26 February 2024 – The Hindu

Upgrading the workforce in the service sector

• The term “third-party shared services” (TPSS) describes the process of contracting with outside service providers to handle particular corporate operations or functions. These suppliers usually provide to several clients and are independent organisations from the contractual organisation (hence the term “third-party”).
• Consolidating related functions from many departments inside one organisation or across several organisations into a single, specialist entity is known as shared services. The objectives of this strategy are cost reduction, increased efficiency, and economies of scale.
• The shared services paradigm has evolved into global business services, or GBS. It entails standardising and centralising business procedures throughout the international activities of a firm. By combining operations that were previously handled separately in several divisions or locations, GBS goes beyond conventional shared services.
• GBS centres frequently use automation and technology to improve decision-making, expedite processes, and spur innovation.

Why is it necessary to upgrade the workforce in the service sector?

Requires Constant Flow of Qualified Labour:

• The huge service industry relies on an atypical educational stream—engineering—to deliver a steady supply of competent labour. Just 57% of engineering graduates are employable, according to Statistica.
• According to a research commissioned by the All India Council for Technical Education (AICTE), fewer than 60% of available engineering seats are occupied. Approximately 80% of engineers who graduate end up in non-technical jobs unrelated to their field of study, according to another industry assessment.

Engineers Working in Non-Technical Fields:

• Many Indian engineering graduates are gravitating towards the services industry not just because there is a perfect fit between their skills and the demand for their type of work, but also because there are a lot of opportunities in this field that are growing and changing, and there aren’t enough employment in their primary field that match their qualifications.
• Because of this, during the past ten years, a significant number of engineers have found work in non-technical industries like banking, insurance, hospitality, healthcare, and retail in a range of positions like supply chain management, sales, customer service, back office operations, and logistics.

The Need for a Flexible and Solving-Oriented Mindset:

• More and more engineers are finding work because of their education’s emphasis on adaptability and problem-solving techniques rather than just a precise talent match.
• Employers are realising that engineering abilities are transferable in today’s dynamic market, even in professions that aren’t traditionally engineering-centric.
• Engineering graduates possess analytical skills, problem-solving aptitude, and disciplined thinking, which make them extremely desirable in fields that aren’t usually thought of as engineering-centric.

Why is an Indian Service Sector-Specific Course Required?

Need to Consider the Changing Character of the Market:

• This trend makes people think critically about how work markets are changing and how education might help graduates be ready for a wide range of professional difficulties.
• The educational ecosystem must adapt to meet this need from the service industry and reevaluate how they approach curriculum design and pedagogy as engineers move into roles like sales, customer service, and finance in a wide range of industries.

Absence of Universal Courses:

• Only specialised fields like hospitality or health care offer courses. The needs of the services sector are not met by any general course.
• Services are forcing engineers into entry-level positions and, to a lesser extent, management graduates and postgraduates.
• There is an urgent need to create general services-oriented courses that can prepare students to succeed in white-collar service environments, as opposed to concentrating on closing the gap between current engineering education and job demand.
• We need an analogous services skill education that instills the competences required to succeed in the service-oriented world, much as an engineering education provides students with the fundamental abilities to find employment in an industrial setting.

Developing Soft Skills:

• These general education programmes can provide a comprehensive combination of industry-specific information, soft skills, and technical expertise that are necessary for success in service-oriented positions.
• In addition to putting a strong emphasis on technical competence, these courses should foster the soft skills, business savvy, and industry-specific knowledge that are critical for success in the service industry.

Combining Various Technologies:

• These curricula can improve students’ employability by incorporating cutting-edge technology like artificial intelligence (AI) and the Internet of Things (IoT) into the curriculum, especially in developing industries like Fintech and edutech.
• A course like this would develop a group of professionals with problem-solving, process reengineering, and client management abilities who are skilled at negotiating the intricacies of today’s service-oriented businesses.

Fulfilling the Needs of a Changing Service Environment:

• This course, which is designed with a broad curriculum in mind, could cover fundamental themes and competencies that are specifically designed to fulfil the needs of the ever-changing service industry. Professionals taking this course will get a strong foundation in the principles of service delivery, covering both the intricacies of providing services in a physical and digital environment, as well as an overview of the core industry.

