Kpo- The Cousin Of Bpo

Posted January 24, 2010 by Editor in Resources | 1 comment

NATIONAL CONFERENCE

ORGANISED BY

SHRI VAISHNAV INSTITUTEOF MANAGEMENT, INDORE

ON

SATURDAY 28TH MARCH 2009

KNOWLEDGE PROCESS OUTSOURCING:CHALLENGES AND FUTURE

PRESENTED BY:

PROF. LOVELEEN CHAWLA

KPO-Challenges & Future

“Knowledge process outsourcing may be the next Boom Business”

The firmament of outsourcing is studded with the variety of bright and shining stars such as BPO, KPO, HRO, FPO, LPO, EPO etc. after the appearance of BPO; it is KPO which is assuming the popularity like Venus the brightest star. From the time immemorial knowledge has been considered as in all fields, be it spiritual, religious, learning, welfare, law, justice, administration or economic.

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Since knowledge is considered as supreme power, power is a prime mover of all the activities. Knowledge is a theoretical or practical understanding or a person’s range of administration, it is evident, that the information is knowledge. Due to technological advancement knowledge is no more a personal attribute it earn now be easily transformed and transmitted and can be should and used by other commodities. It is now no more non-economic, non transferable and personal property.

Introduction

Knowledge Process Outsourcing. Knowledge management is the hottest subject of the day. The question is: what is this activity called knowledge management and why is it so important to each and every one of us? The outsourcing industry is also termed as BPO industry which has given birth to its improved from termed as knowledge process outsourcing (KPO). KPO is a refined form and an extension of Business process outsourcing (BPO). KPO provides value to the client through expertise rather than process expertise. The KPO which is an extension of BPO is the high value; high growth that is independent of the co-existence of the BPO. According to the reports of global sourcing now the KPO is expected to reach $ 17 billion by 2010 out of which Indian’s share would be $ 12 billion. Knowledge process outsourcing, or KPO, is the latest wave to hit the outsourcing business in India. A booming sector with tremendous potential, the KPO sector in India employs around 25,000 people currently. KPO is knowledge process outsourcing. It involves outsourcing for high-end knowledge work. This includes research and work on intellectual, equity finance, analytics, market research and data management, et cetera. KPO industry is consisted of high skilled expertise that perform the work on typical domain based process and yield high level result with maximum customer satisfaction.

Meaning:

KPO is knowledge Process Outsourcing. It involves outsourcing for high-end knowledge work. This includes research and work on intellectual property, equity and finance, analytics, market research and data management, et cetera.

It is being claimed that KPO is one step extension of Business processing Outsourcing (BPO) because BPO Industry is shaping knowledge process outsourcing because of its favorable advantageous and future scope. But, let us not treat a ‘B’ replaced by a ‘K’. in fact, knowledge process can be defined as high added value processes chain where the achievement of objectives is highly dependent on the activity. And when this activity gets outsourced a new business activity emerges, which is generally known as knowledge process outsourcing.

Knowledge processing outsourcing (popularly known as a KPO), calls for the application of specialized domain pertinent knowledge of a high level. The KPO typically involves a component of Business processing Outsourcing (BPO), Research process Outsourcing (RPO) and Analysis Process Outsourcing (APO). KPO business entities provide typical domain-based processes, advanced analytical skills and business expertise, rather than just process expertise.

There is a high probability rate of the success of KPO in India as organizations have come to the conclusion that it is more beneficial for them to outsource the non-core services and concentrate on the core competency services only. These non-core services will provide a huge market for the organization dealing in the outsourcing activities as a large number of companies have invited applications and yet many other are in the lieu.

Scope of KPO:

According to a report of National Association of Software and services companies (NASSCOM), the Indian chamber of commerce that serves as an interface to the Indian software industry, knowledge process outsourcing industry (KPO) is expected it reach USD 17 billion by 2010, of which USD 12 billion would be outsourced to India.

According to a recent study by “Evalueserve (a Gurgaon based outsourcing company) having service chart for global world”, the global KPO market is expected to grow at a cumulative annual growth rate (CAGR) of 46 percent, from $1.2 billion in 2003 to $17 billion in 2010. Compare this with the prediction for the low-end outsourcing services market. This is expected to have a CAGR of 26 percent, from $ 7.7billion to $39.8 billion in the same period. Evalueserve says India provided $3.5 billion of BPO and KPO (but non-IT) services in 2003. Hence, it is likely to earn $30 billion in 2010 by providing these services.

According to Evaluesrve, the KPO industry in India had only 9,000 billable

Professionals in India, generating revenue of 260 million dollars during 2000-01. This number has growth to 75,400 by 2006-07 with 3.05 billion dollars in revenue at annual growth rate of 51 percent.

The anticipated success in KPO comes after the success of Business process Outsourcing (BPO) in the country, which accounts for revenues of 15.8 billion dollar in 2006-07, a jump from just 7.7 billion in 2003-04.

Another report predicts that India will capture more than 70 percent of the KPO sector by 2010. A part from India, countries such as Russia, China, the Czech Republic, Ireland, and Israel are also expected to join the KPO industry.

According to Achal Khanna (Country General Manager), Kelly services, “India still maintains the competitive advantage for providing, the combination of the most cost-effective and high quality manpower-this is the off-shoring business”.

According to s report by Global Sourcing NOW, the global knowledge process outsourcing industry (KPO) is expected to reach USD 17 billion by 2010, of which USD 12 billion would be outsourced to India. In addition, the Indian KPO sector is also expected to employ more than 250,000 KPO professionals by 2010, compared with the current figure of 25,000 employees.

The Indian Proposition:

The myth that Indian companies can only provide “software coolies” is soon changing to the reality of Indian companies being capable of almost anything, even rocket science! India has a large pool of knowledge workers in various sectors ranging from pharmacy. Medicine, Law, Biotechnology, Education & Training, Engineering, Analytics, Design & Animation, Research & Development, Paralegal Content and even Intelligence services.

