Reality of education / job Industry - 2015 to 2018

This article is to create awareness while choosing our younger gen / Kids education path & spending. Avoid spending too much money (Rs. 50 - 80 L) on Engineering/ MS /MBBS. We need to enable our kids to plan their education path & enable them to get seat in good colleges in near by your area/district/state. 

If the student is good & really interested, then encourage them to do Engineering/MBBS/MS can be done in public colleges or pretty good Pvt colleges.

"Spend wisely...........enable your kids, instead of paying too much fee & limiting their scope"

My observations:

• My recent visit to Engg. colleges in B'lore found that parents are ready to pay ~15 L (donation) + 5-6 L / yearly tuition fee i.e. 2-25 L fee for four years plus hostel fee - 2 L / yr. Approx. 50 - 80 L spending on Engineering degree !!?? for not so great standard campuses & jobs they are going to get (via campus hire)??!!! 
• Many students are joining MBBS in Private /other countries- Nepal, Russia etc., where the cost of MBBS is Rs. 20 - 35 L vs. Rs. 30 - 90 L in Indian pvt colleges !!
• In the recent years (2013 & later) many Engineering graduates preferring MS in abroad (UK/USA/Australia), costs Rs. 30 - 60 L for leaving parents/friends/native place :( !! I strongly suggest them to do job, earn & then go abroad to study/job, avoid pressuring parents for money :)

Solution: Parents should encourage their children to plan their interested area (source & college) and come-up with +ve / -ve's with options (by giving one week time). Also specify that payment seat can be opted if the student is really interested via Education loan from Bank.

• IT Industry trends (Jobs in future) are: Data analytics, Data Predictive modelings, Banking, Medical technology / engineering, Taxation (domestic/global), Designing, Statistical Modelling, Internet
• Now many universities offering degree in business analytic's, data security, banking  finance, information security domains... along with statistics, accounting, industrial mathematics domain expertize.
• Focus on Govt. Universities for BE/BTech/ MBBS or Top campuses - BITS, Pilani.
• IIM, IISc, Bits Pilani offers 6 months - 2 years diploma courses....very useful & can be done along with your degree. IISc offers integrated MS, MTech, PhD programs, if you don't like Engineering !!  
• But if you decided to take Engineering, then focus on:
• Opt branch (2 options - plan A & B) and do analysis (over net or meet seniors of those branch)
• Take Comp.Science unless you have any domain interest. As all will come to IT only :)
• Choose 3 - 4 colleges of your choice & talk to parents / Industry experts to give ranking for them
• B.Tech offered by CISR labs have Great value where students work with scientists (100% placements) or refer CSIR lab admissions process (99% job guarantee :)
• Find selection process for the above 3 - 4 colleges & closely track them !!
• Negotiate fee & other benefits, most colleges entertain it :)  (whatever you pay on 1st year, same fee for remaining 3 years too )
• Ensure you start learning from 1st year onwards, instead of after B.Tech.
• Also work with one Industry SME to present / publish articles.

Think about it …..(as it's my personal view & analysis only)

One expert view:
US produces around 1 lakh engineers per year for a $ 16 Trillion economy. India produces 15 lakhs engineers for a $ 2 Trillion economy.

If there are so many engineers, there must be enough demand to pull them in. But it is not there. The earlier mass recruiting sector was manufacturing. It used to recruit from the core branches like civil, electrical and mechanical. But, manufacturing is stagnant at just 17% of the GDP. So the core branch placements have become difficult.

The new mass recruiter is the IT sector. It grew from scratch to almost 5% of the GDP in 25 years. Employed millions of engineers.

Now, IT is also saturating.

If you look at the sectoral composition of Indian economy, most of the sector do not need engineers. Tourism is 10% of the GDP, does not require engineers. Financial sector, trade, hotels and restaurants do not require engineers. Requirement in health, education, agriculture is almost negligible.

More than 50% of the GDP has no role for engineers. Still most of us are becoming engineers. The current situation is not sustainable.

So the demand is less while the supply is high. Over and above this, skill level of an average engineer is poor. I say its non-existent. Leave the top 100–200 colleges. And you will find that a fresh engineer has no idea of what s/he has studies. Ask a fresh mechanical engineer, can s/he design a simple frame?

Today the situation is that most engineers are working in a field that has no connection to what they have studied in the college. This is a waste of resources.

Engineering degree does not come cheap. It costs about 10 lakhs. For poor parents, its a huge burden. When their son is not able to secure a job, they are devastated.

