Nature of work, Quality of Employment and Working Condition in ICT sector: A Case of India

Nature of work, Quality of Employment and Working Condition in ICT sector: A Case of

IndiaBalwant Singh Mehta

Sponsored & Coordinated By

Institute For Human DevelopmentNew Delhi, India

Outline of PresentationOutline of Presentation

•General Background: Indian Economy and ICT

•Objectives & Methodology

•Main Findings•Socio-Economic Characteristics of ICT Workers•Nature, Quality of Work & Working Conditions (Decent Work Framework & ICT)

•Challenges& Conclusion

Indian Economy and ICTIndian Economy and ICT

•Growth rate of Indian economy (8.40 % annual average from 2004-2010)

•Contribution of service sector to the economy :

GDP Share

Service57%

Secondary29%

Primary14%

Employment Share

Primary56%Secondary

19%

Service25%

44% Share in total FDI inflow,2010-11

28% Share in total export, 2010-11

Source: Economic Survey, 2010-11

Contribution of ICT Sector in National Contribution of ICT Sector in National EconomyEconomy

ICT Contribution to National Income (GDP)

3.64.1

4.75.2

5.8 6.1 6.4

0.001.002.003.004.005.006.007.00

2004

2005

2006

2007

2008

2009

2010

Year

%

Employment in ICT Sector (in millions)

0.81.1

1.31.6

2.02.3

2.5

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2004

2005

2006

2007

2008

2009

2010

Year

%

2.5 million direct & 8.5 million indirect employment 2010-11

•Fastest growing sector in the Indian economy (with CAGR of 22.5 % from 2004-05 to 2010-11)•Tremendous potential to address educated unemployment problem

20% share to total export (58.9 billion in US$), 2010-11

Source: Economic Survey & NASSCOM, 2010-11

•A very important emerging sector in Indian Economy•Limited studied of employment in ICT sector

Objective:Objective:•Study explore ‘Nature and Quality of Employment in ICT sector in India’ •Within the ‘Decent Work**’ framework of the ILO

Methodology: Methodology: •PPrimary Survey in Delhi and NCR region•Semi-structured interview questionnaire & case studies Sample Selection:•Stratified random based on:

• firms size (small, medium, large);• employment levels (executive, middle, top level) and gender•Total 300 workers (150 IT & 150 ITeS sub-sector) with 36% (108) female covered

Objective & MethodologyObjective & Methodology

**“Opportunities for women and men to obtain decent and productive work in condition of freedom, equity, security and human dignity” : Juan Somavia’ 1999

•66 % from urban/metros

•64% from upper social caste

•84% from services & business class with high income level

•87% were young (20-30 years)

•69% were single

•95% were graduate+

Socio-Economic Profile of Sample WorkersProfile of Sample Workers

•Mostly from upper caste/class, higher/middle income families and metro and big cities

•Very few from rural background

Decent Work Agenda & Decent Work Agenda & ICTICT

The concept encompasses four inter-related dimensions:

1) Employment and Income Generation

2) Working Conditions

3) Social Protection and Social Security

4) Social Dialogue

Employment and Income GenerationEmployment and Income Generation : : Highly Skill OrientedHighly Skill Oriented

Distribution of Workers by Skills

46.70

74.50 76.50

53.30

25.50 23.50

0%

20%

40%

60%

80%

100%

Exective Middle Top Level

Level of Employment

%

Non-Technical

Technical

•High women participation in ICT (around 33% in 2009-NASSCOM)

•Working at executive and middle level (low skilled jobs)

Employment and Income Generation: Employment and Income Generation: High Return to Skills High Return to Skills

1

3.4

1

1.5

1

2.0

0

1

2

3

4

Graduate & above (Non-Tech.) Graduate & above (Tech.)

IT ITeS ICT

10

Employment and Income Generation: Employment and Income Generation: Nature-Mostly Contractual Nature-Mostly Contractual

Status of Employment

Permanent employee

95%

Contract Employee

5%

•Regular (95%), ICT workers perception•Fallacy of regular work•77% engaged in the job for a period of one/two or three years

Period of Contract of Regular Workers

1 Year36%

2 Year22%

3 Year20%

3+ Years22%

11

Employment and Income Generation: Employment and Income Generation: High Income & High InequalityHigh Income & High Inequality

•High salary in ICT (higher than other traditional sectors)

Annaul Average Salary (in Rs 000')

174 166 169

390 358 376

850

600

762

0100200300400500600700800900

IT ITeS ICT

Sala

ry

Executive Level Middle Level Top Level

Very high inequality : Within sector (among executive, middle and top level)

Very high inequality: Between IT and ITeS sub-sector

Little gender difference in IncomeAvg. annual salary Male: (323 thousands)

Female: (314 thousands

12

Working ConditionsWorking Conditions

•Less number of annual leaves ( only 25 days)

•High working hours (9 hours daily)

•High pressure of work and target based (86%)

•Shift based work (Very high night shift in ITeS-82% )

•Safety problem (due to night shift, especially for women-33%)

•High mental and physical health problems (84%)

•High performance incentives•Pick and drop Facility•Health & recreation club •Purified drinking water •Cleanliness •Refreshment•Higher education and training

Work Related Facilities Work Related Facilities

14

Social Protection/Security*Social Protection/Security*

•Low level of SS benefits (21%) •Contractual job (1 to 3 years)

•Very high rate of attrition (40%)

•Job hopping very high ( average 3 in a year)

[*Health care, provident fund, gratuity , maternity/paternity benefits]

15

Social DialogueSocial Dialogue

•Complete Lack of Union/Associations (only 4%)

•Employers discourage formation of any union/association

•Little organised dialogue between the employer and employee

Challenges/ConclusionChallenges/Conclusion

•Exclusion of large number of educated youth from rural areas

•Low level of social security measures

•Adverse Working Conditions & high attrition rate

•Creating more employment opportunities for rural and disadvantage class by skill generation.

•Extending the social security benefits and working conditions for the overall development of ICT sector in the country.

•Mobilization of workers for better job conditions

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