This talent is soon being discovered and tapped by leading businesses across the globe resulting in the outsourcing of high-end processes it low-wage destinations. Hence knowledge process Outsourcing involves off shoring of knowledge intensive business processes that require specialized domain expertise.

Indian is always taken as one of the biggest challenger in the world market for providing the BPO services. These are many reasons for India to be strong contender in the world of outsourcing service. Moving ahead in the path, KPO emerges as the specialized branch of BPO where only a certain degree of specialized services will be provided and the high and services will be considered to be served. India is again seen as one of the most preferred location due to its competitive advantage over rest of the countries. Some of the reasons for India to be signified as one of the most preferred location are:

· High rate of Expertise Pool.

· Cost Advantage (Compared to other countries).

· Accent clarity and English Proficiency.

· Flexible Time Horizons.

· High Computer Literacy rate.

· High rate of (selected) Domain Specialization.

· High rate of professional graduates (especially Science and Mathematics).

· Attractive Location.

A survey predicts that the Indian KPO market will grow about 49 percent by 2010(While the BPO sector is slated to grow 30.6 percent). At present, around 25,000 professionals are employed in the KPO industry. The figure is expected to shoot up to 2.5 lakh by 2010.

In 2003, the market share of Indian KPO sector in global KPO market was 56%. And it is expected to reach 71% in 2010, which shows a decent growth of the sector in the coming years. According to NASSCOM, KPO sector worldwide is expected to reach USD 17 billion by 2010. out of this, India will account for USD 12 billion.

These are reasons with the youth of the country to shift from the traditional jobs to the new sector KPO. KPO are not only providing the opportunity for growth but at the same time are also satisfying the inner urge of the youth to serve something creative in their field and show their talent to the world while earning a high rate of perks. Some of the reasons because of which there is a swift shift from traditional jobs to the KPO’s are:

1. High rate of monetary.

2. Highly skilled expertise service requirement.

3. Space for Innovativeness.

4. High rate of freedom to perform the operations.

5. Highly recognized brands associations.

6. Flexibility in work completion.

7. More research and analytical work associated.

8. Non-traditional lines of procedural guidelines.

Companies actively participating in KPO based activities (In India):

In India, these are a large number of organizations who are dealing in KPO related activities. These organizations are active KPO service providers in the market and are providing the high end services with the help of the experienced expertise. Some of the organizations which are dealing in the KPO sector (In India) are:

a) ICICI One source.

b) EXL Services.

c) Tech Books.

d) Genpact.

e) Evalueserve.

f) 24/7 Customer.

g) Copal Partners.

All these organizations are dealing the KPO related activities through which they are providing high end service to the customers. These companies are generating a huge amount of revenue from these services and are dealing with national and international clients.

KPO service in India:

The boom in the Business process Outsourcing (BPO) industry has been the key factor behind the origin of knowledge process Outsourcing (KPO). Effective and accurate results from offshore companies in the BPO sector have encouraged US, UK and other clients to outsource responsible data analysis work. KPO is more advanced version of offshore outsourcing than BPO. As its name says it all, KPO services is a processing of complex data i.e. knowledge, rather than just the raw data. Knowledge processing outsourcing comprises of more advanced Data Manipulation, data Analysis and Data Research.

Industry leaders are brought together to create knowledge from the information they have. This information driven knowledge outsourcing as knowledge process outsourcing or KPO. Knowledge management can be considered a private activity where company or employee’s private data is manipulated or researched to improvise on performance. It makes it more profitable for organization where employees’ knowledge research is linked to companies’ knowledge base. The temptation to outsource this high end processing is because of low wage destinations like India, China and Philippines.

KPO service India is not just restricted to IT (Information Technology) or ITES (Information Technology Enabled services), but it can be exploited for many other sectors like Business Research, Business and Technical Analytics, Property related Services, Market Research, Legal Research, Pharmaceutical and Biotechnology Research, Clinical Research, Learning Solutions, Animation and Design, Writing and Content Development, Training and Consultancy services and many more.

As KPO is a new buzz word in the offshore Industry, it has some challenges to face-As it delivers high significance to the business or organization by providing domain-based practices and business expertise, it requires advanced analytical, specialized and skilled knowledge workers. Maintaining the quality standards of the results;

Infrastructure facilities and investment; and confidentiality and Security of personal Data are some of the areas look upon.

SWOT ANALYSIS:

Strength:

· Large talented pool

· Quality IT Training

· Low labour costs

· Success of BPOs

· Good knowledge of project management skills

· Supportive government policies

· Many new areas of specialization are being covered making KPO sector spreading its wings

· Consideration to quality standards like ISO 900x and Six Sigma

· Billing rates arte lower as compared to billing rates in other countries .

Weaknesses:

Immoral and unethical practices related to handing of crucial data
Rising Wages
The inability to uniformly develop and provide infrastructural requirements as real estate prices are rising in major cities.
Inadequate Intellectual property Rights (IPR) protection regime in India
Billing rates are higher as compared to billing rates in BPOs

Opportunities:

Increasing domain expertise
More areas of specialization can be added to KPOs
Ample opportunities for SMEs

Threats:

Non retention of talent
Expected labour supply gap as jobs grow faster than the workforce.

High-end services that can be outsourced to India:

Here are some KPO services that can be outsourced to India:

· Research & development

· Business and technical Analysis

· Learning solutions

· Animation & design

· Business Market Research

· Pharmaceuticals and Biotechnology

· Medical Services

· Writing & content Development

· Legal Services

· Intellectual Property (IP) Research

· Data Analytics

· Network Management

· Training & consultancy

Pro and cons of outsourcing :

Outsourcing has many advantages but at the vantages but at the same time it some disadvantages that cannot be ignored. So let us look at some outsourcing pros and cons.

Pros of Outsourcing :

Outsourcing as a trend has come into major scrutiny by the workers and media alike in the developed countries. But most economists are sure that this condition is just a temporary one and will die down as conditions develop and people start taking a mature outlook towards outsourcing. The outsourcing advantage lies in the fact that it helps companies cut costs and stay ahead in the competition. Outsourcing also benefits the citizens in developed counties as it provides high quality products at a cheaper rate also with beer customer service.