For the nation, you can calculate the loss. Leave around 1 lakh engineers that NASSCOM says are employable. The rest 14 lakhs have each wasted 10 lakhs of fees. That totals to around $ 20 Billion. Almost equal to the Government’s spending on healthcare. Over this, there is loss of human capital.

We need to replan the whole engineering education system. Cut down on the number of colleges and improve the quality in the rest.

Now let's talk about Education system & Job Industry, along with result of these degree's .......
Engineering & (IT) Industry: ~3250 engineering colleges across country producing lakh's (~15) of graduates every year but quality lacks in the recent years... 

• Study shows - Tamil Nadu(~600 with 8.3%), Andhra Pradesh(~750 colleges with 12% employability) lag behind in average quality of talent in India- Read more
• Capgemini India Chief Says 65% Of IT Employees 'Not Trainable'  - Feb 2017   :(
• Only 7% engineering / MBA graduates employable - Aspiring Minds (July 2016)
• Quality of engineers very sub-standard in India: E Sreedharan 
• Only 18.43% of the engineers are employable in the s/w sector & Only 3.84% engineers suited to tech roles in startups And ~ 27% of engineers failed to even snag an interview - Dec 2016
• 5,500 B-schools in the country, only 7% turn out to be employable, says a study conducted by ASSOCHAM
• Read AspiringMinds employability study - 2016 for detailed reports...
• Reality of IT Industry: WW analyst's prediction of more than 3 - 4 L tech layoffs in 2016 and more in the coming years. Based on one or more of these factors:
• Technology shift. "Cloud and mobile technologies have increased the productivity of an employee exponentially,"
• Micro-services such as cloud computing improving IT efficiency. The term "micro-services" means software that can run on a fraction of the hardware that was previously needed by a customer.
• Integrating technology no longer valued. "Under the old world, one company would make the servers, another company would make the network, and another company would make the apps.
• Companies doing Layoff’s…..with more than 1000 b/w year 2016 to 2018 are....
• Intel Corp.’s plan to cut 12,000 jobs (11 percent of its workforce) - Apr ’16
• IBM could cut over 14,000 - 75,000 jobs (25%) overall - May ’16
• Infosys Loses RBS Deal, 3,000 Jobs To Get Affected, Shares Fall - 16 Aug ’16
• Cisco Systems To Lay Off Nearly 14,000 Employees: Report - 17 Aug ’16
• HP (roughly 86,000 – 30 %) & HP Enterprise …..about 72,000 – 30 %
• EMC Corporation: between 10,000 and 14,000 layoffs (15 to 20 %)
• Oracle Corporation : about 26,000 – 20 %.
• Microsoft Corporation: about 18,000 – 15 percent
• Yahoo! Inc. is laying of 15 percent of its workforce
• CTS is reducing their workforce i.e. reduction of 10 - 30 k employees - Q1, 2017
• Around 58000 employee’s will be layed-off in 2017 from Seven IT companies ? - 12 May 2017
  • Who are the 7 companies?? Wipro, Infosys, CTS, TechMahendra, HCL, DXC, CapGemini
  • What about other IT Majors?? Even MNCs, like HP, IBM are moved to hiring freeze, travel / expenses freeze, along with few hundreds of perf. based layoff's
  • How long the impact ??? Impact will continue in rest of the year in 2017 & 1H of 2018. Growth will show in the Year 2018 due to domestic key projects (Make in India & Digital India) and IT org’s will directly sign projects (instead of via USA)
  • Does it impact only IT Industry ?? It’s normally chain effect & depending industries will impact over time…..like below:
  -        No Travel means impact on Aviation & Hotel industry, incl. Cabs
  -        Retail Industry (minimize expenses on luxury, restaurants etc.,)
  -        Real-Estate Industry (Some sellers due to job loss, less buyers )
  -        Above will impact Banking Industry
  Any Solutions ??
  -        Hang-on current job for now & spend time with family & friends
  -        Minimize your luxury expenses
  -        Job searchers – focus on job in non-IT industry based on your interest for a year or two. Continue to learn IT domain skills of your choice.
  And remember smooth & sathvik life style is important than $’s & Luxuries 

Medecine / Dental: India has ~ 300 medical colleges producing ~30 k graduates every year

• MBBS alone is not sufficient now a days & Masters (MD) is preferred which costs 1 - 2 Cr.....& only 15 - 20% of MBBS graduates going Masters
• MBBS / Dental professionals will get Rs. 5 - 15 k salary jobs initially !! Otherwise parents earned money will be used to setup their own hospitals !!
• Issue: Parents / society expectation is very high but they need time to become expert & earn money :)

MS: Most of the abroad universities open gates for all (instead of Tofel based) & local consultants showing all options........for 50% passed out students also going US for MS.....

