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Focused IT training—The RoI factor

Shipra Arora / New Delhi

Though CIOs in India may have tightened their purse strings, it has failed to undermine the importance of IT training among the non-IT corporate houses. Instead, there is an increased awareness relating to the need for constant technology upgradation of the IT staff. What is more significant is the thrust towards bringing the staff from functional areas like purchase, marketing and distribution, into the fold of IT training. But the constant pressure on judicious spending of IT budgets is definitely changing the face of in-house IT training. There is a certain shift happening from generic to specific and focused training approach. As a result, there is a lot more planning and analysis going into evolving an IT training strategy for the in-house staff by the CIOs today.

The budgetary allocations for IT training generally range between 1 percent to 3 percent of the total IT budgets of organisations. Though a very small proportion in their overall IT scheme, companies are increasingly becoming aware of the necessity of training to make their IT initiatives work. According to Ajay Kumar Sharma, the president of New Horizons India, an IT training company (primarily focusing on corporate training which contributes almost 80 percent of its revenues), one of the biggest flaws has been that training is not being taken as a necessity.

“IT training within the organisation, both among the IT and non-IT staff, is capable of delivering increased RoI on IT investments,” he adds. In fact, experts feel that one of the reasons for failure of IT to deliver on the expected results and RoI, is due to the lack of adequate training efforts to orient the staff towards optimal utilisation of the IT resources. CIOs are increasingly realising that this hypothesis is not only restricted to ERP but every functional IT initiative, big or small. “The corporates are feeling the urge for a more exposed, aware and responsive IT user and hence the internal training programmes from IT staff to functional users are gaining momentum,” explains Hilal Khan, manager of IT at Honda Siel.

Though this is unlikely to yield more moolah towards IT training programmes in the near future, yet it is gradually paving the way for a change in the mindset towards IT training of in-house staff. According to Pradyumna Poddar, the general manager of Usha International, it is a fact that in every good organisation training would play a very important and key role in the overall growth. “And have an IT department with a dedicated team of trainers, whose functionality would only be imparting training,” he explains.

The change in mindset coupled with the constraints on IT spending, is also leading organisations to evolve a more focused IT training strategy. Both SR Balasubramanian, the vice president of information systems at Hero Honda Motors and Arindam Bose, the head of IT at LG Electronics India, agree that there is a definite shift happening towards a more focused IT training approach among the corporates. Earlier during the period of IT boom, there was no well-defined agenda for IT training. Companies were training the IT teams on almost all the latest technologies and applications. The IT slowdown has caused CIOs to focus on areas that are most beneficial to the enterprise. The idea is to invest in things that can help them save costs and increase efficiency.

With rationalisation creeping in, CIOs are putting in their training agenda those technologies which the organisation is likely to use in the future rather than on all the new upcoming technologies. As a result, the training programmes are now targeted towards a need-based approach. From Honda Siel’s perspective, Khan adds that the company tries to cover latest IT trends and platform relevant to its business requirements.

Most corporate houses have already outlined the specific areas they are going to focus on for training, at least for the short-term. For instance, Samsung proposes to conduct future training programmes on latest networking trends, CRM and .Net technologies for its IT team. While the training programmes for the Samsung IT team will have a capsule with more of technical contents, the training programmes for functional people are related to business processes, best industry practices and contents matching the job profiles of the individuals.

Honda Siel, whose current training programmes for IT staff are divided into two areas, i.e. training on software (GUI and AS/400 mainframe-based) and system administration (networking, communication, security, store, consolidation, etc), is planning to emphasise more on system administration area this year. LG’s focus for second half of 2003 is going to be on biz intelligence and data warehousing. Hero Honda, on the other hand, is concentrating on supply chain management (B2B side of its business), Web-based technologies and emerging technologies, in areas like convergence. “Once an organisation has decided to implement a particular technology appropriate for its operations, training investment should be done in that particular area,” adds Rajesh Chopra, deputy general manager, Information Systems, Samsung India Electronics.

A more focused approach also means more planning and a structured training programme. “From today’s industry outlook the flat trend is likely to continue for some more time. As a result, the CEO is extremely conscious of what the exact needs are. In such a scenario it is very important to get the planning right, which requires a strong IT training strategy,” explains Ajay Sharma.

For instance in case of LG at the beginning and middle of the year the company asks the members of the IT team to identify the areas they would like to be trained on. Then a need-based analysis is carried out. Finally, a mix and match is done to create an optimum training programme for the employees. Organisations are also increasingly looking at identifying specific people within the IT team to be trained and specialised in certain areas like network management, Web services, etc. Honda Siel is planning training for two people (out of eight eligible personnel) on knowledge sharing concept. LG too conducts a similar exercise. While bringing in a focused approach, it also helps in cutting down training budgets drastically.

This is likely to give impetus to outsourcing of IT training requirements. IT training houses are answering their call. New Horizons, for instance, offers a complete mapping of the IT training requirements of any organisation. It does need analysis of people, their aptitude, work processes and the productivity levels expected from each of them. This finally leads to an exact mapping of how much training is required for the specific set of people. It further designs the training methodology, does an analysis of what are the requirements and whether the training strategy evolved will meet the corporate objectives or not. In fact, the company claims that many corporates have come to them for just the mapping and analysis services.

This might herald some relief for IT training companies targeting the corporate segment. The reprieve for them will however depend upon how fast it will take for the trend to catch up on a large scale.

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