Advantages and Benefits of outsourcing :

· Companies can save up on operational costs. In fact most companies can cut their operating costs to half by outsourcing.

· Get access to cheaper and mire efficient labor

· Cut up on labor training cost

· Get access to better technologies at a cheaper cost

· Increase productivity

· Concentrate on core competencies

The short term benefits gained through outsourcing:

· Ability to focus resources and attention on core business processes.

· Reduced human resource management costs

· Access as needed to specialized resources

· Refinement of risk management, project management, and service delivery abilities.

· Implementation of demand management and service delivery disciplines.

· More accurate process management and support operations.

Typical long-term benefits include:

· More predictable results-based budgeting for the outsourced function over the period of a certain outsourcing agreement.

· Joint and interactive problem solving and creativity.

· Superior management of the business and operations portfolio.

· Better management, contracting, and outsourcing integration skills.

Irrespective of certain failures are entering the race of outsourcing.

Cons of outsourcing:

Outsourcing is seen by companies in developed countries and workers in developing countries as a boom. But is the situation really that green? Let us look at some disadvantage of outsourcing.

Disadvantages of outsourcing :

· The company that outsourcers can get into serious trouble if the service provider refuses to provide business due to bankruptcy , lack of funds, labor etc

· Outsourcing requires the control of the process being outsourced by transferred to the service provider. Thus the company may loose control over its process

· The service provider in developing countries generally services many companies. So there are many chances of partiality owing to more payment by other parties due to outsourcing and of people in the company that outsourcing and may not work properly

· The attitude of people in the developed countries against companies that outsource is generally

These disadvantages are the reasons why companies should think twice before outsourcing. Companies should adopt a planned approach to wards outsourcing taking into account the interests of employees and customers alike and come up with a balanced advance. Outsourcing services simply to beat competition or to follow your competitors can lead to problems in the future.

Challenges faced by KPO Industry:

KPO attracts the eyes of the organizations but at the same it comprises of certain problems also. KPO faces certain challenges which are a serious concern for the future period as they can distract the normal pace functioning of organizations and hinder in providing the high end customer services to the end customer. The challenges which are faced by the KPO industry are as follows:

a) Rise in the standards of quality:

With the emergence of KPO’ s there emerges requirement of high quality standards of work. BPO are based on the systematic routine working which have set procedures to be done which is based on experience, intellectual capacity and analytical skills with combination of technical knowledge. All these factors together make the quality standard tough and difficult to be followed.

b) Lack of required talented employees:

KPO also faces the problem of having low rate of talented employee’s pool because of which the services can nit be completed within the desired time and with expected efficiency. Unlike BPO, where the jobs are routine in nature and average intelligence level is required,

c) Maintaining higher degree of confidentiality.

KPO maintains high degree of confidentiality as there work is much more sophisticated and confidentiality in nature as compared to that of BPO’ s. KPO’ s. have to maintain the desired level of confidentiality and is also expected to provide superior quality services as compared to their counterparts.

d) Rise in the investment in KPO infrastructure:

With the evolution of KPO, the investment pattern has also risen up. KPO serves high

end services for which the infrastructure requirement differs as compared to the infrastructure required for the BPO. Fore KPO, high level investment in infrastructure is required through which the services can be provided on the base line of se standards.

Future of KPO:

In the future , it is envisaged that KPO has a high potential as it is not restricted only to information technology (IT) or information Technology Enabled services (ITES) sectors, and includes other sectors like intellectual property related services, Business Research and Analytics, Legal Research, clinical Research, publishing, Market Research (Market research KPO), etc

“Over the past year or two the outsourcing industry has been throwing up jobs for doctors, Engineers , CAS , Architects.” Says Jacob William of the Bangalore-buzz, big –bucks area of knowledge process outsourcing. “Unlike the first wave which was more about entering data and answering phone calls, these jobs involve skill and expertise.

Also, of course, the is much more affordable. “ Law firms in the US charge an average, of $400-450per hour, and we and we do the same work for $15to $100 an hour” says kamlani “ who is an outsourcing provider the area.

In the Indian context, KPO salaries could be 25-50 per cent higher than those offered to the same domain experts, such as Engineer, doctor, CA, Lawyer, Architect, Biotechnologist , Economist station and MBA, it said.

In its annual publication Strategic Review 2005, Nasscom has said the high –end activity of the BPO industry—the KPO or knowledge process outsourcing could be worth $15.5 billion by 2010.

According to earlier estimates, the BPO industry itself was expected to be about $20bn by 2008, hence a very significant portion the –in excess of 50%is now project to be knowledge based. This represent significant metamorphosis of centre sector business to completely different model. Interestingly, Sunil Mehta, Nasscom vice–president research , distances himself from the estimates.

The projection are based on a white paper released by Evaluserve. The paper cites reasons for a possible KPO boom. It says higher savings by outsourcing knowledge based activities combined with the scarcity of specialized talent in developed countries could lead to growth in the KPO sector.

Billing rates for KPO are higher at $30-45 per hour compared to just $10-14 in the BPO business. However, the paper also of several challenges like higher quality standards, greater investment and inadequate talent.

The study estimates that while the compounded grow rate of BPO till 2010 would be just 26% KPO is expected to be grow at almost 46%.

Bottlenecks in Future Growth

A study on knowledge process outsourcing (KPO) sector shows a huge supply gap that threatens to cripple its growth. Research, a UK- based research services company, has gathered evidence suggesting that the KPO market may just about reach a size of $5 billion by 2010 manned by 100,000 people instead of projection of a $12 billion market supported by 250,000 employees.

This accentuates Nasscom’s projection of a shortfall of 500,000 workers in ITES and BPO sectors by 2010.

Assuming an average revenue par person of $55.000 over the next four years, 100,000 Knowledge workers point to a $5 billion market. This size though based on a CAGR of 32% is still 60% les than the Billion Potential projected by big KPOs, like Evalueserve, last year.

Research COO, Ashish Sinha says the sector is restricted by low employability despite high graduate turnout, and competing demand from other sector as jobs grow faster than the workforce.

