Tech & M. Tech/ MS from electronics, ECE,
mechanical, instrumentation streams with 8-10 years of experience in manufacturing
Shift Engineer
Key Role: Managing production-shifts/ monitoring technicians and supervisors, quality
checks, on job training, process improvements through time and motion studies
Qualification: BE/ B. Tech / M Tech (Electronics, ECE, Mechanical, Instrumentation)
with 6-8 years experience on shop floor
Line
Supervisor
Key Role: Ability to maintain low downtime on machines, line balancing to ensure the
production targets are met by operators
Qualification: Diploma Engineers (Mechanical, Electronics, and Instrumentation) with
4-5 years experience
Operator/
Technician
Key Role: Ensuring production as per production planning and targets, regular and
preventive maintenance of manufacturing equipments, operating fork lift trucks/
conveyor belts, CNC machines and robots
Qualification: Diploma Engineers, ITI pass-outs specialising in electrical/mechanical
Worker/
Helper
Key Role: Materials and machine handling, loading/unloading, packaging, store
keeping
Qualification: 10th Pass and above with basic equipment handling know-how
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 27 of 49
Level Skills Required
sources of supply
Ability to overcome production-related issues, such as machine
faults by overseeing the work of maintenance technicians, and
liaising with in-house design and sales teams
Ability to work under pressure, multi-task and meet deadlines
Ability to overcome problems and handle conflict
Knowledge of budgeting and cost management techniques
Strong communication skills.

Shift Engineer Ensuring achievement of targets as per production plan drawn
by the Production Manager
Developing the maintenance schedule for upkeep of plant and
equipment and communicating the same to the line supervisors
for adherence
Problem solving skills to minimise the downtime and optimise
the production of shift with minimum defects and re-working
In-depth technical knowledge of assembly line process and
procedures for preparing the Standard Operating Manuals in
liaison with Production Manager to be followed by
technicians/operators
Strong understanding of and focus on cost reduction and
productivity improvement with the aid of time and motion
studies
Ensuring compliance with on–the job training schedule and
conducting workshop for skill enhancement of technicians and
operators.

Line Supervisor Ability to meet the production target of a particular line, while
ensuring adequate supply of material, adherence to quality
parameters and maintenance schedule
Material management skills to eliminate wastages and strong
knowledge of process to followed to eliminate defective
production/re-working
Ability to fix production targets for workmen, clearly
communicate instructions to operators and workers and measure
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 28 of 49
Level Skills Required
their performance against these targets
Problem solving ability
Providing on–the job training and mentoring of the
operators/technicians.

Operator/Technician Practical skills for using technical equipment and machinery
Ability to follow instructions and understand operating manuals
for strict adherence
Ability to identify defects and rectify them
Ability to ensure minimum wastage
Ability to work in a team as well as on an individual basis
Awareness of health and safety standards
Knowledge of quality standards
Adaptability to new processes/production lines.

Helpers Ability to understand instructions
Symbol comprehension and basic reading skills
Ability to identify deviations in material and inform the
operators/supervisor
Awareness of health and safety standards
Punctuality at work.
Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry

Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 29 of 49
2.3.2. Skill requirements in the Sales function in the Electronics and I T Hardware
I ndustry
The profile of persons employed in the Sales function and the typical skill requirements are illustrated
as follows.
Figure 19: Profile of persons employed in the Sales function











