Post globalisation era in greater mumbai june 2006 efi – solar foundation mumbai



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Table: 10.9.1- A


Employee subscriber ratio for Mumbai - 2004

Companies

Subscriber base

Total employees

Employee-subscriber ratio


MTNL


30,00,000

28,025

1:107

Tata Teleservices


4,85,000

6000

1:80

(Source: MTNL & Tata Teleservices)
Note: As is evident, the employee-subscriber ratio of Tata Teleservices is lower than that of MTNL, the reason being: the private companies have just entered the business and are yet to achieve economies of scale.
Assuming that the employee-subscriber ratio for all private sector players is more or less the same, and having worked out the employee-subscriber ratio for Tata Teleservices we have estimated the total number of employees in the Telecom Sector in Mumbai for 2004.
Table: 10.9.1 – B

Estimated total employee in the Mumbai telecom sector in 2004


Industry segments

Subscriber base


Total employees

Public Sector Units


30,00,000

28,025

Private Sector Units


55,00,000

68,750*

Total


85,00,000

96,775*

(* estimated)
From the above calculations, we have arrived at the conclusion that the total direct employment in the Telecom Sector in Mumbai in 2004 was 96,775 employees.
On an employee base of 6000 employees in 2004, Tata Teleservices has claimed that it had created more than 20,000 indirect employment opportunities through outsourcing its manpower needs in 2004. Thus, in case of Tata Teleservices the ratio of direct-indirect employment is 1:3.
As most of the private telecom operators are using aggressive marketing strategies involving dealers, sub dealers, franchisee, promoters… it can be assumed that the ratio of direct-indirect employment would roughly be the same.
Based on the above ratio (Tata Teleservices) we have arrived at the conclusion that the total indirect employment in the Telecom Sector in Mumbai in 2004 was approximately 2,90,325 individuals.
10.9.2 Direct & Indirect Employment Projection in Telecom Sector in Mumbai for 2010

According to employment projections made by Tata Teleservices for the year 2010, it has stated that the growth in direct employment over the next five years would be at approximately 10 per cent p.a., while indirect employment would grow at 15 per cent p.a. for the same period.
Table: 10.9.2

Estimated direct and indirect employment in telecom sector in Mumbai for 2010



2004

2005

2006

2007

2008

2009

2010

Direct employment

96,775

1,06,452

1,17,097

1,28,806

1,41,687

1,55,856

1,71,441

Indirect employment

2,90,325

3,33,873

3,83,954

4,41,548

5,07,780

5,83,947

6,71,539

Therefore the estimate total Direct Employment in the Telecom sector in Mumbai in 2010 would be approximately 1,71,441 individuals, while the estimated total indirect employment would be approximately 6,71,539 individuals.


10.9.3 PROJECTED EMPLOYMENT FOR TELECOM SECTOR

Based on the above calculations based we have projected direct employment in the city for 2010 at 1.71 lakh employees and indirect employment at 6.71 lakh employees. This implies that the total employment generated by the telecom sector in 2010 would be 8.42 lakh employees.




Table: 10.9.3

Projected direct and indirect employment for 2010 in the telecom sector for Mumbai

(in lakhs)

Year

Direct

Employment

Indirect

Employment

Total

Employment

2010


1.71

6.71

8.42


10.10 RESEARCH FINDINGS

  • The telecom sector is witnessing an unprecedented growth in areas like mobile telephony radio paging, value added services, broadband internet, communication via satellite, etc.

  • Over the last few years, the private sector is concentrating on mobile phone segment, while the public sector units and pushing for growth in fixed line sector. Of late, there has been a reversal in the trend private companies are eyeing fixed line, while public sector units are show aggression in the cellular mobile phone segment. Resultant, both cellular and fixed line phone segments are likely to show an equally impressive growth in employment rate over the next five years.

  • Telecom companies are adopting new technologies on the wireless front so as to provide a boutique of service through the wireless medium. Companies are also asking for additional spectrum to introduce 3G services to bring about convergence of services. This is likely to create a huge demand for not only high skilled personnel, but also create several new jobs on account of higher degree of convergence.

  • As telecom companies are expanding business operations, the employment opportunities are likely to witness a sharp rise. Here, it is required that educational institution taking a cue from existing and future demands for telecom professionals and initiate tailor-made courses in tele-communications management.

