Work Schedule - Report

Effectiveness of Flexible Work Schedule on the Performance of Employees
1.1 PEOPLE & THEIR WORK PLACE
Successful corporate leaders recognize that the competitive edge in today’s market place
is their people. The field of HRM is one of the most dynamic and challenging area for all
the management. The turbulent business climate caused by increased global price
competitiveness, changing employment legislations, changing workforce and
compensation etc are challenges to managers to utilize their employees more effectively
to gain more competitive advantage.
Hiring good people is tough, but keeping them can be even tougher. According to noted
career experts Timothy Butler and James Waldron, the professionals stay in their job,
only if their job fit their deeply embedded life interest. Because of the intensity of the
talent war, companies instructively view retention and recruitment as competitive
exercises.
In recent years there has been significant practical development with increasing number
of private and public sector organization adopting HRM initiatives along with the
downsizing and reengineering of the organizations. Now due to the growing acknowledge
that the workers are the key to sustainable competitive advantage have strengthened the
need for the new human resource initiatives.
Managing people is increasingly a complex phenomenon. Market expands globally,

workforce grows invisibly and offices are virtual. People are less committed to their
organization emotionally. Running a successful enterprise has become more complex and
competitive. Therefore it is very essential to find some ways to engage activate and
motivate employees. Successful managers respect both people and process. These
managers regard employees as part of their customer base and continuously look in for
the ways to satisfy and retain the employee’s commitment which ultimately inspires them
to peak performance.
The IT industry, being a knowledge-based sector, requires a workforce that is highly

competent. Also, the demanding nature of work in the industry requires effective
strategies to retain its workforce. With growing demand for Indian IT professionals
Karnataka college of Management

overseas and with multinational IT companies establishing their offices in India, retention
becomes very difficult. To handle the challenge, companies have started using a variety of
retention tools such as ESOPs and RSUs. They have also taken other initiatives like
improving the work-life balance of their employees, encouraging learning and
development, developing a positive organization culture, etc. to retain their employees.
Various retention tools are used by Indian IT companies to combat attrition. The
challenges the Indian IT industry faces in the future in view of the growing need to retain
its talent pool.
Losing new employees is not the only threat to the talent strategy. Engaging and
motivating existing employees is critical to retention and overall organization
success.
The work place for most people in organized sector of human activities is confluence of
the organization’s objectives, values and practices; the individual’s attitudes, potentials
and aspirations; and the larger objectives of the society and the demands system, the
organization, the individual and the society at large. It is linkages to look into the
institution of work and examine the nature of inter linkages between work and some
aspects of socio-cultural and psychological milieu.
In recent years a growing interest among concerned professionals in bringing about

improvement in quality of working life in organized sectors is indicative of their efforts to
exercise the choice in a deliberate and planned manner in designing new work system
which alone can meet the aspirations of people in given socio-cultural context. Work
system changes have wider implications for society as a whole because improvement of
quality of life in any society as whole because improvement of quality of life in any
society presupposes enhancement of quality of working life.
Although physical and technical conditions of work and their effects on individuals and
on productivity have been a subject matter of study for the past few decades, it is only
recently that socio-psychological dimensions of work and their relationship with socio-
psychological dimensions of work and their relationship with socio-cultural environment

of people have received systematic attention. A growing body of knowledge has made it
possible to draw certain broad conclusions with regard to the meaning of work to an
individual and the relationship between work life and other aspects of life.
Work plays a central role in the life of most engaged in productive activities. Jerome M
Rosow (1974) with long experience in government and business has summed up the
centrality of work in following statements:
“Work is at the core of life, consider the deeper meaning of work to the individual and the
life values; work means a good provider, it means autonomy, it pays off in success, and it
establishes self-respect or self-worth. Within this framework, the person who openly
confesses active job dissatisfaction is virtually admitting failure as a man, a failure in
fulfilling his moral role in society. Since work resides at the very core of life values, self-
esteem colors the response to job satisfaction attitude surveys. A negative answer may
negate the lifestyle and the very ego of the individual. It may well involve a painful, if not
impossible, denial of basic goods in life. It is tantamount to am admission of an inability
to achieve and perform an economic, useful, and productive role in society, in the family,
in the church, and in the community.”
“Challenge less bureaucratic jobs inhabits the normal development of human personality,
thus leading to poor mental health, apathy, and even the delusion that one prefers highly
structured work. Workers suffering from such conditions attempt to; redirect their limited
energies to activities off the job, to social life on the job, or to sheer fantasy-but never
with great success and always with considerable emotional cost.”
Employees at the gross-root level experience a sense of frustration because of low level of
wage, poor working conditions, work hours, unfavorable terms of employment, in human
treatment by their superiors and the like where as managerial personnel feel frustrated
because of alienation over their conditions of employment, inter-personal conflicts, job
pressures, lack of freedom in work, absence of challenging work etc. Quality of work life
denotes all the organizational inputs, which aim at the employee’s satisfaction and
enhancing organization effectiveness.

1.1.1 What People Want From Work?

Every person has different reasons for working. The reasons for working are as individual
as the person. But, we all work because we obtain something that we need from work.
The something we obtain from work impacts our morale and motivation and the quality
of our lives. Here is the most recent thinking about what people want from work.
Some people work for love; others work for personal fulfillment. Others like to
accomplish goals and feel as if they are contributing to something larger than themselves,
something important. Some people have personal missions they accomplish through
meaningful work. Others truly love what they do or the clients they serve. Some like the
camaraderie and interaction with customers and coworkers. Other people like to fill their
time with activity. Some workers like change, challenge, and diverse problems to solve.
 Work is about the Money
Whatever personal reasons for working, the bottom line, however, is that almost everyone
works for money. Whatever it is called: compensation, salary, bonuses, benefits or
remuneration, money pays the bills. Money provides housing, gives children clothing and
food, sends teens to college, and allows leisure activities, and eventually, retirement. To
underplay the importance of money and benefits to people who work is a mistake.
Fair benefits and pay is the cornerstone of a successful company that recruits and retains
committed workers. If you provide a living wage for your employees, you can then work
on motivational issues. Without the fair, living wage, however, you risk losing your best
people to a better-paying employer.
 Employee Recognition
Employee recognition is limited in most organizations. Employees complain about the

lack of recognition regularly. Managers ask, "Why should I recognize or thank him? He's
just doing his job." And, life at work is busy, busy, busy. These factors combine to create
work places that fail to provide recognition for employees.

Managers who prioritize employee recognition understand the power of recognition. They
know that employee recognition is not just a nice thing to do for people. Employee
recognition is a communication tool that reinforces and rewards the most important
outcomes people create for your business. When people are effectively recognized, they
are reinforced, with the chosen means of recognition, the actions and behaviors most want
to see people repeat.
An effective employee recognition system is simple, immediate, and powerfully

reinforcing. Employees feel cared about and appreciated. It may seem simplistic, but
people who feel recognized and cared about produce more and better work. Employees
say praise and attention from their supervisor would make them feel as if the company
cared about them and their well-being.
 Expectation
A satisfied employee knows clearly what is expected from him every day at work.
Changing expectations keep people on edge and create unhealthy stress. They rob the
employee of internal security and make the employee feel unsuccessful. I'm not
advocating unchanging jobs just the needs for a specific framework within which people
clearly know what is expected from them.
The quality of the supervision an employee receives is critical to employee retention.

People leave managers and supervisors more often than they leave companies or jobs. It
is not enough that the supervisor is well-liked or a nice person, starting with clear
expectations of the employee, the supervisor has a critical role to play in retention.
Anything the supervisor does to make an employee feel unvalued will contribute to
turnover.
Frequent employee complaints center on these areas.

 lack of clarity about expectations,
 lack of clarity about earning potential,
 lack of feedback about performance,

 failure to hold scheduled meetings, and

 failure to provide a framework within which the employee perceives he can
succeed.
 Environment
The ability of the employee to speak his or her mind freely within the organization. Does
the organization solicit ideas and provide an environment in which people are
comfortable to provide feedback? If so, employees offer ideas, feel free to criticize and
commit to continuous improvement. If not, they bite their tongues or find themselves
constantly "in trouble" - until they leave.
A motivated employee wants to contribute to work areas outside of his specific job
description. How many people could contribute far more than they currently do? Need to
know their skills, talent and experience, and take the time to tap into it. As an example, in
a small company, a manager pursued a new marketing plan and logo with the help of
external consultants. An internal sales rep, with seven years of ad agency and logo
development experience, repeatedly offered to help. His offer was ignored and he cited
this as one reason why he quit his job. In fact, the recognition that the company didn't
want to take advantage of his knowledge and capabilities helped precipitate his job
search.
 The perception of fairness and equitable treatment
In one company, a new sales rep was given the most potentially successful, commission-
producing accounts. Current staff viewed these decisions as taking food off their tables.
You can bet a number of them are looking for their next opportunity.
 Opportunities to learn and grow in their careers
Those employees wanted to retain seek frequent opportunities to learn and grow in their
careers, knowledge and skill. Without the opportunity to try new opportunities, sit on

challenging committees, attend seminars and read and discuss books, they feel they will
stagnate. A career-oriented, valued employee must experience growth opportunities
within the organization.
 Threaten an employee's job or income
No matter the circumstances, never, never, ever threaten an employee's job or income.
Even if layoffs loom if they fail to meet production or sales goals, it is a mistake to
foreshadow this information with employees. It makes them nervous; no matter how
information is phrased; no matter how it is, even if absolutely correct, the best staff
members will update their resumes. Not advocating keeping solid information away from
people, however, think before anything is said that makes people feel they need to search
for another job.
1.2 FLEXIBLE WORK SCHEDULE

Organizations need flexibility to respond to change. The essence of this flexibility is the
ability to match labor needs with the existing labor supply, maintaining a balance between
the well-being of the organization and that of employees. Flexible work schedules are one
response to changes in the composition of the work force, new life-styles such as single-
parent and two-paycheck households, and changes in the way people perceive work and
time.
Flexible Work Schedules are adjustments to the employee's regular work schedule on a
recurring basis to respond work/life needs of an employee or scheduling needs of the
employing unit. Flextime allows an employee to select the hours he or she will work.
There are usually specified limits set by the employer. Employees on a flexible schedule
may work a condensed work week or may work a regular work week. Those working a
condensed week may work four ten hour days, rather than five eight hour days. Those
who work a five day week may work hours other than the typical "nine to five."Flexible
work schedule adjustments must be documented in writing and may be revised or revoked
by the supervisor as needed.

Approximately 20 percent of part-time and 12.3 percent of full-time employees have the
option of flextime. Flextime schedules allow variability in the starting and ending times
of the work day, usually with a core time during which all employees must be present and
flexible time when employees may choose times of arrival and departure. Flexibility is
also enhanced if employees can vary schedules daily rather than with prior notice.
Another variation is the compressed work week, usually four 10-hour days.
Unlike other options, flextime offers the most benefits to employees with the fewest costs
(Staines 1989). Higher motivation and job satisfaction have been shown to result from
greater control over one's time. Commuting time is often lessened. Productivity may be
enhanced by a schedule that takes advantage of an individual's biological clock, although
mixed evidence of productivity gains has been found (Buckley, Kicza, and Crane 1987).
Employers benefit from reduced absences and lateness, lower turnover, higher morale,
less overtime pay, and better use of facilities.
One of the greatest barriers to flextime is the reluctance of supervisors who may
anticipate inadequate staffing and difficulties with communication, meetings, scheduling,
supervision, and timekeeping. Because certain types of work are not suited to flextime,
inequities may result if it is offered only to certain departments or classes of workers.
Union opposition arises from the loss of overtime rights; labor legislation regarding
overtime hours may constrain certain scheduling arrangements.
1.2.1 WHAT ARE COMMON USES OF A FLEXIBLE WORK SCHEDULES?
A flexible work schedules may be implemented for a variety of reasons to benefit the
employee, the employing unit, or both. Some common examples include:
 Adjusting for a long commute to and from work by starting (or ending) the work
day earlier (or later).
 Avoiding peak traffic to reduce an employee's time on the road.
 Matching work schedules to time schedules for mass transit or other commuting
alternatives.
 Reducing the number of work days and therefore the number of commutes to and
from work each week.
 Attending classes during the regular work day.
 Transporting children to and from day care or school.

 Matching employee work hours to peak productivity time periods.

 To accommodate job-sharing or to offset peak use of centralized offices or
equipment.
 Extending customer service hours.
1.2.2 WHAT ARE SOME BENEFITS OF A FLEXIBLE WORK SCHEDULE?
Flexible schedules work when they meet both employee’s personal needs in balancing
work and life and the employing unit’s operational needs in providing efficient and
effective services.
 Reduced commuting fuel costs.