• MS costs ~25 - 50 L based on the Campus (many focus on part time job to survive, than Education :)
• Most of the parents loose money & their children (as they may not return in future, ~ 90%)
• Lot of uncertainty due to respective countries policies , like Trump at US :)
• విద్యాభ్యాసానికి వెళ్లి.. స్థిరనివాసం !! అమెరికా నుంచి వెనక్కి వస్తోంది 5 శాతమే :(
• కంప్యూటర్‌, ఐటీ కోర్సుల్లో అత్యధికులు భారతీయులే...ఎంఎస్‌ కంప్యూటర్‌ సైన్స్‌ చేస్తున్నాను (ఇందులో 600 సీట్లు ఉంటే 500 మంది భారతీయ విద్యార్థులే ఉన్నారు)
• హెచ్‌1బీ వీసాల్లో (ఏటా 1.38 లక్షల) అధికం మనకే -72 భారతీయులకే

Plan for better course & college for better life :) !!  (Instead of top paid college)

Disclaimer: The opinions expressed & content within this article are the personal opinions of the author. It's based on realistic cases, news & web. Not to hurt any !!
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Feb 2017: NEWS for IT Folks (A Bill has been introduced in US Parliament to curb misuse of H-1B visas)
- Infosys, TCS Shares Bleed As H-1B Bill Proposes Minimum Pay Be Doubled - $130 k from $60 k
- I think Indian folks studying @ US will impact very Badly incl below 5 yrs exp 
- Thousands of NRI's will come back to India in the coming months :)
- Think before sending your kids to US for higher education - like MS , now :( 

Employability in IT Product Companies across States & UTs

Employability in IT Services across States & UTs.
* Certain states with low sample size left out of study.

Employability across Metro Cities

News coverage on 20 Feb 2017

ఐటీలో పదింట నాలుగు ఉద్యోగాలకు ఎసరు..! - Mar 2017 

న్యూదిల్లీ: ఐటీ రంగంలో 2021 నాటికి పదింట నాలుగు ఉద్యోగాలకు కోతపడనుంది. ప్రస్తుతం ఇంజినీరింగ్‌, ఆటోమొబైల్స్‌, తయారీ రంగం, ఐటీ, బ్యాంకింగ్‌ రంగాల్లో ఆటోమేషన్‌ సర్వసాధారణంగా మారిపోతోంది. దీంతో ఈ రంగాల్లో భారీగా ఉద్యోగాలకు కోతపడుతోంది. ముఖ్యంగా మైథోపరమైన వినియోగం తక్కువగా ఉండే ఉద్యోగాలకు కోతపడుతోంది. *కోల్పోయే ప్రతీ నాలుగు ఉద్యోగాల్లో ఒకటి భారత్‌లోనే* ఉంటుందని తెలిపారు. ఫలితంగా భారత్‌లో 23శాతం ఉద్యోగాలు పోతాయని పేర్కొన్నారు. For more - http://www.eenadu.net/homeinner.aspx?category=home&item=break23

21 Apr 2017: Eenadu.net news.....
పస లేని ఇంజినీర్‌ బాబులు :95% మంది ఐటీ విద్యార్థులకు కోడ్‌ రాసే సత్తాలేదు. మూడో శ్రేణి కళాశాలలు అధ్వానం ; బోధకులకూ అరకొర నైపుణ్యాలే -యాస్పైర్‌ మైండ్స్‌ నివేదిక 

• * దేశంలో 95 శాతం మంది కంప్యూటర్‌ ఇంజినీరింగ్‌ విద్యార్థులకు ఉద్యోగం సంపాదించే నైపుణ్యాలు లేవు. ‘కోడ్‌’ కూడా రాయలేదు. 4.77 శాతం మంది మాత్రమే కంప్యూటర్‌ ప్రోగ్రామ్‌కు సంబంధించి సరైన లాజిక్‌ రాయగలిగారు.
• * అగ్రశ్రేణి తొలి 100 కళాశాలల్లో 69 శాతం విద్యార్థులు కంపైల్‌ చేయగల కోడ్‌ రాయగలిగితే, మిగతా కళాశాలల్లో 31 శాతం మంది మాత్రమే రాయగలుగుతున్నారు.

