Introduction

Today, Indian IT Engineers are dominating the Global IT industry. The

Indian Education System is credited for producing this new breed of
highly successful professionals. Today, the global interest in the Indian
Education System is increasing rapidly. India has become a popular
Overseas Education Destination that offers a great value proposition
Globally recogni!ed English"medium Education # $ffordable %osts
Globally Recognized
The success of the Indian Education System&s alumni indicates the
global recognition of the Indian Education System
Engineers educated in India dominate the Silicon 'alley In
())*, more than +), of the 'enture %apital funded technology
startup companies in Silicon 'alley had at least one India"
educated founder.
-ore than *., of the teaching faculties in /S /niversities have
their undergraduate degree from a /niversity0Institute in India.
In the /S$, India educated professionals constitute over *), of
the physicians, (*, of 1$S$ employees, *2, of the -icrosoft
employees, *3, of the I4- employees and *5, of the Intel
employees.
Over *)) of the 6ortune .)) companies regularly recruit from
Indian university campuses.
In 1ov ())+, according to research published by O7E1 DOO8S
program of iienetwor9.org in the /S$, India is the leading place
of origin for international students in /S /niversities0%olleges.
:* India ;5<,5=3, up 5,>,
:( %hina ;3*,53., down .,>,
:= ?orea ;.(,+2+, up (,>,
:+ @apan ;+),2=., down **,>,
:. %anada ;(5,)*5, up (,>,
:3 Taiwan ;(3,*52, down 5,>,
:5 -eAico ;*=,=(<, up +,>,
:2 Tur9ey ;**,=<2, down (,>,
:< Thailand ;2,<=5, down **,>,
:*) Indonesia ;2,22), down *.,>.
English-medium Education
The best 9ept secret about India B it is the (nd largest English
spea9ing country in the world. English is the de facto lingua franca of
the government, education and business. In India, 5( million people
are English literate. :E$E4ED
Top English Speaking Countries

Country
English Speaking
People
% of Total
Population
/S$ (2) million 1ear *)),
India 5( million $pproA 5.*,
/? 3* million 1ear *)),
%anada =* million 1ear *)),
$ustralia () million 1ear *)),
1C + million 1ear *)),
Population ata Source! Population Reference "ureau#
$ashington# C
In India, English"medium education was started in the *< th century "
when India was the %rown @ewel of the 4ritish %olonial Empire. Over
*.) years of English medium education and language diversity in
various states of India have resulted in English being the only
common language that unites modern India.
Today, many Indians have an English proficiency level that is at par
with native English spea9ers. Digh English proficiency of Indian
professionals going to the /S$ is one of the reasons for their
astounding success in the /S$.
%merican Call Centers in &ndia
The new generations of English spea9ers in India identify themselves
with the modern $merican culture and prefer the $merican accent.
The growing number of $merican %all %enters in India that cater to
1orth $merican customers is a testimony to India&s $merican English
accent and proficiency.
'ear
Employees in
&ndia
*<<< 2,3))
())) *3,)))
())* ==,.))
())( 3.,)))
())= *=),)))
())+ (+3,)))
()). +<3,)))E
EproFections
Source 1asscom0 -c?insey
%ffordable Costs
The best part of the Indian Education System is its affordable price.
There are numerous schools, colleges and universities scattered all
over India. -ost of these educational institutes offer globally
recogni!ed English"medium education at very competitive prices"
what you would eApect in a developing country.
Comparison of %nnual (i)ing E*penses

Country
%nnual (i)ing
E*penses +,-
/S ;7ublic
/niv>
G*+,)))" G*3,)))
/S ;7rivate
/niv>
G*+,)))" G*3,)))
%anada G<,)))" G*),)))
/? G*.,)))" G*3,)))
$ustralia G2,)))" G*(,)))
1C G2,)))" G*(,)))
India G*,2))" G+,())

Comparison of %nnual Tuition .ees

Country
%nnual Tuition .ees +,-
/umanities
Science 0
Engg
1edicine
/S
;7ublic>
G5,)))"
G*),)))
G5,)))"
G*),)))
G*.,)))"
G(.,)))
/S
;7rivate>
G*3,)))"
G(),)))
G*3,)))"
G+),)))
G(),)))"
G+),)))
%anada G(,5))"G<,+)) G(,=))"
G<,+))
G(,.))"
G*),)))
/? G2,*))" G2,*))" G*=,<))"
G*3,()) G*5,*.) G(5,())
$ustralia G.,+))"G2,3)) G2,)))"
G*),.))
G*.,)))"
G(<,*))
1C G.,+))"G2,3)) G2,)))"
G*),.))
G*.,)))"
G(2,*))
India G(,*.)"G+,3)) G=,)))"
G2,.))
G2,)))"
G(),)))
The total cost of one year of education in India can be as low as low
as G=,<.). The eAact annual tuition fee varies among various
/niversities0%olleges in India. It depends upon the number of credits
you select in an academic year.
The growing trend among many $sian students is instead of going to
the /S$ for a +"year 4achelor&s Degree, many students prefer to go to
India for a + year 4achelor&s Degree and then go to the /S$ for a ("
year -asters Degree.
6or EAample
2ption 3! 4-year "achelor5s degree education 6S%
Total cost of +"year 4achelor&s degree education in /S$
G2+,))) or higher
2ption 7! 4-year "achelor5s egree in &ndia 8 7-year 1asters
egree in the 6S%
%ost of +"year 4achelor&s degree education in India
G*3,))) or higher
H
%ost of ("year -aster&s degree in /S$ G+(,))) or higher
I
Total I G.2,))) or higher
In the /S$, the cost for a ("year -aster&s degree program is usually
lower due to the fact that more financial aid is available for Graduate
students than for under"grad students.
Safe and $elcoming En)ironment
India has one of the lowest per"capita crime rates in the world.
Traditional Indian values promote a safe and non"violent society.
International students in India feel safe to travel on their own within
India.
-ost International students in India praise the warm hospitality they
eAperience in India. International students are often invited to the
homes of their Indian colleagues. -ost International students in India
easily form life long friendships with their Indian colleagues.
&ndia 5s Rich Cultural /eritage
Studying in India offers a special eAperience for International
students. Students learn about India&s rich cultural heritage and
valued traditions.
Students eAplore the historical monuments and places of interest
spread across the country.
$dventurous students get a chance to visit the TaF -ahal on a starry
full moon night, go on a camel safari on the sand dunes in the deserts
of 8aFasthan or simply soa9 in the Sun on the warm white sand
beaches of Goa in the winter months of @an0 6eb.
6or art lovers, India offers ancient performing art forms such as yoga,
Indian dances li9e 4haratnatyam and Odissi. The musically inclined
are drawn to the enchanting Indian music. The colorful Indian festivals
li9e Diwali ;festival of lights> and Doli ;festival of colors> are a treat to
the eyes and enFoyed by the international students.
Namas Bhojani for The New York Times
Interns spend an average of three months at Infosys, where they live
in a 500-room hotel comple!
Bypassing internship opport"nities on #all $treet, j"st a s"%way ride
away from their &reenwich 'illage camp"s, they went to India to spend
the s"mmer at an o"tso"rcing company in &"rgaon, a s"%"r% of New
(elhi!
)The India opport"nity gra%%ed me,) said *r! *aldonado, a Boston
native whose family is from the (ominican +ep"%lic! )I wanted to get
a glo%al feel for investment %anking and not j"st a #all $treet
perspective!)
,e and *r! $imonsen, %oth -., are spending three months at /opal
0artners, an o"tso"rcing firm with 100 analysts! It prod"ces merger and
ac2"isition pitch %ooks and provides e2"ity and credit analysis and
other research to glo%al %anks and cons"ltant gro"ps, incl"ding those
on #all $treet!
*r! *aldonado and *r! $imonsen, of +iverside, /alif!, are part of a
virt"al invasion of India %y 3merican st"dents! &rad"ate st"dents from
top schools in the 4nited $tates, most from master of %"siness
administration programs, are vying for internships at India5s %iggest
private companies! 6or many, o"tso"rcing companies are the
destinations of choice!
India is not j"st a line on an 3merican st"dent5s r7s"m7, said 8iran
8arnik, president of the o"tso"rcing ind"stry trade %ody, Nasscom, )%"t
also c"lt"rally f"lfilling!) *any st"dents travel while in India, giving
them a view of the co"ntry and its long history, he said!
Nasscom is now trying to track the ever-increasing n"m%ers of foreign
interns! *any are in India to st"dy glo%ali9ation firsthand, *r! 8arnik
said: that is often not possi%le in /hina %eca"se, "nlike India, ;nglish is
not widely spoken there!
*r! 8arnik said he had met more than a do9en interns from the ,arvard
B"siness $chool who were spending this s"mmer in India! )I epect a
%igger horde of st"dents to arrive net year %eca"se the ones here said
they had a great time and will go home to talk a%o"t it,) he said!
;lsewhere, too, the trend is on the rise! 6o"r st"dents from 6"2"a
$chool of B"siness at ("ke 4niversity are interning in India, compared
with only one last year and none in -00<! =f this year5s interns, three
are at Infosys Technologies, an o"tso"rcing company in Bangalore, and
the fo"rth is in /hennai at &lo%al&iving, an organi9ation %ased in
Bethesda, *d!, that helps s"pport social, economic and environmental
projects aro"nd the world!
3t &eorgetown 4niversity, $tanley (! Nollen, a professor of
international %"siness at the +o%ert ;mmett *c(ono"gh $chool of
B"siness, said India was of growing interest to st"dents!
)No longer is India tho"ght of as a land of snake charmers and %ride
%"rnings,) he said! )Now India means the world5s %est software
services, and increasingly, pharmace"ticals and a"to parts!)
0rofessor Nollen directs the school5s programs for *!B!3! st"dents in
India, which incl"de )residencies) - academic co"rses that are centered
on cons"lting projects for companies operating in India! 3 gro"p of >?
st"dents arrived this month and went to companies like 0hilips India
$oftware and *indTree /ons"lting, %oth in Bangalore: the motorcycle-
making "nit of ;icher in /hennai: and the I/I/I Bank in *"m%ai!
India can %e a jolt to a first-time 3merican visitor! In &"rgaon, a small
town despite its tall office complees and shiny new malls, *r!
*aldonado and *r! $imonsen share an apartment where the power fails
several times a day! Temperat"res are reg"larly a%ove 100 degrees
6ahrenheit in the s"mmer!
The two men said they came prepared to find inade2"ate infrastr"ct"re,
%"t were not prepared for the daily fr"strations of &"rgaon! There is no
mass transportation system, and shopping, even for something as %asic
as an "m%rella, can take ho"rs! They r"m%le to work in an a"to
rickshaw - a motori9ed three-wheeler that seats two and is a "%i2"ito"s
form of transport in Indian cities!
B"t the sophistication of the work %eing done in /opal5s &"rgaon office
contrasts with the chaotic city o"tside! *r! $imonsen said he was
ama9ed! )I came epecting to see n"m%er-cr"nching and spreadsheet
type of work: I didn5t epect 3merican %anks to farm o"t intricate
analytics,) he said! The two st"dents are working on a project that
analy9es investment opport"nities for clients across -< co"ntries!
Infosys Technologies, the co"ntry5s second-largest o"tso"rcing firm
after Tata /ons"ltancy $ervices, discovered how pop"lar India had
%ecome as an internship destination for 3mericans when the company
%egan recr"iting@ for the >0 intern spots at its Bangalore head2"arters,
the company received ?,000 applications! =nly those with a c"m"lative
grade-point average of <!A or more made it to a short list, and then they
were p"t thro"gh two ro"nds of interviews!
The final >0, who c"t a wide academic swathe from engineering
schools like *!I!T! and /arnegie *ellon to %"siness schools like
$tanford, #harton and 8ellogg, have since arrived on camp"s for
average stays of three months! The interns work in areas from
marketing to technology! They live in a 500-room hotel comple on
Infosys5s epansive camp"s in the s"%"r%s of Bangalore, echanging
co"pons for meals at the food co"rt and riding the company %"s
downtown to decompress at the many p"%s and %ars!