 Increased transportation options and parking availability.
 Reduced stress through the ability to better balance work and personal
responsibilities.
 Improved morale and productivity resulting from matching work time and
employee work style.
 Longer blocks of time away from the office without reducing the employee’s
leave
balance.
 Extended service hours with minimal to no increase in budget or overtime
expense.
 Reduced absences and tardiness through finding more agreeable start and/stop
times.
 Enhanced recruitment and retention through "family-friendly" work schedules.
 Greater flexibility in available office space or equipment due to shifts in peak use.
1.2.3 WHAT ARE SOME DISADVANTAGES TO A FLEXIBLE WORK

ARRANGEMENT?
Some flexible work schedules may not be the best solution for particular work/life needs
or for particular positions; for example, a four ten-hour days arrangement will not usually
work for a receptionist position.
Other disadvantages occur should also be considered, including:

 The effect of reduced face-to-face time on work teams or work unit cohesion.
 Employees feeling distanced from the social aspects of working the same hours as
colleagues.
 Some employees may feel resentful about accommodating the flexible schedules
of other employees in the work unit.
 Conflicting requests by multiple employees may make some requests difficult to
accommodate.
 Tracking employee work time becomes more complex.
 Direct observation by supervisor of employee work becomes more difficult..
 Managers often need convincing that flexibility won't harm the bottom line.
1.2.4 WHO DECIDES IF AN EMPLOYEE CAN HAVE A FLEXIBLE WORK

SCHEDULE?
Supervisors are responsible for setting work assignments and work schedules for their
employees based on the operational needs and resources of the employing unit.
Supervisors are encouraged to be as flexible as possible in accommodating the work/life
needs of employees, but the decision to set or adjust employee work schedules is made by
the supervisor, not by the individual employee. Supervisors are also expected to approve
flexible work schedules fairly and equitably.
1.2.5 IMPLICATIONS OF FLEXIBLE WORK SCHEDULE
Greater demand for alternative work schedules will require changes in the practices and
attitudes of employers and employees and therefore in education and training to prepare
people for the workplace. Opportunities for educators and researchers will arise in career
development, advocacy, and research.
Diverse work forces with diverse needs, as well as potential labor shortages, imply that an
array of options should be offered to the extent possible. Recognition that life patterns are
no longer linear (education-work-retirement) but cyclical (alternating periods of
education, work, retraining, and family responsibilities) means that all workers could

benefit from a cafeteria approach to scheduling arrangements, including family leave,

preprimary and after-school programs, and the options discussed here. Flexible fringe
benefit plans would reduce some of the disadvantages of part-time work. Many of these
options require rethinking organizational structures and task assignments. Moreover, a
change in supervisory styles is needed, from negative/controlling/monitoring to
positive/facilitating/participatory. Supervisors need to be trained to cope with these new
approaches. Management information systems may help ease the burdens of
administration and scheduling. New methods of performance appraisal are needed. The
new flexible worker must be prepared to cope with alternative work styles.
1.2.6 Employer Benefits of Flexible Working
In business today, flexible working isn't an option - it's a necessity. There are a numbers
of employees wanting to work flexibly in order to achieve a work life balance. Apart from
your legal obligations, businesses are appreciating more and more how flexible working
can benefit their performance through improved staff motivation and productivity.
Attract Skilled & Motivated Staff - Retain Talent
As well as attracting more talent providing flexibility helps you keep trained, skilled
people whose changing circumstances may otherwise have led them to leave. Higher
retention rates of staff and increased return rates from parental leave. When an Employer
holds onto its most skilled and experienced people it's good news for all involved.
Motivate & Energized Staff
Staff morale is higher and this increases your bottom line, productivity and profits.
Today's evidence shows that flexible and enlightened working practices are good for
business. Achieving a work life balance between the needs of home and work is a win
win for the employee and the employer.
Increased Employee Satisfaction
A happier workplace is created, teamwork improves, stress levels are reduced, motivation
increases and knowledge and enthusiasm is shared

Reduced Absenteeism
Staff stress levels drop, unplanned absences are reduced as employees are able to balance
their work and family responsibilities.
Increased Management Skills
Managing a more diverse workforce as leaders and managers you are compelled to "look
outside the square".
Reduced Operating Costs
Office space can be reduced and used more effectively which lowers accommodation
costs. Desk sharing can be introduced if employees work remotely and flexibly. A flexible
and remote working plan enables companies to retain valued staff by offering them
choices to suit their lifestyle demands.
Improved Business Performance
Flexible working times can help businesses to better meet customers needs as working
patterns can be matched to when the service is required with the ability to match work
provisions closely with customer/product demand.Contact time with clients is increased
as a result of reduced travel. Giving employees more control over their work life balance
also means they are more productive during each working hour.
Good For Small Business
Smaller businesses often offer flexibility as a successful recruitment tactic. It is one of the
ways they can stay competitive with bigger companies. In addition, many businesses
provide flexible work schedules because they think such policies simply make good
business sense. Flexible schedules provide a work-life balance which is favoured by
many potential employees, and instating such policies can help small businesses to attract
and retain the best of the best.
Reduces Business Expenses

Companies can save substantial amounts of money through flexible working. Reduces
business expenses: sick time (less is used); productivity (employees are more
productive);resources(less computer space and access are needed, increased hours of
customer service; employee safety (fewer accidents at the job site and
commuting);environmental requirements(reducing the number of commuters) and
relocation of employees (tele-working may avoid relocating workers

2.1 STATEMENT OF THE PROBLEM
In the research, the researcher would be assuming that the flexible work schedules do
have an effect on the performance of the employees and would be focusing on the
software companies in and around Bangalore for this purpose. The researcher would
conduct a research to check whether the assumption of the problem is right or not with the
help of statistical tools like questionnaire and interviews with the employees. Based on
that the researcher would also give suggestions regarding the problem.
2.2 OBJECTIVES OF THE STUDY
 To study the effectiveness of flexible work schedules on the performance of the

employees.
 To analyze the impact of flexible work schedule on retention of employees.
 To study the role of flexible work schedules as a motivating factor.
2.3 HYPOTHESIS OF THE STUDY
 Hypothesis 1 - Ho: Flexible work schedule has no significant effect on the

performance of employees in software companies.
 Hypothesis 2 - Ho: Flexible work schedule has no impact on the retention of
employees in software companies.
 Hypothesis 3 - Ho: Flexible work schedule has no effect as a motivating factor in

employees.
2.4 METHODOLOGY OF THE STUDY
The study requires data to be collected from both primary and secondary sources. Survey
method has been adopted to collect data for the study from primary sources using
questionnaires. Data collected would be completed, classified and tabulated for analysis.
Analysis would be done using the statistical tools such as chi-square. Inferences would be
drawn from the analysis, conclusions would be made and suggestions would be given.

SOURCES OF DATA:
Primary data: The data is collected through structured questionnaire, which is self
administered by the researcher. Secondary data: These data is collected from educational
journals, published books, records and publications and some websites.
2.5 METHOD OF ANALYSIS
For the purpose of analysis, statistical tools and techniques used were:
 Calculation of simple frequency to understand the response to my questionnaire.

 Construction of tables relating to data collected.
 Visual representation of data through graphs and charts.
The graphical tools used in the study were
 Pie charts
 Bar diagrams
 SPSS package
2.6 SCOPE OF THE STUDY
The main objective of the study was to analyze the effectiveness of flexible work
schedule on the performance of employees. The scope of the study is restricted to
understand the objectives of the study with respect to the performance of employees in
the software companies in various parts of Bangalore
2.7 SIGNIFICANCE OF THE STUDY
Flexible Work Schedule is becoming more relevant in all the organizations because of its
significant role in organizational development. It has already shown its impact in various
aspects such as increased productivity & quality, better employee retention &
commitment, better decision-making, better industrial relation etc in various
organizations. Hence the concept workers participation in management has got to play a
major role in this company. Thus it becomes necessary to assess the effectiveness of

workers participation in achieving the ultimate goals of the organization and thereby
ensuring faster growth.
2.8 LIMITATIONS OF THE STUDY
 The study is restricted to software companies in Bangalore.
 The duration of the project was a limiting factor due to which the research was
restricted to a limited number of software companies in Bangalore.
 The questionnaires were used as a tool for data collection and therefore all general
limitations that applies to such sort of data also applies here.
 The study covers the viewpoints of only 100 respondents. Such viewpoints may
not reflect the view of all other employees in and around Bangalore.
2.9 PLAN OF THE STUDY
 Chapter I: Introduction - gives an introduction to the topic-definition of flexible

work schedule, benefits, disadvantages, implications etc.
 Chapter II: Research Design - deals with statement of the problem, objectives,
hypothesis, methodology, scope, significance, limitations.
 Chapter III: Industry Profile – deals with the industry on which the study is
being conducted.
 Chapter IV: Analysis & Interpretation – gives details of the analysis of the data
collected and its interpretation using SPSS
 Chapter V: Findings, Conclusions & Suggestions – based on the analysis,
findings and conclusions are made and suggestions by the researcher are given.
 Bibliography
 Annexure
Information technology (IT) industry has become one of the fastest growing industries
during the past decade in India.

The IT industry of India has registered huge growth in recent years. India's IT industry
grew from 150 million US Dollars in 1990-1991 to a whopping 50 billion UD Dollars in
2006-2007. In the last ten years the Information Technology industry in India has grown
at an average annual rate of 30%.
The liberalization of the Indian economy in the early nineties has played a major role in
the growth of the IT industry of India. Deregulation policies adopted by the Government
of India have led to substantial domestic investment and inflow of foreign capital to this
industry. In 1970, high import duties had forced IBM to leave India. However, after the
early nineties, many multinational IT companies, including IBM, have set up their
operations in India. During the ten year period 1992-2002, the Indian software industry
grew at double the rate as the US software industry.
Some of the major reasons for the significant growth of the IT industry of India are -
 Abundant availability of skilled manpower
 Reduced telecommunication and internet costs
 Reduced import duties on software and hardware products
 Cost advantages
 Encouraging government policies
India's IT industry caters to both domestic and export markets. Exports contribute around
75% of the total revenue of the IT industry in India. The IT industry can be broadly
divided into four segments - IT services, Software (includes both engineering and
Research and Development) , ITES-BPO ,Hardware.
India has set up a separate ministry of IT, to accelerate approval of IT projects and to
streamline the regulatory deals. Recently, the government has implemented a 108 action
plan submitted by National IT Task Force in order to promote the Information Technology
(IT) in the country. The government of India has recognized the IT sector as one of its top
five priorities. According to National Association of Software and Services Company
(NASSCOM), the Indian IT software and services sector fetched revenues of US$29.6
billion in the year 2005 and will achieve the milestone of US$ 60 billion in exports by
2010.

3.1 MAJOR INDIAN IT COMPANIES
The Indian software industry is set to keep up its growth rate despite the slowdown in the
economy. The National Association of Software and Services Companies (Nasscom) has
forecast a strong outlook for FY08-09 strong with software and services revenue seen
growing by 21-24 per cent. The software and services exports are set to hit the $50
billion-mark.
The software and services exports segment grew by 29 per cent (in USD) to register
revenues of $40.4 billion in FY07-08, up from $31.4 billion in FY06-07. The domestic
segment grew by 26 per cent (in INR) to register revenues of $ 11.6 billion in FY07-08.
According to the latest Nasscom rankings, Tata Consultancy Services Ltd., Infosys
Technologies Ltd. and Wipro Technologies Ltd are the top 3 revenue generators in India.
Check out the top ten players in the Indian IT industry in the following sections.

