framework for developing human capital for it local content in nigeria sb junaidu...
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Framework for Developing Human Capital for IT Local Content in
Nigeria
SB Junaidu (sahalu@abu.edu.ng) Professor & DirectorIya Abubakar Computer CenterAhmadu Bello University, Zaria, Nigeria
Outline
1. Introduction2. Goal & Motivation3. Requirements for Realizing Goal4. Quick Internal Audit5. Learning from other Countries6. Developing Human Capital for IT Local Content7. Conclusion
Developing Human Capital for IT in Nigeria2 November 20, 2012@Transcorp Hilton, Abuja
Introduction
Framework– 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– Human Capital or Human resources is the set of individuals
who make up the workforce of an organization, business sector or an economy
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… Introduction
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
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Goal
Develop domestic outsourcing industry to support local businesses and government services
Become an offshoring hub for international investors
Develop a knowledge economy driven by ICTs
Increase security & enhance national development
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Motivation
In Nigeria today, our knowledge-base and technology environment especially in the area of ICT is greatly dominated by foreign technologies– 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
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… Motivation
The service sectors contributed most in countries that have grown & sustained their rapid growth
The global service market has been growing at 30% annually between 2003 and 2010[2]– 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
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… Motivation
The services sector now accounts for [5]– 70 % of employment and 73% of GDP in developed
countries and for – 35% of employment and 51% of GDP in
developing countries
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Fair Dream!
The problem is real– Absence of appreciable Nigerian content in solutions for government and
industry services
The market is there– Global demand for services, growing by about 30% annually
The potential is there– Large population with comparatively high literacy rate
So, the dream is justified!Developing Human Capital for IT in Nigeria9 November 20, 2012@Transcorp Hilton, Abuja
Requirements for Realizing Goal
Reasons for outsourcing/offshoring– To reduce labor costs– To increase productivity and competitiveness– To expand operations and broaden customer base
Developing Human Capital for IT in Nigeria10 November 20, 2012@Transcorp Hilton, Abuja
… Requirements for Realizing Goal
Favorable costs (staffing, facilities, telecomms, etc)– Financial incentives
Good human resources (availability & quality)
Functional business environment (available, quality and reliable infrastructure, legal and political systems)– Infrastructure– Regulatory policies– Economic stability– Political stability
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Importance of Employable Talent
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– After access to high-bandwidth
telecommunications infrastructure
Nigeria must trade locally & globally on its human capital endowment!
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Talent Pool Assessment
Talent pool assessment begins with the annual number of university graduates – in each of several subjects that are of interest to IT/ITES firms.
This number is then whittled down to understand how many of these graduates are– suitable for employment – willing to work in this industry– Accessible – trainable
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Talent Supply in Low-Wage Countries
The potential supply of talent in low-wage countries is large and growing rapidly
Only 13% the potential talent supply in low-wage nations is suitable to work for multinational companies
Reasons– 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.
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Talent Supply in Nigeria [6]
Nigeria lags other offshoring destinations in tertiary education enrolment
Nigeria continues to under-invest in the education systems– Compared to South Africa, India and China
Nigeria has very few specialized technology, IT and management colleges– Effectiveness of existing ones hampered by financing and human
capacity constraints
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NEEDs Report on Nigerian Universities [4]
Nigerian universities are grossly under-staffed
Most state-owned universities rely on visiting lecturers to run their academic programmes
Many Nigerian universities depend heavily on under-qualified “recycled staff as visiting, adjunct, sabbatical and contract lecturers.”
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… NEEDs Report on Nigerian Universities [4]
Only 43 percent of them have PhDs with only 44 percent in the required bracket of senior lecturers to professors
Out of the 124 universities in the country, only seven have up to 60 percent of their teaching staff with PhD
Nigeria has one of the highest lecturer/student’s ratioDeveloping Human Capital for IT in Nigeria17 November 20, 2012@Transcorp Hilton, Abuja
Other Concerns: Outsourcing Fears
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
– Lagos, Lahore and Medellin were thought to have the least secure IT infrastructure
Even the perception of risk factors such as high crime, corruption or terrorist threat can paralyze a region's offshore business momentum– Doug Brown, Datamonitor Research Director
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Learning from other Countries: India
Long-term investment in world-class technology institutes – produced a critical mass of technology leaders
able to compete globally
Liberalized entry of private technology institutes in the tertiary education market– multiplying the number of engineering graduates
available for the IT sector in only a few years.
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… Learning from other Countries: India
Launched the Software Technology Parks of India (STPI) initiative in 1991– 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
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… Learning from other Countries: India
Captures about 60% of the global offshoring market
India has a Ministry for Human Resource Development
India has a talent pool of three million graduates passing out of universities every year
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… Learning from other Countries: India
India’s Eleventh Plan gave a very high priority to Higher Education with initiatives such as – establishing 30 new Central universities– 5 new IISERs, – 8 IITs, – 7 IIMs, – 20 IIITs, etc.
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Developing Human Capital for IT Local Content
Assess ICT skill needs/deficits in partnership with industry & academia
Develop a strategic plan of action to meet the needs in a finite time frame
Delineate clearly the roles to be played by Government, Industry and Academia in reaching the set targets
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… Developing Human Capital for IT Local Content
Establish a National Skills Portal for exchange of information b/w employers and employees– A National Skills Inventory DB– A National DB for Skill Deficiency Mapping
Helps to aligning skills development with the needs and requirements of the industry– the most important factor for success
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… Developing Human Capital for IT Local Content
Introduce standardized national level tests similar to SAT, GRE, etc– for benchmarking of students seeking admissions
Introduce a common nation-wide benchmark for assessing graduating students – In partnership with industry stakeholders
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… Developing Human Capital for IT Local Content
Establish Skills Development Centers to compliment other education outfits– Both bricks-and-mortar as well as virtual
Create task forces to provide specialist retraining of graduates in electronics and computer science – to boost the capability of responding to industry
needs
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… Developing Human Capital for IT Local Content
Reorient accreditation away from regulation to performance measurement– Rate and rank institutions on standardized
outcomes like % graduates placed, dropout rates, etc
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… Developing Human Capital for IT Local Content
The government must refocus its attention and resources on education– 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
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Summary
Presented the needs & motivations for Nigerian content in ICT services, locally and internationally
Gave passing justification why such a move is valid
Mentioned the requirements for Nigeria to be a competitive outsourcing/offshoring location
Provided some strategies for developing Human Capital for IT Local Content in Nigeria
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References
1. Datamonitor Group (2010), Offshoring: 25 Most Dangerous Cities for Outsourcing in 2010.
2. McKinsey Global Institute, 2005. “The Emerging Global Labor Market: Part III—How Supply and Demand for Offshore Talent Meet,” McKinsey: San Francisco, p. 19.
3. A.T. Kearney, 2009. “Geography of Offshoring is Shifting,” Global Services Location Index.
4. 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/needs-reportnigerian-varsities-grossly-under-staffed/. Accessed, November 17, 2012
5. 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.
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… References
1. I. Radwan and N. Strychacz, Developing an African Offshoring Industry: The Case of Nigeria, Africa Trade Policy Notes, Note #3, May 2010.
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The End
Thank You
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