Forum: The Economy
3mong the Infosys interns is /aton B"rwell, -B, from the $tanford
&rad"ate $chool of B"siness! )India has come to sym%oli9e
glo%ali9ation and I wanted to participate in the workings of the glo%al
economy,) he said! )Besides, it wo"ld look great on my r7s"m7!)
*r! B"rwell said that, since arriving in India, he had developed a %etter
grasp of the workings of the glo%al economy and the logic %ehind the
choices companies and co"ntries make! )Being here is a powerf"l
eperience: it is impossi%le not to think differently,) he said!
3lso, his attit"de toward o"tso"rcing has changed since meeting Indian
employees, who he said work very hard and care a great deal a%o"t the
2"ality of their work! )To come here, meet these people, and to ret"rn
home and t"rn yo"r %ack on o"tso"rcing is hard,) he said!
Ceffrey 3nders, -?, from the $loan $chool of *anagement at *!I!T!, is
similarly stirred! *r! 3nders is halfway thro"gh his internship at the
%"siness process o"tso"rcing division of ,ewlett-0ackard India in
Bangalore!
)I can5t help %"t feel that I am witnessing the creation of a new glo%al
economic order, a new reality that most people %ack home don5t reali9e
is coming,) said *r! 3nders!
3fter a meeting with the recr"iting head of ,ewlett-0ackard India5s
%ack-office "nit at a conference at *!I!T!, *r! 3nders came to India to
help %"ild a gro"p of Indian economists and statisticians to perform
comple analytics and predictive modeling for #estern m"ltinationals!
)These highly ed"cated and 2"alified people are not stopping at call
centers and %ack-office work,) he said! )They are getting ready to
compete for every jo%!)
*eanwhile, Indian companies are looking at s"mmer internships as a
way of %"ilding a diverse work c"lt"re!
)Bringing investment %ankers here provides o"r Indian team a
perspective and contet of #all $treet,) said Coel 0erlman, co-fo"nder
of /opal 0artners, a company %ased in Dondon that has fo"r employees
each in New York and Dondon and another 100 or so in India!
=ther companies, and even the schools themselves, are looking at
internships as a step toward attracting %right yo"ng 3mericans to work
in India! Infosys, for instance, hired Cosh"a Bornstein, a former intern
from /laremont *c8enna /ollege in /alifornia, nearly two years ago
as its first 3merican employee %ased in India!
)In this increasingly glo%al economy, we wo"ld epect to see India
%ecome an even greater so"rce of employment for o"r st"dents,)
$heryle (irks, director of the /areer *anagement /enter at 6"2"a,
said!
*r! 3nders, from the $loan school, works in a new ,ewlett-0ackard
%"ilding, where he sometimes works o"t at the gym in the %asement
and eats at the cafeteria on the terrace! The employees work in open
c"%icles, similar to those in offices anywhere in the #est! ,is team
consists of fo"r Indians, all with *!B!3!5s like him, and they operate
glo%ally, colla%orating with teams in /alifornia and elsewhere!
Interns like *r! 3nders are getting a close view of social changes that
are happening in India! ="tso"rcing has created tho"sands of %etter-
paying jo%s and spawned comm"nities of yo"ng people who can afford
cars, apartments and i0ods!
)I tho"ght the stipend was the down side,) said *r! 3nders, )%"t
coming here is a priceless eperience!)
American businesses are increasingly moving their research and
development operations to India and China. Debates rage in the United
States about whether this will lead to greater prosperity or threaten this will
lead to greater prosperity or threaten the country's global economic
leadership. There are few facts
in the debate yet business and political leaders appear to be reaching
consensus on how to respond to the rise of India and China! have more
American children study math and science and graduate more engineers
and scientists.
This remedy's most common "ustification is the supposed statistic that China
and India between them graduate twelve times the numbers of engineers the
United States does. #usiness e$ecutives such as %icrosoft chairman #ill
&ates say that they have no choice but to move their research and
development operations abroad because a deficient US education system
has resulted in a severe shortfall of engineers.
The &lobal 'ngineering and 'ntrepreneurship pro"ect team at Du(e
University has been researching this topic. )e found that the graduation
statistics in common use were misleading as they were based on faulty
comparisons. *ur interviews with the e$ecutives of technology and
engineering companies engaged in outsourcing research and development
+,-D. to India and China revealed that their primary motivation in moving
operations abroad was not a shortage of engineers but rather lower cost and
the pro$imity of growth mar(ets. /urthermore we found that there were
serious issues with the 0uality of engineering education in China and India.
1et India is racing ahead to become a global hub for advanced ,-D in
several industries. In trying to understand how India is achieving this feat we
learned that the India private sector has found a way to overcome
deficiencies in its education system through innovative programs of
wor(force training and development. These have transformed wor(ers with a
wea( educational foundation into ,-D specialists. In response then the
United States needs learn from India and upgrade its wor(force.
'ngineering education
2arious articles in the popular media speeches by policy ma(ers and
reports to Congress have stated that the US graduates roughly 34444
engineers annually while China graduates 544444 and are India 674444.
'ven the 8ational Academies and the US Department of 'ducation have
cited these numbers.
#ut no one has compared apples with apples. In China the word 9engineer9
does not translate well into different dialects and has no standard definition.
An 9engineer could be a motor mechanic or a technician. Chinese graduation
numbers included all degrees related to information technology and to
speciali:ed fields such as shipbuilding. They also included two;and three;
year degrees ma(ing them e0uivalent to US associate degrees. 8early half
of China's reported engineering degrees fell into this category. The Indian
definition of 9engineer9 was e0uivalent to the US one but included
information;technology and computer;science degrees. )hen we counted on
a more consistent basis we found that in <44= the United States and India
each graduated appro$imately >=4444 engineers and China graduated
654444. Chinese graduation rates have however been increasing
dramatically since >???.
)e found a similar trend in %asters and @hD degrees. In <447 China
graduated 567>= %asters and ?=<3 @hDs in engineering e$ceeding
corresponding US numbers! 767=? and 33<4 respectively. India's
graduation numbers were unimpressive! >A=6? %asters and fewer than
>444 @hDs in engineering. In fact India wasn't graduating enough @hDs to
meet the growing staff re0uirements of its universities. Bowever China's
increasing numbers came at the cost of 0uality! enrollments are increasing at
all but the top universities without corresponding increases in faculty and
infrastructure. The growth in India's graduation rates was coming largely
from private educational institutions the 0uality of which varied significantly!
some provided good;0uality education while the ma"ority did not.
Sending ,-D abroad
*ur interviews with 3A senior e$ecutives of US corporations involved in
outsourcing engineering wor( revealed that India and China were their top
destinations for ,-D wor( with %e$ico in third place. The data these
companies provided;;on time to fill open positions signup bonuses and
acceptance rates of "ob offers for engineering;;showed no indication of a
tightening "ob mar(et. In other words they were not e$periencing shortages
of engineers in the United States. The reasons they named for going
offshore concerned salary and personnel savings overhead;cost savings
<=$3 continuous;development cycles access to new mar(ets and pro$imity
to growing mar(ets.
CIDDUST,ATI*8 *%ITT'DE
These companies reported that American engineers produced wor( of better
or e0ual 0uality and were at least as productive as their Indian and Chinese
counterparts. %oreover American engineers had advantages in education
cultural understanding communications and their understanding of mar(ets.
#ut Indian and Chinese engineers wor(ed harder and cost significantly less.
)hen as(ed about current wor( being assigned overseas nearly half of the
companies we interview said they would hire engineers regardless of
education level and would train them. #achelor's degrees in engineering
weren't mandatory prere0uisites. The vast ma"ority of companies stated their
intent to continue to outsource;;and their e$pectation to outsource higher;
level research and development to those countries. They indicated that for
these advanced ,-D "obs they preferred %asters and @hD degree holders.
It is evident that though India may have en"oyed advantages in lower;end IT
outsourcing it was ill;e0uipped to benefit from the ne$t wave of globali:ation
in which higher;end ,-D and innovation would increasingly go offshore. It
appeared that the country best positioned to become a global hub for ,-D
was China.
8e$t )ave of &lobali:ation
,ecent interviews with e$ecutives of multinational companies in China and
India as well as India native firms reveal that despite its low rates of
postgraduate science and engineering graduation India is rapidly becoming
a global hub for ,-D with a momentum and scale similar to those it
accomplished in IT services.
In the aerospace industry Indian companies are designing the interiors of
lu$ury "ets in;flight entertainment systems collision;control and navigation;
control systems fuel;inverting controls and other (ey components of
"etliners for American and 'uropean corporations. In pharmaceuticals Indian
scientists are discovering drugs and performing clinical research for nearly