Table 11: Skill requirements in the Sales function
Level Skills Required
Sales Manager Negotiation skills to settle favourable commercial terms with
channel partners in various territories
Knowledge about industry trends and competition
Knowledge of own product features and functionalities
Knowledge of budgeting and cost management techniques
Strong understanding of commercial aspects of transaction and
pricing techniques
Strong communication skills
Ability to manage teams and get the sales force to achieve its
target
Sales Manager
Key Role: Target setting and planning, Key account management, marketing planning
and sales promotion in liaison with trade partners
Qualification: B Tech (IT, Electronics)/B Com/B Sc and MBA with 6-8 years
experience
Area
Manager/
Territory
Manager
Key Role: Consultative sales to corporate clients and managing distributors in a
specific geographical area under purview
Qualification: B Sc/B Tech (IT, Electronics) and MBA with above 4 years
experience
Senior Sales
Executive
Key Role: Customer identification and acquisition, Account management
Qualification: B Sc/BA/B Com/B Tech (IT, Electronics) with 2 years experience,
MBA preferred, and even Diploma and ITI pass outs
Sales
Executive
Key Role: Cold calling and initiation of sales process, field sales, ensuring delivery
and documentation
Qualification: Fresh B Com, B Sc, B Tech, MBA, and even Diploma and ITI pass
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 30 of 49
Level Skills Required
Performance measurement through daily and weekly reports and
devise the strategy to meet shortfalls, if any.

Area Manager/Territory
Manager
Strong networking skills to maintain relationship with
clients and distributors
Strong communication skills
Knowledge about industry, competition, own product,
product innovations and emerging trends
Ability to manage and monitor leads generated and
referred, tracking follow-up and closure
Knowledge about commercial aspects of transactions such
as pricing and promotional schemes to ensure adequate
profits and achievement of sales targets
Manage daily sales plans for market development and
performance measurement using key metrics like daily
sales-out, width, depth and reach
Ability to co-ordinate channel activities like training Sales
Executives in products and applications, sales techniques,
route planning for sales calls, competitive counters, etc.

Senior Sales Executive Ability to identify customer requirements and making the
sales pitch accordingly
Thorough knowledge of the products and ability to cross-
sell/up-sell
Ability to train junior people and productively utilise them
for achieving sales target
Good relationship management skills
Liaisoning skills with trade partners/channel management
Awareness about trends in the industry and competitors
offerings
Good communication skills
Ability to undertake database management, record keeping
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 31 of 49
Level Skills Required
and MIS.

Sales Executive High degree of aggression and energy required
Good communication skills
Ability to follow up properly and perseverance required
Thorough knowledge of the product being sold and ability
to draw comparisons with competing products
Ability to undertake cold calling and prospecting
Good relationship management skills.

Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry
2.3.3. Skill requirements in the Design and Development function in the
Electronics and I T Hardware I ndustry
The profile of persons employed in the Design and Development function and the skills required is
presented below.
Figure 20: Profile of persons employed in the Design and Development function









Chief
Technical
Officer
Key Role: Identifying area for product and service innovation, liaisoning with global
technology partners for knowledge acquisition and in-house customisation
Qualification: Ph D/M Tech in electronics, ECE, IT, Systems Designing with 12-15
years of experience
Project Lead
Key Role: Driving applied research initiatives through product and service
innovations, managing the team of design/architect engineers, supervising customer
specified product design activities
Qualification: B Tech/M Tech/PhD (IT/Electronics) with 8-10 years experience
Design
Engineer
Key Role: Product exploration, chip level design, sub-system level design, Proofs of
Concept, detailed hard models designing
Qualification: B Tech/Diploma Engineers with 2 years of experience
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 32 of 49
Table 12: Skills required in the Design and Development function
Level Skills Required
Chief Technical Officer Knowledge about the latest technology and industry trends,
sound technical background, understanding of and ability to
identify research opportunities
Networking skills and strong contacts with
researchers/academicians worldwide
Knowledge of applicable quality standards and ability to
improve/devise the standards in co-ordination with Quality
Department
Ability to develop a team, proactively identify training needs of
team and develop them
Ability to supervise and guide the research team regarding the
research activities
Strong goal orientation.
Project Lead Knowledge about the latest technology and industry trends,
sound technical background, understanding of and ability to
manage research activities – new trends in VLSI and embedded
Ability to co-ordinate characterisation and test efforts with an
objective of commercialisation of the product/service innovation
Ability to lead a team of Design/Architect Engineers by
providing clear cut instructions
Project management skills
Strong communication and trouble shooting skills.

