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The Accenture India TalentSupply Mapping study—leveraging talent potentialto drive high performance



Global economic power today is dis-persed between the traditional powercenters of the United States, Europeand Japan and the developing econo-mies as they contribute to an ever-increasing share of the world’s output,trade, investment and consumption.Accenture has chronicled this changein global economic power and its con-comitant implications, in its research“The Rise of the Multi-Polar World.”A key dimension of this new globalorder, as identified in the study, is thetalent imperative. Winning talent hasbecome a significant factor to achiev-ing high performance in the face of shrinking labor forces in developedeconomies and access to large talentpools in the emerging economies. Itis estimated that approximately 97percent of the 438 million people whowill join the global workforce by 2050will be from developing countries. Asorganizations try and tap into theseresources, they have realized that thetalent pools across countries have adifferent set of competencies and areat different stages of maturity.Talent is a critical source of competi-

tive advantage for today’s high-per-formance businesses as demonstratedby the findings of Accenture’s ongoingHigh Performance Business research.One of the building blocks of highperformance—performance anatomy—relies heavily on the quality of talentthat an organization has to developan appropriate culture, leadership andworkforce.

India has one of the world’s largestand youngest populations—by 2020,the country is expected to represent17 percent of the world’s working-agepopulation (of adults aged between15-59 years).

It is thus no surprise that India haslong generated keen interest amongbusiness leaders across the world. Itis progressing beyond establishing itscredentials as a low-cost, medium- tohigh-quality talent base and is nowincreasingly regarded as a location forinnovation, product development andresearch and development—feedingthe demand requirements of today’slarge organizations that follow global

sourcing models. While India’s out-sourcing industry and technologyworkers have drawn the most atten-tion, other skill pools are also much indemand, with needs being met alongdifferent stages of the skill continuum.Thus, while at one end of the skillcontinuum, we find Indian doctorsand health workers in demand to fillroles in the United Kingdom’s NationalHealth Service, at the other, diamondcutters and polishers based in Surat,Gujarat, represent the largest base of diamond processing skills in the world.

India’s above 8 percent rate of growthhas meant rapid job creation acrossa wide range of industry sectors andthis has strained the talent pipelineas there are now more jobs in Indiathan people to fill them. This spiralingdemand has an impact on the talentsupply dynamics in the Indian mar-ket leading to high attrition and anincrease in wage levels—for instance,the lack of experienced professionalsin business process outsourcing andinformation technology has led to highattrition rates (19 percent in 2007 )

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The Accenture India Talent Supply Mapping survey-An executive preview

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USRussiaJapanIndiaChinaBrazil

Working Age Population (million)

Economically Active Population (million)

Figure 1. Change in Population 2007-2020 (Forecasted)

The talent supply index is acompound measure made up of 14 underlying parameters thataffect the Gross EnrollmentRatio of a state. This ratio isindicative of the employabilitypotential of a state. The indexthus helps to provide a top-down view of talent supplyavailability and quality acrossthe states of India. The param-eters considered include:

• Labor-related (including laborproductivity of public admin-istration, labor productivityof other services, employmentgrowth in electricity, gas andwater sectors)

• Investment-related (includ-ing registered manufactur-

ing expenditures, construc-tion expenditure, and ratio of finance to total foreign directinvestment projects)

• Education-related (includingteacher-pupil ratio in highereducation, number of institu-tions deemed to be universities,number of arts, science andcommerce colleges, numberof engineering, technical andarchitectural colleges, numberof law, management, postgrad-uate institutes offering degreesin computer applications, agri-culture and IT colleges, numberof teacher-training schools,percentage of universities andbusiness schools in nationalrankings, total enrollments atschool level.)

Talent Supply Index

Source: ILO



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nd multinational corporations woo-ng talent by paying premiums (wagenflation was as much as 18 percentn 2007 ).

Another challenge for Indian com-anies and multinationals alike ishe dispersion and divergence inhe availability and quality of tal-nt across the various Indian states.n India, population has traditionallyeen perceived to be a burden. Buthe lack of uniformity in the demo-raphic stages of different statesctually offers a window of opportu-ity—states with population surpluseshould find ways to turn them intossets.

ndia has time and youth on its side.