all of the largest multinational drug companies. In the automotive industry
Indian engineers are helping to design bodies dashboards and power trains
for Detroit vehicle manufactures;;an soon may develop entirely outsource
passenger cars. In telecom and computer networ(ing Indian are developing
ne$t;generation solutions for intelligent cities. They are also developing
innovative solutions for the Indian mar(etplace such as the F<744 car
produced by Tata.
China is already the world's biggest e$porter of computers telecom
e0uipment and other high;tech electronics. %ultinationals and government;
bac(ed companies are pouring hundreds of billions of dollars into ne$t;
generation plants to turn China into an e$port power in semiconductors
passenger cars and specialty chemicals. China is lavishly subsidi:ing state;
of;the;art labs in biochemistry nanotech materials computing and
aerospace technologies.
Despite its advantages in engineering;graduation rates massive investments
in infrastructure and massive economic subsidies China does not in fact
appear to be moving at the same pace as India in ,-D outsourcing. /oreign
multinationals were driving and overwhelming proportion of ,-D and
innovation in China and that most of this ,-D is targeted at developing
products for the local Chinese mar(et. There are some e$ceptions but
Chinese industry appears to be e$celling in imitation rather than in
innovation.
The 5= %illion Dollar Guestion
If engineering education is so critical to global competitiveness how is India
succeedingH To answer this we met with the C'*s human;resource
directors ,-D leaders managers and employees and visited the ,-D and
training facilities of <= leading companies in India. These were in rapidly
growing emerging sectors including IT services business;process
outsourcing semiconductors pharmaceuticals financial services retail
hospitality and education;;all of which have managed to grow and innovate
despite s(ills gaps and talent shortages.
Bow the Disciple #ecame the &uru
During the >?34s and >?A4s the Iapanese achieved ma"or advances in
manufacturing management which led to their rise as an economic power.
The Iapanese economic miracle and the country's new manufacturing s(ills
and methods surprised western firmsJ but the Iapanese had done this by
studying adopting and eventually perfecting the best practices of western
companies. The Du(e team believes that India is achieving similar feats in
wor(force development! India has learned and perfected the best practices
of leading companies that have been outsourcing their computer systems
and call centers.
/aced with severe talent shortages escalating salaries and a lagging
education system Indian industry has had to adapt and has built innovative
and comprehensive approaches to wor(force training and management. The
initial focus was on training new recruits and filling entry;level s(ill gaps.
8ow these companies are investing in constantly improving the s(ills and
management abilities of their wor(ers and in providing incentives for them to
stay and grow with the company. There is also widespread collaboration
between industry players and academic institutions to accelerate the growth
of needed talent pools.
)e identified seven (ey areas in which Indian companies have developed
innovative practices! employee recruitment new employee training
continuing employee development managerial training and development
performance management and appraisal wor(force retention and education
upgrades.
Though US and 'uropean corporations have e$celled in many of these
functions for decades the Indians have developed a few innovative
practices including the way these programs are integrated into day;to;day
operations and into systems of career advancement and rewardJ the
application of technology to managing and integrating each of these
processesJ and the e$ecutive;level decision ma(ing that is performed based
on these processes. Iust as enterprise resource;planning systems are used
to manage manufacturing and distribution operations in leading firms the
Indian systems help oversee the wor(force management and development
process.
Searching /ar and )ide for Talent
India's top five IT companies alone hired nearly ><4444 new employees in
<443. I#% India and Accenture India hired nearly >=444 each in the same
period. This doesn't include the rest of India's si:eable technology industry.
Considering that the country now graduates only about <44444 in
engineering computer science and information technology and 8ASSC*%
Indian technology industry trade group estimates that only half of these
graduates receive education of sufficient 0uality to be employable. It is clear
that the ostensible shortage of s(illed wor(ers is being filled by other
sources.
The Indian companies we studied have become innovative not only in how
they recruit but also in whom they recruit and where they loo( for talent. %ost
of them have developed a recruitment philosophy to hire for overall s(ill and
aptitude rather than speciali:ed domain and technical s(ills. They rely on
training and development to bridge s(ill gaps. Instead of hiring only from top
engineering universities technology companies recruit from second;and
third;tier colleges all across the country and also in arts and science schools.
Similarly companies in the ban(ing and hospitality industries hire from call;
centers and the information technology sector. Diversity programs are also
being implemented both out of necessity and social purpose. )omen and
older wor(ers in particular are being targeted by technology companies and
call centers which are also reaching out to rural and disadvantaged
communities.
8ew ,ecruit #oot Camps
Companies in India have no choice but to assume that new recruits will have
to be trained practically from scratch. They invest substantial time money
and effort in the training function. %ost large companies have built dedicated
learning centers that house various training and development programs. The
larger companies employ hundreds of training staff.
In the technology sector new;recruit training programs typically span two to
four months. In other industries program range from two to four wee(s. The
training curricula are generally highly sophisticated and teach not only the
re0uired technical s(ills but also the basics of topics li(e industry operations
customer management communications and team building. /ormal
induction training is typically followed by on;the;"ob training programs in
which employees are assigned specific tas(s under the supervision of
trainers and managers.
Investing in Their 'mployees
/aced with fierce competition for talent rising wages and pressure from a
currency gaining significant value Indian companies have had to invest in
ma(ing their employees more productive and rapidly moving them up the
s(ill and management ladder. This has the effect of increasing billing rates
and productivity of employees and lessening attrition because of the rapid
career advancement that employees can achieve.
'mployees are typically re0uired to participate in a wide range of training
and certification programs some developed in house and some delivered by
e$ternal domestic and foreign training vendors. Training programs include
not only technical and domain training but also a wide range of soft s(ills and
management s(ills including training in si$;sigmaK0uality processesJ
communicationJ and cultural behavioral foreign;language and personal;
effectiveness s(ills. In addition to online courses many companies have
instituted programs of mentorship by senior e$ecutivesJ peer learning and
(nowledge sharingJ and "ob;rotation programs. Career advancement and
salary increases are usually tied to the completion of such training.
'mployers have also invested significantly to train and mentor future leaders
from within the firm. The average age of first;line managers in the Indian
companies we studied is below thirty. %anagers are typically grown through
fast;trac( programs that provide management training and mentorship to
high;performing employees. @reference is usually given to internal staff to fill
a management opening before outside recruitment is considered.
@erformance;management systems usually play an important role in
identifying high performers creating an inventory of e$isting s(ills and
strengths and identifying s(ill gaps. They are used as a basis for career
development through training on;the;"ob e$perience and coaching and
mentoring.
All of the Indian companies we studied have implemented sophisticated
performance;management and appraisal systems to create greater
transparency and fairness in evaluation and rewards. %echanisms such as
654;degree reviews and balanced;scorecard reviews are widely used.
%anagers are evaluated on a variety of non;financial measures including
employee satisfaction attrition rates and mentoring.
@erformance management has been fully integrated with training and
development at most companies using periodic reviews to identify training
needs provide feedbac( and coaching and facilitate employees' goal setting
and career planning. /eedbac( sessions typically follow performance
evaluations and goal;setting processes are used widely as opportunities to
communicate with employeesJ assess their interests needs and aspirationsJ
plan their careersJ and match their s(ills and aspirations with company and
pro"ect needs.
%ost companies have been able to achieve dramatic reductions in employee
turnover by carefully analy:ing recruitment performance and attrition data to
identify patterns and predictor of attrition. Along those lines corporate
communications and employee engagement in the company and its
programs are always a priority and company e$ecutives are usually
measured on their retention rates. All of this has led to constant refinements
in all facets of human;resource practices.