For example all the 2,000-odd IIM and top 10 B-School graduates are employable, while less than half the 84,000 gradates from Tier-II B-Schools Would make the grade.

The study sees only 500,000 of the over 3 million Workers added to the labour pool in 2005 as employable in global firms and of these, just 2 in every 100 are likely to opt for work in knowledge space.

.

Conclusion

Since the phenomena of KPO began in a big way in developing nations, such as India, have undoubtedly benefited from the boom the KPO industry has helped to change the image of India to a potential economic super power the evening capacity of the wean rich employed in the It ensconcing industry has increased, and a sense of well being has permeated urban India with increased employment opportunities with in India. The fear of brain drain has been marginalized

Indian companies need to pull up their socks and tighten other business process such as the security confess, so that they story a float-and-swim- in global outsoaring market.

Bibliography :

1. http/www.outsource2india.com

2. http/www.nasscom.com

3. http/www.payscale.com

4. India economic journal conf. vob-2005, Indian economic association

5. Mobilizing minds Creating Wealth From Talent, Mc Graw Hill Publishing

6. Mc Kinsey Quantity sumey 3rd jounary 2008, The Orgnization Challenges Of global

Trends A Mc Kinsey global survey,

7. Nonka I & T Nishi Guchi, Knowledge emergency sage publication 2001

PRESENTED BY:

PROF. LOVELEEN CHAWLA

 

Get Patents & Reap Benefits

Posted January 22, 2010 by Editor in Resources | No comments yet

Today, we are living in the age of information technology & spreading our wings to every aspect of the society. We exchange our information (ideas, techniques, process, and product) to a target group but we never come to know this thing that someone is also targeting our information. So we are much prone to unintentionally leakage of our precious ideas as our information passes through different portals.

It is the human tendency to share their innovative thoughts with their near & dear ones but that proves fatal, in most of the cases, in respect of the that original creation or your property i.e. intellectual property (IP).Most of the people acts indiscreetly & ignorantly which results in jeopardizing the chance of saving their intellectual property i.e. novelty of ideas as they comes under public domain & lose their chance to be protected by the INELLECTUAL PROPERTY RIGHTS.

Intellectual property literally means some academic or scholar work. Intellectual property (IP) pertains to any scholar or any original creation of the human intellect; that work can be artistic, literary, technical or scientific creation.

Intellectual property rights mean those rights which are given by the State to the inventor or creator to protect one’s invention or creation for a certain period of time.

Need for intellectual property rights:-

For individual: – IP helps to protect investment of time, money, effort & such other resources of the inventor or creator.

For public:-IP provides a pool of information to the general public since all forms of IP are published in journals & magazines except in case of trade secrets.

For country:-IP provides a mechanism of handling infringement, piracy and unauthorized use & it encourages industrial development & technological advancement which leads to overall economic development of the country.

Bundle of rights:-

IPR are bundle of rights i.e. it includes the various independent rights. Following are the various independent rights for which IPR collectively provides protection:

1. Patent Right(Patent Act,1971 & Patent Rules,2000)

2. Industrial Design(Design Act,)

3. Trademarks (Trademarks Act)

4. Copyright(Copyrights Act)

5. Geographical Indication(Geographical Indication Of Goods Act)

6. Trade secrets(Common Law)

7. Circuit Layout Design(Semiconductor Layout Design Act)

India at International level:-

• The fact that India is a member state of World Intellectual Property Organization (WIPO), an international organization, responsible for the promotion of the protection of intellectual property throughout the world proves that India has proved its potential & has been acknowledged at international level.

We are here concerned with Patent Law; A patent is an exclusive right granted to inventor or creator of a useful or improved article or a new process of making an article for a specified period of time. After the expiry of the duration the invention becomes part of public domain i.e. everyone can use it. So Patent means monopoly rights of inventor in respect of an invention.

Geographical limits of the patent:-

Patent is granted for a specific invention in a particular country in which an application is made for the same cause. There is no international patent as such though it has acquired an international character. For e.g. a patent granted in India is valid only for India and not in the USA. However, a patent granted in the EPO is valid in all the contracting states recognized by European Patent Organization. The protection so granted in a country / region not only identifies the rights of the creator/ inventor or his assignees, but also enables the right holder to enforce his rights against infringers.

Moreover, several international agreements, treaties & conventions exist to monitor that the inventor/creator are not denied of his/her rights like European Economic Community Treaty(EEC),Patent co-operation Treaty(PCT),European Patent Conventions and Protocols(EPC),Community Patent Convention and Protocols(CPC) resulting in a common patent office for granting common patents applicable to the member countries.

What can be patented?

Only inventions can be patented.Sec.2 (1) (j) defines invention as an invention means a new product or a new process involving an inventive step & capable of industrial application. Invention includes within its scope any new & useful improvements of any manner of manufacture, article or substance whether patented or not but such improvement must qualify independently to satisfy the pre-requisites of the patent i.e. novelty, inventive step & capable of industrial application.

Who may apply for patent?

An application for a patent may be made by inventor, either alone or jointly with another, or his/their assignee, legal representative of deceased inventor or assignee are entitled to apply. For e.g. If a person invents a new product or process & unfortunately soon after that he dies then his legal heirs can or any person authorized by him before his death can apply for patent.

Term & date of patent:-

Term of every patent will be from 20 years from the date of filling of patent application & date of patent is the date on which the application for patent is filed, irrespective of the fact whether it is filed with provisional or complete application. To keep the patent in force renewal fee is to be paid every year. The first renewal fee is payable for the third year of the patent’s life & must be paid before the patent’s second anniversary. Term of patent can’t be extended beyond the specified term of patent.

Where a patent application should be filed?

The Indian Patent Office has its head office at Kolkata, which has three branch offices located at Mumbai, Chennai and Delhi. The Controller General heads the Patent Office and each branch has a Controller as its head. In case of an Indian applicant, the patent application must be filed at the patent office under whose jurisdiction the applicant’s has his place of work, or place of residence or place where he conduct business from.

