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India Inc steps up rural hiring to fuel growth

Head Hunters Go Beyond Metro-Centric Colleges, Look For Talent In Towns, Villages
Namrata Singh TNN

Mumbai: If you are a graduate from a Tier-III/IV town or village, there are greater chances of you being hired by abank or a firm expanding its network in these areas. Banks, in particular, have taken certain key course corrections in their hiring process, opening up a vast reservoir of talent from these towns and villages. All it required was a change in the mindset on hiring a different view of the core qualities required in an individual and a greater vision to look beyond metrocentric colleges. Organizations that were hitherto hiring predominantly from business schools and metro-centric colleges with a focus on qualities such as good command of English language and an acceptable dress code during the process of recruitment, are now realizing the futility of such norms. To bring into their fold talent from smaller towns,

such norms are being bypassed. Consider this: HDFC Bank has proposed to open 100-plus rural branches during the current year. The bank could easily absorb up to 300 people from these areas this year. Today, as the bank forays deeper across India, our hiring has to keep with the needs of business. We have to rely a lot on local talent. Fortunately, in India, manpower availability is good, the key challenge is training them, said Philip Mathew, chief people officer, HDFC Bank. Of its total number of branches, 75% are outside the top nine cities. ICICI Bank, on the other hand, hires from Tier-IV city education institutes such as Maharashtra Parbhani Marathwada Krishi Vidyapeeth and Karnataka Dharwad UAS, Dharwad, among others. Around 26% of the banks staff is based in rural and semiurban branches across the country. The banks dependence on metro campuses has come down significantly. We are expanding into semiurban and rural markets and the supply of people with MBAs is largely metro-centric. For us, to hire a person from Pune and send him to Sangli was impossible. Its nothing to do with inclusion we believe there is significant business for us in rural markets to be present there. It is strategically important for us to hire locally, said T K Srirang, senior GM & head (HR), ICICI Bank. For an under-banked country, banking solutions are now being offered across geographies. Manipal Global Education Services (MaGE), which assists banks in training of probationary officers, said about 85% of its candidates come from Tier-III and -IV towns. We have seen that people from these towns are hungry for success, and working hard is an innate quality of theirs. They belong to families of electricians, farmers, cycle suppliers and others. Most candidates start with a CTC (cost to company) of Rs 3.5 lakh per annum, which actually exceeds their total family income, said V Sivaramakrishnan, executive president, MaGE. The trend is catching on. In addition to ICICI Bank, some of the other banks that have been associated with MaGE for such programmes are Axis Bank, Bank of Baroda, Kotak Mahindra Bank, Ratnakar Bank, Punjab National Bank, Federal Bank, Andhra Bank and Tamilnad Mercantile Bank. Calling the talent scarcity bluff: Metro-centricity had caused a war for talent, which is why many organizations started thinking out-of-thebox. Today, with candidates being hired from smaller towns, the scarcity bluff has been called. We have always maintained that there is no shortage of talent. What we dont have is supply of readymade talent, but the raw material exists in abundance, said Srirang. However, arming new hires with operational skills is critical. So ICICI Bank, in collaboration with NIIT Institute of Finance and Banking (NIFBIT), has developed a postgraduate diploma course in banking operations. HDFC Bank, on the other hand, has structured an onboarding exercise for the new joinees. MaGE in what indicates that this is a cross-sector trend has started providing training programmes to other industries as well. BPOs and IT companies, in

particular, pay key attention to training and skill development. Take for instance Mission10X. The not-for-profit trust of Wipro Technologies was set up with the objective of teaching the main pillar of engineering education, that is, the teachers. Its training curriculum and delivery framework, according to its head P B Kotur, is designed to cater to all graduates irrespective of their background, whether IT/Non-IT/Tier-I/ Tier-II cities. Extended training and mentoring is provided wherever required. While the reputed students come with a brighter acumen and grooming, the attitude and hunger to learn is a key attribute that Tier-II college students bring, which makes up for it in a short duration, Kotur said. While this bridges the gap in local talent requirement for organizations, on the flip side, this generates more jobs in the hinterland, thus reducing the incidence of migration to metro cities. NEW TRACK FOR RECRUITMENT Most organizations bypass norms for linguistic skills & dress codes, after realizing their futility ICICI Bank has tied up with NIIT for providing a tailor-made course in banking operations HDFC Bank, which has 75% of branches outside the top 9 cities, puts such recruits through an onboarding exercise MaGE, a training firm, says candidates start with Rs 3.5L annual CTC which is more than full familys income In addition to banks, other industries have started availing of MaGEs training programmes