/urthermore Indian companies appear to have a high level of interaction
with the private colleges and universities that supply them with talent. This
involves wor(ing with these institutions to develop customi:ed degree
programs train the educators create new curricula and negotiate deals to
hire graduates in bul(;;without "ob interviews.
Conclusion
&lobali:ation poses many new challenges to US competitiveness and the
current remedies do not cure the right disease. )e are not going to be able
to compete with India and China by matching their numbers in engineering
graduation or by erecting trade or immigration barriers.
'ducation is amongst the most important investments a nation can ma(e in
its future with math and science as particularly important sub"ects. #ut if we
focus only on teaching more math and science to children who are presently
in grades L;>< we will have lost the global race by the time they graduate
from college >4 to >7 years from now. %oreover we need to compete on our
strengths which include innovation entrepreneurship and the ability to learn
and adapt. The Indian e$perience highlights what can be achieved by
investing in upgrading the s(ills of the wor(force. If wor(force training can
ta(e the output of an education system as wea( as India's and turn its
graduates into world;class engineers and scientists imagine what could be
done with a wor(er base that has received among the best education in the
world as is the case in the United States.
US companies have long played the guru developing and disseminating
many widely adopted management and wor(force practices. The time has
come for the guru to learn from one of its disciples! India.
#hen 3mericans think of the Indian technology sector, they
still perceive a nation of call center workers and low-level comp"ter programmers
administering data%ases and "pdating we%sites! B"t while the #est was sleeping, Indian
IT morphed into a giant +E( machine! Indian companies that started o"t doing call
center and low-level IT work have clim%ed the val"e chain to %ecome o"tso"rced
providers of critical +E( in sophisticated areas s"ch as semicond"ctor design, aerospace,
a"tomotive, network e2"ipment and medical devices!
This is happening as m"lti-nationals set "p their own +E( operations in India and
partner with local shops! Both the 0alm 0re smart phone and the 3ma9on 8indle, two of
the hottest cons"mer electronics devices on the market, have key components designed in
India! Intel designed its si-core Feon processor in India! IB* has over 100,000
employees in India! 3 large n"m%er of these are %"ilding Big Bl"eGs most sophisticated
software prod"cts! /isco is developing c"tting edge networking technologies for
f"t"ristic Hintelligent citiesI in Bangalore! 3do%e, /adence, =racle, *icrosoft and most
of the large software companies are developing mainstream prod"cts in India!
;2"ally important are the arrival of Indian m"lti-nationals who are tackling glo%al
markets, s"ch as Tata with its dirt cheap Nano car that the company is now positioning
for a ;"ropean market entry and +eva, which recently anno"nced it was planning to %"ild
an electric car factory in New York state to address the 4!$! market for electric vehicles!
#hat has %een missing to date in India, however, is early stage vent"re activity and the
type of grass-roots entreprene"rism that is the hallmark of 3merican capitalism and
$ilicon 'alley! In that respect /hina is way ahead of India with many start"ps taking
advantage of h"ge government incentives and reeling in talented native /hinese ret"rnees
to serve as /;=s and /T=s! Note that 8aif" Dee, formerly &oogleGs top g"y in /hina,
was a%le to la"nch a J100 million start"p inc"%ator foc"sing entirely on the mo%ile sector
K and he was flooded with %"siness plans within days of opening his doors in the *iddle
8ingdom!
=n my recent trip to India I started to see new signs of life in tech entreprene"rship!
*any of the start"ps that $arah Dacy and I met were really smart and h"ngry! $ome were
even doing things %etter than their $ilicon 'alley co"nterparts! Not all of these start"ps
are developing %reakthro"gh technologies %"t many of them are solving pro%lems that
4!$! companies have th"s far failed to solve and doing it with fewer reso"rces!
=ne of the most interesting companies I met is in the
m"ndane %"siness of developing offset printer ink! Their ink is made from vegeta%le oil
and is entirely %io-degrada%le! The offset printing ind"stry cons"mes 1 million tons of
petrole"m prod"cts and emits 500,000 tons of volatile organic compo"nds every year! 3n
IIT-(elhi inc"%ated start"p called ;nNat"ra developed a printing ink which emits no
volatile compo"nds and is washa%le! 3nd the overall cost of their sol"tion will %e
significantly less than all present compo"nds when prod"ced at scale! I can see a
company like this growing into a %illion dollar glo%al %"siness!
3nother interesting company was Dive*edia! This is an o"t-of-home advertising
company that has >,500 screens in -,-00 destinations with a total reach of 50 million
people! =f co"rse, yo" can find eactly these sorts of T' screens in tho"sands of places
across the 4!$! 4nfort"nately, it has %een very hard to make real money selling
advertising on these networks! Dive*edia appears to have cracked that %y creating
speciali9ed content that is more engaging and interactive than a %o droning /NN or the
(isney /hannel! Dive*edia content incl"des games, 2"i99es, horoscopes, a few short
animations, and other content that is %oth cheap to prod"ce and easy to play along with or
"nderstand! Dive*edia has also perfected contet-relevant advertising spots keyed to the
crowds at the screen location!
Dive*edia is in the process of %"ilding o"t a partnership with 3lcatel-D"cent Bell Da%s
India that wo"ld give the network even more interactive capa%ilities! Bell Da%s has
developed a content management and ro"ting system, d"%%ed *ango, that makes it m"ch
easier and efficient to deliver high-%andwidth, high-2"ality video and interactive content
over eisting networks! In the developing world, everyone wants a Ti'=-like capa%ility
to share, store and manage content! B"t eisting &0+$ or ;(&;-%ased cell networks are
not "p to sn"ff! 3nd the %road%and infrastr"ct"re still lags %ehind that of the most
developed telecom networks in places like Capan, 8orea and $candanavia! 3 prod"ct like
*ango is tailor-made for '/ investment to get it o"t of the la% and into a spin-off
company!
This is partly why so many 4!$! vent"re capital shops have opened "p %ranches in India!
In fact, the two lead investors in Dive*edia are %oth 4!$! vent"re capitalists incl"ding
the respected 'alley firm (raper 6isher C"rvetson! B"t India lags in home-grown vent"re
capital activity! 3s I have previo"sly disc"ssed, '/s follow the innovation! $o the lack of
native '/ in India is nota%le in that it implies a critical mass of activity remains lacking,
as well!
6or eample, in the first nine months of -00B, total early stage '/ investments in India
totaled JA.B million, according to the &lo%al India 'ent"re /apital 3ssociation! In the
4!$! over that same period early stage investments tallied J5!- %illion according to the
4!$! National 'ent"re /apital 3ssociation L and that n"m%er is not entirely reflective of
the real sit"ation! The economic downt"rn hit the 4!$! m"ch harder than the $"%continent
and '/ activity in the 4!$! fell faster and harder! +egardless, a 10-fold difference
%etween early stage vent"re activity clearly ill"strates the capital is not there yet!
$o when will there %e eno"gh innovative start"ps to s"pport an eplosion in vent"re
capitalM IGd arg"e, sooner than yo" reali9e! ("ring my week in India I spoke to close to
100 start"ps! 3 few of them had prod"cts or prototypes that wo"ld easily compete in
$ilicon 'alley! $ome of the leading lights of the legacy Indian IT giants are also moving
2"ickly into '/! Infosys fo"nder Narayan *"rthy recently sold millions of dollars of
shares in the company in order to la"nch a vent"re capital f"nd targeting investments in
India!
The dynamics of entreprene"rship are the same in India as in 3merica! /ompany
fo"nders "s"ally come from the ranks of eperienced %"siness eec"tives and are middle-
aged! They get tired of working for others and want to make an impact and %"ild wealth
%efore they get too old! &iven that there are now h"ndreds of tho"sands of +E( workers
in India who are gaining val"a%le eperience and are getting old, it is simply a matter of
time %efore they %egin to hatch their entreprene"rial plans! 3fter all, their colleag"es who
migrated to the 4!$! now start nearly one in si of $ilicon 'alleyGs tech firms!
IGll %et that in 5 years, if yo" stacked "p a Tech/r"nch 50 of Indian start "ps vers"s a
compara%le n"m%er of 4!$! start"ps, it wo"ld %e a pretty even match! ThatGs pretty
ama9ing considering the relatively short length of time that the Indian start"p scene has
eisted! 3nd itGs a good lesson for 3merica that the %arriers to starting a company are
lower than ever %eforeKand some am%itio"s engineer in India will eat yo"r l"nch if yo"
donGt get yo"r prototype %"ilt and perfected 3$30!
6or the last two years, its %een a rit"al for me to lock myself in a room for a week-end
and read thro"gh the vast o"tp"t of o"r fac"lty d"ring the year
The >5th ann"al convocation of the Indian Instit"te of *anagement, /alc"tta NII*-/O
was held on the II*-/ camp"s at Coka on < 3pril! The leading social activist and +amon
*agsyssay 3ward winner, (r! $andeep 0andey was the /hief &"est!
The >5th ann"al convocation of the Indian Instit"te of *anagement, /alc"tta NII*-/O
was held on the II*-/ camp"s at Coka on < 3pril! The leading social activist and +amon
*agsaysay 3ward winner, (r! $andeep 0andey was the /hief &"est! *r! 3jit
Balakrishnan, /;= L +ediff!com and the /hairman of II*/ Board of &overnors
presided over the ceremony!

