Transcript Developing Human Capital for IT Local Content

Framework for Developing Human
Capital for IT Local Content in Nigeria
SB Junaidu ([email protected])
Professor & Director
Iya Abubakar Computer Center
Ahmadu Bello University, Zaria, Nigeria
Outline
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Introduction
Goal & Motivation
Requirements for Realizing Goal
Quick Internal Audit
Learning from other Countries
Developing Human Capital for IT Local Content
Conclusion
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Introduction
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Framework
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Human Capital
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a logical structure, plan or frame of reference that
describes/guides the realization of something
A set of assumptions, concepts, values, and practices that
constitutes a way of viewing reality
Human Capital or Human resources is the set of individuals
who make up the workforce of an organization, business
sector or an economy
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Introduction
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My charge in simple terms:
To develop workable strategies for creating a
pool of skilled personnel in appropriate numbers
with adequate skills, in line with the requirements
of the ultimate users such as the industry, trade,
and service sectors
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Goal
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Develop domestic outsourcing industry to support
local businesses and government services
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Become an offshoring hub for international investors
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Develop a knowledge economy driven by ICTs
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Increase security & enhance national development
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Motivation
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In Nigeria today, our knowledge-base and
technology environment especially in the area of
ICT is greatly dominated by foreign technologies
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enhance Nigerian content in IT products and services
Arrest capital flight from our local industries
empower indigenous IT entrepreneurs in order to
contribute to Nigeria’s GDP
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Motivation
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The service sectors contributed most in countries
that have grown & sustained their rapid growth
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The global service market has been growing at 30%
annually between 2003 and 2010[2]
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Outpacing growth rate in goods trade and even other
services trade
The percentage of total the workforce engaged in
services is expanding at a rapid pace
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Motivation
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The services sector now accounts for [5]
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70 % of employment and 73% of GDP in developed
countries and for
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35% of employment and 51% of GDP in
developing countries
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Fair Dream!
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The problem is real
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The market is there
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Global demand for services, growing by about 30% annually
The potential is there
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Absence of appreciable Nigerian content in solutions for government
and industry services
Large population with comparatively high literacy rate
So, the dream is justified!
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Requirements for Realizing Goal
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Reasons for outsourcing/offshoring
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To reduce labor costs
To increase productivity and competitiveness
To expand operations and broaden customer base
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Requirements for Realizing Goal
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Favorable costs (staffing, facilities, telecomms, etc)
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Good human resources (availability & quality)
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Functional business environment (available, quality and
reliable infrastructure, legal and political systems)
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Financial incentives
Infrastructure
Regulatory policies
Economic stability
Political stability
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Importance of Employable Talent
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The availability of employable talent is the
single most important determinant for the
growth of the IT services and ITES industries
in the long term
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After access to high-bandwidth
telecommunications infrastructure
Nigeria must trade locally & globally on its
human capital endowment!
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Talent Pool Assessment
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Talent pool assessment begins with the annual
number of university graduates
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This number is then whittled down to understand
how many of these graduates are
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in each of several subjects that are of interest to IT/ITES
firms.
suitable for employment
willing to work in this industry
Accessible
trainable
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Talent Supply in Low-Wage Countries
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The potential supply of talent in low-wage countries is large
and growing rapidly
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Only 13% the potential talent supply in low-wage nations is
suitable to work for multinational companies
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Reasons
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lack of necessary language skills;
low quality of significant portions of the educational system and its
limited ability to impart practical skills; and
low interpersonal skills and attitudes towards teamwork and flexible
working hours.
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Talent Supply in Nigeria [6]
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Nigeria lags other offshoring destinations in tertiary
education enrolment
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Nigeria continues to under-invest in the education
systems
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Nigeria has very few specialized technology, IT and
management colleges
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Compared to South Africa, India and China
Effectiveness of existing ones hampered by financing and human
capacity constraints
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
NEEDs Report on Nigerian Universities [4]
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Nigerian universities are grossly under-staffed
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Most state-owned universities rely on visiting
lecturers to run their academic programmes
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Many Nigerian universities depend heavily on
under-qualified “recycled staff as visiting,
adjunct, sabbatical and contract lecturers.”
