AlmaMate has introduced innovative business models that provide transformative value proposition in the graduate on-boarding program. It addresses all the issues faced by the IT industry in terms of low employability as well as supply side skew.
As per NASSCOM and IT industry data only 25% of the engineering graduates are employable. The next 25% are trainable to become employable. Currently the IT industry is focused on hiring the top 25% graduates. This leads to intense competition as every company scrambles to get the top talent from the engineering colleges. It also puts immense pressure on entry level salaries due to the pressure to attract the top 25% graduates.
In addition, the IT companies are forced to hire 12-18 months in advance. The companies hire in advance to lock-in the employable graduates. In all such cases, the numbers to be hired are very approximate forecasted numbers. The mismatch between the forecasted numbers and the actual numbers leads to a significant bench cost.
Supply Side Skew
The supply side is a major factor impacting the utilization and bench cost in IT organizations. The campus hiring happens typically in the middle of the year while the demand is typically constant throughout the year. It companies hire bulk of their annual requirements during the June/July period. This creates a huge on the training infrastructure. It also impacts the utilization as well as the bench cost.
Innovative business models from AlmaMate
AlmaMate has introduced innovative business models that address all these issues. Its Train & Hire model assures supply of trained campus graduates across the year. AlmaMate recommends to its customers a hybrid of Hire & Train and Train & Hire models. The companies can do traditional campus recruitment and hire graduates to meet part of their annual requirements. They should fulfill the balance requirements by using the Train & Hire model.
Train & Hire Model
In this model AlmaMate works on the trainable population. These are campus graduate that can be trained to become employable. These graduates either do not clear the campus placement process of a company or they graduate from colleges where companies do not go for campus selection. AlmaMate works with this trainable group of graduates and makes them employable. Since these graduates are available across the years, IT companies can plan for their hiring every quarter. They can fine tune the numbers based on the current requirements and give their projections for the next quarter. In addition to the numbers, the resourcing function can also categorize their requirements as per the technologies.
AlmaMate has created best in class training methodology to quickly turn around the fresh graduate hires into billing resources.