=ne of the key highlights of the ceremony was the speech %y *r! Balakrishnan! *r!
Balakrishnan himself is an al"mn"s of II* /alc"tta! #e %ring to yo" the complete
speech! The topic of his speech was P,ow II* /alc"tta 6ared in Tho"ght Deadership in
-00?-10G@

6or the last two years, its %een a rit"al for me to lock myself in a room for a week-end
and read thro"gh the vast o"tp"t of o"r fac"lty d"ring the year! I get immense pleas"re
from this and in sharing with yo" today what I discovered I hope yo" will get a similar
pleas"re! The scale and width of the iss"es that o"r fac"lty have tackled is immense!

6or eample, why do some alliances %etween Indian and international firms s"cceed and
others failM 0rof BN $rivastava, of o"r Behavioral $ciences gro"p, in a paper presented at
the 3cademy of *anagement meeting in /hicago in 3"g"st -00?, titled 0ositive
=rgani9ational $cholarship@ 3 /ross-/"lt"ral 0erspective from 6ive Nations "sed the
0ositive =rgani9ational $cholarship approach to st"dy this iss"e and concl"ded that
s"ccess is %ased on the 2"ality of the connection! The 2"ality of connection, in t"rn,
depends on the emotional capacity to withstand %oth negative and positive eperiences,
resilience or capacity of the person to %end and withstand strain and to f"nction in a
variety of circ"mstances, and the relationshipGs generativity and openness to new ideas
and infl"ences and the a%ility to deflect the press"res that sh"t the generative processes!

#e have of late o%served the phenomenon of foreigners %eing hired for top management
positions in Indian firms! 0rof +ajiv 8"mar of o"r Behavioral $ciences gro"p st"died the
circ"mstances "nder which Indian companies hired s"ch foreign talent and developed
twelve propositions a%o"t this phenomenon! The desire to learn s"perior eec"tion skills
from these Pforeign n"rt"red talentG, getting their help in managing overseas s"%sidiaries
partic"larly in dealing with the eternal environment are two eamples of these
propositions! ,e also notes that the Indian companies who hired s"ch managers are ones
that have glo%al am%itions in growth and technical ecellence! ,is paper, 6oreign
N"rt"red Talent in Indian B"siness ,o"ses was accepted for the 10th International
,"man +eso"rce *anagement /onference held at $anta 6e, New *eico in C"ne, -00?!

#e have seen the film ind"stries in ,ollywood or Bollywood where In independent
%"siness elements like st"dios, prod"cers, directors, actors, technical personnel create a
temporary network str"ct"re, which is project-%ased and inter-organi9ational in a
Hsystem of rec"rrent ties among the vario"s major participants who "s"ally work "nder
short-term contracts for single filmsI! ;conomists have %een %affled why they contin"e
this so-called network organi9ation str"ct"re even tho"gh it has %een demonstrated that
the transaction costs of s"ch a str"ct"re are far higher than a hierarchically or p"rely
market oriented str"ct"re! $ince networked str"ct"res are increasingly evident across
many ind"stries, 0rofessor 3mit Cyoti $en of Behavio"ral $ciences &ro"p with a doctoral
candidate, 3palak 8hat"a, proposed a framework Qfor "nderstanding the circ"mstances
"nder which s"ch network str"ct"res emerge and their paper, Inside the
Interorganisational Network, accepted for 3ssociation of ,eterodo ;conomics
/onference at 8ingston 4niversity, 8ingston-on Thames, 48, C"ly, -00?!