For e.g. if an applicant provides a Chandigarh based address, the application must be filed at the Delhi Patent Office. In case of foreign applicant/s, the jurisdiction in which the patent application is filed would be based on the address for services of the applicant’s agent. For e.g. if the address for services for foreign applicant is based at Bangalore, the patent application must be filed at the Chennai Patent Office.

What are the rights given to the patentee?

The patentee (i.e. an applicant who has been granted a patent) has the exclusive right to prevent unauthorized third parties from making, using, offering for sale, selling or importing the patented product or process in India.

Patent information centre:-

Patent Information Centre (PIC) has been set up in 20 states & is further expanding in other states. Patent information centre provides information regarding the techniqulities & procedure laid down by the government to get a patent. One can get all the information regarding the filing of the patent application & further procedure up till the patent is not granted. The centre provides general precaution for the applicant before & after applying for a patent. The most common mistake which an applicant often does is to publish their invention in newspaper or scientific & technical journals, before applying for patents. Publication of an invention, even by the inventor himself, would (except under certain rare circumstances) constitute a bar for the subsequent patenting of it. Similarly, the use of the invention in public, or the commercial use of the invention in public or even in secrecy, prior to the date of the patent would be a fatal objection to the grant of the patent. However the secret working of the invention by way of reasonable trial or experiment, or the disclosure of the invention to other confidentially may not result into loss of novelty.

Another mistake, which is frequently made by the inventors, is to wait until their inventions are fully developed for commercial working, before applying for the patents. Delay in making application for a patent involves certain risks. so it is advisable to apply for the patent as soon as one’s invention get a physical appearance with 3-D drawings sheets depicting the whole model.

Incentives for obtaining patents:-

An innovative industry can gain competitive advantage in the market if it develops the necessary expertise and skills in developing and manufacturing new products, which are patented. For example, the advantage of a three year excise duty exemption or exemption from Drugs Price Control Order may translate into reserves / income which may offset the cost towards R&D. In order to promote R&D and innovation in Indian industries, Government of India provides a number of fiscal incentives and support measures to industries. Some of them are following:-

• Excise duty waiver on the patented article for a period of 3 years from the date of commencement of commercial production provided that such products be designed &developed by wholly owned Indian companies.

• Exemption from drug price control for a period of 5 years from the date of commencement of commercial production provided that they are produced from the basic stage by a process of manufacture developed by the unit through its own R&D efforts.

• Weighted tax deduction @ 150% on R&D expenditure is available to companies engaged in the business of biotechnology, or the business of manufacture or production of drugs, pharmaceuticals, electronic equipment, computers, telecommunication equipment, chemicals and manufacture of aircraft and helicopters. The expenditure on scientific research in relation to drugs and pharmaceuticals shall include expenditure incurred on clinical trials of drugs, obtaining approval from the regulatory authority under any Central, State or provincial Act and the filing of a patent application in India.

• Depreciation allowance at a higher rate is available in respect of plant and machinery installed for manufacturing goods based on indigenous technology developed in recognized in-house R&D units, Government R&D institutions, national laboratories and Scientific and Industrial Organizations (SIRO). The present rate of depreciation for plant and machinery is 40% as against 25% for other plants and machinery.

• Income tax exemption:-Under Section 35(1)(i) of the Income Tax Act 1961, the revenue expenditure on scientific research, by recognized R&D units, on activities related to the business of the company is allowed full deduction. Under Section 35(1)(iv) expenses of capital nature could be deducted totally from the income of the year in which the expenses have been incurred. Section 35(2AA) of the IT Act 1961 provides for a weighted tax deduction of 125% for expenses on sponsoring research programmes at National laboratories functioning under ICAR, CSIR, ICMR, DRDO, Department of Biotechnology, Department of Atomic Energy, Department of Electronics; IIT and universities.

For more information locate at:-http:/Ipindia.nic.in. Or e-mail at: pisnag@nag.mah.nic.in/pisnagpur@satyam.net.in

For further inquiries e-mail writer at: – kamal_417@yahoo.com, kamdahiya@gmail.com

Employment Potential for Agricultural and Allied Graduate as Self Employers

Posted January 19, 2010 by Editor in Resources | No comments yet

Employment Opportunities for Agricultural Graduates

G.M. Wani

Ph.D ; D.V.M (Germany)

FN ISSGAPU, FN DAAD

Director Extension Education / SAMETI

Sher-e-Kashmir University of Agricultural Sciences and Technology of Kashmir

Shalimar, Srinagar, 191121

 

Introduction

 

          In the past few years the growth of Agricultural Universities have increased from few in  1940 to more than 40 by 2004. The enrolled students number increased from mere half a thousand to nearly 20 thousands between this period. As on today we have 260 colleges in India imparting educational degrees in Agriculture alone. They consist of various disciplines including veterinary, horticulture, sericulture, forestry, floriculture and a number of other sub-disciplines as plantation crops, medicinal herbs, mushroom, seed production, dairy production, agri-management and like. A number of Government department in India employ agricultural and allied graduates. The mode of recruitment is through respective State & Central Govt. public service commissions.

Beside professional employment, the agricultural graduates can compete in the national or State administrative or financial and allied services. Similarly many banks, insurance companies, private industries, private concerns and development companies. The NGO do also employ agricultural and allied graduates. The graduates have to go through employment new and other professional Journals through Radio, TV and both central and State Govts. also give advertisements. A vast number of professional, managerial and industry related advanced courses after agri or allied graduation are also advertised. They include business management, financial management or related disciplines in corporate sector. A diploma in mass media, computers or even commerce shall fetch a graduate additional employment chances in Govt. and private sectors. Opportunities in foreign countries for agri-graduates are also there, however this would need diploma  in international agriculture and a driving licence besides a passport.