Design Engineer Ability to update technical knowledge about latest technology
and applied research innovations proficiency in prototype
designing/testing for IT Hardware – VLSI and embedded
technologies
Database Management and record keeping skills
Ability to handle unstructured and repetitive work due to large
number of iterations involved in the process
Problem solving attitude and flair for innovation keeping in
mind the desired outcome
Knowledge of quality certifications (such as six sigma, ISO,
etc) so that the new product/prototype complies with safety
standards and specifications.
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 33 of 49
Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry
2.3.4. Skill requirements in the Quality Assurance function
The profile of persons employed in the Quality Assurance function and the skills required is presented
below.
Figure 21: Profile of persons employed in the Quality Assurance function




Table 13: Skills required in the Quality Assurance function
Level Skills Required
Quality Engineers Awareness about latest developments in quality and process
improvements areas and preparing quality manuals in
accordance
Ability to supervise and lead inspection process
Ability to understand the quality requirement of the clients and
train the technicians as per own quality standards or those of
OEM (in case of contract manufacturers)
Strong goal orientation.

Technicians • Understanding of the quality assurance process and ability to
follow the inspection manual properly
• High level of diligence and aptitude for repetitive and
monotonous jobs
• Ability to identify the deviations
• Meticulous in record-keeping and data management
• Analytical skills to analyse the data and identify the trends in
inspection results.

Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry
Quality
Engineer
Key Role: Devising Quality Manuals, ensuring product verification as per
specifications
Qualification: B Tech / Diploma in electronics, ECE, IT, Systems Designing with 5-6
Technician
Key Role: Inspection as per manual and data sheet generation
Qualification: ITI/Diploma (Electronics, IT, Instrumentation)
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 34 of 49
2.3.5. Skill requirements in the After Sales Service (Service Support) function
This section illustrates the skills required in the Service Support function.
Table 14: Skills required in the Service Support function
Level Skills Required
Service Support Executives Technical knowledge about product and technologies
Ability to motivate and train repair mechanics
Ability to address customer complaints in the most effective and
efficient way
Good communication skills.

Repair Mechanics Ability to follow the instructions manual
Trouble shooting skills
Ability to handle tools and equipments
Knowledge about product and its configuration.

Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry
2.4. Skill Gaps in the Electronics and IT Hardware Industry
There are certain skill gaps generic to each function, while some are sector specific. This section
highlights the generic and sector specific skill gaps in the Electronics and IT Hardware Industry.
2.4.1. Skill gaps in the Production function
Table 15: Generic Skill Gaps in the Production function
Level Skill Gaps
Helper level The helper level personnel generally lack the industrial culture to
work on the shop floor. They are to be provided with short duration
training on behavioural aspects as their job does not involve any
technical skills, but still gaps remain.
Key skill gaps are:
High absenteeism, lack of punctuality
Lack of discipline at workplace for adhering to production
norms
Inability to identify deviations in material and inform the
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 35 of 49
Level Skill Gaps
operators/supervisors
Insufficient awareness of health and safety standards, despite
being educated about the same.

Operator/Technician Inability to understand material variation and take corrective
action or escalate the issue so that wastages can be
minimised
Incapable of identifying defects at any particular point in the
production line and rectifying the same on time
Lack of machine handling ability and knowledge of latest
technologies
Insufficient orientation to learn - Operators do not make an
attempt to understand new processes and need handholding
for a much longer period than required
Inability to understand instructions and product designs
completely
Quality technicians lack the computer proficiency and data
management skills, the quality manual is not referred to
diligently in few cases. Most of the people lack
understanding of latest quality concepts and techniques.

Supervisor Inability to keep the team motivated and manage their
expectations
Inability to involve subordinates or take their feedback in
decision making process
Poor capability to prepare inspection manuals and supervise
the inspection process
Lack the enthusiasm to organise quality/system improvement
training and inculcate a culture of quality consciousness
among workers.