With one of the youngest popula-ons in the world, it is at the cusp of ealizing its “demographic dividend”.ontinued economic growth can be

ustained with growth in the work-ng age population assuming thathere are continued investments inducation and skill building. However,rowth in population also tends to

Talent supply mapping involves accurate analysis and forecasting of alent pool availability and employability using past data and marketrends, and can be done from a company-specific, location-specific

and industry-specific perspective. If corporations get involved earlyon in the talent creation process—not only does this help them toerve their business needs, it gives them a far greater control over

heir talent acquisition strategy.

slow down with further industrializa-tion and urbanization of populationsbrought about by increasing devel-opment and sophistication of theeconomy.

Given this context, it is becomingincreasingly important that busi-nesses have a good understanding of talent supply—what Accenture callstalent supply mapping—and thatthey closely tie their talent planning,resourcing and acquisition strategieswith their areas of business focus andidentified growth drivers. By doing sothey can hope to identify and acquiretalent that is suitable and can fueltheir competitive advantage in a waythat puts them on the road to highperformance.

To assist corporations and policy-makers alike in such an initiative,Accenture has undertaken a multi-dimensional mapping of the talentpotential and talent availability situ-ation within India over a 20-yearhorizon, ranging from 2006 to 2026,while simultaneously assessing

the demand-side scenario througha sectoral growth pattern study.Accenture’s deep and broad experi-ence across industry sectors uniquelyqualifies it to do so. To this end,Accenture has also developed a talentsupply index which is a compoundmeasure made up of 14 underlyingparameters that provide a top-downview of talent supply availability andquality across the states of India. Theparameters can be grouped under theheads of labor-related, education-related and investment-related andincludes critical variables like percapita income, economic investmentsmade and enrolment in higher educa-tion.

This executive preview is a precursor

to the comprehensive report preparedby Accenture, in association withits research partner 9.9 Mediaworx,which captures the detailed findingsof this survey. This preview providesa summary of the key findings. Thethree aspects that it covers are thedemand drivers, the supply driversand finally, the talent supply index.



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Demand drivers - sectoral growth patterns

Figure 2. Employment by Sectors - 2001 to 2015 (Projected)

The first aspect of Accenture’s multidi-mensional talent mapping initiative isa study of the sectoral growth patternsthat may emerge in India by 2015.

As the Indian economy matures, theservices sector has the potential tobecome the primary employmentgenerator. The study examines 16 sec-tors and identifies the following eightsectors of the Indian economy—retail,IT and IT-enabled services, hospitalityand aviation, health care, banking andfinancial services, automotive and fastmoving consumer goods—as having thepotential to add 19 million jobs aloneto the organized sector by 2015, anincrease of 125 percent over the 15million that these sectors collectivelyemployed in 2007.

These sunrise sectors are likely todominate business over the comingdecades and form an integral part of

the service economy. (Refer to Figure2) . In particular, the high-growth sec-tors of IT and IT-enabled services, hos-pitality and aviation and health careare expected to contribute a lion’sshare of 68 percent of the new poten-tial jobs to be created by 2015.

An interesting insight that this studypoints out is of the employment gen-eration potential offered by the hos-pitality and aviation sector. While thepromise held by a labor-intensive sec-tor like retail are well-known, the hos-pitality and aviation sector may alsoemerge as a significant employer as itrides on the wings of India’s expectedtransition to a services economy, driv-en by consumption-led growth. Sincethe sector has the potential to absorbunskilled and semi-skilled labor, inaddition to highly specialized technicaland managerial skills, the opportuni-ties can be leveraged by a cross-sec-

tion of Indian states at different levelsof the growth and industrializationcontinuum.

As far as skill needs go, demand isexpected to be generated across theskill chain in all of these industries.This means, for example, that asgrowth of organized retail becomeswell-entrenched, there may beincreased demand for shop floorattendants and store keepers alongwith logistics and operations manag-ers as well as brand and merchandis-ing consultants.

Our study includes a scenario analy-sis for each of these sectors lookingat different factors which can helpdetermine their growth in the future—ranging from the current maturity of the industry, areas of growth, talentprofiles required and possible chal-lenges.

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2000000

4000000

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2001 2002 2003 2004 2005 2006 2007 2015

P e r s o n s

E m p

l o y e

d

BFSI

Retail

Healthcare

Hospitality & AviationAutomotive Industry

IT & ITES

FMCG

Telecommunications

Accenture’s multi-dimensional mapping of India’stalent availability potential covers three aspects.