="tso"rcing is what has driven IndiaGs emergence as a glo%al economic giant, yet little
organi9ation theory has developed to "nderstand the many different organi9ation forms
these o"tso"rcing firms take! In a st"dy of sity s"ch firms, 0rofessor Deena /hatterjee of
Behavio"ral $ciences &ro"p and 8irti $harda, a doctoral candidate at that time, proposed
five dominant types@ /lear ;yed $trategists, 3dapting 0rofessionals, 6ocali9ing 3rtisans,
/onservative /ontrollers and =veram%itio"s 3ssociates! Their paper /onfig"rations of
="tso"rcing 6irms and 0erformance@ ;ploring =rgani9ational &estalts was presented at
the -00? 3cademy of *anagement *eeting held in /hicago d"ring 3"g"st, -00?!

B"sinesses have, since the 1??0Gs gained great %enefit from the B"siness 0rocess +e-
engineering movement! +e-engineering involves a re-config"artion of Hcore processesI
that Hset of interrelated activities, decisions, information, and material flows, which
together determine the competitive s"ccess of the company!I Is it possi%le to apply s"ch a
tool to governmental processes where what is PcoreG and what is not is often "nder
disp"te, the concept of Hval"eI and Hval"e-adding processI are diffic"lt to meas"re!
0rofessor 0riya $eetharaman of o"r *I$ &ro"p and 0rof +agha%endra /hattopadhyay of
the 0"%lic 0olicy &ro"p, %ased on their st"dy of #est Bengal 0anchayats, propose a
system of Pprocess channelingG in their paper 0rocess +eengineering in &overnment
Instit"tions@ #alking 3 Tightrope, presented at the 5th 3nn"al International /onference
on 0"%lic 3dministration, -00? held at /hengd", /hina d"ring =cto%er, -00?! This ,
incidentally is a great eample of researchers from two different gro"ps, *I$ and 0"%lic
0olicy, colla%orating on a common research project!

3lgorithm-%ased recommendation systems are all the rage nowadays %e it on $ocial
Networking sites where yo" are recommended people yo" may like or in e/ommerce
sites where prod"cts are s"ggested for yo"! These face a contin"o"s challenge in
improving the 2"ality of their recommendation! 3 paper entitled %y 0rofessor 3m%"j
*ahanti of *anagement Information $ystems &ro"p has proposed s"ch an improvement
in his paper , Improving 0rediction acc"racy in Tr"st-aware +ecommender $ystems, was
presented at the ><rd ,awaii International /onference on $ystem $ciences in 8a"ai,
4$3 in Can"ary, -010!

In another paper, also in the %road area of machine learning, 0rofessor 4ttam 8"mar
$arkar of *I$ &ro"p, and his associates "sed mathematical techni2"es to locate
interesting patterns in the reporting of adverse effects of pharmace"tical prod"cts "sing
the 4$ 6(3 data and presented their findings at the International $ociety for /linical
Biostatistics conference at 0rag"e, /9ech +ep"%lic in 3"g"st, -00?!

0rof (e%asis $aha of the *I$ &ro"p devised a new protocol to improve the efficiency of
#ave (ivision *"ltipleed =ptical Networks, and the paper descri%ing this work titled,
3n Intelligent (estination Initiated +eservation 0rotocol for #avelength *anagement in
#(* =ptical Networks was presented at the 1-th International /onference on 3dvanced
/omm"nication Technology held +ep"%lic of 8orea, in 6e%r"ary, -010!

0rof (e%asis $aha and his colla%orators presented a second paper, this one descri%ing a
new techni2"e for improving the 2"ality of service when a local area wireless network
and a <& network operate together presented their paper, 3n Improved #D3N-first
3ccess $cheme for 4*T$R#D3N Interworking $ystem, at the 3/* $ymposi"m on
3pplied /omp"ting, 4niversity of 3pplied $ciences, $wit9erland in *arch -010!

0rofs $"%ir Bhattacharya, +ah"l +oy and others from the *I$ gro"p "sed a $ystems
(ynamic modeling to eval"ate the f"t"re of $oftware-as-$ervice as a %"siness model and
presented their paper S"o 'adis, $3$, at the International /onference of Information
*anagement at /hengd", /hina, 3pril, -010!

0rof $"%ir Bhattacharya and his co-worker devised a sol"tion for a specific type of
financial portfolio selction and presented a paper on this at the /onference on
3"tomation $cience and ;ngineering, Bangalore 3"g"st, -00?! This paper is an early
eample where people from the *I$ fac"lty "sed the facilities at o"r new 6inancial Da%
and I hope we will see many more s"ch cross-f"nctional research endeavo"rs!

0rof 3n"p $en and his colla%orator tho"ght "p an improvement to the so-called Pgreedy
algorithmG a way of 2"ickly getting an approimate res"lt, and presented their paper at
$ith International /onference on 3"tonomic and 3"tonomo"s $ystems, *arch -010 -
/anc"n, *eico, and has %een s"%se2"ently p"%lished %y I;;; proceedings!
0rof +ajesh Ba%" analyses the dilemma of protecting Ptraditional knowledgeG and
recommends a way to do that "nder the eisting T+I0sR#T= regime and presented his
paper, International 0rotection of I0+s in Traditional 8nowledge and 6olklore, at the
International /onference on The /hallenging iss"es "nder #T= at 8oh $am"i, Thailand,
=cto%er -00?

The increasing demand for internet connectivity has res"lted in access points spro"ting
"p everywhere@ in parks, shopping malls, resta"rants, etc! ;fficient algorithms are needed
to connect wireless nodes s"ch as a Daptop or a *o%ile 0hone evenly to the many 3ccess
0oints availa%le! 0rof 4ttam $arkar of the *I$ &ro"p along with his co-a"thor proposed
a new algorithm to do this "sing the emerging B0-!-1 standard and their paper, Balancing
Doad of 30s %y /onc"rrent 3ssociation of ;very #ireless Node with *any 30s, was
presented at the 5th International /onference on Networking and $ervices in 'alencia,
$pain in 3pril, -00?!

0rof 3sim 0al and others devised a new algorithm for improving the co-ordination
mechanisms in e-market $"pply /hains and presented their paper, /ooperative &ame for
*"lti-3gent /olla%orative 0lanning, at the International /onference on =perations
+esearch at ,ong 8ong in *arch -010!

To ro"nd off the rich work in o"r *I$ &ro"p, 0rof 3sim 0al, "sed game-theoretic
concepts in another pro%lem area, that of detecting so-called Psy%ilsG, pse"donymo"s
entities, that la"nch malicio"s attacks on comp"ter networks and his paper, 3
(iscriminatory +ewarding *echanism for $y%il (etection with 3pplications to Tor, was
accepted at the I///I$ -010 at +io de Caneiro, Bra9il in *arch, -010

#e have all watched in ama9ement as international commodity prices do"%led %etween
-005 and -00B and then in a si month period halved to a level that wiped o"t all the
increases! ,ow did this violent fl"ct"ation affect the lives of the >00 pl"s million people
in the 3sia 0acific region whose lives are dependant on agric"lt"re! (id the price increase
%enefit them as prod"cers and since they are also commodity cons"mers, did it h"rt
themM 0rof 0arthprathim 0al of the ;conomics &ro"p st"died this iss"e and drew some
policy implication for developing co"ntries for the ongoing #T= negotiations! ,is paper,
/ommodity 0rice *ovements and Their Impact on ,"man (evelopment@ ;vidence from
3sia and 0olicy =ptions, was presented at the ?th International #orking &ro"p on
&ender and *acroeconomics conference, at Bard /ollege, New York in C"ly -00?!

Neo-classical economic theory post"lates that growth rates %etween co"ntries sho"ld
"ltimately converge %eca"se technology, capital and other s"pply side factors can, in
todayGs world, freely move aro"nd from co"ntry to co"ntry, %"t p"tting this theory to test
has posed formida%le methodological pro%lems! 0rof! *anisha /hakra%arty of o"r
;conomics &ro"p and her co-a"thors presented a paper proposing some methodological
sol"tions to this at the Tenth Islamic /o"ntries /onference on $tatistical $ciences at
3merican 4niversity of /airo, ;gypt in (ecem%er -00?!

