Future in Engineering and Technology Careers

In India, and specially in South India Engineering is a career of automatic choice. Even before deciding the name of the child, parents would decide their child career in Engineering. Until mid 1980's there is tremendous competition to get into a Engineering college. For example, in Andhra Pradesh there were not more than 10 Engineering colleges - for entire coastal Andhra pradesh - there were two colleges - one at Visakhapatnam and other in Kakinada (the oldest in the state). The success of the students later, in their careers both in India and abroad, naturally made Engineering an elite course. By early 1980's - the competition to join Engineering started heating up. As a result, the Governments have started state entrance exams (now called EMCET). Due to limited Engineering seats, competition to get into any of the Government Engineering college was too high (like getting into IIT today) and naturally the brightest were successful.

As the craze for Engineering courses picked up Government at that time seen an opportunity to expand the reach of Engineering education and allowed private parities to start the colleges. By 1990's, what was then called vision of the Chandrababu Naidu Government, permissions have been granted so freely, what may be called liberalization of Engineering Education in Andhra Pradesh, we have now close to 500 colleges in the state of Andhra Pradesh. Similar trend was followed in other states - mainly Karnataka, Tamil Nadu and Maharastra.

Today if we take Andhra Pradesh, the only surplus we have is Engineering graduates. During boom years, it was not difficult for many to get into some jobs - mainly in the Information Technology. Also, Engineering degree is a good ticket (for visa) to go to United States, UK or Australia for further studies. In 2001 when there was a dot com bubble, many had a second thought of Engineering. But subsequent BPO and outsourcing boom, brought back a blind confidence like as we have seen the Bombay Stock exchange.

It may be pertinent to note here that trade bodies like NASSCOM and many Companies like Infosys, Satyam, TCS or Wipro have started estimating that the supply is not meeting demand. They started demanding the Government for actions. This is fundamentally flawed because - in long run they are expecting that there won't be any Technology jobs in West.

Net result is, we have surplus and there is no demand. Even students from the elite IIT's are not getting the jobs. It is only a matter of time the fate of the students who are coming out of the mushroomed colleges will known. Companies and NASSCOM that demanded action from the Government are now quite. They have no obligation or commitment to take any of these students including the brightest. Private Engineering colleges meanwhile made a fortune and found ways to suck the students with exorbitant fees.

What we have to understand Engieering career is not like consumption element. Like we produce a tooth paste or soup and consume daily or weekly basis, the graduates cannot be consumed with in the economy for ever. An Engineer who comes out will stay in the system for at least 40 years. If same level of throughput is maintained, it will lead to to down stream choking as we are seeing now.

With cost of education going up high (excluding the money what they have already paid for the coaching centres), opportunities dwindling quickly - the future of Engineering and Technology careers are in big question. Recently during the Realty boom we have seen huge demand for Civil Engineers and now, that is slowly evaporated. Same will happen in Automotive. As long as supply outstrips demand by many times, the future is bleak

This surplus will have huge consequences - and eventually benefit private sector companies.

Some of the consequences are:

1. With cheap labour availability in surplus, wage inflation at entry level will fall dramatically. This will make students in pipeline to join the engineering to think twice.
2. With in the companies, this will spread to the middle and senior levels slowly as Companies can find people who cost them less will be able to do the same job.
3. Job insecurity will increase - and the Engineers will never be in negotiating terms
4. Many engineering colleges will close
5. Jobless rate will go up in a sector where until a year ago students could book a job in at final years beginning
6. Quality of Engineering education fallen dramatically.
7. These students who are flooding out of the gates are carrying added ego and now planning to go to US, UK or Australia to waste even more hard earned money. Or eventually end up in curry houses or supermarkets to do odd jobs in London, Sydney or Dallas.

Unless Government does some kind of quality evaluation and close 75% of these colleges and improve the quality education.

Else future is bleak - including those coming from IITs. Any recovery is in the hands of Government and regulating bodies.