Employment in sectors reflects persons employed in organized sectors of the economyincluding skilled and unskilled personnel.



of the aged. In Kerala, where lowerfertility and mortality rates have beenachieved earlier than other states,the median age of population isexpected to go up from 28 years in2001 to 38 years in 2026. In contrast,Uttar Pradesh is expected to have anincrease of the proportion of old agepopulation from 6 to 10 percent overthe same period, with a consequentincrease in the median age from 19years to 27 years. This implies thatKerala is likely to have the highestproportion of people aged above 60years, two decades from now whileUttar Pradesh is likely to have one of the youngest populations.• Seventy-seven percent of India’slabor supply growth is expectedto be generated in ten states—Uttar Pradesh, Maharashtra, WestBengal, Andhra Pradesh, Bihar, TamilNadu, Madhya Pradesh, Karnataka,Rajasthan and Gujarat. As per theCensus of India and our own analy-sis, labor growth in these 10 states(close to 175 million) is projected tomore than offset total aging in India(of about 90 million) by 2025. Twodecades from now, these states areexpected to account for about 80percent of the c ountry’s population.

The report correlates findings likethese to derive an integrated map of how the different Indian states maypan out as far as the demographic

transition and its implications onworking-age population versus thestage of economic transition goes.“Economic transition” refers to thetransformation from a largely ruralagrarian society with high fertilityand mortality rates to a predomi-nantly services-led society, with lowerfertility and mortality rates (refer toFigure 3).

The frontrunners are familiar names—Gujarat, Maharashtra and Karnataka.These states seem well-placed tocapitalize on their early economictransition from an agrarian society toan industrialized one as they demo-

graphically come off age, with a highproportion of their current popula-tions in the working age band.

But it is states like Bihar, MadhyaPradesh, Rajasthan and UttarPradesh—which today have low scoreson the human development indices(like birth rate, mortality rate andquality of health services)—that arelikely to hold the growth potential forIndia. These states seem to be in aposition to realize their demographicdividend around 2025, at a time whentoday’s frontrunner states are likely tohave aging populations.

The findings that emerge from oursurvey are laden with immense pos-sibilities, but also signal the need forconcerted and focused initiative fromcorporations and policymakers as theyplan for a future today where thepossibilities of achieving high per-formance can benefit all. Corporateleaders could consider setting uptraining institutes in states that havethe potential to realize their demo-graphic dividend in the later years.By sowing the seeds of educationalinfrastructure creation today, corpo-rations could help to build alternatepools of talent, consequently enhanc-ing talent capacity generation. Theother advantage of an early entry intothe talent creation process is that ithas the potential of giving corpora-

tions a head start as far as their tal-ent supply mapping initiatives go.

Talent supply mapping involvesaccurate analysis and forecasting of potential talent pool availability andemployability using past data andmarket trends, and can be done froma company-specific, location-specificand industry-specific perspective. If corporations get involved early onin the talent creation process, notonly does this help them to servetheir business needs, it gives them afar greater control over their talentacquisition strategy.

Supply drivers—demographic transition andmplications on working age population

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A peculiarity of the Indian talentandscape is the variety and contra-ictions that it houses, much like theiversity and complexity of India’s

multilingual, multiethnic society. Asmentioned earlier, India’s “demo-raphic dividend” is not evenly spreadcross states and employability dif-ers from region to region.

he second pillar of Accenture’salent mapping exercise involvesnderstanding demographic transi-

on patterns across the Indian statesnd their implications for potentialmployability. Here are some factshat highlight the inherent contradic-ons:

As per our analysis, Tamil Nadu,ollowed by Kerala, is likely toxperience the lowest populationrowth—15 percent and 17 percentespectively—between 2001 and026. In contrast, Delhi’s populations expected to grow by 102 percent inhe same period.The decline in fertility and increase

n life expectancy at birth is expectedo result in growth in the number

Figure 3. How the states stack up

Economic Transformation: Transition from a largely ‘rural agrarian society’ with high fertility andmortality rates to a predominantly ‘services-led society’ with low fertility and mortality rates.Demographic Transition:Stage I - increase in the proportion of the young – aged below 15Stage II - proportion of working age population – age 15 to 60 – increases.Stage III - proportion of old people – aged 60 and above - rises