3.1.1. Tata Consultancy Services
Founded in 1968, TCS is one of India's largest corporate houses. It is also India's largest
IT employer with a staff strength of 111,000 employees. The company began as a division
of the Tata Group, called the Tata Computer Centre. Its main business was to offer
computer services to other group companies. Soon the company was spun off as Tata
Consultancy Services after it realized the huge potential of the booming IT services.
The company posted a consolidated net profit of Rs 1,290.61 crore (Rs 12.90 billion) for
the first quarter ended June 30, 2008, an increase of 7.3 per cent compared to the year-ago
period.Its annual sales worldwide stands at $5.7 billion for the fiscal year ending March
2008. During the year 2007-08,TCS' consolidated revenues grew by 22 per cent to Rs
22,863 crore ($5.7 billion). S. Ramadorai, is the chief executive officer and managing
director of TCS.TCS is IDC-Dataquest IT best employer in IT services in 2007. TCS also
topped DataQuest DQTop 20 list of IT service providers in 2007.
A part of one of Asia's largest conglomerates, the Tata Group, TCS is one of the world’s
largest providers of IT services, business solutions and outsourcing services. The
company has the largest number of employees among the Indian IT companies. It uses
global network delivery model, innovation network and solution accelerators, and
provides services in the banking and finance, energy and utilities, government, healthcare
and life sciences, technology, insurance, manufacturing, retail, telecom, and travel and
hospitality sectors.
The company has created novel concepts through TCS innovation labs and academic
alliances. It enjoys alliances with Adobe, Amdocs, ATG, BEA, Business Objects, Cognos,
Cordys, EMC2 Documentum, HP, Hyperion, IBM, Informatica, Intel, Mercury
Interactive, Microsoft, Oracle, Red Hat, SAP, SAS, Sun, Tibco and Vignette.
TCS is the world's first company to be rated at Level 5 maturity on quality improvement
models, CMMI and P-CMM. TCS was ranked IDC-DataQuest Best Employer in IT
Services in India for 2007. It also tops the DataQuest Top20 list of IT Services providers
in India and was awarded top position in Global Services 100 Top 10 Best Performing IT

Services Providers category for 2007. The company has acquired a 2 billion outsourcing
contract from Nielsen partners, the largest ever-outsourcing deal for any Indian IT player.
Tata Consultancy Services Ltd (TCS) on April 05, 2008 has announced that it has signed
a new multi-year contract with Chrysler LLC to provide a comprehensive portfolio of IT
services. The scope of this contract integrates the contract TCS announced in February
with Chrysler.
Tata Consultancy Services (TCS) signed a five-year global contract with telecom giant
Ericsson. TCS will deliver application maintenance and development services for
Ericsson's internal IT operations. TCS will be one of the two strategic partners
responsible for delivering application maintenance services to Ericsson. It will also be a
preferred supplier for application development services.
Tata Consultancy Services (TCS) has bagged a multi-year IT solutions contract from
Infineon Technologies AG (IFX), a semiconductor manufacturer. Under the agreement,
TCS will operate and maintain solutions for the Infineon's Supply Chain Management
(SCM) landscape. The Infineon SCM Planning operations will be operated out of
Munich, Germany and Bangalore, India.
TCS offers a dynamic work atmosphere and ensures equal opportunity to work on diverse
platforms and practices spread across multiple geographies. It allows a balance of work
and family commitment.
History
2000
 The Company has launched its most integrated business accounting software
`Personal Accountant' in Guwahati.
 The Company has been awarded a multi-million-dollar contract to develop a
software system, which will make insurance information from the General
Organisation of Social Insurance, Saudi Arabia available on the Internet.
 The Company has signed a global alliance with Choridiant Software, Inc a leading
provider of e-business infrastructure software for customer interaction.

 Tata Consultancy Services has entered into a tie-up with PrimeResponse to

architect, implement, support and consult its e-marketing solution --
Prime@Vantage.com.
 Mr. S. Ramadorai, Chief Executive Officer, Tata Consultancy Services has been
appointed as Director on the board of Tata Industries Ltd.
2001
 The Company has signed an MoU with the Indian Institute of Technology, Madras
to set up a Centre of Excellence on computational engineering.
 The Information technology company of Tata Sons, Tata Infotech may be merged
with Tata Consultancy Services, the software services division of Tata Sons.
 Signed an agreement to provide software solutions to Ericsson World-wide..
 Entered into a multi-year collaborative agreement with the Hyderabad-based
Centre for DNA Fingerprinting and Diagnostics (CDFD), a leading R&D
laboratory under the Department of Biotechnology.
 Oracle Software India on September 25 announced Tata Consultancy Services as a
member of its mobile partner initiative programme to offer solutions and services
based on Oracle mobile application suites.
 Tata Consultancy Services has announced the opening of a new office in Portland,
Oregon.
2002
 TCS bags order of Rs 500 crore from SBI.
 Mr P K Chakravarty, Company Secretary & Compliance Officer of Tata
Construction & Projects Ltd has resigned from the services of the company wef
from the close of office hours on July 31, 2002.
2003
 TCS sets up dedicated department to train its employees to speak at least 1 foreign
language
 TCS makes turnkey project for Chennai Telephone call centre
 Tata Consultancy new BPO partner of Aviva
 TCS issues digital certificates to 12 delegates

2004
 Ties up with Bharat Petroleum Corporation Ltd to provide medical advisory and
counseling services at Ghar, the highway retailing initiative of BPCL
 Acquires Singapore Airlines' (SIA) 51 per cent stake in their joint venture,
Aviation Software Development Consultancy India, for Rs 14.03 crore
 Tata Consultancy Services (TCS) and Bharat Heavy Electricals Ltd (BHEL) on
April 2 announced the release of PowerPac-G.
 Tata Consultancy Services (TCS) has announced the opening of its 'automotive
centre of excellence' in Detroit, US,
 TCS enters strategic global OEM partnership with i2
 PNB mandates TCS to deploy HR Solutions
 TCS has set up its ninth development centre near Chennai on the Old
Mahabalipuram Road, the city's information technology corridor
 TCS forges alliance with Israeli biotech firm
 TCS forges alliance with TAFE Global
 Tie up with Formula One racing car champion Ferrari to provide information
technology and engineering services for the development of the team's racing car
for the 2005 season.
2005
 TCS forges alliance with Hyperion
 Computer Associates International Inc (CA) enters into a strategic partnership
with Tata Consultancy Services Ltd (TCS) to secure the latter's operations
covering 55 centres globally by deploying CA's eTrust end-to-end security
solutions.
 TCS, NAL enters into MoU for aerospace solutions
 TCS sets up new development centre in Kochi
 Tata Consultancy Services (TCS) becomes country's first IT company to cross the
$2 billion mark as it closed fiscal 2005 with Rs 9,748.47 crore in revenues. At Rs
1,976.90 crore in net profit, it is also the first software giant to cross $500 million
in net profit.
 TCS gets UK Trade and Investment Special Recognition Award

 TCS enters into global partnership with SAP AG to deliver Adaptive

Manufacturing Solutions.
2006
 Tata Consultancy Services (TCS) got an interior design deal from US airframe
manufacturer Boeing Company and will work closely with its customer to design
the interiors of new aircraft.
 Tata Consultancy Services Ltd (TCS) has announced that the Company has signed
a seven year agreement to provide a full range of managed IT services to
Somerfield
2007
 Tata Consultancy Services Limited has informed vide its letter dated September
06, 2007 that: the following senior executives of the Company have today been
elevated to the Board of Directors of the Company as Executive Directors:
 Tata Consultancy Services (TCS) has bagged $1.2 billion outsourcing contract
from Nielsen partners, the largest ever-outsourcing deal for any Indian IT player.
 Tata Consultancy Services Ltd has announced that Standard & Poor's Ratings
Services has assigned the Company a corporate credit rating of 'BBB' with a
positive outlook.
2008
 Tata Consultancy Services Ltd (TCS) on April 05, 2008 has announced that it has
signed a new multi-year contract with Chrysler LLC to provide a comprehensive
portfolio of IT services. The scope of this contract integrates the contract TCS
announced in February with Chrysler.
 Tata Consultancy Services (TCS) has signed a five-year global contract with
telecom giant Ericsson.
2009
 Tata Consultancy Services (TCS) has bagged a multi-year IT solutions contract
from Infineon Technologies AG (IFX), a semiconductor manufacturer. Under the
agreement, TCS will operate and maintain solutions for the Infineon's Supply
Chain Management (SCM) landscape. The Infineon SCM Planning operations
will be operated out of Munich, Germany and Bangalore, India.

3.1.2. Wipro
What started off as a hydrogenated cooking fat company, Wipro is today is a $5 billion
revenue generating IT, BPO and R&D services organization with presence in over 50
countries.Azim Premji started Wipro with the 'idea of building an organization which was
deeply committed to values, in the firm belief that success in business would be its
inevitable, eventual outcome'. The company has over 72,000 employees. Wipro’s
revenues grew by 33 per cent to Rs 19,957 crore (Rs 200 billion) for the year ended
March 31, 2008. The net profit grew by 12 per cent to Rs. 3,283 crore (Rs. 32.83 billion).
The revenues of the combined IT businesses was $4.3 billion with 43 per cent YoY
growth.Wipro was the only Indian company to be ranked among the top 10 global
outsourcing providers in IAOP's 2006 Global Outsourcing 100 listing. Wipro has also
won the International Institute for Software Testing's Software Testing Best Practice
Award.
Wipro Infotech is part of the USD 3.47 billion Wipro Limited. It assists in implementing
and managing the entire IT lifecycle of the customers through a complete portfolio of IT
Services including consulting, business solutions, systems integration, availability
services, managed services, total outsourcing and it infrastructure products. The backbone
of the division is the e-infrastructure solutions for BFSI, telecom and government
verticals, providing complete IT lifecycle management: procurement and integration
services, product support and IT management services and application-specific platform
frameworks. Wipro Infotech is the world’s first IT Company to attain Six Sigma, world’s
first IT Company to be rated SEI CMM level 5 and ISO 2001 and the world’s first
PCMM level 5 company. It was rated as the number 1 network Integration Company,
number 2 Network Security Services Provider and the number 2 Network Management
Company by Voice and Data, 2007. The company has partnerships with product leaders–
CA, HP, IBM, BMC and Citrix.
The employees at Wipro get 'The Spirit of Wipro' - intensity to win, act with sensitivity
and unyielding integrity. It ensures lateral growth and ample opportunities to enhance
their skills. It gives a challenging and a world-class working environment. It conducts
various programs to train, learn and consequently earn exceptional rewards.

3.1.3. Infosys
Infosys Technologies Ltd was started in 1981 by seven people with $250. Today, the
company boasts of revenues of over $ 4 billion and 94,379 employees.Under the
leadership of N R Narayana Murthy, the company has become a global brand. The
company is now headed by Kris Gopalakrishnan. The income for the quarter ended June
30 2008 was Rs 4,854 crore (Rs 48.54 billion). The net profit stood at Rs 1,302 crore (Rs
13.02 billion).
Forbes magazine named Infosys in its list of Global High Performers. Waters magazine
rated Infosys as the Best Outsourcing Partner. The Banker magazine conferred two
Banker Technology Awards on Infosys to acclaim its work in wholesale and capital
markets in two categories - Payments and Treasury Services, and Offshoring and
Outsourcing.The International Association of Outsourcing Professionals (IAOP) ranked
Infosys at No. 3 in its '2008 Global Outsourcing 100'.
Infosys defines, designs and delivers technology-enabled business solutions that help
Global 2000 companies win in a Flat World. Infosys also provides a complete range of
services by leveraging our domain and business expertise and strategic alliances with
leading technology providers.
Infosys' offerings span business and technology consulting, application services, systems
integration, product engineering, custom software development, maintenance, re-
engineering, independent testing and validation services, IT infrastructure services and
business process outsourcing
Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive
force in the industry leading to the rise of offshore outsourcing. The GDM is based on the
principle of taking work to the location where the best talent is available, where it makes
the best economic sense, with the least amount of acceptable risk. Infosys has a global
footprint with over 50 offices and development centers in India, China, Australia, the
Czech Republic, Poland, the UK, Canada and Japan. Infosys has over 103,000 employees.

Infosys takes pride in building strategic long-term client relationships. Over 97% of our
revenues come from existing customers.
History
1981
 On July 2nd the company was incorporated as Infosys Consultants Private
Limited at Mumbai.
 INFOSYS was promoted by software professionals, Viz Mr. S. Gopalakrishnan,
Mr. K. Dinesh, Nandan M Nilekani, Mr. S.D. Shibulal, Mr. N.R. Narayana Murthy
& Mr. N S Raghavan.
1992
 On April 21st the name changed to Infosys Technologies Private Limited, and the
Registered office was moved to Bangalore.
 On June 2nd the company was converted into a Public Limited Company under
the name Infosys Technologies Ltd.
 The company has a joint venture in USA with KSA (Kurt Salmon Associates).
1993
 The Company turned up with ISO 9000 certification.
1994
 During the year marketing offices were opened in San Francisco, Cincinnati, New
York and Dallas.
 During the year company proposed to make a preferential issue of 7,50,000
warrants convertible into shares to the Infosys Technologies Ltd. Employees Trust
to form the basis of employee stock offer plan.
1995
 During the year the company established Yantra Corporation, a wholly owned
subsidiary in USA investing US $ 5,00,000 in the equity of the said subsidiary.
1996
 The company recorded six new installations of BANCS 2000 in Africa & Asia. A
new strategic business unit (SBU)-5 was added to concentrate on Internet and
Internet consultancy.