Across the Production
function
Across the Production function, there are skill gaps in the following
areas:
Soldering – manual and automatic
Shop floor concepts, clean room
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 36 of 49
Level Skill Gaps
Equipment identification and handling
Quality and safety issues.

Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry
2.4.2. Sector specific skill gaps in the Production function
Sector specific skill gaps in the Production function are illustrated below.
Consumer Electronics: In this sector, roughly 50% of the workforce is engaged in the production
function. Specific skill gaps are:
• Insufficient knowledge about the manufacturing of new products in the sector (Flat TVs, LCD
TVs, Plasma TVs), insufficient knowledge of PCB assembly/population
• Insufficient understanding of components being used in the latest products in the sector,
material management and reduction of rejection in the production of these new products
• Shortage of technically qualified people for quality audit function as well as machine
operators and maintenance technicians of Surface Mounted Technology (SMT)/Auto
Insertion. Skilled manpower for handling SMT/auto insertion machines are expected to be a
severe shortage.

Components: In the case of manufacturing of components, more than 80% of the workforce is
involved in the production process, including quality inspection. The key skill gaps related to
manufacturing of components are as follows:
• At operator level, current manpower faces issues in understanding process charts, material
variation and machine operations
• Lack of knowledge of PLC programming and Robotic machinery maintenance
• Operators involved in the inspection process lack the capability to carry out this function as
per the manual
• Insufficient computer proficiency and data management training
• There is in general a shortage of maintenance technicians/ electricians/ fitters for handling
boiler, machine panels and air conditioning systems
• At Line in-charge/Supervisor level, key skill gaps are lack of understanding of concepts of
productivity improvement, line balancing, time and motion studies, knowledge of production
metrics like hourly production rate variation, inventory management.
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 37 of 49
IT related hardware: Key skill gaps in this sector are in the case of Engineers employed and to some
extent in ITI pass-outs who are hired as Assemblers. The skill gaps are as follows:
• In case of Engineers, lack of latest product and technology knowledge, insufficient skills for
execution of product development, insufficient knowledge of production line processes like
optimal kitting of components for assembly and mass production practices, including line
error minimisation
• In case of ITI pass outs (mainly those specialising in the Electronics trade), who take up
assembly based on circuit charts and diagrams, ability to understand processes in assembly is
a major skill gap.

2.4.3. Skill gaps in the Sales function
Table 16: Generic skill gaps in the Sales function
Level Skill Gaps
Sales Executive The sales executive generally lacks the understanding of consumer
behaviour and buying decision making process. They are provided
short term trainings on improving inter-personal skills,
communication abilities and products of the company. The key skill
gaps in the industry are as follows:
Lack of understanding of the products being sold (own
as well as those of competitors), which results in
targeting the wrong customers or not being able to fully
convince the customers about product features and
functionalities
Inadequate communication skills, especially those
people who only have an engineering background
Inability to keep proper MIS records.
Senior Sales Executive Inability to prepare/make an effective sales pitch by
matching the product functionalities with customer
requirements
Lack of understanding of customer needs and trends in the
industry
Inadequate negotiation skills and proactive attitude to
actively pursue and close deals.

Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 38 of 49
Level Skill Gaps
Area/Territory Manager Inability to mentor/train the field staff in terms of generating
and closing the deals
Lack the enthusiasm to assist the field staff for marketing
calls
Lack of leadership skills and relationship management skills
Inadequate planning skills for event-based marketing in
association with channel partners
Lack of focus on product profitability as people put more
emphasis on meeting the sales target with little or no
attention on the profitability aspect which impacts the overall
performance.

Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry
2.4.4. Sector specific skill gaps in the Sales function
Consumer Electronics: This sector has more than 25% of its workforce involved in the Sales
function as it requires high level of customer interaction with the end user. Key skill gaps for Sales
personnel employed in this sector are:
• Insufficient understanding of the financial aspects of business - cost structure of the trade
channels, margins involved along the value chain and the consequent discounting strategy to
be used
• Ineffective sales force management
• Insufficient coordination with service team to fulfil service commitments and annual
maintenance contracts
• Insufficient exposure to understanding customer requirements.

IT related hardware: This sector has roughly 25% of its workforce employed in the Sales function.
Key skill gaps in sales personnel are:
• Insufficient understanding of the dynamics of the customer organisation’s functioning and
their business requirements for IT related hardware (relating business requirements to
technology)
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 39 of 49
• Inability to interact confidently with the higher echelons of the customer’s organization about
their needs and how to fulfil them.

2.4.5. Skill gaps in the Design and Development function
Table 17: Generic skill gaps in the Design and Development function
Level Skill Gaps
Design Engineer These personnel require highly specialised skill sets and an
orientation towards research. The key skill gaps in the industry are as
follows:
Lack of understanding of latest technologies in product
proto-typing and inability to upgrade the technical
knowledge
Theoretical concepts of Electronics/Embedded Software
weak
Insufficient exposure to practical training
Testing and validation skills are not in line with industry
requirements
Lack of problem solving attitude, innovation and creativity.

Project Lead These personnel are well experienced professionals with good-track
record and aptitude for research. In general there is a shortage of
scientists and research heads as there is limited infrastructure for
training and development of research people. The key skill gaps are:
Lack of ability to communicate effectively with concept
development team
Insufficient project management and integration skills
Insufficient exposure to cost optimisation, resource
management and productivity improvement.
Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry



Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


Page 40 of 49
2.4.6. Sector specific skill gaps in the Design and Development function
Semi conductors: There is expected to be a huge shortage of people having theoretical knowledge of
Electronics - Embedded Software and people qualified for VLSI design. At senior levels, the skill
gaps are mainly related to insufficient project management and integration skills, productivity
improvement, team building and people management.
IT Hardware: A key skill gap is the lack of interest in Application Research.
2.4.7. Skill gaps in the Service Support function
Table 18: Generic skill gaps in the Service Support function
Level Skill Gaps
Senior Service Technician There is expected to be a shortage of people in the area of
maintenance and repair of consumer electronics (mainly new
products like Flat TVs, LCD), communication equipment (mainly
mobile handsets) and home computers. The key skill gaps are:
Lack of ability to handle complex issues, especially related
to customer complaints and expectations
Inability to train mechanics for repair jobs
Product knowledge is not upto the required level
Diagnostic skills are a gap
In the case of computers, knowledge of sub-assembly is a
major gap
Knowledge of system integration, mainly for Government
and Enterprises, including Network Design, is a major skill
gap.
.

Repair Mechanics The key skill gaps in the industry are as follows:
Lack of practical orientation and equipment handling ability,
hence a lot of time has to be spent on in-house training to
handle newer operating tools and equipment
Great deal of handholding is needed as they lack logical
thinking and problem solving attitude
Insufficient skills to handle customer grievances and assure
customer satisfaction, inability to take up reporting in an
effective manner.
Source: MAIT Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing
Industry
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2.4.8. Sector specific skill gaps in the Service Support function
IT Hardware: The key skill gaps are in the areas of:
• Understanding control circuitry and power supply
• Trouble shooting
• LCD Panels
• Modular units
• Customer interaction
• L1 and L2 level repairs.

Telecom Equipment: The key skill gaps, especially in servicing mobile handsets, are:
• Fault identification
• Customer interaction
• Board level repair
• Signal testing and signature reading
• L1 and L2 repairs.