Basing promotion and compensation decision on a rational and formal 0erformance
3ppraisal system is seen as a hallmark of professional and modern companies and is
generally %elieved to %e free of political and power and control iss"es! ,ow does it fare
in the Indian corporate sit"ation which is %elieved to %e relatively more paternalistic and
relationship oriented than in other c"lt"resM 0rof 3mit (iman of o"r ,"man +eso"rces
&ro"p devised an instr"ment for meas"ring the appraises perception of 0erformance
3ppraisal 0olitics and his paper, 0erformance 3ppraisal 0olitics from 3ppraiseeGs
perspective@ ;ploration in Indian /ontet was presented at the 3cademy of *anagement
conference held at /hicago in 3"s"st, -00?!

Ind"strial +elations theory has largely %een a creation of the 3nglo-$aon ind"strial
eperience! ,ow does it fit the new paradigm in India in which an old formal economy of
heavy ind"stry and p"%lic sector enterprises, co-eists today with the new formal
economy of IT and 6inancial $ervices and the massive informal economy of cas"al
la%o"r and petty trade which forms the majority of Indian employmentM 0rof (e%ashish
Bhattacharjee and his co-a"thor "ndertook a sweeping st"dy of %oth the historical
evol"tion of ;mployment +elations in India from 1?>. right down to the effects of the
&lo%al +ecession of -00B as well as an e2"ally magisterial look at how the Indian
academic tradition of Ind"strial +elations has grad"ally transformed itself into the
,"man +eso"rce *anagement movement! ,is paper, /omparative Ind"strial +elations
Narratives and their +elevance to India, was presented at the 15th /ongress of the
International Ind"strial +elations 3ssociation meeting in $ydney, 3"stralia in 3"g"st,
-00?!

="r newly formed 0"%lic 0olicy and *anagement &ro"p has kicked off to a great start!
0rofs Bhaskar /hakra%arti and +agha%endra /hattopadhay addressed the pro%lem of
developing the right meas"res for j"dging the effectiveness of Docal &overnment Bodies
and presented their paper, 3dministrative +eforms for Docal &overnments in +"ral #est
Bengal at the 3nn"al /onference of the International 3ssociation of $chools and
Instit"tes of 3dministration, at +io de Caneiro, Bra9il d 3"g"st, -00?!

The same team presented two other papers, 'illage 6or"ms or (evelopment /o"ncils@
0eopleGs participation in decision-making in r"ral #est Bengal and Docal &overnments in
r"ral #est Bengal, and their /oordination with Dine (epartments at the /ommonwealth
Docal &overnment /onference in the Bahamas in *ay -00? and a third paper titled,
(ecentrali9ation of Irrigation *anagement in India@ 0ro%lems of 0articipation and the
role of #ater 4ser 3ssociations together with $"man Nath at 5th 3nn"al International
/onference on 0"%lic 3dministration, in /hengd", /hina =cto%er, -00?!

0rof *anish Thak"r, of the 0"%lic 0olicy &ro"p did one of the few academic st"dies
availa%le on IndiaGs giant National +"ral ;mployment &"arantee $cheme! ,e points o"t
that the val"e of this scheme sho"ld not %e j"dged merely %y the preset targets they
achieve %"t also %y how they mo%ili9e the poor and also sets in motion the consolidation
of a constellation of interests which for years to come will help the poor artic"late their
collective rights! ,is paper, 0"%lic 0olicy Interventions and $ocial Incl"sion, was
presented at 5th 3nn"al International /onference on 0"%lic 3dministration, -00? held at
/hengd", /hina in =ct -00?!

In his paper, $ocial #elfare thro"gh B"siness@ $t"dy of ,ome Based 3yah $ervice for the
3ged, 0rofessor 8alyan $ankar *andal of the 0"%lic 0olicy &ro"p presents an eample
of how a %"siness can contri%"te to social welfare! This paper was presented at the ?th
/onference of 3sia-0acific $ociological 3ssociation at Bali, Indonesia in C"ne, -00?!

0rof *andal also took a look at the prospect of private sector initiatives helping o"t in the
gigantic task of improving primary school 2"ality in his paper, Towards 4niversalising
0rimary ;d"cation@ 3 B"siness $ol"tion presented at the International /onference on
0rimary ;d"cation held at ,ong 8ong, Novem%er -00?!

Dast year, the film $l"mdog *illionaire, poignantly portrayed the despairing lives of
people in o"r great cities! India now has over <5 s"ch metropolitan areas each with a
pop"lation of over 1 million! =ver a 100 million Indians now live in s"ch metropolitan
settings and they live in "ne2"al access to health care and ed"cation! 0rof 3nnap"rna
$haw of o"r 0"%lic 0olicy &ro"p st"dies what she calls Hplace ine2"alitiesI at the
metropolitan level in her paper, *etropolitan &overnance and $ocial Ine2"ality in India
which was presented at the conference on *etropolitan Ine2"ality and &overnance in
International 0erspective held at 4niversity of $o"thern /alifornea, Dos 3ngeles in
Can"ary -00? and at the 105th meeting the 3ssociation of 3merican &eographers at Das
'egas on *arch -00?!

In a rare look at IndiaGs $mall and *edi"m ind"strial companies who collectively
prod"ce >0T of the ind"strial o"tp"t of o"r co"ntry, 0rof BB /hakra%arti, presented a
paper titled, /apital $tr"ct"re of $*;Gs La 0"99le that *erits 3ttention@ The /ase of
India, %ased on a ten-year data set of 1<00 s"ch companies and presented at the #est
Dake International /onference on $mall E *edi"m B"siness held at ,ang9ho", /hina in
=cto%er, -00?! #hat is eciting a%o"t this paper is that it was prod"ced colla%oratively
with a %"siness organi9ation, Bitscrape $ol"tions and is hopef"lly a sign of more s"ch
colla%orations that will come in the f"t"re!

Banks wooing all of "s thro"gh $*$ %arrages on o"r mo%ile phone, television
advertising, and advertising in newspapers and %ill%oards is a feat"re of IndiaGs new
landscape of a hyper competitive cons"mer %anking scene! Yet , there are few st"dies on
how do Indian cons"mers j"dge service 2"ality of %anks! 0rof! 8o"shiki /ho"dh"ry of
*arketing &ro"p took a shot at this and her paper, ;ploring the (imensionality of
$ervice S"ality@ 3n 3pplication of T=0$I$, was presented at the >th International
/onference on $ervices *anagement at =ford Brookes 4niversity, =ford, 4!8! *ay,
-00?!

/omplete flei%ility in allocating prod"cts to man"fact"ring capacity %ased on reali9ed
demand is the holy grail of modern man"fact"ring! ,owever, this kind of Ptotal
flei%ilityG where all plants can prod"ce all prod"cts can %e a costly sol"tion! /o"ld there
%e an optim"m com%ination of plants and prod"cts that maimi9es the a%ility to meet
demand and at the same time minimi9es vario"s types of costsM 0rof! 3shis 8 /hatterjee
of =perations *anagement &ro"p demonstrates how this can %e modeled and his paper,
Benefits of 0artial 0rod"ct 6lei%ility, was presented at the -<rd ;"ropean /onference on
=perational +esearch, Bonn, &ermany in C"ly, -00?!

$ignaling a new class of st"dies where o"r professors colla%orate with those of
international "niversities, 0rof +ah"l *"kherjee of o"r =perations *anagement &ro"p,
colla%orated with 0rof ,ong /hang of /hos"n 4niversity, 8orea in presenting a paper,
,ighest 0osterior (ensity +egions Based on ;mpirical-Type Dikelihoods@ +ole of (ata-
(ependent 0riors, at New Uealand $tatistical 3ssociation /onference at 'ictoria
4niversity of #ellington, New Uealand in $eptem%er, -00?! This paper has since %een
accepted for p"%lication in the prestigio"s Co"rnal of $tatistical 0lanning and Inference!

0rof $ai%al /hattopadhyay, of the =perations *anagement &ro"p also presented a paper,
;ponential /linical Trials@ $e2"ential /omparison "nder 3symmetric 0enalty at the
same New Uealand /onference!

0rofessor Bodhi%rata NagGs %ook titled )=ptimal (esign of Timeta%les for Darge
+ailways@ a framework to maimise sched"le ro%"stness and minimise reso"rce
deployment, "sing a m"lti-o%jective mathematical model) has %een p"%lished %y '(*
'erlagsservicegesellschaft m%,, &ermany in 6e%r"ary -010!