12 May 2017: ఐటీ ఉద్యోగుల్లో కలవరం 

• ట్రంప్‌ నిర్ణయాలతో మధ్యస్థాయి కొలువులకు ఎసరు 
• ప్రాజెక్టులు లేవని రవాణా సేవలకు రాంరాం 
• చిరు ఉద్యోగుల కొంప ముంచుతున్న యాంత్రీకరణ 
• ఏటా లక్షలాదిమంది ఇంజినీరింగ్‌ పట్టభద్రులు ఉద్యోగవేటలో పడుతున్నా, డిమాండ్‌కు తగినన్ని కొలువులు ఉండటంలేదని, దీంతో వారికి నిరాశే ఎదురవుతోందని పెగా సిస్టమ్స్‌ ఎండీ సుమన్‌రెడ్డి అన్నారు. 
• కళాశాలల్లో చదువుకున్న విద్యకు, నేర్చుకున్న నైపుణ్యాలకూ...మార్కెట్‌ అవసరాలకు మధ్య పొంతన ఉండటంలేదనే విమర్శలున్నాయి. 

సాఫ్ట్‌గా తొలగించేస్తున్నారు!! - 14th Sept 2017  

• ఐటీ ఉద్యోగానికి కొరవడిన భరోసా - ఎప్పుడు తీసేస్తారో తెలియని పరిస్థితి 
• వేతనాలు ఎక్కువున్న సీనియర్లపై ప్రభావం - పనితీరు బాగోలేదంటూ జూనియర్లనూ.. 
• కార్మిక చట్టాలను పట్టించుకోని ఐటీ సంస్థలు - ఆందోళనలో ఉద్యోగులు 

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OK, blaming is not a solution and what we should do ? along with govt ?

• Every one should engage ~10 students & explain the need to get concepts of their subjects
• Follow ethical practices & focus on education (not donation based colleges / courses)
• Be a Responsible citizen :)

History of Education System in India ?

To recall that 2,800 years ago, circa 800 BC, a gigantic and grand University existed in a place called Takshashila (Takshila), housed more than 10,500 students and offered over 68 subjects

The Nalanda University which flourished from 500 AD to 1,193 AD

What Govt. of India Doing ???
Ans: Modi Government is planning big changes in the education system[new National Education Policy (NEP) ] by end of year 2017. This is the first major policy overhaul since 1986 and the key question that needs to be answered is how will this education policy cater to the needs of over 300 million students across India?

• TSR Subramanian committee formed in Q3, 2014 submitted the report
• Increase the outlay on education to a minimum 9% of GDP (presently it hovers around 3.5 %)
• Incentivize the learning and teaching of Sanskrit. [When the whole world is adopting the Sanskrit language, the step-motherly treatment given to this “mother” of all languages in the land of its birth is shameful]
• Standardize education curriculum and syllabi across the country to ensure equity and quality.
• Setup a committee to go into the History and Culture curriculum with the objective of re-writing/revising textbooks to ensure the true history of India. Also focus on updating and revising pedagogy to keep up with new developments and changes.
• Introduce and make compulsory pre-school & high school education
• Revise the reservation policy to ensure preferential allotment to only those from the poor and economically weaker sections irrespective of caste and community.

References:

1. http://rightlog.in/2017/05/new-education-policy-india/

Disclaimer: It's purely my understanding based on the Industry trends & news
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Guidelines for Test to join graduation in USA: 
Students of 10th, 11th or 12th should complete below tests to get admission in graduation in USA Universities....

1. SAT   (2 months prep) , charges from Rs. 25000 to Rs. 60,000/-
2. SAT-Subject Tex - Maths / Physics / other subjects , charges Rs. 25 - 50 k
3. Toffel  (English) , generally complimentary with SAT or some charges :)
4. Visa processing, Essay writing, profile writing, applying to universities : Charges from Rs. 30 - 60 k

In Bangalore & other cities, these institutes will provide training & guidance for SAT. They are:-

• Jamboree: https://www.jamboreeindia.com/sat
• Manya: https://www.manyagroup.com/sat
• PlusPrep: https://plusprep.com
• QFS: https://www.questforsuccess.in
• Brainstorm Consulting Pvt. Ltd
• I.M.S. Learning Resources Pvt. Ltd
• Elite Mentors
• Gate Indian Insitute of Tutorials
• Summit Careers
• Manhattan Review
• Krishna Consultants
• The Chopras Global Oversea Education