2.5. Projected Industry Size and Human Resource Requirements
2.5.1. Projected Size and Human Resource Requirement of the Electronics and I T
Hardware I ndustry
Our analysis reveals that the Electronics and IT Hardware industry has the potential to grow at a
Compounded Annual Growth Rate (CAGR) of about 17% till 2022 and even thereafter considering
the fact that the GDP is expected to grow at a rate of 7.5% to 8% over this period
19
. Therefore, we
expect the production of Electronics and IT Hardware to increase from Rs. 844 billion in 2008 to Rs.
7,520 billion by 2022. Consumer Electronics, Computers, Telecom Equipment, and Industrial
Electronics would contribute to a large portion of the size of the industry.


19
Our overall approach to macro-economic modeling and forecasting is explained in a separate annexure
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Table 19: Production in the Electronics and I T Hardware I ndustry in I ndia
Size of Electronics and IT
Hardware Industry (Rs.
billion)
2008 2012 2018 2022 CAGR
Electronics and IT Hardware
Industry in India
844 1,636 4,300 7,521 17%
Consumer Electronics 226 399 946 1,474 14%
Others (Industrial
Electronics)
119 234 650 1,380
19%
Computers 159 260 852 1,546 18%
Telecom Equipment 187 478 1,338 1,354 15%
Strategic Electronics 57 125 344 714 20%
Components 96 140 171 1,053 19%
Source: IMaCS analysis
This would translate to the overall employment in the industry increasing from the current level of 0.9
million to over 4 million by 2022. This would translate to an incremental human resource requirement
of about 3 million to 3.2 million.
Table 20: I ncremental human resource requirement in the Electronics and I T Hardware I ndustry
(in ‘000s)
Projected human resource
requirement
2008 - 2022 (in '000s)
2008 2012 2018 2022 Incremental
Electronics and IT Hardware
Industry in India
906 1,446 2,870 4,129 3,223
Consumer Electronics 204 298 532 686 482
Others (Industrial Electronics) 107 168 334 567 461
Computers 193 273 689 810 617
Telecom Equipment 184 400 880 759 575
Strategic Electronics 69 128 271 474 405
Components 149 179 164 834 685
Source: IMaCS analysis
2.5.2. Projected profile of human resource requirement
Based on the profile of human resource employed in the industry, the following is the profile of the
incremental human resource requirement, both education-wise and function-wise, between 2008 and
2022.
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Table 21: I ncremental human resource requirement – education-wise till 2022 (in ‘000s)
Incremental
human
resource
requirement
Ph.D and
Research
scholars
Engineers Diploma
and
other
equally
certified
skills
ITI and
other
vocation
al
courses
Other
graduates
such as
B.Sc
MBA/
CA/
CWA
10th /
12th
Consumer
Electronics
14 43 48 35 130 106 105
Others
(Industrial
Electronics)
14 184 46 30 14 25 147
Computers 25 123 154 62 117 37 99
Telecom
Equipment
29 230 115 38 86 32 45
Strategic
Electronics
24 150 89 40 41 19 42
Components 38 192 89 110 23 13 220
Total
requirement in
the Industry
144 922 541 315 412 232 658
Incremental
human
resource
requirement
3,223
Source: IMaCS analysis

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Table 22: I ncremental human resource requirement – function-wise till 2022 (in ‘000s)
Incremental
human resource
requirement
R&D Manufacturing Sales Service Support Administration
Consumer
Electronics
19 241 130 67 24
Others (Industrial
Electronics)
14 334 69 23 21
Computers 19 130 154 253 62
Telecom
Equipment
23 172 172 172 34
Strategic
Electronics
49 188 32 83 53
Components 111 427 55 38 53
Total requirement
in the Industry
234 1,492 613 637 248
Incremental
human resource
requirement
3,223
Source: IMaCS analysis
The share of various regions that would drive this human resource requirement is as follows.

Table 23: Share of various regions in human resource requirement
Region % Share
Northern 37%
Western 27%
Southern 27%
Others 9%
Source: IMaCS analysis
2.5.3. Skill Pyramid for the Electronics and I T Hardware I ndustry
Given that the industry would required a varied profile of skill sets, the following figure presents an
overview of the profile of skill requirements as derived from human resource requirements across
different sectors of the Electronics and IT Hardware Industry.

