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IT panel suggests HR fund

BS Corporate Bureau in New Delhi | February 14, 2004 14:45 IST

The National Human Resource Task Force on IT and IT enabled Services has recommended the creation of a dedicated fund by imposing a cess on ITES companies, tax exemption for training companies and changing the legal framework to attract additional workforce to the sector.

The task force, headed by FC Kohli, former chairman, Tata Consultancy Services, was set up to recommend measures to raise the human resource requirement so that India's export targets in IT and ITES are met.

The panel has also suggested a centralised certification body to standardise the training requirements for the sector. The fund will be used to spread awareness about IT and ITES sectors in tier II and tier III cities, the task force has said.

Calling for a change in labour laws to support part-time and temporary workers, the report also suggests tax waivers and tax incentives, similar to charitable institutions, for ITES training providers.

The report also points out that the ITES sector is likely to see an employment shortfall of at least half a million, unless changes are not effected immediately.

According to the taskforce, a national technology plan needs to be evolved involving all major ministries and departments along with industry and academia.

"This will guide the scale and direction of human resource development efforts in the country," it said.

The overall strategy to meet the human resources requirement rests on ability to inculcate the right skill sets, establishing a standard to certify the quality of skills provided and attracting people to get them certified to meet these requirements.

The task force also recommended steps to attract additional resources, educating and developing required skills, development of training professionals as well as cetralised guiding to companies in this sectors.

The taskforce also called for changes in the telecom and customs regulations to enable working from home. The present regulations do not permit companies to extend their network outside the offices to include homes.

According to taskforce findings, India's IT and ITES sector is expected to achieve $62 billion in revenue by 2009 from $12 billion in 2003.

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