Today's Editorial

Engineering graduates are steering the service industry

Relevance: GS Paper III

Why in News?

Over the last decade, many engineers have been employed in non-technical sectors such as banking, insurance, hospitality, health care and retail across various roles such as sales, customer service, back office operations, logistics and supply chain management.

Dominance of the Services Sector:

• The services sector has become a significant player in the global economy, contributing 53% of India's Gross Value Added (GVA) versus 28% of the industry sector, and 31% of employment is generated in the services sector versus 25% in industries.
• The growth is not limited to IT services but is more broad-based, including retail, telecom, consulting, hospitality, banking, and healthcare.
• India is also the offshore hub for these sectors, delivering these services to the entire world through captive and third-party shared services and Global Business Services (GBS).

Shift in Employment Dynamics:

• The massive service industry needs a continuous supply of skilled manpower, which is being fulfilled from a rather unusual education stream — engineering.
• Over the last decade, many engineers have been employed in non-technical sectors such as banking, insurance, hospitality, health care and retail across various roles such as sales, customer service, back office operations, logistics and supply chain management.
• An industry report claims that about 80% of graduate engineers end up in a non-technical job unrelated to their education field.

Key reasons for the shift:

• Employers facing a dynamic market recognise the transferability of engineering skills, even if the roles themselves are not conventionally engineering-centric.
  • Critical thinking, problem-solving, creativity, innovation, dealing with ambiguity, adaptability and flexibility are some of the most relevant skills required to succeed in modern service organisations.
  • Dynamic and burgeoning nature of service-oriented opportunities.
• Due to an ideal alignment of skills and job demands, i.e., the analytical prowess, problem-solving abilities, and structured thinking ingrained in engineering graduates, they are highly sought-after in sectors that may not traditionally be considered engineering-centric.
• Lack of relevant jobs for their skills in their core sector.
  • According to Statistica, only 57% of engineering graduates are employable.
  • An All India Council for Technical Education commissioned report highlighted that less than 60% of available engineering seats have enrolment.

Generic Services-Oriented Courses:

• Currently, services-oriented educational courses are only available in niche domains such as health care or hospitality, and there is no generic course to cater to the needs of the services sector.
• As a result, services are consuming engineers and management graduates/postgraduates into entry-level jobs.
• Structured around a diverse curriculum, this course could encompass essential subjects and skills tailored to meet the demands of today's dynamic service landscape.
• Professionals enrolled in this course would gain a solid foundation in service delivery fundamentals, covering core sector overview and nuances of service delivery in a physical and digital environment.
• They could receive training in service management principles, process improvement methodologies such as Lean Six Sigma, and critical thinking frameworks, empowering them to optimize service processes, drive operational efficiency, and confidently tackle complex challenges.

Potential benefits of Services-Oriented Courses:

• Transformative potential: Service engineering offers a pathway to enhanced employability, improved service delivery, and sustained economic growth.
• Holistic curriculum: A service engineering course can offer a holistic blend of technical proficiency, soft skills, and industry-specific knowledge essential for success in service-centric roles.
• Integration of Cutting-Edge Technologies: By integrating cutting-edge technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) into the curriculum, these programs can enhance students' employability, particularly in emerging sectors such as fintech and edutech.
• Professional Skills Development: Such a course would foster a cadre of professionals adept at navigating the complexities of modern service-oriented industries, with skills around process reengineering, problem-solving, and client management.
• Affordability and Accessibility: The affordability and accessibility of service engineering courses would make them an attractive option for students from tier 2 and 3 cities.
• Women empowerment: Since services typically offer better flexibility to employees, such a course can also help enable a supportive environment for women to balance work and family commitments while contributing to the workforce.
• • The recent Periodic Labour Force Survey (PLFS) 7 reported that women’s participation in the workforce is 37%.
• Digital Infrastructure and Inclusivity: Unlike conventional engineering programmes that require extensive hard infrastructure, service engineering courses would leverage digital platforms and virtual learning environments, significantly reducing costs and eliminating geographical barriers to education.
• • This democratisation of education will foster inclusivity.

Conclusion:

Engineers transitioning into roles like sales, customer service, and finance necessitate an evolution in the educational ecosystem to cater to the needs of the service industry and a recalibrated approach towards curriculum design and pedagogy. By investing in a skilled workforce, India can become a global leader in service innovation and delivery, fostering prosperity and competitiveness in the services-driven economy of the future.