E c o n o m

i c T r a n s i t i o n

Gujarat

Karnataka

MaharashtraTamil Nadu

Bihar

Madhya Pradesh

Uttar Pradesh

RajasthanAndhra Pradesh

West Bengal

Demoghaphic Transition

Stage I

A g r a r i a n

S e r v

i c e s

Stage II Stage III

An interesting insight that thistudy points out is of the employ-

ment generation potential offeredy the hospitality and aviationector. While the promise held bylabor-intensive sector like retail

re well-known, the hospital-y and aviation sector may alsomerge as a significant employers it rides on the wings of India’sxpected transition to a services

conomy, driven by consumption-ed growth. Since the sector hashe potential to absorb unskillednd semi-skilled labor, in additiono highly specialized technicalnd managerial skills, the oppor-unities can be leveraged by aross-section of Indian states atifferent levels of the growth andndustrialization continuum.



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as a basic premise for our study.

While designing this index, 80 param-eters were examined, of which 14were ultimately considered as havingthe highest impact on the GER for astate. These parameters are broadlyclassified as:

• Labor-related (for instance, laborproductivity of public administration,labor productivity of other services)

• Investment-related (for instance,registered manufacturing expendi-tures, construction expenditure andratio of finance to total foreign directinvestment projects)

• Education-related (for instance,teacher-pupil ratio in higher educa-tion; number of institutions deemedto be universities; number of arts, sci-ence and commerce colleges, numberof engineering, technical and archi-tectural colleges total enrollments atschool level)

The index reflects the fact that thehigher ranked states have a higher

proportion of educational institu-tions within their boundaries. Forexample, Maharashtra has more than10 percent of the educational insti-tutions in all the major disciplinesin India , ensuring that a steadystream of youth come to study inthis state. Likewise, Bangalore inKarnataka, Chennai in Tamil Nadu,Hyderabad in Andhra Pradesh andPune in Maharashtra have been ableto attract the highest number of foreign direct investments into the

IT and IT-enabled services industriesbecause of their proximity to a largenumber of the country’s engineeringand technical institutions. These indexrankings thus reflect the self-perpet-uating cycle of education, investmentand talent supply, an integral andcritical link that needs to be judi-ciously handled by all stakeholders togain the optimum growth advantage.

Accenture has perceived certainoverarching trends as a resultof its multidimensional talentmapping exercise. Within thehigh-growth sectors, sectoralgrowth rates and growth pat-terns may vary given the matu-rity of the industry.

This has the following implications forstates:

• Sectors lower on the product life-cycle curve like health care and retail

are expected to be in an expansionmode as they increase their penetra-tion. The retail industry is likely tohave a heavy demand for cheap,unskilled and semi-skilled labor thatstates like Bihar and Rajasthan canfulfill. But organized retail also needsto be located close to high-spendingcustomer bases—a conundrum that

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As per the talent supply index (refero figure 4), Maharashtra rankshe highest on talent employ-bility potential, followed by Uttarradesh and then the southern triadf Andhra Pradesh, Tamil Nadu and

Karnataka. The findings, in a sense,eflect the economic and industrialreponderance of these states formergent India, as well as, a continu-tion of the earlier economic legacyor some.

A key consideration for devising thendex has been the enrollment rateor higher education in the varioustates. This is because research find-ngs across the world have estab-shed a high causal relationshipetween the gross enrollment ratioGER) into higher education and theer capita gross domestic productGDP)—the more qualified the work-orce is, the higher the chances of itsmployability and resultant impact onhe earnings for the state. Though forndia this causal relationship is nothat clear yet, the two variables showxtremely high correlation whichives us the confidence to use them

policymakers and businesses will haveto solve to be able to unleash theretail revolution in India.

• IT and IT-enabled services are muchhigher up on the product life-cyclecurve, which manifests itself througha squeeze in the labor cost advantage.As this industry continues to move upthe value chain, its growth is likely tobe driven by specialized skills whichall states might not be equipped tofulfill given their current state of educational and infrastructural devel-opment. Yet many states are eager toreplicate the successes of first moverslike Karnataka and Andhra Pradesh inthis sector.

Accenture’s “India Talent SupplyMapping” report, to be published later,will give a detailed analysis of the fac-tors affecting:

• The sectoral demand scenario—the

growth drivers, the emerging skillsand capabilities and the states that,in Accenture’s opinion, are best posi-tioned to service these industries.

• The talent supply scenario—thestates that Accenture considers tobe best positioned to provide talentto India’s growth sectors and theirperformance on significant param-eters indicating their preparedness forattracting investment and employmentgeneration.