1997
 The Institute of Chartered Accountants of India awarded the Silver shield for the
Best-Presented-Accounts, amongst the entries received from the non-financial,
private sector companies for the year 1995.
 The readers of the well-known Asia Money magazine have voted the company as
India's best-managed Company for the year 1996. Company also won several
awards for export performance.
 In December, the Company announced its plans for an ADR issue up to US$ 75
million.
1998
 Received the Silver Shield from the Institute of Chartered Accountants of India for
the Best-Presented-Accounts, amongst the entries received from non-financial,
private sector companies, for the year 1995-96.
 The readers of Asia Money magazine, once again, voted Infosys the best in
Strategy and Management from among the listed companies in India, and among
the best in Asia, for the year 1996-97.
 BANCS 2000 received the CSI-WIPRO award for the Best-Packaged-
Application, in December 1997, at the SEARCC '97 Conference in Delhi.
 The Bangalore Stock Exchange rated the Company as the Best Regional Company
for all-round quality management, and as a company which gives top priority to
shareholder interests. The Company is the first to receive this award.
1999
 Alpha Data, a leading information services company in the UAE, has tied up with
Infosys Technologies to market and support banking software products from
Infosys in the UAE.
 Infosys Technologies has taken the American Depositor Receipts (ADRs) route
with the US public offering of 1,800,000 ADRs at $34 each. Infosys is the first
ever India registered company to be listed in the Nasdaq stock market in USA.
 Infosys Technologies Ltd chairman N R Narayana Murthy has been awarded the
first-ever Sir M Visvesvaraya Memorial Award, instituted by Federation of
Karnataka Chambers of Commerce and Industry (FKCCI)

2000
 During the year a new methodology and toolkit to port applications from OS/2 to
WINDOWS NT was developed.
 The Company it had tied-up with Japan's Toshiba Corporation to provide
enterprise resource planning (ERP) software solutions for Toshiba's business
processes.
 The Company has launched BankAway
 Tie up with Franklin Templeton Investments (FTI) for interactive information
infrastructure.
 The Company has launched Finacle an integrated, centralised, multi-currency and
multi-language-enabled and functionally rich banking solution to address retail
and corporate banking requirements.
 The Company has re-emerged as India's second most valuable company, replacing
the FMCG heavyweight, HLL.
 Microsoft Corporation and Infosys Technologies are joining hands to form an
alliance, marking the coming together of a global software giant and a wannabe
global information technology major.
2001
 Infosys Technologies has signed a MoU with the Andhra Pradesh Government for
establishing a software development campus at Hyderabad.
 The Company is setting up its biggest software development centre in Bangalore.
 The Company has been awarded silver shield for the best presented accounts
competition for the sixth consecutive year by the Institute of Chartered
Accountants of India.
 The Company has allotted 100 equity shares of par value of 5 per share to the
Bankers Trust Company, New York, the depository to the company's ADS issue as
underlying shares in respect of 200 ADR's to be issued and allocated to the
purchasers.
 Infosys Technologies is to set up its second software centre at Pune in Hinjewadi.
 Infosys Technologies Ltd. has entered the Canadian market with the inauguration
of its Toronto Global Development Center.

 Infosys and TCS have emerged as the leading Indian software exporters during
2000-01 clocking exports worth Rs 2,870.26 crore and Rs 1,852.94 crore,
respectively.
2002
 Receives Motilal Oswal Award for Wealth Creation for 1996-2001
 Mr. Nandan Nilekani becomes the new CEO of the company. Mr.
Narayanamurthy assumes the role of Chairman & Chief Mentor
 Airbus Industries hires Infosys for wing design
 Adjudged best Indian employer in a study conducted by Hewitt Associates and
Business Today
 Signs Joint Venture Agreement with Punjab National Bank for the implementation
of Centralised Banking Solution
 Ties up with Citigroup for formation of a new company, Progeon, for Business
Process Management (BPM)
 Nasdaq selects Infosys as the best value reporter
 Infosys abandones China offshore centre plan
 Aeronautical Development Agency (ADA) signs contract with Infosys for transfer
of Autolay Software
 RBI permits 100% FII purchase in Infosys
 Ties up with IBM for knowledge sharing arrangement
 Develops a process engine to demonstrate Business Process Modeling Language
(BPML) technology
 Implements `Balanced Score Card' (BSC
 Infosys and Sun introduce new revenue generating opportunities with retail
banking reference architecture
 Emerges as the country's most valuable company in market capitalisation
2003
 Infosys Technologies felicitated by SUN Microsystems with Strategic Partner
Award
 Wins order from US telecom service provider Sprint
 Infosys' brand valued at Rs 7,488 cr

 BusinessWeek ranks the company in the 74th place among the world's top 100
best performing infotech companies making it the only Indian company in the list.
 Infosys Technologies offers ADR, prices at $49 each
 Deploys Finacle at Jammu & Kashmir Bank
 Finacle emerges as the world's most scalable open systems based core-banking
solution
 Infosys & Oracle join hands to provide Pre-integrated solutions for Banks in Asia
Pacific
 Infosys Technologies has been alloted the highest governance and value
creation(GVC) rating of `CRISIL GVC Level 1.
2004
 Nandan Nilekani ranks 35th in the world business leaders
 Infosys gets ICAI award for the year '03
 Infosys, Microsoft and Intel join hands to provide Next Generation eBanking
solutions to banks in Philippines
 Suspends Esop scheme
 Infosys becomes first Indian listed IT firm to net Rs 1000 cr
 Infosys receives ISO 14001 Certification for Environmental Management System
 Oriental Bank of Commerce (OBC) has roped in Infosys and Wipro for
implementing its Rs 300 crore nationwide IT upgradation project
 Comes out with a bonus issue in the ratio of 3:1
2005
 Infosys Technologies and B-Source on June 29, 2005, announces partnership to
provide `pay-as-you-transact' services, known as Business Service Provisioning,
to European banks in the private and asset management sectors.
 Infosys Technologies and Microsoft Corp unveiled the Catalytic IT concept centre
at the Infosys campus in Bangalore on Nov 29.

3.1.4. Satyam Computer Services
Established in 1987 by Ramalinga Raju, Satyam has a staff strength of 51,000 employees.
In 2008, the company's revenues crossed the $ 2-billion mark.
'A simple, yet extensive management model to create value, which promotes
entrepreneurship, a focus on the customer, and the constant pursuit of excellence,' is the
company's mantra for success. In FY2008, its revenues saw a growth of 30.7 per cent to
Rs 8,473.49 crore (Rs 84.73 billion) compared to fiscal 2007.
The net profit stood at Rs 1,687.89 crore (Rs 16.87 billion), a growth of 20.2 per cent
over fiscal 2007. Satyam is among the youngest IT service companies to reach $1 billion
in annual revenues. It was ranked No. 1 in the ASTD (American Society for Training and
Development) BEST Award, 2007.
Unfortunately ,the 4th largest IT firm came under the 7000cr fraud scam by its founder
recently and was put in for bidding and successfully taken up by another leading IT
giant ,Tech Mahindra.

3.1.5. HCL Technologies
HCL is a leading global technology player with annual revenues of $4.9 billion. The HCL
Enterprise comprises two companies listed in India, HCL Technologies and HCL
Infosystems. Founded in 1976, HCL is one of 'India's original IT garage start ups'.
The HCL team comprises 53,000 professionals of diverse nationalities, operating across
18 countries. At a time when India had a total of 250 computers, Shiv Nadar led a young
team which passionately believed in the growth of the IT industry.
Three decades later, he succeeded in creating a $ 4.9 billion global enterprise. The
company has reported consolidated revenue of Rs 3017.5 crore (Rs 30.17 billion) during
the quarter ended March 31, 2008. The profit after tax stood at Rs. 81.5 crore (Rs 815
million).
HCL Technologies is a reputed name in the IT consulting domain. It offers services for
application and enterprise consulting, infrastructure management and product
engineering. The company provides solutions in financial services, hi-tech and
manufacturing, retail, media and entertainment, life sciences and telecom domain. It
manages customer contacts, technical support and other business processes. The company
benefits from its alliances with Microsoft, SAP, TIBCO and Oracle.
HCL Technologies has recently acquired Capital Stream, Inc., a US based industry leader
in lending automation solutions. It has partnered with Mark Logic® Corporation,
provider of the industry’s leading XML content server and with Advanced Electronics
Company (AEC) to implement IT projects in West Asia.
The company mentors its employees and gives equal opportunities for professional
growth. It believes in support, knowledge, recognition, empowerment and transformation

History
1991
 HCL Technologies Limited was originally incorporated on 12th November, as
"HCL Overseas Limited". The certificate of commencement of business was
received on 10th February, 1992. On July 14, 1994, the name of the Company was
changed to "HCL Consulting Limited". The Company changed its name to "HCL
Technologies Limited" on 6th October 1999 to better reflect the line of activities
of the Company.
 HCL provides new technology development services to its clients.
1996
 The 50:50 joint venture with Perot Systems Corporation in the year, provided
access to high value client base of Perot Systems.
 The Company has one of the largest software development infrastructures in
India. This state-of-the-art infrastructure, which comprises seven software
factories, is designed to take advantage of the high productivity and scalability as
well as the relatively lower cost of software development in India.
1998
 The Company started addressing the markets in Europe and Asia Pacific.
 The company has a rich heritage in technologies like the Internet and e-
Commerce, networking and internetworking, Internet telephony, telecom,
embedded software, ASIC/VLSI design and testing, satellite communication,
wireless communication and component based object technologies like COM,
DCOM and CORBA.
1999
 The company announced on November 11 that it has signed a five-year contract
with Gtech and Kla Tencor.
 HCL Technologies has created wholly-owned subsidiaries to cater to specific
geographic regions. Its major subsidiary is HCL Technologies America, 100 per
cent owned by the company.
2000
 The Company has set up a dedicated offshore development centre in Chennai for
KLA-Tencor Corporation.

 The Company will set up an offshore development centre for the $2.1-billion
semiconductor company, Conexant Inc, in India.
 HCL Comnet, a wholly owned subsidiary of HCL Technologies will invest Rs. 20
crore in the next one year to set up a network operation centre in Delhi and has
tied up with Hewlett Packard.
 HCL Infinet Ltd, the new Internet services subsidary of HCL Infosystems, has tied
up with UBS Publishers' Distributors Ltd.
 HCL Technologies has entered into a tie-up with BroadVision Inc.
 Goldman Sachs has rated Infosys Technologies and HCL Technologies as market
outperformers and amongst the best quality names in the industry.
 The Company launched the second Nokia professional centre in New Delhi,
second among the chain of centres planned by the company across the country.
 HCL Technologies Ltd will be acquiring about 40 per cent equity stake in an
Indian networking product company as part of its incubation programme.
2001
 The Company has signed a five-year strategic partner agreement, with NCR Corp.
to develop customer relationship management, store automation and payment
system.
 The Company signed an agreement with Toshiba Information Systems of Japan to
set up an offshore development centre in India, for the Japanese company.
 HCL Technologies has entered into a strategic alliance with Nasdaq-listed Vitesse
Semiconductor ot develop software solutions for global networking markets.
2002
 HCL Technologies Ltd on June 1, 2002 announced a 100% acquisition of Gulf
Computers Inc, USA.
 HCL Technologies Ltd announced the formation of a strategic technology joint
venture with Jones Apparel Group, Inc. Jones Apparel Group, Inc. a Fortune 500
Company.
2003
 Receives $160 ml BPO deal from BT Group, UK's telecom service provider
 Inks pact with Questa Corp. to provide implementation support for customer
projects

 Wins mandate from Airbus Industries for the development of embedded software
for the system data acquisition computer of the A-340 flight warning system
 HCL Comnet, a wholly- owned flagship of HCL Technologies, secures Rs 31
crore network management order from National Insurance Corporation (NIC)
 Partners with Magma Design Automation Inc. to offer expert design services for
leading edge integrated circuit designs
 Signs a multi- year, multi- million dollar collaborative IT co-sourcing contract
with AMD, a leading supplier of integrated circuits for the personal and
networked computer and communications markets
 Registered Office changed to Nehru Place, New Delhi
2004
 Has formally announced that it has bought out the 49.5 per cent equity shares of
erstwhile HCL Perot Systems (HPS) from their joint venture known as Aircom
HPS Wireless Services (AHWS).
 HCl Technologies Ltd has informed that the shares of the Company have been
delisted from Delhi Stock Exchange (DSE) wef January 23, 2004.
 HCL Tech Sets up Insurance Solutions Center in Chennai
 HCL Technologies has entered into a strategic tie-up with IBM Rational Software,
a division of IBM, to strengthen its software development capabilities.
 HCL Tech arm ties up with Cicada
 HCL Technologies named Microsoft Global Systems Integrator Partner
 BPO delivery centre in Chennai gets BS7799 certification, by the British
Standards Institute (BSI) on August 27, 2004
 Introduces CrosSView, a framework based Computer Systems Validation (CSV)
methodology for the development of robust software applications in the Life
Sciences arena.
 Delist from the Madras Stock Excahnge Limited (MSE) w.e.f. December 22,
2004.
2005
 Signs MoU with the "Supercomputing Facility for Bioinformatics and
Computational Biology" (SCFBio) at IIT Delhi to work collaboratively on high-

end projects in the area of drug discovery and development including genomics
and protemics projects.
 SEBI ties up with HCL Technologies for market surveillance solutions
 HCL Technologies forms joint venture with NEC, Japan
 HCL Technologies launches easy Labelling Solution for US FDA's SPL
 HCL Technologies & Talent & Pro enter into partnership to provide solutions in
Banking, Insurance & Financial Domain to Europe
 HCL Technologies & EXA, Japan announce strategic partnership
2006
 HCL Technologies Launches RoHS Compliance Management System For
Medical Device Users
 HCL enters $70 m outsourcing deal with Teradyne of US
 HCL Launches "Trusted ICT Infrastructure Platforms" for BPO-ITeS Segment
2007
 HCL Technologies has forayed into an alliance with $200 million Saudi Arabian
company Advanced Electronics Company (AEC) to implement IT projects in West
Asia.
 HCL Technologies Ltd on June 18, 2007 announced a US $15 million contract
with Alenia Aeronautica, to provide engineering services that will support the
improvement of the C-27J Spartan production line.
 HCL Technologies Ltd has announced that Vineet Nayar, President of the
Company will assume the CEO chair with effect from October 16, 2007. Shiv
Nadar will be the Chairman and Chief Strategy Officer of the Company.
2007
 The Company has issued Bonus Shares in the Ratio of 1:1.