  • As per instructions from DoT to public sector companies, since 1985, all recruitment in the Group C and D category has been stopped. During the last decade, recruitments have been mainly in high skill and technical categories.

  • Service providers are offering customers user-friendly hi-tech services (broadband, digital and wireless connectivity), which in turn is creating employment opportunities in the area like customer service, marketing and technology. There has been a surge in demand for qualified telecom engineers, as companies are heavily investing in the creation of basic infrastructure.

  • The future of Telecom Sector is in providing state-of-the-art services like E-commerce, Global Roaming, High Speed Mobile Internet Services, Internet Exchange Connectivity Services, Video-on-Demand, Wireless ATM Service, etc., with an emphasis on ‘Communication, Anytime, Anywhere’. As these segments are sunrise areas, skilled personnel would be in great demand over the next few years.

  • The sector has seen a rise in demand for telecom engineers and technically qualified people over the past few years. Educational institution is required to take a cue of the future demands of telecom professionals and initiate tailor-made and specialized courses in tele-communications management.


10.11 RESEARCH RECOMMENDATIONS

  • As the telecom companies are expanding their business operations and expanding on service offers by up the technology curve, there is a huge requirement for highly specialised technology personnel. The government should ensure that educational institutions have appropriate technology infrastructure to conduct specialised orientation.




  • Educational institutions should be provided proper support to launch specialised courses that would cater to the needs of the existing and future demands of telecom professionals, and also initiate tailor-made basic courses in telecommunication management.




  • By creating an environment conducive for companies to launch high-end services like E-commerce, High-speed Mobile Internet, Internet Exchange Connectivity Services, Video-on-Demand, Wireless ATM services, etc., the government could ensure several new employment opportunities across the sector.




  • In the changing scenario, individuals in addition to having requisite technical and vocational skills are expected to deliver on multiple responsibilities, because companies are cutting down on overheads. Likewise, training institutes and engineering colleges are expected to broaden the horizon beyond pure technical orientation.




  • Due to increased competition, professionals in the sector are required to now have a strong customer focus and be bottom line driven. Educational institutions and training institutes are expected to make appropriate amendments in the curriculum.




  • By laying business guidelines and organising training programs in customer relations for outsourcing agencies like courier companies, collection agents, marketing agencies, etc. the government can bring about higher degree of standardisation in the indirect employment sector.

* * * * *

CHAPTER- 11




EMPLOYMENT GENERATION IN THE COURIER (EXPRESS SERVICE) SECTOR


11.1 COURIER (EXPRESS SERVICE) SECTOR IN INDIA (Over the last decade)

Macro Scenario

The Express Service Sector in India can be characterised by the existence of organised, semi-organised and unorganised players. As per the Express Industry Council of India’s (EICI) research study, which was undertaken by AC Neilsen-ORG Marg in 2003, there are over 2,000 Express Service Companies operating in India, i.e. about 20 companies in organised segment, 25 in semi-organised segment and others in unorganised segment. As of 2003, the market is estimated at Rs 2,493 crore. The domestic market constitutes to about 59 per cent, valued at Rs 1,468 crore. The international market constitutes 41 per cent of the total industry, valued at Rs 1,025 crore.


Figure 11.1 - A

Classification of business earnings

Organised segment constitutes to about 65 per cent of total market, valued at Rs 1,628 crore. Semi organised and un-organised segment constitutes to about 25 per cent, valued at Rs 618 crore. The share of EMS speed post is pegged at 10 per cent, valued at Rs 247 crore. The EMS speed post accounts for about 14 per cent share in domestic market and about 5 per cent in international market.


Figure 11.1 - B

Market segmentation

Sustained efforts to liberalise the economy by consecutive governments over the last decade saw removal of several trade barriers, which has led to entry of MNCs into virtually every industry. Increasing competition in the local markets has forced Indian companies to explore overseas markets. As the number of Indian companies going global swelled, and the number of MNCs setting shop in India increased, the courier sector witnessed an apparent rise in business. The high growth pace of courier companies and the magnitude of Indian market resulted into entry of several foreign courier companies into the sector. The last decade saw several mergers and acquisitions in the courier sector as Indian and MNC companies consolidated on their business. The business consolidation activities were largely in the area of achieving economies of scales, introduction of state-of-the-art technology and providing value-added services to the customers. The competition in the organised segment was intense, as companies both Indian and MNCs were all out to grab a larger share of the booming business in sunrise industries, i.e. service sector.



Table: 11.1


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