SOURCING RULE IS THE HITCH

Apple Looking to Bring Own Stores to India

WRITANKAR MUKHERJEE & CHAITALI CHAKRAVARTY KOLKATA | NEW DELHI

Apple Inc, the maker of iPhones and iPads, is evaluating the possibility of setting up its own stores in India, if the Indian government eases local sourcing conditions, said two senior executives who have business relations with the Californiabased company

in India. It might be easier for Apple, the worlds most valuable company, to set up stores if the government allows its IT outsourcing operations in India to be included as part of the mandatory 30% local sourcing requirement, the two executives said. Apple refused to comment on its India plans or whether it would ask the government to provide flexibility with regard to local sourcing norms. We dont comment on rumours and speculation, said a company spokesman in reply to an email query. Traditionally, India has not been a high-priority market for Apple, and it takes months before its newly-launched products start selling in India officially through resellers. CEO Tim Cook had told analysts during a conference call two months back that the multi-layered distribution in India adds to the cost of bringing products to the Indian market. But one of the executives mentioned above said the growing popularity of iPhones, iPads, and other Apple products in India was prompting the company to explore the option of increasing its engagement with the country. Undoubtedly, Apple is interested in setting up its own stores now that the demand for its product has increased. But it wants some flexibility in the 30% sourcing norms. At present, it does not buy anything from India nor is it likely to source anything immediately, apart from IT services, one of the executives said, requesting anonymity. Many Want to Set Up Stores Apple is famously secretive about its outsourcing contracts. A recent media report said the company undertakes annual outsourcing projects worth . 500 crore from India and this is expected to rise significantly. Like Apple, many electronics and high-end brands such as Sony and Rolex may want to set up stores of their own in India for better control and distribution, but the stiff sourcing norms have held them back. Typically, these companies make their wares in

one or two countries from where they are shipped across the globe. To think that Rolex will suddenly start sourcing watch parts from India is absurd, said a person working on a few single-brand proposals said. Diljeet Titus, senior partner at law firm Titus & Co, who is also working with singlebrand foreign companies, including IKEA, said there is a way out for such marquee labels. We will seek clarity from the government on whether a singlebrand retail company can fulfil the local sourcing condition by sourcing unrelated items, not core to its business, for exports to third parties. After all, the government's main intention is to augment manufacturing in the country and this clearly addresses the issue, he said, adding that one of his clients is ready for this option. In January, the government allowed foreign single-brand retail companies to set up stores in India with full ownership, albeit with a few riders. Recently, the government amended these rules and allowed single brand retailers to buy 30% of what they sell from local companies, and not necessarily from small companies, over a five-year period. The government's decision to allow single-brand retail companies the flexibility to buy from larger companies while meeting their 30% quota will make it easier for them, but will not solve the problem of high-end electronics and devices companies that have global supply chains. Apple operates 388 company-owned stores across the world, and its retail operations have played a part in its stunning success. Apple Stores are popular for their retail experience, shopping guidance and service abilities. The superior experience largely comes from the store decor and the way consumers can touch and feel the products before buying them. Unlike salesmen of most other retailers, Apple Store executives do not work on commission and hence there is no hard-sell. There are currently more than 45 Apple Premium Resellers in India. These are exclusive Apple stores run under a franchisee model with various partners. Reliance

Retail is one such partner, which operates 22 shops christened iStores. Reliance Digital CEO Brian Bade, who also heads the Reliance-Apple retail business, said the iStores are doing great business. We cant comment on specific numbers, but business is roaring. We are expanding the 22 iStores with three more opening soon, he said. Industry experts say company-owned stores could provide the solution to the 'multidistribution' issue mentioned by Cook, and allow the company to control inventory levels, reduce prices, and gain market share. Sony India Managing Director Kenichiro Hibi had told ET in a recent interview that if the Japanese electronics major sets up company-owned stores, it would help control distribution of products more efficiently and convince consumers about the benefits and technology of Sony products over competitors.