3.1.6. Tech Mahindra
Tech Mahindra was incorporated as a joint venture between Mahindra & Mahindra and
BT plc in 1986 under the name of 'Mahindra-British Telecom'.Later, the name was
changed to 'Tech Mahindra', in order to reflect the diversification and growth of the client
base and service offerings. The company was incorporated in 1986. Tech Mahindra is a
global systems integrator and business transformation consulting firm focused on the
communications industry. At the helm of the fast expanding organisation is Vineet
Nayyar.
In a career spanning over 40 years, he has worked with the government, international
multilateral agencies and the corporate sector. Tech Mahindra's net profit rose 8.57 per
cent to Rs 196.4 crore (Rs 1.96 billion) on 6.09 per cent growth in net sale to Rs 911.6
crore (Rs 9.11 billion) in Q3 December 2007 over Q2 September 2007.
In 2007 the company launched the Tech Mahindra Foundation to address the needs of the
underprivileged, especially children. It acquired iPolicy Networks Private Limited which
develops next-generation, carrier-grade integrated network security solutions for
enterprise and service providers. It made public the implementation of an Adjunct Rating
solution at Zain (formerly MTC-Vodafone) in Kuwait. Tech Mahindra Limited (TechM)
also announced the creation of a Centre of Excellence for business service delivery
including solution design in Belfast, Northern Ireland. It was ranked as the third largest
BSS System Integrators in the world and the fifth largest overall BSS company in the
world by Gartner
Recently the firm acquired the fraud hit IT firm, Satyam. Under the SEBI (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997 (the "Takeover Regulations"),
Tech Mahindra will be required to make a mandatory cash tender offer to acquire an
additional minimum of 20% of the enhanced share capital and convertible instruments
(the 'public offer') at a minimum price of Rs 58 per share (or approximately $1.16 per
share based on the exchange rate of Rs 50 to the dollar).

The company provides a fast-paced career with global exposure to best business practices
and a chance to be at the forefront of cutting-edge technologies. One can find the best
environment for career development and progression. It is backed by a strong
performance culture and a fully automated in-house appraisal system ensure that your
career is chalked out and defined in line with your individual growth, and the overall
growth of the organization.
Tech Mahindra endeavours to create the best work place for people that would help
combine efficient work with a balanced life. We encourage our people to connect,
communicate and celebrate the essence of life along with work! The idea is to make Tech
Mahindra a home away from home.
With more than 23,000 skilled professionals onboard, Tech Mahindra offers exciting
career paths for all employees. Their work culture promotes customer focus, strong work
ethics, operational transparency and teamwork. Tech Mahindra believes in a feedback-
oriented culture for continuous improvement. This is done through regular employee
surveys, which garner feedback from all the stakeholders involved to achieve process
improvements. Initiatives like these lead to customer delight, externally as well as
employee skill improvement, internally.
History
2000
 Mahindra-British Telecom, a 60:40 joint venture between the Mahindra group and
British Telecom, shareholders approved a proposal to raise funds through an initial
public offer and an employee stock option plan.
 The Company and Silicon Automation Systems Ltd (SASL) has forged a strategic
alliance to develop solutions and product markets using the wireless application
protocol (WAP).
2001
 Mahindra-British Telecom and the US-based Rockwell Electronic Commerce
have entered into a 5-year strategic alliance and set-up a offshore software
development centre in the city involving total capital cost of $4.5 million.

2004
 Mahindra British Telecom (MBT) has signed a solutions partner agreement with
UK-based Cramer
 MBT has joined three International Systems Security Engineering Association
(ISSEA) as its corporate member
2005
 MBT launches new software for language conversion
 Cyclone Commerce join hands with MBT
2006
 Tech Mahindra's IPO shares will be priced between Rs 315 and Rs 365 a share
The company plans to raise up to Rs 465 crore through the issue, which offers
12.75 crore shares for sale.
 The initial public offering (IPO) of Tech Mahindra, a joint venture between
Mahindra and Mahindra Ltd and British Telecommunications PLC, was
subscribed 1.26 times on the first day of the issue.
 Motorola joins hand with Tech Mahindra to form CanvasM
2007
 Tech Mahindra Ltd has announced their participation in Microsoft's Connected
Services Sandbox.
2008
 Tech Mahindra Ltd has appointed Mr. M Damodaran as an additional Director of
the Company in the category of Non Executive Independent Director by Board of
Directors of the Company at their meeting held on July 22, 2008.
2009
 Tech Mahindra Ltd has appointed Mr. Ravindra Kulkarni and Mr. B H Wani as
Additional Directors of the Company in the category of 'Non Executive
Independent Director' by the Board of Directors of the Company on March 30,
2009
 Acquires 51% stake in the fraud hit Satyam Ltd.

3.1.7. Patni Computer Systems
Patni Computer Systems Ltd one of the leading global providers of information
technology services and business solutions. The company has clients across the Americas,
Europe and Asia-Pacific locations.. Patni Computer Systems Limited was incorporated on
10 February 1978 under the Companies Act, 1956. On 18 September 2003, the Company
converted itself from a private limited company into a public limited company.
The company headed founded by Narendra K Patni by has a staff strength of over 14,000
professionals. The revenues for the quarter ended March 2008 stood at $ 176.4 million
(Rs. 7,061.2 million) up 13.1% YoY from $ 156.0 million (Rs. 6,724.1 million). The net
income for the quarter at US$ 18.1 million (Rs. 724.6 million) down 35.0 per cent YoY
from $ 27.8 million (Rs. 1,200.3 million).Frost & Sullivan ranked Patni 1st among 'Top 5
Engineering Service Providers'.Patni Computer Systems Ltd. is involved in providing IT
services and business solutions. The company has a well-established team of 14,000
professionals spread across 21 sales offices situated in America, Europe and Asia-Pacific
and 19 global delivery centres. It has been rendering services to over 200 FORTUNE
1000 companies for over two decades.
The company introduced offshore development centres and was the first to develop
Follow the Sun development and support frameworks. Patni Computer Systems entered
into an agreement with Trillium Software to assess client’s data quality needs. It has
received the 'Golden Peacock National Training Award-2007, conferred by the Institute of
Directors. It also announced portfolio of Enablement Services to help independent
software vendors (ISVs) make the transition to Software as a Service (SaaS) platform.
The company provides its employees with the opportunity to carve their career path. It
has people-centric policies to establish a friendly and caring working environment. It has
a well-defined award and recognition ceremony to appreciate the efforts put in by its
employees. The company offers group mediclaim policy, personal accident Insurance and
life cover insurance and also conducts regular health check-ups for all employees above
the age of 35.

History
Patni Computer Systems Limited was incorporated as Patni Computer Systems Private
Limited on February 10, 1978 under the Companies Act, 1956. In 1988, by virtue of
Section 43A of the Companies Act, the Company became a "deemed public company"
and subsequently on April 15, 1991 it was converted into a private limited company. By
virtue of its turnover exceeding prescribed limits under the then-applicable Section 43A
of the Companies Act, on July 1, 1995, the Company became a deemed public company
and consequent to the deletion of Section 43A from the Companies Act, 1956, the
Company was converted to a private limited company on June 27, 2002. The Company
was again converted to a public limited company on September 18, 2003.
The original activities of the Company were computer time rental, the resale of imported
computer hardware, and software exports. In 1981, the Company promoted PCS Data
Products (Private) Limited ("PCSDP") for the sale and marketing of computer equipment
and hardware maintenance. In 1987, the Company promoted PCS Data General India
("PCSDG"), a joint venture with The Data General Corporation, USA, for the
manufacture and maintenance of computer hardware. In 1994, the name of PCSDP was
changed to PCS Industries Limited ("PCSIL") and PCSDG was merged into PCSIL.
Since 1994, the Company has been entirely focused on software exports. In 1999, the
shares of PCSIL held by the Company and other non-operating assets were de-merged
into other group companies and the Company emerged as a focused IT services company.
Patni Computer Systems Limited is a separate entity from PCS Industries Limited, which
is a group company.
2004
 Comes out with Initial Public Offering (IPO) of 18,724,000 equity shares in the
price of Rs 230 per share for a face value of Rs 2 each
 Inks MOU with the Birla Institute of Technology & Science [BITS], Pilani to
offer educational programmes to Patni employees through the 'BITS off-campus
Distance Learning & Collaborative Programmes' scheme.
2005
 Patni Computer Systems wins awards for excellence in corporate performance.
 Patni Computer launches Life New Business STP Solution.

3.1.8. i-flex Solutions
iflex started as a division of Citicorp (now Citigroup), wholly owned subsidiary called
Citicorp Overseas Software Ltd. (COSL) in 1991. Later, a separate company Citicorp
Information Technologies Industries Ltd. (CITIL) was formed and Rajesh Hukku was
appointed as its head.
CITIL started off with the universal banking product, MicroBanker which became very
successful. In the mid-90s, CITIL developed Flexcube at its Bangalore development
centre. After the launch of Flexcube, all of CITIL's transactional banking products were
brought under a common brand umbrella. CITIL changed its name to i-flex solutions to
reflect its growing independence from Citicorp and to strengthen its Flexcube brand.
In 2006, i-flex became a majority-owned subsidiary of Oracle Corporation i-flex posted a

top line growth of 8 per cent QoQ with revenue for the quarter ended March 31, 2008 at
Rs 672 crore (Rs 6.72 billion) as compared to Rs 601 crore (Rs 6.01 billion) for the
corresponding quarter during the previous year representing a 12 per cent YoY
growth.The net income for quarter stood at Rs 185 crore (Rs 1.85 billion) representing 73
per cent growth QoQ. The revenue for the full year ended March 31, 2008 stood at Rs
2,380 crore (Rs 23.80 billion), up 15 per cent as compared to the previous year.
I-flex provides IT solutions exclusively to the financial services industry. It offers a wide
array of products, IT services, consulting and knowledge process outsourcing services.
The company assists with banking applications, technology, restructuring structure
business etc. It offers process framework for Banking (iPFB™) and FLEXCUBE suite of
products. The company was initially known as Citicorp Information Technology
Industries Ltd. Most of its stakes are owned by Oracle. I-flex has been ranked amongst
the top 100 companies in Asia. It has secured alliances with Hewlett Packard, IBM, Intel,
Microsoft, Oracle and Sun Microsystems for business advancement. Its products -
FLEXCUBE Universal Banking Solution has been adopted by Chinatrust Commercial
Bank for its institutional banking business. Some of the happy customers of I-flex include
Banco de Chile, Citibank, the International Monetary Fund (IMF), Shinsei bank and UBS.
The work culture at I-flex is exciting, creative and different.

History
2001
 i-flex Solutions has announced that it will implement its FLEXCUBE Universal
Banking Solution for TEBA Bank, Midland, South Africa, across all branches
 This company was incorporated on September, 27, 1989 as Citicorp Information
Technology Industries Ltd., or CITIL, under the Companies Act. On March
30,2000, this company renamed themselves i-flex Solutions Limited in order to
create an independent brand name and build on the success of FLEXCUBE, their
flagship product brand.
2002
 Enters into joint venture with EBZ Online, a software company, through which I-
Flex's product, Flexcube, will be made available to cooperative banks
 IPO floor price fixed at Rs 530
 Makes trading debut on BSE
 Aptech teams up with I-Flex Solutions Ltd.
 i-flex and HP announce global alliance for hardware and software solutions to
financial institutions
2003
 Bags $200-mn contract from Citigroup
 Flexcube powered Client Level Asset Servicing (CLAS) System goes live at UBS
Warburg, London
 First Banking Corporation of Zimbabwe selects Flexcube
 Flagship product FLEXCUBE ranked the world's No.1 selling Universal Banking
Solution
 FLEXCUBE selected as Core-Banking Solution for Kotak Mahindra Bank
 Wins a major order from HypoVereinsbank Group (HVB Group), Germany
 During the financial year 2002-03, Polaris, i-Flex and Infosys record the fastest
topline growth among software companies
 Egyptian American Bank (EAB) selects FLEXCUBE as its core-banking platform
 Board approves 1:1 Bonus issue
2004
 i-flex awarded Golden Peacock National Quality Award

 i-flex-FLEXCUBE sets a new record for scalability, demonstrates lowest total cost
of ownership for large financial institute
 i-flex Solutions said that its core banking solution Flexcube had won The Banker
`Core Banking Solution of the Year" and "Application of the Year' awards
 YES Bank and I-flex solutions Ltd has signed Global Strategic Memorandum to
collaborate on technology led innovations to enhance quality and efficiency in
banking products and delivery processes
 i-Flex join hands with PeopleSoft to develop and market an integrated solution for
the banking industry
2005
 Enters into strategic alliance with Castek Software Inc., a Toronto based provider
of insurance systems for the global Property & Casualty (P&C) insurance
industry.
 I-flex solutions Ltd and EDB Business Partner ASA have entered into an
agreement to jointly offer comprehensive retail banking solutions to financial
institutions in the Nordic region
2006
 i-flex Solutions - HSBC signs agreement for FLEXCUBE Investor Services
Solution -i-flex Solutions Ltd has informed that Oracle and i-flexr Solutions has
announced certification of i-flex applications with Oracler Application Server 10g,
a component of Oracle Fusion Middleware.
2007
 i-flex Solutions & Oracle Announce Certification of iflex's FLEXCUBE with
Oracler Access Manager.
2008
 i-flex Solutions Ltd has informed that the name of the Company has changed from
"i-flex solutions Ltd" to "Oracle Financial Services Software Ltd".

