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

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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

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… 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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