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… NEEDs Report on Nigerian Universities [4]
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Only 43 percent of them have PhDs with only 44 percent
in the required bracket of senior lecturers to professors
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Out of the 124 universities in the country, only seven
have up to 60 percent of their teaching staff with PhD
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Nigeria has one of the highest lecturer/student’s ratio
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Other Concerns: Outsourcing Fears
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Poll on 25 Most Dangerous Cities for Outsourcing in 2010 [1]
– Lagos, Nigeria, Lahore, Pakistan, and Medellin, Colombia
were the least safe in terms of violent crime and police
protection
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Even the perception of risk factors such as high crime,
corruption or terrorist threat can paralyze a region's offshore
business momentum
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Lagos, Lahore and Medellin were thought to have
the least secure IT infrastructure
Doug Brown, Datamonitor Research Director
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Learning from other Countries: India
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Long-term investment in world-class
technology institutes
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Liberalized entry of private technology
institutes in the tertiary education market
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produced a critical mass of technology leaders
able to compete globally
multiplying the number of engineering graduates
available for the IT sector in only a few years.
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Learning from other Countries: India
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Launched the Software Technology Parks of
India (STPI) initiative in 1991
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to overcome infrastructural and procedural constraints
by providing data communication facilities, office
space, and “single window” statutory services were
extremely beneficial
India’s telecommunications policies of 1994 and
1999 also allowed private sector investments
into the sector
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Learning from other Countries: India
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Captures about 60% of the global offshoring
market
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India has a Ministry for Human Resource
Development
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India has a talent pool of three million graduates
passing out of universities every year
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Learning from other Countries: India
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India’s Eleventh Plan gave a very high priority to
Higher Education with initiatives such as
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establishing 30 new Central universities
5 new IISERs,
8 IITs,
7 IIMs,
20 IIITs, etc.
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Developing Human Capital for IT Local Content
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Assess ICT skill needs/deficits in partnership
with industry & academia
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Develop a strategic plan of action to meet the
needs in a finite time frame
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Delineate clearly the roles to be played by
Government, Industry and Academia in reaching
the set targets
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Developing Human Capital for IT Local Content
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Establish a National Skills Portal for exchange
of information b/w employers and employees
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Helps to aligning skills development with the
needs and requirements of the industry
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A National Skills Inventory DB
A National DB for Skill Deficiency Mapping
the most important factor for success
Developing Human Capital for IT in Nigeria
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… Developing Human Capital for IT Local Content
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Introduce standardized national level tests
similar to SAT, GRE, etc
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Introduce a common nation-wide benchmark
for assessing graduating students
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for benchmarking of students seeking admissions
In partnership with industry stakeholders
Developing Human Capital for IT in Nigeria
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… Developing Human Capital for IT Local Content
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Establish Skills Development Centers to
compliment other education outfits
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Create task forces to provide specialist retraining
of graduates in electronics and computer science
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Both bricks-and-mortar as well as virtual
to boost the capability of responding to industry
needs
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
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Reorient accreditation away from regulation
to performance measurement
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Rate and rank institutions on standardized
outcomes like % graduates placed, dropout rates,
etc
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… Developing Human Capital for IT Local Content
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The government must refocus its attention
and resources on education
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development of a first class educational and
scientific research establishment
non-traditional colleges responding to market
demand for business and technical training
Refocus stakeholding in Education, nationally
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
Summary
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Presented the needs & motivations for Nigerian content
in ICT services, locally and internationally
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Gave passing justification why such a move is valid
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Mentioned the requirements for Nigeria to be a
competitive outsourcing/offshoring location
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Provided some strategies for developing Human Capital
for IT Local Content in Nigeria
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
References
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Datamonitor Group (2010), Offshoring: 25 Most Dangerous Cities for Outsourcing in
2010.
McKinsey Global Institute, 2005. “The Emerging Global Labor Market: Part III—
How Supply and Demand for Offshore Talent Meet,” McKinsey: San
Francisco, p. 19.
A.T. Kearney, 2009. “Geography of Offshoring is Shifting,” Global Services
Location Index.
National Economic Empowerment and Development Strategy (NEEDS)
Committee, NEEDS report:Nigerian varsities grossly under-staffed, BluePrint
Newspaper, November 12, 2012, http://blueprintng.com/2012/11/needsreportnigerian-varsities-grossly-under-staffed/. Accessed, November 17, 2012
UNCTAD (United Nations Conference on Trade and Development). 2008.
Globalization for Development: The International Trade Perspective. New
York: United Nations. http://www.unctad.org/en/docs/ditc20071_en.pdf.
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
… References
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I. Radwan and N. Strychacz, Developing an African Offshoring Industry: The Case of
Nigeria, Africa Trade Policy Notes, Note #3, May 2010.
Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja
The End
Thank You
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Developing Human Capital for IT in Nigeria
November 20, 2012@Transcorp Hilton, Abuja