Encouraging Sufficient Instruction in Service Management:

• They could also be trained in critical thinking frameworks, Lean Six Sigma, and other process improvement approaches, enabling them to confidently take on challenging challenges, optimise service operations, and boost operational efficiency.
• In service-oriented roles, a culture of professionalism and integrity among professionals is essential to establishing and maintaining trusting relationships with clients. This can be achieved by placing a high emphasis on client management, communication skills, and ethical conduct.
• Lean Six Sigma is an approach that aims to increase performance through methodically eliminating waste and decreasing process variation. It integrates the ideas of Six Sigma and Lean manufacturing. It strives to lower expenses and raise customer happiness while improving effectiveness, productivity, and quality.
• A statistical concept known as “Six Sigma” quantifies the degree to which a particular process deviates from perfection. A process should have no more than 3.4 faults per million opportunities (DPMO) in order to meet the Six Sigma standard.

What Actions Are Needed to Reform the Workforce in the Service Sector?

“Service Engineering” New Stream:

• The introduction of a degree like “service engineering” has the potential to be revolutionary, providing a route to better employability, better service delivery, and long-term economic growth.
• Graduates would become in-demand professionals with the expertise, abilities, and mentality required to succeed in white-collar service settings in a range of sectors.

Ensuring Course Accessibility and Affordability:

• Furthermore, students from tier 2 and tier 3 cities would find service engineering courses to be an appealing alternative due to their accessibility and affordability. According to the most recent Periodic Labour Force Survey (PLFS)-7, 37% of women are employed.
• Such a training can also help create a friendly atmosphere for women to combine work and family responsibilities while contributing to the workforce, since services generally give better flexibility to employees.

Promoting Innovation and Inclusivity:

• Service engineering courses would make use of digital platforms and virtual learning settings, which would greatly reduce costs and remove geographic barriers to education, in contrast to conventional engineering programmes that call for substantial hard infrastructure.
• In addition to promoting inclusivity, this democratisation of education also opens up opportunities for aspirant professionals from a variety of backgrounds to contribute to India’s rapidly expanding services-driven economy.
• India can establish itself as a global leader in service innovation and delivery by investing in the development of a skilled workforce suited to the needs of the services sector. This would increase India’s competitiveness and prosperity in the future services-driven economy.

Institutional and Regulatory Reforms:

• Many service-related subsectors lack regulations or have out-of-date ones. The government is making an effort to replace antiquated laws, but in order to support the expansion of certain subsectors, such as cloud computing, e-commerce, and direct selling, new laws must be put in place immediately. India’s services industry will become more modern with the support of institutional and regulatory reforms.

Service Industry-Specific Policymaking:

• Regarding how the industry may promote inclusive growth, there is no official policy in place. This is partially due to the fact that manufacturing and agriculture are given priority, with the service sector being mainly allowed to develop on its own.
• For some services, like retail, there is no nodal ministry; nevertheless, there are several ministries with competing interests for other services, such energy and transportation.
• various regulatory agencies, various regulations, and multiple clearance procedures are the result of the quasi-federal government structure. For instance, there are about thirteen separate regulatory agencies that oversee higher education, and each one is autonomous.
• It is imperative that we concentrate on the service industry, pinpoint the main obstacles that various service kinds must overcome, and then implement targeted changes.
• Reforms in the road transport sector, for example, ought to concentrate on creating a smooth supply chain by taking down obstacles to the interstate movement of goods. Regulations like single goods and service taxes, as well as technological advancements like computerised checkposts at state borders, can help achieve this.
• India’s economy has made the services sector a pillar by adding substantial employment and Gross Value Added. Due to this expansion, there is a need in the industry for qualified workers, and many recent graduates of engineering are finding positions in non-technical roles.
• Courses that focus on general services and give students the technical and soft skills they need to work in white-collar service positions are needed to counter this trend. These programmes can improve employability and cultivate a culture of professionalism and integrity, especially in growing industries.