3.1.9. MphasiS
MphasiS Limited was formed in June 2000 after the merger of the US-based IT
consulting company MphasiS Corporation (founded in 199 and the Indian IT services
company BFL Software Limited (founded in 1993).Jeya Kumar is CEO of MphasiS,
which has a staff strength of 27,000 people. For the year ended 31 March 2008, the
MphasiS Group recorded revenues of Rs 2,423 crore (Rs 24.23 billion), a growth of Rs
662 crore, which is 38 per cent over the previous year.The net profit increased by 42 per
cent from Rs 180 crore (Rs 1.8 billion) to Rs 255 crore (Rs 2.55 billion) during the year
ended 31 March 2008. MphasiS was named among amongst the Top 100 Companies in
Global Outsourcing.
3.1.10. L&T Infotech
L&T Infotech is a global IT services and solutions provider. It is a subsidiary company of

is Larsen & Toubro Ltd. (L&T), an engineering, manufacturing and construction
conglomerate, with global operations. Larsen & Toubro Infotech Limited, has identified
five thrust areas for global market place- financial services, manufacturing services,
communication and utilities- with a common- E- Commerce and ERP focus.
A M Naik is the chairman of the company. Originally founded as L&T Information

Technology Ltd (LTITL), a wholly-owned subsidiary of Larsen & Toubro Ltd (L&T), the
company changed its name to L&T Infotech on 1st April, 1997. In 2004, it tied up with
Fidelity Information Services, a division of Fidelity National Financial to provide banking
solutions for the Indian banking industry. In 2007-08, L&T had recorded revenues of Rs
29,600 crore (Rs 296 billion).

3.2 SIZE OF INDIAN IT INDUSTRY
The size of India's IT industry has grown significantly over the years. The size of this
sunshine industry of India grew from 150 million US Dollars to 50 billion US Dollars
between 1990-1991 and 2006-2007. The growth of the IT industry has been very high in
the last few years. The size of the Information Technology industry of India was 5.7
billion US Dollars in 1999-2000. After the turn of the century the industry experienced
exponential growth to reach the 50 billion mark by 2006-2007.
The size of the IT industry grew consistently during the period - 1995-2000
1995-1996 - 1224 million US Dollars
1999- 2000 - 5700 million US Dollars
According to the NASSCOM- McKinsey report on the IT industry of India, the projected
revenue of the IT industry of India for the year 2008 was 87 billion US Dollars. The
projected exports for the year 2008, according to this report, is 50 billion US Dollars.
Some of the important aspects of the NASSCOM- McKinsey report related to the size of
India's IT industry are –
There is potential of 2.2 million people being employed in the IT industry of India by the
end of 2008.Contribution of software and services to the total GDP of India will be more
than 7.5%.FDI (Foreign Direct Investment) of 4.5 billion US Dollars expected in the IT
industry by the end of 2008.35% of total exports from India will be from IT exports.225
billion US Dollars worth of market capitalization from IT shares.
Software and services are exported to about 95 companies from India. North America
accounts for 61% of the software exports from India. The projections about the size of
India's IT industry present a very optimistic picture. The industry is expected to grow to
double its current size by the year 2012. India's IT industry is expected to grow at an
annual average rate of 18% in the next five years. The industry is also expected to cross
the 100 billion US Dollar mark by 2011. One of the major areas of growth for the IT
industry of India is by tapping the potential in the domestic market. The IT industry of
India is largely dependent on the export market. Penetrating more into the domestic
market would create further opportunities of growth for the IT industry.

3.3 SOFTWARE INDUSTRY IN BUDGET 2008
The Union Budget of India for the year 2008-2009 was announced on 29th February
2008. Information Technology - the sunshine industry of India, has been registering
tremendous growth over the years. New budgetary allocation and new policies for the
development of the Indian software industries and its allied sectors was a major focus
area of budget 2008. The Indian Rupee appreciation factor and the rising wage issue have
been taken in to account during the latest Union budget of India.
The apex body- NASSCOM and the IT-BPO industry of India have responded positively
to the Union Budget 2008-2009.
The Department of Information Technology (DIT), under the Ministry of Information

Technology, Government of India has been allocated Rs 1,680 crores in 2008-2009.
Further, three new schemes have been announced for the development of IT in India. Two
schemes for the establishment of one lakh broadband Internet-enabled 'Common Service
Centers' in rural areas and another scheme called 'State Wide Area Networks' (SWAN)
have been announced. The former scheme is supposed to get assistance from the Central
government of India. A third scheme for the 'State Data Centers' has been announced with
a budgetary allocation of Rs 275 billion. The IT and ITES sector of India is expected to
benefit from increased spending on education as allocated in the Indian Union Budget
2008-2009, since this is expected to add to the present talent pool of India.
The tax regime for the Indian information technology sector has been broadened in the
Indian Union Budget 2008-2009. Customized Software will attract 12% service tax from
the financial year 2008-2009. Further, there has been an increment of Excise Duty from
8% to 12% for Packaged Software.
The Indian Union Budget suggests that there is huge potential for further growth of the
Indian software industry, since its share in the global market is still quite low. India
should leverage the knowledge extensive cheap labor force that it has to the fullest.
Outsourcing business is growing at a steady pace and huge growth opportunity still exists.
Particularly, areas like consulting, package implementation and systems integration holds
tremendous opportunity along with traditional areas like Software application
development and maintenance. The main concern for the Government is too much

dependence on US market which imports around 60% to 65% of Indian Software

Products. The back-lash against outsourcing jobs to India has further lessened
competitiveness amongst the clients. Further, high attrition rates due to dissatisfaction and
higher salary expectation is reducing profit margin of companies. Talent crunch is also
eating away profit, since a substantial amount of money is being invested in imparting
basic training. The present attrition rate of the Indian IT industry stands at 18%, which is
much higher in comparison to other Indian industry.
3.4 TOLERANCE FOR NON-PERFORMANCE SHRINKS TO ZERO IN IT

INDUSTRY
Before the global slowdown, India’s IT services companies constantly worried about
attrition rates and often lowered the bar on performance as a result. Over the past year,
though, the new term is “downsizing” — shrinking the employee base so that employee
costs match slower business growth. This fiscal, as the recession in the western markets
start biting, their tolerance for non-performers is down to zero.India’s second-largest IT
services company, Infosys, for instance, officially announced putting around 2,100 non-
performers under the scanner after the end of its annual performance cycle. India’s
leading IT services company TCS, too, admitted to telling 1,100 employees to pull up
their socks or perish. Now, Bangalore-headquartered Wipro, which derives a majority of
its revenue from IT-BPO services, announced that it put close to 7 per cent of its
employees in the list of non-performers in FY09 against 2 to 3 per cent in the previous
fiscal. This has affected almost 3,000 employees who have already been released from
their jobs, said officials.
Exit options
(The Big Four IT firms downsizing plans for 2009-10)
* Infosys puts 3.5% of its employees (excluding trainees and freshers) in the non-
performer category, from the earlier 2.3%
* Wipro puts around 7% of its employees (excluding trainees and freshers) in non-
performer category, from the earlier 2 to 3%
* TCS puts around 1% under the scanner FY10 may see around 200,000 people exiting,
with only 100,000 joining

Close to 200,000 IT employees are estimated to have quit by the end of 2008-09. Around
50,000 people are said to have left their companies involuntarily (voluntary attrition rates
have almost halved to around 7 per cent). Fiscal 2009-10, according to the HR head of a
leading IT services company, will be one of the toughest years for the Indian IT industry,
with only around 100,000 joining.
“For FY09, we probably have seen 5 to 7 per cent of our manpower employed with the IT
business being released, against 2 to 3 per cent a year back,” clarified Girish Paranjpe,
joint CEO of Wipro’s IT business. Admitting that performance criteria have now become
more stringent than they used to be, he added: “It is also as a result of the slowing
economy.”
“Performance management tools have been always used by companies to reward good
performers and weed out the bad ones. However, due to the significant growth over the
last few years, they were not enforced. With the industry facing the economic downturn,
it is using this tool fairly effectively. And it is being done all over the world,” explained
Som Mittal, president of software body Nasscom.Asked to comment on the estimated
200,000 exits this fiscal, Mittal said: “These numbers don’t matter that much. But I
believe there will not be too many additions this financial year. The IT industry already
employs 2.2 million people in India, which is fairly high.”
The scanner is not restricted to large-cap IT firms. HCL Technologies is a case in point.
Although the exact number of people who were asked to leave the company is not known,
the company had dismissed about 450 people in Delhi and Bangalore for non-
performance. The company is also reportedly asking the bench resources to take a salary
cut of 25 per cent or find projects from within the company, failing which they will be
asked to leave. Patni Computer Systems, too, is understood to have asked close to 500
people last year to leave. Infosys HR Head TV Mohandas Pai dubs the industry’s
unwillingness to accommodate unproductive staff “zero tolerance for non-performers”.
Companies are also not willing to give such employees extra time to improve. “Typically,
we allow such people to improve,” said S (Kris) Gopalakrishna, CEO and MD of Infosys
Technologies, adding: “But owing to the challenges and cost pressures, we cannot afford
to let them remain in the company.”

3.5 CHALLENGES BEFORE INDIAN IT INDUSTRY
At present there are a number of challenges that are facing the information technology
industry of India. One of the major challenges for the Indian information technology
industry was to keep maintaining its excellent performance standards. The experts are
however of the opinion that there are certain things that need to be done in order to make
sure that India can maintain its status as one of the leading information technology
destinations of the world. The first step that needs to be taken is to create an environment
for innovation that could be carried for a long time.
The innovation needs to be done in three areas that are connected to the information
technology industry of India such as business models, ecosystems and knowledge. The
information technology sector of India also has to spread the range of its activities and
also look at the opportunities in other countries.The improvement however, also needs to
be qualitative rather than just being quantitative. The skill level of the information
technology professionals is one area that needs improvement and presents a considerable
amount of challenge before the Indian information technology industry.
The Indian information technology industry also needs to co-ordinate with the academic
circles as well as other industries in India for better performance and improved
productivity. The experts are of the opinion that the business process outsourcing service
providers in India need to change their operations to a way that is more oriented to the
knowledge process outsourcing. One of the most important crises facing the Indian
information technology industry concerns the human resources aspect. The problems with
outsourcing in countries like the United States of America are posing problems for the
Indian information technology industry as well.
In the recent times a bill has been passed in the state of New Jersey that allows only the
citizens or legal non-Americans to be given contracts. This legislation has also affected
some other states like Missouri, Connecticut, Wisconsin and Maryland. These states are
also supposed to be considering these laws and their implementation. This is supposed to
have an adverse effect on the outsourcing that is the source upon which the information
technology industry of India thrives. The information technology professionals who aim

at working in the country are also likely to be hindered by the legislation as a significant
amount of these professionals have been going to work in the USA for a long time.
3.6 FUTURE OF INDIAN IT INDUSTRY
The current scenario in the IT industry of India and the tremendous growth registered in
recent years has generated much optimism about the future of the Indian Information
technology industry. Analysts are upbeat about the huge potential of growth in the
Information Technology industry in India.
The major areas of benefit that the future growth in the IT industry can generate for the
Indian economy are -
Exports - The IT industry accounts for a major share in the exports from India. This is
expected to grow further in coming years. The information technology industry is one of
the major sources of foreign currency or India.
Employment - The biggest benefit of the IT industry is the huge employment it generates.
For a developing country like India, with a huge population, the high rate of employment
in the IT sector is a big advantage. The IT industry is expected to generate employment of
2.2 million by the end of 2008 which is expected to increase significantly in coming
years.
FDI (Foreign Direct Investment) - High inflow of FDI in the IT sector is expected to
continue in coming years. The inflow of huge volumes of FDI in the IT industry of India
has not only boosted the industry but the entire Indian economy in recent years.
The Nasscom- McKinsey report on the IT industry of India projects that the Indian IT
industry will reach 87 billion US Dollars by the end of 2008. 2.2 million Employment is
expected to be created in the IT industry according to this report.
The report also projects 50 billion US Dollars of IT exports from India by the end of
2008.
Software exports from India are expected to grow in coming years. New markets for
software exports from India have opened up in the Middle East, South and Southeast
Asia, Africa, and Eastern Europe. The reputation that India has earned as a major
destination for IT outsourcing has opened further possibilities. Many developing