• The talent supply index—its implica-tions for sectoral demand and state-wise talent availability potential.

InferencesTalent Supply Index—measuring talentpotential at the state level

tate Rank

Maharashtra 1ttar Pradesh 2ndhra Pradesh 3amil Nadu 4arnataka 5

Madhya Pradesh 6West Bengal 7

ujarat 8elhi 9ihar 10rissa 11ajasthan 12erala 13unjab 14aryana 15ssam 16imachal Pradesh 17

ammu & Kashmir 18

The third aspect of Accenture’s multidimensionaltalent supply mapping initiative for India is the tal-ent supply index, a compound measure made upof 14 underlying parameters that has been used toarrive at an indicative list of states that Accentureconsiders to have the highest talent employabilitypotential. The talent supply index uses a variety of labor-related, investment-related and education-related parameters pertaining to individual statesto assess the potential of employable talent theyhave to offer.

ankings as per the Talent Supply Index



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While India’s talent landscape is complex and multi-layered, thechallenge lies in seeing the unity and spotting the opportunityhrough this prism of variance. Accenture seeks to highlight some

key issues for two important stakeholders—policymakers and cor-

porations—in the talent development, management and resourcingpace.

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Conclusions and Recommendations

• Set up regulatory oversight foreducation —In a multi-polar world—where there are multiple centers of economic power and activity—talentis a fungible asset and it is impera-tive to provide education that is of world-class standard. The first stepto doing so is through setting up of aregulatory mechanism for education.According to leading scholars DeveshKapur and Pratap Bhanu Mehta , theproportion of private engineeringseats, in the total number of engineer-ing seats in the country that existed in1960 went up from 15 percent to 86.4percent in 2004. These figures indicatethat it is the private sector that haslargely catered to the growing demandfor such specialized higher educa-tion while the government sector hasscarcely increased capacity over thepast four decades. However, given thedemand-driven nature of such privatesector capacity creation, the lack of proper regulatory oversight becomesan even bigger issue as quality oftengets a short shrift in the haste toopen more institutes. In the absenceof established and appropriate bench-marks, students and employers have nomeans of assessing the worth of sucheducation.

• Offer certification programs inspecialty domains—Availability of “specialist talent” which understands

and addresses the unique needs of aparticular sector is critical for enablingfocused sectoral growth. For instance,the retail sector stands to benefit sig-nificantly by becoming more organizedand professional. As per our estimates,the sector is expected to employ atotal of 1 million people by 2015. Anumber of skills required in retail areindependent of factors like locationand education. A graduate in mathe-matics can make a career in retail justas well as one specializing in sociology,provided they are given the right kindof training. Therefore, offering nation-wide certification programs can give aboost to this sector.

• Diversify current set of academiccourses–All the high-growth poten-tial sectors mentioned earlier requirespecialized training. Therefore, it isimportant for current institutions todiversify their offerings to includesuch specialised courses. Further, poli-cymakers at the state level could takethe initiative in developing trainingacademies for those sectors that theywish to welcome into their states. Thiscan help to initiate the momentum forthe education-investment-talent sup-ply cycle drawing sectors which find aready pool of talent available.

The Indian public education systemrequires some reform and transforma-tion for its products—educated stu-dents—to be able to benefit from thecreation of employment opportunities.Given below are the possible optionsthat may be considered:

• Develop customized state-leveldevelopment plan —As the studyindicates, each state has uniquecharacteristics—in terms of the exist-ing quality of its workforce, thedemographic stage it is in and itsoverall economic health and therefore,needs to individually assess the direc-tion that is best suited for its futuregrowth. For instance, Bihar currentlyhas low scores on enrollment rates forhigher education and the number of professional colleges it has. However,it is demographically well-positionedand could significantly contribute toIndia’s working age population twodecades from now. There could thus besome differences in the state develop-ment plan outlined for Bihar vis-à-vis one chalked out for say, AndhraPradesh.

• Population as an asset —Populationhas been traditionally perceived as aburden—states need to find ways toleverage existing population surplusesand turn them to into assets.

• Establish job-oriented traininginstitutes —It is important to set upeducational infrastructure in keepingwith the state’s customized devel-opment plan. To continue with theinstance of Bihar discussed earlier,given the current quality levels of thetalent pool in the state and its futuredemographic advantage, sectors likeretail, hospitality and IT-enabled ser-vices could hold promise. Policymakersat the central or state level couldenable setting up of vocational insti-tutes to transfer employable skills tothose who have a minimum of a highschool education.

