interest in these areas is at an all time low. IT Heads
want to invest in technologies that would provide them
faster and more tangible benefits
IT slowdown has caused CIOs to focus on areas that are
most beneficial to the enterprise. The idea is to invest
in technologies that can help them save costs from day
one. So while the budget allocated for areas like Converged
Networks and Bandwidth/Connectivity have been high,
interest in other areas like Training/ Recruitment and
Consultancy/Outsourcing have been very low.
Initially, we had two separate set of queries on Training/Recruitment
and Consultancy/Outsourcing. However, due to the very
small base of respondents showing interest in these
areas, we have clubbed both these categories into a
TRAINING AND RECRUITMENT
Corporate training has been a major source of revenue
for the IT Training industry. But in recent times, this
Rs 2,500 crore industry has been hit by the IT slowdown.
The IT Training industry recorded a growth of only 10
percent in 2000-2001 as against a 35 percent growth
it has enjoyed in better times. The training industry
is expected to register a growth of 10-15 percent in
To survive in these bad times, IT training institutes
are yielding earnestly to corporate requirements--courses
are now tailor-made specifically for niche industries.
At the corporate level, short-term courses that focus
on basic computing skills (or those that enhance existing
skills), are more common. Some of these courses move
beyond the domain of IT and also include training in
other areas like personality development and stress
At the other end of the spectrum, long-term courses
for professionals continue to be in demand. Engineering
students favor the certification courses, particularly
for Security and Networking.
E-learning is fast catching on within the enterprise.
This method of training is favorable when organizations
need to implement training on specific processes within
a short span of time and with minimal investment.
There has been a drop in registrations for IT courses,
but the industry still requires IT professionals. In
fact, NASSCOM estimates a demand for 3 lakh IT professionals
But Training/Recruitment is not a major focus for enterprises
at present and just nine percent of the respondents
said this is a main focus area.
Whatever little training requirement that exist, comes
from the IT/Telecom sector. 14 percent of the respondents
in this sector said Training/Recruitment is a main focus
area. Of these respondents, 57 percent said Training
and Recruitment is an area to be covered in the current
Last year (2000-2001) the big spenders in this area
were companies from the Banking & Finance and IT/Telecom
The shortage of skilled manpower in highly specialized
areas and the complexity of network infrastructure is
prompting enterprises to outsource infrastructure management.
While some choose partial outsourcing others leave their
entire network in the hands of highly skilled and trusted
engineers, who operate from a Network Operations Center
(NOC) and are bound by a SLA (Service Level Agreement).
A growing number of security consultants are also servicing
the needs of the enterprise. Security experts can perform
vulnerability testing/risk assessment and advise an
enterprise on its security lapses and requirements.
While the benefits of outsourcing and consultancy seem
attractive, not many CIOs are too interested in this
right now. In fact, consultancy and outsourcing is the
main focus area for just 9 percent of the respondents.
According to the survey, main demand comes from the
Manufacturing sector. 13 percent of the respondents
in this sector said consultancy and outsourcing is a
main focus area. Of these respondents, 32 percent said
consultancy & outsourcing is an area to be covered
in the current IT budget.
The main areas outsourced in the Banking and Finance
sector are Customized software and Bandwidth/connectivity.
The main areas for the IT/Telecom sector are security
and converged network.
and Recruitment is not a major focus for enterprises
E-learning is fast catching on within the enterprise
Main requirement for Training & Recruitment
comes from the IT/Telecom sector
Consultancy and Outsourcing is not a major focus
Main demand for Consulting & Outsourcing
comes from the Manufacturing sector