(ealing with the demand "ncertainties of short life cycle prod"cts s"ch as fashion goods
have always posed a challenge! 0rof Balram 3vitatth"r, of o"r =perations *anagement
&ro"p with his co-a"thors, developed a mathematical model to do deal with the
associated proc"rement and transportation disco"nt str"ct"res and this paper has %een
accepted for p"%lication in The International Co"rnal of 0rod"ction ;conomics, from
;lsevier!

Indian media and policymakers are fond of pointing to IndiaGs yo"thf"l pop"lation and
the demographic dividend! 0rof Canakirman *oorthy looks %eyond to the year -050
when India will have three times more people in the A0V age gro"p than we have now
and tries to draw some implications of this! ,is paper on this phenomenon was accepted
as a %ook chapter in The $ilver *arket 0henomenon B"siness =pport"nities in an ;ra of
(emographic /hange, ;dited %y 6lorian 8ohl%acher, and /orneli"s ,erstatt! 0rof
*oorthy also contri%"ted, /ross-National Dogo ;val"ation 3nalysis@ 3n Individ"al-
Devel 3pproach, to the $eptem%er -00? iss"e of the international jo"rnal, *arketing
$cience, and an article titled, B"ying %ehavio"r of cons"mers for food prod"cts in an
emerging economy to the British 6ood Co"rnalGs second iss"e of -010!

0rof Caco% 'akkayil, co-a"thored a chapter titled, /onflict *anagement and +esol"tion
in the %ook, (oing B"siness in India, p"%lished %y +o"tledge!

,e also contri%"ted a paper, (ynamics of *"ltiple *emories, +eflections from an
;n2"iry, to the $age jo"rnal, Co"rnal of *anagement ;n2"iry! I fo"nd it one of the most
val"a%le r"minations I have read in recent years a%o"t one of the frontier challenges in
the new knowledge economy! /ompanies try all sorts of methods to capt"re as
organi9ational *emory what they learn as they go along in %"siness@ project doc"ments
are stored in data%ases, case st"dies are ca"sed ot %e written, white papers and %est
practice doc"ments are created, reviewed %y gate-keepers and stored! These are then "sed
in knowledge-sharing sessions! Yet, to new entrants all this seem like j"st another training
session! 8nowledge *anagement efforts in many companies lead only to disappointment!
Caco%, then wonders what is the nat"re of =rgani9ation *emoryM Is it one or is there a
pl"rality of memoriesM 3re organi9ational memories messier and more improvised than
we thinkM 3re local, relational memories more effective than glo%al onesM 3re there
comm"nities of practice with two strands, one inside the organi9ation and the other
etending %eyond into other organi9ationsM 3re there tentative, ne%"lo"s memories which
are more real than the grand schemes of long-term storage and retrievalM

I fo"nd these reflections on the very nat"re of knowledge %reathtakingly inspiring and I
feel it deserves to %e heard %eyond the confines of a $age management jo"rnal!

3nd it is also a fitting %ook-end to my review today of the eciting intellect"al effort
going on at II* /alc"tta! I hope yo" got as m"ch pleas"re in listening to this reco"nting
as I did in preparing this s"mmary!

$tay t"ned to *B34niverse!com for more speeches from II*-/ convocationW
MBA in India vs. MBA abroad
-anagement education in India is booming. There are over *,(.)
approved business schools, *,(.,))) full"time and *,)),))) distance
-4$ students and *,=),))) -4$ aspirants ta9ing the %ommon
$dmission Test every year.
The end"users J the recruiters J seem to be facing a constant supply
crunch, and are always on the loo9out for the talent graduating from
the top 4"schools.
Thus the -4$ is a valuable commodity that insures a Kuic9 return on
investment.
Lith the burgeoning of the Indian economy and the growth of IndiaMs
middle"class, more Indians than ever before are able to afford brand
name $merican degrees.
Lhile foreign applications to $merican 4"schools have dropped with
visa restrictions post"<0**, applications from Indian students are
increasing.
%oupled with this is the fact that many of the foreign"bound -4$s plan
to return to India after graduation, a complete reversal of the brain"
drain in the *<5)s and 2)s.Lith increasingly larger number of
aspirants loo9ing at -4$ abroad, what are the pros and cons of an
-4$ in India vs. -4$ abroadN
Is it worthwhile to get an -4$ abroadN This decision depends on a
number of factors and ultimately has to come from you. Le present
these factors before you, on ma9ing this vital decision.
Assess the cost
The cost is, of course, the bottomline. 6or the average Indian, a
foreign -4$ is very eApensiveO at the least an -4$ degree abroad will
cost you around 8s. *) la9hs to 8s. *. la9hs.
1ormally, an -4$ from the top"tier schools in the /.S. will cost you
around 8s. (. la9hs to 8s. =. la9hs. Given the eAorbitant eApenditure
;assuming that you are not getting any scholarship, as getting aid for
an -4$ programme is difficult>, is it worth itN
Poo9 at the resources at your disposal ;your own ban9 account, your
parentsM or a benefactorMs>.
The funds available would throw up various options
If you have half the funds reKuired ;8s.*) la9hs to 8s. *. la9hs>, you
can go ahead.
If you have one"fourth the funds reKuired ;8s. . la9hs to 8s. 3 la9hs>,
you can manage the first few semesters. Qou will have to find ways to
raise money while studying ;an option many Indian students resort
to>.
If you are constrained for cash, but can manage a ban9 loan, you need
to thin9 hard.
$re you confident you would do well in the programmeN Lould you
manage to get a FobN
7rime -4$ destinations are the /.S., the /.?., %anada, $ustralia and
1ew Cealand. The chances of employment are better in the /.S. and
%anada.
Getting a Fob in $ustralia and the /.?. is comparatively difficult. Even if
you do spend 8s.*. la9hs doing an -4$ abroad, you would be able to
recover the money within a year of passing out, provided you have the
grit and determination to do it.
$t this Functure, we should not underestimate the value of our Indian
-4$. Indian -4$s have proved themselves in -1%s wor9ing as '7s,
directors, senior consultants and partners. %onsider the purchasing
power parity, initial eApenditure ;cost of the programme>, initial
placement and growth in salary as inputs in your decision. The options
before you should lead your choice.
If your choice is between the II- and a top"tier global institute, choose
the latter. The global institution would provide strong alumni networ9,
worldwide placements, diverse class and global brand recognition.
The diversity of student body and networ9ing is a definite plus in a
foreign -4$. The students from a top"tier foreign school would have
three to four years of wor9 eAperience. They come from a variety of
bac9grounds such as finance, IT, mar9eting, even poetry, television
and films.
$ variety of students come from different countries J a 4ritish
Fournalist, an $merican ban9er, an $rab entrepreneur and you an
Indian IT professional wor9ing either as sales or software engineer.
Qou would be able to develop a networ9 across countries, which could
hold you in good stead.
$ typical Indian -4$ class would have less than *) per cent students
with wor9 eAperience from IT, manufacturing and sales Fobs, with a
maFority being freshers.
If your choice is between a mid"tier 4"school abroad and an average
Indian institute, you could choose to go abroad. Do not choose any
foreign 4"school that selects you.
@ost;%#A
6inally, you need to decide what you plan to do after your -4$. Do you
wish to ta9e up your career abroad or in IndiaN This is probably the
most defining factor in your decision.
If you are planning to ta9e up a Fob abroad, go for a foreign -4$. It
helps to Fumpstart a global career with easier possibilities of
repayment of loan. If you plan to return to India on completion, you
need to thin9 through.
%ompared to foreign 4"schools, Indian institutions offer cost
advantage, ma9ing them more attractive if you are planning to build
your career in India.
$re you sure you want to ta9e on a liability of 8s. (. la9hs or more a
year for an overseas -4$N The -4$ at an Indian institute would cost
around 8s. +.. la9hs, not counting the lodging eApense.
6unds tied up, 4"schools ran9ings should determine the final decision
Is the value proposition of the foreign 4"school better than that of the
4"school you have chosen in IndiaN
6inally, irrespective of which school you get into in India or abroad,
you need to prove yourself once you Foin the wor9place. Qou need to
mar9et and sell yourself, having the -4$ behind you.
If you are selected to the top"tier .) schools abroad, go for it. If you
are selected for -4$ in India in the top *. schools, assess the pros
and cons.
$n -4$ degree abroad costs around 8s. *) la9hs and above.