For policymakers—How employabilitycould be enhanced



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terms of skills, ethnicities and reli-gions. This is especially relevant forlarge organizations and conglomer-ates having multiple businesses whichsource, recruit and employ multigen-erational talent pools from multiplelocations in varied jobs and locations.

Thus, a talent supply map maybecome an indispensable inputfor forming business cases on therequirement to invest in talent man-agement practices with respect to

culture, inclusion, work-life balance,skill development and corporate citi-zenship.

• Customize talent acquisition andmanagement decisions keeping in

view the state-wise differentialsof talent availability, quality andstickiness, rather than treating tal-ent as a standalone factor: Whilethe onus is always on central andstate governments to enhance theskills and employability of its popu-lace, corporations can also play a sig-nificant role in speeding up the pro-cess. Our study showcases significantdifferences in important demographicparameters across states emphasizingthe need to design divergent humanresource practices that appeal toindividual and distinctive talent pools.

The framework given below (refer toFigure 5) can serve as guideline tocompanies in making the right deci-sions with respect to their talentacquisition and retention decisions,and assist them in measuring theirtalent strategy in tandem with theirbusiness need as they weigh out theiroptions on which state’s talent toinvest in. The framework is based onthree key criteria:

• Availability: The availability of talent in a state is defined by itslevel of demographic dividend, theavailability and quality of physicalinfrastructure and the potential of the location to help the companygain a first-mover advantage. Thetalent availability scenario in a

state can be assessed in conjunc-tion with the talent supply indexrankings and the state’s positionon the demographic transitionmap. Physical infrastructure, suchas availability of airports, roadsand public transport has an impacton the talent quality located inthe state. Establishing first-moveradvantage becomes an importantdeterminant for companies whichhave a long-term horizon in mind.For instance, if a company in the IT

and IT-enabled services sector is thefirst to move to a Tier–II city, theirbrand gets a head start in terms of hiring and loyalty.

• Appropriateness: The availabil-ity and quality of institutions, thestate’s economic policies and itspolitical climate cumulatively deter-mine the appropriateness of a state.If high-quality institutions in thestate regularly churn out employ-able graduates, then the companycan be assured of a steady supplyof talent. However, if the state’seconomic policies are not business-friendly or its political climate ishighly unstable, that would makethe state unattractive for invest-ment.

• Retention: This is influenced bythe cost of living, opportunity toscale up quickly and social infra-structure. Companies will find iteasier to retain employees in a par-ticular location if they are assuredof a stable cost of living. Likewise,companies prefer destinationswhich allow them to increase theirscale of operations within the stateitself. Given that retention is todaya recurrent problem for companies,employers prefer destinations whichoffer an evolved social infrastruc-ture in the form of entertainmentoptions and educational institutionsso that the youth—who make upthe bulk of the workforce in largecorporations—stay occupied andhappy.

Companies can score each of thesecriteria on parameters included inthe talent supply index (like numberof institutions in relevant disciplines,enrollment into higher education andso on), choosing the parameters mostrelevant for them. In addition to this,they also need to give scores againstthe socio-economic conditions andquality of physical and social infra-structure availability for the statesthey wish to evaluate. This would helpthem arrive at a go, no-go decision

point and companies could accord-ingly decide where they wish to investbased on overall talent potential.

• Create and nurture right partner-ships to grow talent and enhanceemployability: The states that havelow scores on economic parametersbut currently have population sur-pluses, are expected to be critical formedium- or long-term growth of mostof the organizations located in suchstates. Therefore, those organizations,who either have presence in or arecontemplating expansion to thesestates could form partnerships withthe government or private institutes

Criteria Factor

Availability Demographic DividendPhysical Infra structurePotential first mover advantage

Appropriateness Availability and Quality of InstitutionsState Economic PolicyPolitical Climate of State

Retention Cost of LivingOpportunity to scale up quicklySocial Infrastructure

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Make talent supply mapping anntegral part of talent acquisitionnd management strategy —Themportance of talent quantity anduality cannot be ignored today, ashe scale of people-intensive opera-ons and knowledge acquisition andetention have become critical suc-ess factors for high-performanceusinesses. Drawing up talent supply

maps helps to provide fact-based evi-ence to organizations enabling themo make informed and accurate talent

cquisition strategies (in comparison,o doing so intuitively). It also helpso proactively highlight any skill orapability gaps, well in advance. Thus,rganizations have to hone their skillsn identifying alternate talent poolsr initiate other moves to cover suchaps.