 

For graduates a number of courses are available for Masters. Even on date we have 1/3rd positions vacant in SAU and ICAR Institutes, for which annually ARS examination is being held by Agriculture Scientists Recruitment Board. The recruitment to scientists and Assistant professors is open to all M.Sc /M.V.Sc or allied post graduates and Ph.D holders. Ministry of Agriculture in collaboration with NABARD and other banks have launched Agri-business Agri clinic courses. They are 3 months courses on the  job training  to Agri-graduates free of cost. In fact all the expenses are borne by the Agri-business school. A network of such training schools have been established. We have also a dozen in J&K. There is a strong future for agri-graduates in private sector. They can set up crop, fruit nurseries or open seed sale and production centres. We have a number of successful agri-graduates earning more than Rs. 20,000/- a month in various parts of the valley. The whole agricultural and allied sector has a strong employment generation potential. We have identified 15 such agri business ventures, which can be profitable employment ventures. A great potential of employment is hidden in Nursery plants for fruits and vegetables. An investment of Rs. 30,000/- per year may give a net profit of Rs. 2 lakh per annum.

Australia also provides many jobs like in Europe and USA for Indian Agri-graduates. The respective embassies or the internet employment advertise many help Agri graduates. For Australia information can be had on www.dookie. Uniemb.ed.am/. More personal information can be had on phone 0427355721 or email saparker@uniemeb.edu.an.  Likewise many websites are available around the globe and in India too. New ventures financed by banks are Agri.biotechnologies and precision farming  for organic Agriculture.

Agricultural development over years has been the result of continuous agri skill generation and its popularization. The earliest agriculture was animal domestication. Over thousands of years man domesticated wild fowl, dog, goat and smaller animals, whom he could overpower easily and subjugate to his sub-ordination. Agriculture thus since beginning has been the results of trails, experiments and experiences over years, learned first though behavioral changes, psychic reoccurrences, memories passed through parents to children and later on through doing and learning and now through sharing experiences and writing them or dotting them as an Entrepreneurship concern.

 

Entrepreneurship concept 

 

          The Entrepreneurship adds economic profits and cost-benefit ratios to Agricultural Output. Entrepreneurship is dominated by four factors like:

 

a.                  Social changes

b.                 Support system availability

c.                  Resource base and its utilization

d.                  Self confidence, exploration work capacity and intellectual potency.

 

An entrepreneur has to have a thinking of his own, a capacity building interest in acquiring needed technique. An explorative and analytic faculties to judge the way of procuring cheap raw material. He must be equipped with “knowledge” and mindset to use and benefit out of it.

 

Farm Business

 

       A potential entrepreneurship must strive from getting maximum output. Decades back agricultural development and industrial setups was a public sponsored and heavily subsidized but over time “knowledge” explosion in Indian Agriculture, have brought us on threshold of a  system, where wide distances exist between industry and farm business. Where huge subsidies are benefiting Agro-Industrialists. The Farmers who use fertilizers or agro-chemical are crushed under economic pressures. The gaps between technology generated and technology use at farmers door is increasing day after day. The farm technology adoption rates are not more than 20-30% by any higher prospective.

The use of information and communication technology (I&CT) for reducing the gaps and increasing productivity is the need of the hour (Wani, 2005). The modern technology and knowledge flow is fast expanding and bringing change. It demands more educated and trained farmers. Our education system has produced more literates but not educationally trained youth to earn their own bread. They after attaining graduation in agriculture and allied sectors, beg for job. The system has to be corrected to make these graduates as employers and not employees. I wrote a treatise in 1992, emphasizing a system where our agriculture graduates should be employers not employees. Germans are smart to have Farmers school, Farmer business training institutes, practical agri-farmers training centres and like, where every farmer or animal husbandry man is essentially a trained fellow. The banking system is so organized that they are on the door of convocation hall to sell their agri-business and agri-clinics packages to graduates, without any investments. Banks are so smart, that they have surveyed the villages who need vets or agri-graduates or have attained land and all facilitation, so that agricultural or veterinary or even other medico-biological graduates are used as bank investment. This is what is envisaged in India under agri-clinic, Agribusiness venture. We have trainings not in the hands of banks but with universities. There is practically little interaction between universities or banks or employers.

 

Success of Agribusiness:

 

A poor liaison and support system between Govt. banking and University culture has made this otherwise an remunerative and lucerative programmes into a failure inspite of its personal monitoring by PMO. We visited Bandipora district and unregistered Agriclinic graduates were earning a handsome salary, more than the Rahbar-e-zerat or Agriculture Asstt. Agribusiness viz sale of pesticides, cattle feed, poultry feed and agri-extension services were common. At a small village in Papchan, one agri graduate Mr. Iqbal Shah earns Rs. 10,000/- per month by selling the services and input. At a distance of few kms in the same district one      Mr. Khyatlani owns a big poultry farm and earns around Rs. 20,000/- per month. Both these entrepreneurs employ 2-3 persons at present. Similarly, the success shown by one Mr. Shah at Malangam in Agri products and pesticide sale and one Mr. Bhat in Dairy production and milk product sale earn a handsome income besides generating employment for poor. All these agricultural graduates have started their own business concerns without any bank or university help.

 

Farmer as Entrepreneur

 

Indian Farming and farmer has to change if proper WTO recommendation and GATT agreements are to be followed. The present day poultry scenario is emerging as high profile agri-business in India. The conversion of poultry farmer’s into poultry entrepreneurs shall make the present day 6% contribution of poultry products from India and China to 25% share of Global market. This when translated into action shall increase employment generation by manifolds. The introduction of rural based Vanraja, Gramapriya, Giriraja, Cari Gold and vast other locally grown varieties of poultry have adopted well to our agri-rural base. The market acceptability is higher than exotic poultry concerns. Free-rang-poultry is like BT cotton hybrid spreading through villages of India and assuring high returns and exports (wani, 2007).

 

Poultry as Agri-business

 

Dr. Gordon Butland, president of Global poultry strategies presents “Backyard poultry production” as a tool of alleviating poverty and malnutrition. We have tried to distribute “birds” under free-range system in all our KVK’s, our results were excellent and income generation was totally in favour of the Agri-business and agri-clinics.

 

This all will need the involvement of Agri-Veterinary and food processing technocrats to develop rural-based establishments so as to foster export and fast returns.