countries are now using the Indian model for growth in the IT sector. Another important
area of future growth for the IT industry of India is the domestic market. While exports
dominate the IT industry at present, there is huge scope of growth in the domestic market
which can be tapped in the future.
The US recession has had its share of negative impacts on the Indian IT industry.
However, the industry has faced the challenges posed by the global market and is
sustaining its rate of growth. The focus for the future is to ensure that the benefits of the
IT industry percolate to the grassroot levels.
3.7 CONTRIBUTION OF INDIA'S IT INDUSTRY TO ECONOMIC PROGRESS
The contribution of India's IT industry to economic progress has been quite significant.
The rapidly expanding socio-economic infrastructure has proved to be of great use in
supporting the growth of Indian information technology industry. The flourishing Indian
economy has helped the IT sector to maintain its competitiveness in the global market.
The IT and IT enabled services industry in India has recorded a growth rate of 22.4% in
the last fiscal year. The total revenue from this sector was valued at 2.46 trillion Indian
rupees in the fiscal year 2007. Out of this figure, the domestic IT market in India
accounted for 900 billion rupees. So, the IT sector in India has played a major role in
drawing foreign funds into the domestic market.
The growth and prosperity of India's IT industry depends on some crucial factors. These
factors are as follows:
India is home to a large number of IT professionals, who have the necessary skill and
expertise to meet the demands and expectations of the global IT industry. The cost of
skilled Indian workforce is reasonably low compared to the developed nations. This
makes the Indian IT services highly cost efficient and this is also the reason as to why the
IT enabled services like business process outsourcing and knowledge process outsourcing
have expanded significantly in the Indian job market.
India has a huge pool of English-speaking IT professionals. This is why the English-
speaking countries like the US and the UK depend on the Indian IT industry for
outsourcing their business processes.

The emergence of Indian information technology sector has brought about sea changes in
the Indian job market. The IT sector of India offers a host of opportunities of
employment. With IT biggies like Infosys, Cognizant, Wipro, Tata Consultancy Services,
Accenture and several other IT firms operating in some of the major Indian cities, there is
no dearth of job opportunities for the Indian software professionals.
The IT enabled sector of India absorbs a large number of graduates from general stream
in the BPO and KPO firms. All these have solved the unemployment problem of India to
a great extent. The average purchasing power of the common people of India has
improved substantially. The consumption spending has recorded an all-time high. The
aggregate demand has increased as a result. All these have improved the gross production
of goods and services in the Indian economy. So in conclusion it can be said that the
growth of India's IT industry has been instrumental in facilitating the economic progress
of India.
3.8 INDIAN IT-BPO INDUSTRY: OUTLOOK FOR 2009
The Indian IT-BPO industry has contributed significantly to the Indian economy, clocking
30 per cent growth year over year, over the last decade. While today, over two million
individuals are directly employed by the industry – another seven to eight million jobs
have been created downstream. With exports of USD 40.4 billion in 2007-08, the industry
today constitutes 25 per cent of the country’s exports.
Over the years, this industry has continued to expand geographically, added new service
lines and created new business models. Customers are serviced in over 80 countries and
significant amount of intellectual property and new products and solutions have been
created by the young and bright professionals. In some manners, the IT industry has also
become the face of the new vibrant India.
This growth has been contributed by Indian service providers, multinationals and a large
number of the global companies, who set up their research, IT, back-office operations and
centres of excellence in India. The industry has a large number of small and medium
companies – that are creating innovative solutions and new business models.
The recent global events which have led to an unprecedented economic crisis across the
world will impact the Indian IT-BPO industry in the short-term.

Over the years, the industry has helped improve the competitiveness of customers,
worked with them to reduce time-to-market and provided them access to high-end skills
and capabilities. These fundamentals have not changed. In fact, there would be an
increased importance of these factors in the coming years, given the shortage of tech
resources worldwide and the changing demographics.
Every downturn brings its own concerns but also with it, opportunities. With the growth
rate being moderate this year, companies would now focus on building domain expertise,
improving productivity and efficiency and finding ways and means of meeting increased
customer expectations. As management teams work on this, employees need to get even
more engaged, sharpen their own skills and help identify areas of improvement and value-
add. Given that globally, there are a large number of markets and verticals that are under
penetrated, the opportunity and scope is still large. The Indian domestic market is also
growing and offers a unique untapped opportunity.
Having said this, we still have inefficiencies in our system to overcome. The industry
continues to take the burden of generating its own power, providing public services like
transport and security as also huge training interventions for freshmen to make them
employable. The government, both at central and state level, has a significant role to
ensure that these inefficiencies are removed. There is need to build both physical and
social infrastructure. Having seen India’s success, several alternate global locations like
China, Philippines, Latin American and East European countries are vying for the same
pie. We cannot let this opportunity go. Given the multiplier effect on the economy,
providing tax concessions and other fiscal benefits would instill investor confidence and
ensure India remains the preferred location.
3.9 ‘GO GREEN’ MANTRA OF THE IT INDUSTRY
The word ‘green’ is catching up fast with IT companies. The Earth Day on April 22 only
served as another occasion for many IT companies to renew their pledge to conserve the
environment’s resources and save energy costs in the bargain. It’s also a good business
practice.

Today, 18 per cent of the organizations surveyed (Green Poll conducted by IDC in the
Asia-Pacific region) consider the greenness of the IT suppliers before making a selection,
and another 30 per cent are expected to do so in the near future, according to Reji Kumar
Pillai, head (Energy & Utility), IBM India.
A green data centre, for instance, can cut a typical data centre cost by half. It can also
protect the environment by reducing emissions that amount to taking 1,300 automobiles
off the road. Forrester has been virtualising and consolidating its server infrastructure, and
replacing power-hungry servers with lower-power models.Virtualisation allows the
utilization to increase by 30-40 per cent and costs — power, cooling, hardware — to
reduce by 30-70 per cent. Virtual servers also reduce carbon dioxide (CO2) levels
considerably.
Maharashtra-based Chitale Diary, for instance, consolidated its IT environment into three
physical servers (from 10) in one data centre. These servers host 20 virtual servers
running multiple applications and operating systems. With a virtualized environment, the
firm reduced hardware acquisition costs by 50 per cent, server deployment time came
down from three weeks to a few hours. And it brought in 50 per cent reduction in power,
cooling, and real estate.
IBM has committed over $1 billion to the Big Green Innovation initiative launched in
2007. The project focuses on intelligent energy (smart grids and alternative energy),
carbon management, water management, and computational modeling. Intel, on its part,
integrated ‘Design for Environment’ principles into its production.
The Climate Savers Computing Initiative (CSCI — co-founded by Intel and being led in
India by Nasscom, CII, TERI and WWF) works globally with manufacturers and
consumers to increase the energy efficiency of personal computers (PCs) and servers by
50 per cent with the help of power-management tools.
Globally, the aim is to reduce carbon dioxide (CO2) emissions by 54 million tonnes a
year and cut energy costs by $5.5 billion by 2010. Through this initiative, the information
& communications technology (ICT) industry has pledged to reduce its carbon footprint

by 40 lakh tonnes a year and save more than Rs 2,250 crore in energy costs, according to
Sonia Srivastava, director, corporate affairs, Intel.
Cisco, too, has engaged in a cross-industry effort and has launched Energy Wise, a
technology that makes it possible for businesses to reduce carbon emissions, by managing
energy consumption of devices on the network when they are not in use. It is celebrating
Environmental Awareness 2009 during the week beginning April 20. There will be a
series of global and local events centered around Earth Day, including Cisco Bike to
Work Day (BTWD).
Throughout the month of April, Applied Materials employees around the world will be
engaging in environment-friendly campaigns called ‘EarthWorks’. Activities ranging
from park clean-ups to information sessions called ‘green bags’ will be conducted.
Applied Materials is also encouraging its employees worldwide to participate in the “Do
One Thing” challenge, where employees are encouraged to take any individual green
initiatives, whether it’s riding a bicycle to work or recycling batteries. At the end of the
month, Applied Materials will plant a tree for each employee who participates.
India’s third largest IT company Wipro, for instance, recently signed a Memorandum of
Understanding with WWF to collaborate in several areas of sustainability like the
application of IT solutions to ecological sustainability. “This programme is in its initial
stages and is expected to quickly gather momentum in 2009,” says Brij Sethi, vice-
president and Evangelist Eco-Eye at Wipro Technologies.The company also has a paper-
recycling plant, a biogas plant for converting food wastes as well as a water recycling
facility which also includes rain water harvesting. “We recycle water to the extent of 50
per cent in some of our facilities,” adds Sethi.
Similarly, HCL Technologies Infrastructure Services Division (HCLT ISD) has developed
a Green Datacentre solution on this Earth Day. The solution focuses on datacenter
management and transformation services and helps enterprises cut their costs by 20-30
per cent on their datacentre operations by assessing, planning and implementing
initiatives around their datacenter environment. “Moreover there is also an upcoming 46-

acre facility housing 15,000 HCLites in finely landscaped, eco-friendly buildings,” notes
Swapan Johri, senior vice-president, Transformation Services, HCLT ISD.
Some companies are focusing on energy conservation and others on e-waste. For
instance, IT firm Sapient has tied up with Recyclecartridge.org to re-cycle printer
cartridges. Explains Atul Shagotra, director general (management), Sapient: “We plan to
have more tie ups going forward. Also, we procure our products from Green suppliers.”
Employees, too, are being encouraged to save energy costs by switching off lights and air-
conditioners when not in use and making use of car pools. However, some firms have
used innovative methods of encouraging their employees.

TABLE 4.1 Contributions to Company Hours
Respondents Percent Valid Percent
Valid large extent 48 48.0 48.0
some extent
52 52.0 52.0
Total 100 100.0 100.0

Source : Primary
Data
INTERPRETATION & INFERENCE
48% of the respondents state that they are able to contribute to their company set hours
affectively to a large extent and 52% to some extent , implying that the company set hours
are satisfactory for them to contribute effectively.
From the above interpretation it is clear that most employees in software companies are
content with the work hours set by their employers since they are able to contribute
effectively during the preset hours.

FIGURE 4.1

TABLE 4.2 Productive Time Shift
Valid morning shift 47 47.0 47.0
afternoon shift 17 17.0 17.0
Flexible 36 36.0 36.0 Source :

Primary Data
Total 100 100.0 100.0
47% of the respondents prefer the morning shift to the afternoon shift to be more
productive . None favor the night shift. 36% of the respondents feel that flexible time
shifts are productive indicating that they can flexible timings can be equally productive.
Only 17% preferred the afternoon shifts.
Of the various time shifts provided by software firms, it can be seen that employees prefer
the morning shift. Hardly any preferred the evening shifts. Flexible work schedule can be
seen gaining preference as it can be seen many employees opting for flexible work
schedules.
FIGURE 4.2 Productive Time Shift


TABLE 4.3 Satisfaction with Work-Family Balance
large extent 48 48.0 48.0
some extent 44 44.0 44.0

Valid
low extent 8 8.0 8.0
Total
100 100.0 100.0
Source : Primary Data
From the graph it is clear that majority of the respondents are content with their work-
family balance in spite of stress factor surrounding software companies. 48% are satisfied
to a large extent with their work-family balance. 44% stated they are satisfied upto some
extent only whereas only 8% stated they were satisfies to a low extent.
Even though IT employees are said to be under work related stress and pressure, it can be
seen from the above interpretation that most of them largely satisfied with the work-
family balance. This may be due to various reasons such as the work hours, work culture
etc.

FIGURE 4.3

TABLE 4.4 Factors Affecting Performance
JD 19 19.0 19.0
remuneration 6 6.0 6.0

Valid
work culture 67 67.0 67.0
work timings 8 8.0 8.0
Total 100 100.0 100.0
67% of the respondents state that work culture is the major factor influencing employee
performance. Only 8% stated the importance of work timings whereas 19% gave
importance to the Job Description. 6% stated that remuneration is an important factor
determining performance.
From the above interpretation it is clear that work culture play an important role in the
performance of employees. This may be a reason why software firms are now a days
promoting good work cultures in their companies. Also job description is another
performance determining factor. Flexible work schedule has also gained importance as
one of the performance determining factors.

FIGURE 4.4 Factors Affecting Performance

TABLE 4.5 Increase in Employee Productivity

Valid
Total 100 100.0 100.0
65% of the respondents stated that flexible work schedules can increase employee
productivity to a large extent indicating the importance of flexible work schedules in their
daily work life.31% stated that it increases employee productivity to a large extent
whereas only 4% stated that it increases to a low extent.
It can be seen that flexible work schedule does play an important part in the day to day
activities of an employee since its been found that flexible work schedule can increase
employee productivity.