Wanna be an Entrepreneur? Better Start in the Twenties

SAUMYA BHATTACHARYA & ANUMEHA CHATURVEDI NEW DELHI If you dont start up in your twenties, you are less likely to do so in your thirties. The age profile of start-up founders in India shows a dominance of 20-somethings, a pattern that venture capitalists and angel investors attribute as much to the restlessness and risk appetite of youth as to the inability of older peers in letting go of the trappings of successful corporate careers. The proportion of entrepreneurs launching start-ups in the country would be highly skewed towards the age bracket of twenties and early-thirties, says Sasha Mirchandani, founder and managing partner at Kae Capital, and the founder of Mumbai Angels, which invests in start-ups. Confirms Padmaja Ruparel, president of the Indian Angel Network: The majority of our investee companies are start-ups launched by entrepreneurs below (the age of) 30. The portfolio of Indian Angel Network, the countrys first and largest network of angel investors, includes Aurus Network Infotech, Druva, Gamiana, Hashcube, Stayzilla, TaxSpanner and Unbxd, all of which were founded and launched by entrepreneurs below the age of 30. Fewer responsibilities and a greater willingness to take on risk tend to work in favour of young entrepreneurs in taking the plunge. Alok Mittal, managing director of venture capital firm Canaan Partners, started his first business when he was in his twenties. It is easier to turn an entrepreneur in that age bracket as one has not built a lifestyle that requires continuous financial support, there are fewer personal liabilities, and one is alright with salary cuts, he says. Adds Mirchandani: Their ability to take risks is much higher as they have fewer professional and personal responsibilities, and they can deal with the situation of living off meagre or irregular finances, which startups grapple with. In the current Indian context, ironically, high-paying jobs good

salaries, perks and stock options is holding back mid-level executives from turning entrepreneurs. The compensation and perks have killed entrepreneurial behaviour, says K Sudarshan, managing partner-India, EMA Partners. Everyone wants to create wealth while in a job. Hence, he adds, even when they want to, executives keep postponing their move into entrepreneurship, which, compared to jobs, has greater potential to create wealth but also comes with greater uncertainty. Young leaders are used to a certain lifestyle, says Purvi Sheth, CEO of Shilputsi Consultants, a search firm. Earlier it was alright to move from Bandra to Andheri. Today, it matters. Very few people have the gumption to give it all up to become an entrepreneur. Adds Sudarshan: You either have people coming out of campuses and becoming entrepreneurs or you have entrepreneurs in their 50s. At the other extreme from the young entrepreneurs is someone like Manoj Chacko, who quit as executive VP-commercial at Kingfisher Airlines last month and is looking to make a serious attempt at entrepreneurship at 42. When you reach a stage in corporate life where you have achieved most of what you wanted to and have a sense of financial security, you start looking at creating value not just for yourself, but for others, he says. Thats probably the stage people like me have reached. Venture capitalists feel Internet 2.0 models are more tailored to young entrepreneurs. These entrepreneurs are inexperienced, but are innovative and radical in their approach, says Niren Shah, managing director, Norwest Venture Partners. They have great products and a technical mindset, and look to build solutions for consumers. We are keen to back such people. Mirchandani of Kae Capital invested in Myntra and InMobi two companies whose founders were in their late-twenties or earlythirties when they started them. Adds Ruparel of Indian Angel Network: A lot of young entrepreneurs have worked or studied abroad. This exposes them to the global entrepreneurial ecosystem, which is far more exciting and challenging. They come back, hoping to start something on their own. Even if they fail, they still have age on their side. They feel they have their

whole life ahead of them and can always fall back on their degree to find a job if they fail, she adds. saumya.bhattacharya@- timesgroup.com