 

Holistic Vision for Livestock Enterprise

 

Improving income, employment and self-reliance among educated graduates and un-employed youth especially women needs fostering community development, women empowerment, environmental protection. Rural-based backyard poultry subscribes to all these norms and could be a rich resource for developing agri-entrepreneurship. Govt. of India is liberally financing such agri-business ventures. Some of the success stories in animal husbandry section can be reproduced as follows:

 

Backyard poultry and incubation

 

Though the Vanraja are the most suitable for back yard poultry, they do not have habit of broodiness. There is a problem among the farmer to get a broody hen in all season. KVK solve this problem of hatching by installing small unit of hatchery. Every month 15-20 farmers are benefited by purchasing chicks for backyard poultry. There are 200 back yard poultry units of Vanraja. Each farmer is rearing 10 to 25 in the backyard. There is a good demand and response for the chicks and eggs of Vanraja. KVKs are now planning to expand this entrepreneurship by Agri-graduates .

 

Semi-stall-fed Goat Rearing

 

KVK’s made an intervention to improve this enterprise by conducting short duration training  programmes for rural youth. Similarly exposure visit were organized on goat feed, breed and health management. More emphasis was given on Osmanabadi goat and up-gradation in selected non-descript goat breed by osmanabadi pure buck and given the knowledge about semi stallfed goat rearing concept. This experience in Andra Pradesh shows a great potential for agri-graduates own business.

 

Broiler Production

 

A KVK has conducted training programmes for 165 trainees. Due to training and demonstrations awareness was increased about contract farming in broiler production with private sector which provide chicks, feed and medicine and after 40 days purchases them back. They acquired skills through learning by doing at KVK demonstration unit and earned money. The technology has been adopted by 10 percent of youths now in the radius of 20 km. There are 27 poultry units having capacity of 5000-10000 poultry birds on contract farming basis. These self employed rural youth earning Rs 10000-15000 per lot.

A seminar-cum-farmer’s meet was arranged at SKUAST-K on 26-   27th of Oct.2007. The knowledge –sharing with farmers by agricultural graduates and scientists was emphasized by His Excellency the  Chancellor and Governor of J&K.  A vision of poverty alleviation through backyard poultry intervention was the theme of the seminar. Many belts in Gurez, Tangdar, Tillail and Zanskar are rearing native livestock species. They are better suited and  need improvement and identification. The cooking methods will need more expansion and scientific intervention for export. More emphasis has to be made on:

 

·        Safe feed and food.

·        Organic fodder and food.

·        Operational excellence and modern mechanization to improve quality of indigenous enterprises.

·        Local family management to farm business management and seller-buyer mode adoption.

This will need graduate farmers who are trained. Thus future farmer has to be a farmer graduate as in USA, Germany etc.

 

High Value Agri-business

 

Rapid growth rate in high value commodities in Indian agriculture promises 40% total output. The sectors assuming importance for export earnings are Fruits, milk, vegetable and poultry. Thus Agriclinic training centres should focus on these commodity oriented trainings. The sector may need more than 1 lac young agri-graduate entrepreneurs to achieve national goals and not the mere 14000 un-employed agriculture graduates.

 

Technological Prospective

 

The technological gaps between research yields and Farmers yields  are wide. The technological know how over years is on shelf. Much of it has remained frozen if not dead within the fore walls of institutions. The location specific, crop and soil specific innovations to farmer’s practices are few. Our integrated  & mixed farming practiced by our farmer’s, needs packages recommending mixed farming improvements which is not forth coming. Our research institutes mostly aped the experimentations on commercial farming of west with few modifications and even additions at times. Our traditional agriculture existing still in remote areas encompass the use of farm yard manure, vormiculture & use of agricultural waste materials. The present problems of low soil fertility, reduction in yields and soil salinity have arisen due to excessive use of chemical inputs in farming with little care of the soil.

This scenario resulted due to incomplete innovative approaches of research. Our researchers blindly advocated more and more use of fertilizers, pesticides and fungicides, which helped to gain grain revolutions, but left legacy of polluted water, air & environment with degraded soils. These revolutions debarred future sustenance. This was due to poor perception.

Thus immediate need is to make researchers akin with information technology and advanced communication. The rapid evolution of information science demands quick and speedy transfer of technologies, awareness & even subject reviews to farmer’s for speedy application. The productivity would be better if technological advances are adopted and their impact is known. The knowledge of computer hardware, software as well interlinking the information dissemination channels and outlets is essential. This will consume hundreds of Agri-graduates in mass media, information and communication.

 

Our vision

Mixed Farm University Culture:

            Higher productivity gains can be achieved through application of technology and production recommendations at farmer’s fields. We have 65% small and marginal farmers whose awareness potential is low. The production system prevailing with these farmers is a mixed farming or composite farming. In contrast to USA and European agriculture our necessity is to   increase “Crop –livestock-fish-plant integrated production system with multiple livelihood opportunities”. Therefore, we need our own innovative educational and training policies. A mixed agriculture University and Education set ups is our necessity. We are at present going astray to our need. Quick and fast measures and needed to unify our educational system, involving all agriculture and allied disciplines, industries, corporate sectors and farmers institution.

 

Higher productivity Concerns:

Indian Agricultural pride years of green revolution post 1968 saw reduction in food gain imports and subsequently white, blue and other revolutions sustained our population pressures and agriculture growth. Our agricultural growth rate (AGR) need to be equal if not more to population growth rate (PGR). Our AGR target ought to be double the PGR.

This is important as consumption rates, purchasing power and employment prospects increase. An estimated food grain of 210 million tons at present may need to be doubled in next 10 years. We have to achieve high targets of productivity by vertical expansion as horizontal land expansion is just not possible. Dr. M.S. Swaminathan has quoted figures as of 160 million tones of rice from 40m hac of land, thereby setting the productivity target of 4 t/h. Like wise production of 100 million tones of wheat from 25 million tones of wheat from 25 million hectors needs a productivity of 4t/hac. Our aim to double  our per hac productivity needs more technical manpower in extension, industry and at gross root level.