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Figure 22: Skill Pyramid for the Electronics and I T Hardware I ndustry


Source: Industry inputs, IMaCS analysis

The skill pyramid, in summary, captures where the Electronics and IT Hardware Industry stands
relatively in terms of skills (a function of activity, educational requirements, and amount of
‘preparatory’ time required to inculcate a specific skill) as compared to all other industries.
As can be observed, ‘Skill Levels 2 and 3’, have the highest incremental requirement of human
resource. This indicates the requirement for persons trained in manufacturing, servicing, and sales
functions in the Electronics and IT Hardware Industry.
2.6. Emerging Trends in Electronics and IT Hardware Industry and
Implications on Human Resource and Skill Requirements
The following are some of the emerging trends in the Electronics and IT Hardware Industry:
I ncreasing consumption and potential for production: The expected steady increase in the
Private Final Consumption Expenditure (PFCE) on Home Appliances, Recreational and
Education Services, both ranging between 13% and 15%, is expected to drive the
consumption and production of Electronics and IT Hardware. This is expected to drive
industry/production growth at about 17%, with major contributors being Computers,
Consumer Electronics, and Telecom.
Sales and Service Ecosystem as a driver of employment: The sales and service support
functions are expected to generate an incremental employment of 1.2 million persons till
4% to 5%
Skill Level 4 (skills which are
highly specialised involving
research and design)
Skill Level 3 (skills which require long drawn
preparation as demonstrated by acquisition of
degrees, and involve highly technical or
i l i )
Skill Level 2 (skills which require technical
training inputs, knowledge of complex operations
and machinery, skills of supervision)
Skill Level 1 (skills which can be acquired with a
short/modular and focussed intervention and thereby
enhancing employability of those with minimal education)
49% to 50%
25% to 27%
19% to 21%
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


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2022. This would be due to a large nation-wide footprint of tier-2 and tier-3 industry
participants (dealers, franchisees, service agencies, etc.). This ‘ecosystem’ would contribute
to a large portion of the human resource requirement.
Manufacturing has potential for increasing localisation: While a large portion of
manufacturing is actually currently a combination of sourcing and assembly, increasing
content would be locally manufactured – for example, passive components, certain active
components, more complex motherboards, increasing adoption of Surface Mounted
Technologies and other high-tech areas. Certain components such as CRT based picture tubes
may eventually see a reduction in production given the increasing adoption of LCD/Plasma
displays. Incremental employment in manufacturing is likely to be 1.5 million till 2022.
I ncreasing adoption of E-Waste Management (electronic waste management) driven by
regulation is likely to see more ‘organisation’ of the industry in that space.
Global trends such as green and energy efficient technology is likely to have increasing
adoption in India too.
I ncreasing contract manufacturing and stronger OEM-supplier relationships would also be
a key success factor towards developing a better ecosystem. There is a strong case for cluster
development in this sector.
Growing segments would be major contributors to employment: Segments such as
Consumer Electronics, IT Hardware, Telecom Equipment would be major contributors for
employment. Illustrative growth categories are:
• Set Top Boxes
• Mobile Handsets
• Plasma/LCD TVs
• PC assembly
• End to End IT solutioning - assembling, installation, support at on-site and off-site,
infrastructure management, emergence of newer technologies such as cloud-
computing.
2.7. Focus areas for NSDC for Skill Building
The following are the possible focus areas for NSDC for skill building in the Electronics and IT
Hardware Industry.

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Table 24: Focus areas for NSDC for Skill Building
Skill sets required Incremental
Employment (till 2022,
in million)
Possible areas for skill building
Manufacturing 1.5 Basic Manufacturing
• Basic manufacturing skills
• Safety norms
• Meeting pollution control laws, etc.
• Punctuality
• Reading circuit diagrams and
populating boards
• Awareness of shop floor, concepts
of ESD
• Adherence to cleanliness norms.