Adopt a long-term approachowards talent development: Talentupply mapping also helps organiza-ons identify future trends and shifts

n talent pool factors. It is extremelymportant to preempt significanthifts in parameters like education/nrollment rates, literacy, averagege and so on, as these parameterselp to design and deploy relevantmployability practices and thuselp organizations adapt faster to ahanging talent marketplace situa-on.

or instance, if an organization isourcing its talent from Kerala—atate which is expected to have anverage age difference of over 10ears as compared to Uttar Pradesh—

work-life balance practices and pen-ion and benefit plans are likely tolay a more significant role in theext 10 to 15 years vi s-à-vis thoseor Uttar Pradesh, which is expectedo have a far lower median age of opulation. Hence, the employabilityractices need to proactively evolveccordingly.

imilarly, inclusion and diversity prac-ces are expected to become moreritical as the workforce mix rises in

to nurture the talent further to makethem employable.

Those organizations, that have a deep-er presence in states with employabletalent deficits could help expand thetalent pool for themselves or oth-ers through creative solutions likeidentifying synergies with the kind of skills they will need in the medium- tolong-term, and establish forums forprivate-private or public-private part-nerships.

Until now, corporations have largelyused the availability of infrastructureand government policies to guidedecisions on investments—that is,where to locate their business hubs.Accenture believes that to be success-ful in the future, corporations shouldproactively engage in talent supplymapping to closely understand allaspects of talent sources—the avail-ability and quality of talent and how itcan be most effectively retained.

For India to achieve a critical positionof importance in today’s multi-polarworld, it is imperative to have a talent

development strategy that is com-pletely in synch with the country’sfuture aspirations and capabilities.This might be difficult to achievewithout concerted and targeted initia-tives from policymakers and corpo-rates alike, with each player takingequal ownership of its commitment—the prospect of achieving high perfor-mance in the future depends on theroute we take today.

Disclaimer Clause:“This study contains information avail-able in the public domain, created andmaintained by private and public orga-nizations. Accenture does not controlor guarantee the accuracy, relevance,timelines or completeness of any suchinformation. Refer to ‘Sources’ as partof the study. This study is indicativein nature. All projections presentedin this report are indicative and s ub-

ject to other extraneous factors. Thisstudy constitutes an opinion as on thedate of publication and is subject tochange. Accenture does not warrantor solicit any kind of act or omissionbased on this study”

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Corporate sector—How to make the right choice

Figure 5. Corporate decision-making framework



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Sources

1. Economist Intelligence Unit (EIU) labor force projections2. United Nations Population Database3. United States Census Bureau4. International Labor Organization Estimates5. Census of India 2001, Census of India Projection Report December 20066. State Statistics, Selected Educational Statistics 2004-5- Ministry of Human

Resource Development7. Economic Statistics - Reserve Bank of India8. Indian Ministry of Commerce and Industry estimates9. India Labourstat Database10. 9.9 Insights Research11. TPI study, “India: An Attractive BPO Destination Marred by Alarming Attrition”

by Dinesh Goel and Prabhash Thakur12. Devesh Kapur and Pratap Bhanu Mehta. “Indian Higher Education Reform:

From Half-Baked Socialism to Half-Baked Capitalism.” CID Working Paper No.18, September 2004

13. Hillage, J. and Pollard, E., 1998, Employability: Developing a framework forpolicy analysis, Department for Education and Employment (DfEE) Researchreport. no RR85 (London, DfEE)

About the Accenture Talent& Organization PerformancePractice

The Accenture Talent & OrganizationPerformance practice provides consult-ing, technology and outsourcing solu-tions that enable clients to improvethe performance of their people, theirorganization and their business. Com-mitted to innovation and deliveryexcellence, this group of more than8,000 skilled professionals has ex-tensive experience across a range of talent, organization, human resources,change management and learning ca-pabilities. Backed by a comprehensiveresearch program, as well as unparal-leled tools and assets, Accenture col-laborates with clients to multiply theirworkforce talent and organizationalcapabilities into a strategic force thatcan drive high performance.

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