The climatic disasters, earthquakes, Titanic tsunami, floods; have effected our agricultural production in the past and additional requirements needs to be kept in mind while planning food security. We need to increase per capita consumption expenditures of Rs.600 per month. We need to bridge the gaps between potential and actual yields at farmers level. The chemical farming hazards of poor soil fertility, low water availability, pollution and environmental concerns impede our agricultural development. Thus refined technology, participatory research and educational modules are needed. The new pressures of Global marketing. World trade and tariff regulations have to be accommodated. This all will need incorporation of new themes like post-harvest management, value addition, packaging, communication, credit and market information services in our course curricula. Thus a new multidimensional change in academic curriculum is envisaged, which may open new opportunities for Agricultural and allied graduates.

 

Quality Assurance

We feel pride in calling ourselves as the 2nd largest Agricultural Research system (ARS) in World. When we review our performance we are no where in top ten of most cited agriculture publications countries in the World.  USA tops the world list with 3,62,79,842 cited publication/annum, with small country like Switzerland at No.10. The scientific out put in agriculture is highest in USA with 27 lac publication/year followed by Japan, Germany, U.K, France, Canada, Italy, Russia, China and Australia. Our contribution to Agriculture publication is 5.48% only with our share of citation at 2.32%. This demands more focus on Quality Assurance. Our prime agenda should be quality Agriultural Education. Our emphasis has to be on:

Academic quality, Accreditation; Desired knowledge, Assessment, Skill and competence building and academic audit. Quality assurance, means strengthening resources, information  and maintenance of educational infrastructure. Thus we need to regulate grants and centre-state relations rationally. This will open golden opportunities to our graduate across the borders.

 

Employment opportunities

            We have 36 state/deemed or central agricultural Universities and 20 general universalities with 48 agricultural faculties. The total disciplines needing grants may be strengthened in 5 yrs by 1 core grants to each discipline for quality assurance. We produce 10,000 under graduate 5500 post graduates and 1600 Ph.D in agriculture every years . They add to our unemployed pool. For making them self employees in new ventures and for increased employment , their competence building  in Global economics and trade policies. Biotechnology, Bioinformation, Biofertilizers, pesticides and fungicides etc are to be enhanced. New faculty development in all the Universities and colleges is to be executed in coming 5 years. Such as :

Pest information and survey; Risk Management Analysis; Decision support system; Geographic information system. A new trust is to be given to course curriculum integrating field practices in a partnership mode with farmer. A teacher-student-farmer-industry, interaction and co-operation is to be developed. A new model of mechanics in Agricultural and allied curricula is to be integrated, unified and fine tuned to end results. This will demand inter and intra faculty harmony and synchronized course curricula at UG, PG and Ph.D level. This has to be fine tuned to our field requirements and location orientations and Employment opportunities will be the end result.

 

Asia Specific Agricultural Education:

            Indian Economy is a agri-centre economy which supports 70% of our population, as direct rural employment . Forty five percent of the income generated by industries comes from Agri-based (Agro) Industries. Therefore , a vast potential and resource is hidden in it. If we think of Asia specific Agriculture, we have to play a significant role in the region which has 60% of the world population. The region is rich of energy and oil resources and millennium buzz word is open boarders and common market with first priority on peace, confidence and trust. For up-liftmen of region we need training education  and human resource utilization. Therefore Agriculture educational reforms are on our door steps to harvest the gains of common economy in the SARC and total Asian region. These educational reforms should involve schools, colleges and Universities. The re-modeling of curriculum will need incorporation of new emerging era, like competitive global marketing, the climatic, disaster, technology use, restrictions, sustainability, environment, water resource conservation, remediation factors etc.

Agri-educational reforms are needed so that ICAR parallels USDA, in governing grant-in aid to whole agriculture sector. An omnibuss act of agriculture in  the shape of USA farm bill of 1996 is envisioned. New educational policies so drafted shall be non-discriminative, comprehensive , transparent and accountable. They will pave a way to total employment in Asia for Agri and allied graduates.

 

Access to Education and Training:

            Access to education and training to people below the poverty line, rural youth and women is to be ensured. This will need a total restructured education infrastructure. A three tyre model  is envisioned which consists of:

1.                   On the job, training opportunities on farm mechanization and agriculture.

2.                  Training skills, up-gradation and rural orientation at University level, refinement and more innovative participatory mode at farmers field. Roaming teaching taught system on holidays and Sundays.

3.                  Teacher-student-farmer-industry-interaction-work and planed-self- learning by living with farmers. It will ensure quality training and job improvement of skilled manpower for use in Asian Agri development Market. The utilization of Rehbar-e-Zerat in this paid Agri-services to farmers shall provide them job and money.

 

Informal-flexible Agriculture Information Services

            A flexible curriculum models which should have many options at B.Sc level like:

            1.     Natural science

       2.     Agri Science

       -      Production system

       -      Agri-business

       -      Social science

       3.     International Agriculture

       4.     Natural Resources

            5.     Agri-business management

       6.     Biological engineering

       7.     Dietetrics

       8.     Landscape Architecture

These inclusions at B.Sc or Post graduate level shall help in graduate employment.

Export Orientation in Agri-education & employment:

            In the present era of bio-safety, phyto and zoo sanitation have assumed tremendous importance. Education and knowledge was safe and secure treasure in the past. It is no more true. The export needs knowledge and new inventions need patenting. Web and web designing have made invisible teachers to unknown students. The students-teacher relationship has raised to spiritual horizons. New targets for future educational planning and policies need to have more information and communication technology. Therefore courses on I&C with computer applications is must. These have been strengthened in the SAU and ICAR institutions in the last few years. However a total connectivity is needed with farmers, farm organizations and utilization departments to harvest the gains of technological reforms to increase our exports. Inspite of ranking I in milk production our exports are meager. This is because of poor –zoo-sanitation and Global lobiest are critical of our disease free status. Therefore, policies and programmes in Agri-export orientation and the training to our agri-vet. And allied graduates is a must. Training of these graduates in management, mass media, export-import ventures, industry and related agrobased ventures like sales of fertilizers, pesticides, seeds etc is needed. 

 

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