Advanced Manufacturing and Contract
Manufacturing operations covering:
• Quality certifications like Six Sigma
• Productivity measurement
• Process control
• Assembly line scheduling
• Costing and budgeting
• Basic management program,
effective meetings, constructive
confrontation etc.

High-Tech Manufacturing
• Chip Mounted Technologies
• Complex LCD Technologies
• Semi conductor Technologies
• Plasma displays
• Nanotechnology.
Servicing Support 0.6 to 0.7 million L1 and L2 servicing/repair of Mobiles,
Telecom Equipment, IT Hardware,
Consumer Electronics
Higher order servicing – L3 and L4
repairs

Other areas: E-Waste Management and Sales
Source: IMaCS analysis
Human Resource and Skill Requirements in the Electronics and IT Hardware Industry


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The above two skills sets account for about 70% of the incremental human resource requirement
between themselves. NSDC can focus on the above mentioned areas, apart from other possible
areas depending on the benefit proposition of the skill building activity.

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This report has been prepared by ICRA Management Consulting Services Limited (IMaCS).
IMaCS is a multi-line management and development consulting firm headquartered in India. It has an
established track record of over 15 years in consulting across various sectors and countries. IMaCS
has completed over 950 consulting assignments and has worked in over 30 countries across the globe.
Through the process of carrying out several assignments over the last decade and half, IMaCS has
accumulated considerable analytical and consulting expertise, backed by the following capabilities:
• Deep understanding of policy formulation.
• Extensive and organised database on several sectors.
• Knowledge of key factors of success in different projects and programmes.
• Ability to research emerging trends in the economy, as well as in specific sectors.
• Insight into different programmes and organisational processes.
• Ability to carry out economic analysis, build quantitative and financial models to project future
performance and identify imperatives.
• Ability to identify the various types of risks and suggest appropriate strategies to mitigate the
same.

The Education and Skills practice at IMaCS focusses on identifying skill gaps, mapping future skill
requirements, and formulating strategies to address them. Our service offerings encompass diagnosis,
design and implementation of education and skill development interventions for government and
private sector.



R. Raghuttama Rao
Managing Director
IMaCS
4th floor, Electric Mansion
Appasaheb Marathe Marg, Prabhadevi
Mumbai – 400 025
Tel: 91 22 3047 0047, Fax: 91 22 3047 0081
Email: [email protected]
M. Sairam
Head – Process Consulting
IMaCS
5
th
floor, Karumuttu Centre
634, Anna Salai, Nandanam,
Chennai – 600 035
Tel: 91 44 2434 0043, Fax: 91 44 2434 3663
Email: [email protected]
Disclaimer for the Skill Gap Report:
NSDC engaged IMaCS (ICRA Management Consulting Services Limited) to prepare this report, which is based on independent
research and analysis done by IMaCS. This report is not based or derived from any other report or research paper. Any similarity with
any other paper may purely be a co-incidence.
All rights reserved. All copyright in this report and related works is solely and exclusively owned by NSDC. The same may not be
reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether
or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party
except with the written approval of NSDC.
This report is for information purposes only. While due care has been taken during the compilation of this report to ensure that the information is accurate to the best of IMaCSs’ and
NSDC’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.
IMaCS and NSDC neither recommend nor endorse any specific products or services that may have been mentioned in this report and nor do they assume any liability or
responsibility for the outcome of decisions taken as a result of any reliance placed in this report.
Neither IMaCS nor NSDC shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance
taken from any portion of this report.
National Skill Development Corporation
D-4, Clarion Collection, (Qutab Hotel)
Shaheed Jeet Singh Marg
New Delhi 11 0 016
Tel : 011 46 56 0414
Fax : 011 4656 0417
Email : [email protected]
www.nsdcindia.org

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