FIGURE 4.5 Increase in Employee Productivity

TABLE 4.6 Commitment to Work

Valid
Total 100 100.0 100.0
74% feel that flexible work schedule can make them committed to their work to some
extent only. Commitment can help bring in greater productivity among employees.9%
feel that a low level commitment can be brought about whereas 17% feel that
commitment can be brought about to a large extent.
Flexible work schedule does help increase employee’s commitment to his work as it can
be seen from the above interpretation. This in turn adds to the gaining importance of
flexible work schedule. However , few stating it has only a minor effect on commitment
may be due to the fact that flexible work schedule not being effective in their firms.

FIGURE 4.6

TABLE 4.7 Increase in Quality of Work

Valid
low extent 18 18.0 18.0
not at all 6 6.0 6.0
Total 100 100.0 100.0

Only 6% feel that flexible work schedule will not increase quality of work whereas more
than half of them feel that it increases the equality of work to some extent. Whereas 9%
feel that flexible work schedule can increase the quality of work to a large extent and 67%
feel it increases upto some extent. Only 18% feel the effect is to a low extent.
Again, it can be seen flexible work schedule not only affects commitment and
productivity, but also quality of the work. However few did state that it has no or very
less impact on quality of work. This may be due various other factors which has not been
studied in this research.

FIGURE 4.7

TABLE 4.8 Cut Down Costs

Valid
low extent 43 43.0 43.0
not at all 34 34.0 34.0
Total 100 100.0 100.0
Majority of the respondents feel that flexible work schedule will not have much effect on
the costs to the company. Only 10% feel it can cut down costs to a large extent.13 % feel
it can cut down costs to some extent whereas 43% stated that it can cut down costs to a
low extent. 34% stated it cannot help in cutting down costs.
From the employee’s point of view, flexible work schedule does not cut down the
company costs. A few stated it did bring down costs.

FIGURE 4.8

TABLE 4.9 Increase Employee Performance

Valid
low extent 12 12.0 12.0
not at all 1 1.0 1.0
Total 100 100.0 100.0
70% of the respondents stated that flexible work schedule can increase employee
performance to some extent. This indicates that flexible work schedule has some impact
on the performance of employees. 17% stated that increases employee performance to a
large extent whereas only 12% stated that the effect is to some extent. Only 1% stated that
it does not increase employee performance at all.
Performance of employees can be increased through flexible work schedule. Majority of

the employees felt so. This clearly shows the role and importance of flexible work
schedule on the performance of employees. Flexible work schedule can be taken in as an
important part of their work.

FIGURE 4.9 Increase Employee Performance

TABLE 4.10 Extent of Motivation in Employees

Valid
not at all 21 21.0 21.0
Total 100 100.0 100.0
Even though 21% stated that flexible work schedule has no impact as a motivating factor
among employees, 63% stated that it has some impact as a motivating factor. A 16%
stated that the extent of motivation is to a large extent.
Motivation to some extent can be brought about in employees through flexible work
schedule. The above interpretation states so. There are various other factors influencing
employee motivation. Flexible work schedule can be considered as one of them.

FIGURE 4.10

TABLE 4.11 Extent of Retention in Employees

Valid
not at all 39 39.0 39.0
Total 100 100.0 100.0
It is seen from the analysis that more than 50% feel that flexible work schedule has some
role in the retention of employee. However 39% stated that flexible work schedule has no
role in retention of employees. 7% stated that it helps in employee retention to a large
extent.
As in the case of motivation, flexible work schedule brings in retention of employees to

some extent even though a good number of them stated that it has no role in retention of
employees in a firm.

FIGURE 4.11

TABLE 4.12 Effectiveness of Flexible Work Schedule

Valid
low extent 33 33.0 33.0
not at all 31 31.0 31.0
Total 100 100.0 100.0
Only 6% of the respondents stated that flexible work schedule is effective in their firms to
a large extent. 30% stated that flexible work schedule is effective in their firms upto some
extent whereas 33% stated that its effective to a low extent. 31% stated that its not
effective at all.
From the above interpretation it can be seen that even though firms employ flexible work
schedule, it has not been effectively implemented in most companies. Only few stated
effective implementation of flexible work schedule in their companies.

FIGURE 4.1

TABLE 4.13 Age of Employee * Productive Time Shift Cross tabulation
Productive Time Shift
morning shift afternoon shift flexible Total
20-30 Count 42 7 33 82
% within Age of Employee 51.2% 8.5% 40.2% 100.0%

Age of Employee
31-40 Count 5 10 3 18
Total Count 47 17 36 100


It can be inferred that 51% of the employees within the age group 20-30 prefer morning
shifts and 40% prefer flexible times. Only 8% preferred the afternoon shifts. None
preferred the night shifts. Around 56% of the employees of the age group 31-40 find the
afternoon shift to be more productive. 40% of them belonging to the age group 21-30 feel
that flexible timings are more productive.
It can be seen that employees within the age group 20-30 has a good preference for
flexible work schedule. Employees of the age group 31-40 gave a higher preference for
the afternoon shifts. They did not favor the morning shifts or the flexible work schedules.

TABLE 4.14 Age of Employee * Increase in Productivity *Gender of the Respondent
Increase in Employee Productivity
Gender large extent some extent low extent Total
20-30 Count 12 32 1 45
31-40 Count 3 5 1 9
Male Age of Employee
20-30 Count 14 22 1 37
31-40 Count 2 6 1 9
Female Age of Employee


71% of the male respondents within the age group 20-30 feel that flexible work schedules
increase employee productivity to some extent whereas only 22% of the female
respondents belonging to the same age group feel that it can increase productivity to some
extent. Of the total 9 male respondents of the age group 31-40, 5 stated that flexible work
schedule increases employee productivity to some extent.
Both the male and female employees of the age group 20-30 felt that flexible work
schedule increases employee productivity to some extent. Employees within the age
group 31-40 did not have much preference for flexible work schedule as a factor
influencing employee productivity. From this it can be inferred that flexible timings is one
of the important factor deciding the performance of employees within the age group 20-
30.

Increase Employee Performance
Gender large extent some extent low extent not at all Total
20-30 Count 9 27 8 1 45
% within Age of Employee 20.0% 60.0% 17.8% 2.2% 100.0%
31-40 Count 1 8 0 0 9
% within Age of Employee 11.1% 88.9% .0% .0% 100.0%
Total Count 10 35 8 1 54
20-30 Count 6 29 2 37
31-40 Count 1 6 2 9

TABLE 4.15 Age of Employee * Increase Employee Performance * Gender of the respondent Cross tabulation


An equal percentage of employees within the age group 31-40 feel that flexible work
schedule can increase employee performance to a large extent. 20% of the male
employees within the age group 20-30 feel that flexible work schedule increases
employee performance to a large extent. 89% of the male employees within the age group
31-40 feel that flexible work schedule increases.
78.4% of the female employees within the age group 20-30 feel that flexible work
schedule increases employee performance to some extent. Whereas only 5.4% of the
female employees within the same age group feel that the effect is limited to a low extent.
66.7% of the female employees within the age group 31-40 feel that support the fact that
flexible work schedule increases employee performance to some extent whereas 22%
states its only to a low extent.
From this it can be inferred that flexible work schedule helps increase employee
performance to some extent in both male and female employees of both age groups.

TABLE 4.16 Age of Employee * Extent of Motivation in Employees * Gender of the respondent Cross tabulation
Extent of Motivation in Employees
Gender large extent some extent not at all Total
20-30 Count 9 28 8 45
31-40 Count 2 5 2 9
20-30 Count 3 25 9 37
31-40 Count 2 5 2 9


9% of the male respondents within the age group 20-30 feel that flexible work schedule
plays a greater role in motivating employees whereas 2% of the female respondents
within the same age group feel that it has no role at all. Both male and female employees
within the age group, 55.6%, felt that extent of motivation was upto some extent only.
More than 60% of the male and female employees within the age group 20-30 felt that
motivation was to some extent through flexible work schedule. It can be inferred from
this table that both the male and female respondents feel that flexible work schedule has
only some role as a motivating factor in employees. Nearly 20% of both male and female
employees of both age groups stated that flexible work schedule had no effect at all on
motivation.

TABLE 4.17 Age of Employee * Extent of Retention in Employees *Gender of the respondent Cross tabulation
Extent of Retention in Employees
Gender large extent some extent not at all Total
20-30 Count 6 26 13 45

31-40 Count 0 5 4 9
% within Age of Employee .0% 55.6% 44.4% 100.0%
20-30 Count 1 21 15 37

31-40 Count 0 2 7 9
% within Age of Employee .0% 22.2% 77.8% 100.0%



Nearly 60% of the male employees within the age group 20-30 felt that flexible work
schedule helps in retention upto some extent only. Female employees of the same age
group, nearly 60%, also had the same response. None male and female employees of the
age group 31-40 supported that flexible work schedule helps in retention to a large extent.
It can be seen that employees within the age group 31-40 did not consider flexible work
schedule as a factor influencing employee retention in companies. Flexible work
schedules seem to be favored among the employees of age between 20-30. They feel that
it can help in retention to some extent.

TABLE 4.18 Age of Employee * Effectiveness of Flexible Work Schedule * Gender of the respondent Cross tabulation
Effectiveness of Flexible Work Schedule
Gender large extent some extent low extent not at all Total
20-30 Count 4 18 14 9 45

31-40 Count 0 1 3 5 9
% within Age of Employee .0% 11.1% 33.3% 55.6% 100.0%
20-30 Count 2 11 12 12 37

31-40 Count 0 0 4 5 9
% within Age of Employee .0% .0% 44.4% 55.6% 100.0%



40% of the male employees in the age group 20-30 stated that flexible work schedule was
effective in their organization to some extent only. 35% of the male employees within the
age group 31-40 were also of the same view. Of the 9 male and female employees within
the age group 31-40, equal number of them were of the view that flexible work schedule
was effective upto a low extent in their firms. An equal number also stated that it was not
effective at all.
None of the male and female employees within the age group 31-40 stated that flexible
work schedule was effective to a large extent in their organizations. The majority of the
male employees of the respective firms were of the view that flexible work schedule was
effective to some extent and the female employees were of the view that it was not
effective in their organizations. From this it can be inferred that flexible work schedule is
not much effective in most firms.

TABLE 4.19
Observed N Expected N Residual
large extent 17 25.0 -8.0
low extent 12 25.0 -13.0
not at all 1 25.0 -24.0
Chi-Square Test Statistics
Chi-Square 113.360a
Df 3
Asymp. Sig. .001
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 25.0.
INTERPRETATION
Chi-Square value = 113.36
Degrees of freedom = 3
Pcal = 0.001
INFERENCE
Since Pcal < 0.05, the null hypothesis is rejected. i.e. alternate hypothesis is accepted.
i.e. Flexible work schedule does have an effect on the performance of employees in
software companies.

TABLE 4.20

not at all 21 33.3 -12.3

Chi-Square 39.980a
Df 2
Asymp. Sig. .010
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 33.3.
INTERPRETATION

Pcal = 0.010
INFERENCE
Since Pcal < 0.05, the null hypothesis is rejected. i.e alternate hypothesis is accepted.
i.e Flexible work schedule does have an effect on the motivation of employees in
software companies.

TABLE 4.21

not at all 39 33.3 5.7
Total 100

Chi-Square 34.580a
Df 2
Asymp. Sig. .03
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 33.3.
INTERPRETATION

Pcal = 0.03
INFERENCE
Since Pcal < 0.05, the null hypothesis is rejected. i.e alternate hypothesis is accepted.
i.e Flexible work schedule does have an impact on the retention of employees in software
companies.

5.1 FINDINGS
 The respondents were mainly of the age groups 20-30 and 31-40. None were
above 40.
 52% of the respondents said they were able to contribute effectively to some
extent with the timings set by the company.
 None of them stated of being not able to contribute during the company hours.
 47% preferred the morning shift to other. However, 36% believed a flexible time
shift to be more productive.
 None of them preferred the evening shifts.
 Majority of the respondents were happy with their work-family balance. Only a
few, 8% were dissatisfied with the balance.
 67% of the respondents stated that they consider work culture as the major factor
affecting employee performance.
 An interesting 20% gave importance to job description.
 More than half the respondents stated that flexible work schedule can increase
employee productivity.
 4% stated it had only a low impact on employee productivity.
 More than 65% felt that flexible work schedule can increase their commitment to
work as well as quality of their work.
 6% felt that flexible work schedule had no effect on the quality of their work.
 More than half of them stated that flexible work schedule cannot bring down the
costs to the company.
 70% stated that flexible work schedule can improve employee performance to
some extent.
 More than half stated flexible work schedule as a good motivating and retention
factor to some extent.
 However, a good percentage also did believe that it has no role as a motivating
and retention factor.
 Company set hours were found to be productive and effective for majority of the
respondents.
 30% stated that flexible work schedule is effective to some extent in their

organization whereas majority stated its either not effective or effective to a low
extent.
 54% of the respondents were of the view that flexible work schedule helps in
employee retention to some extent.
 39% stated that it had no role in the retention of employees
 However 7% stated it had a large impact on employee retention.
 Majority of the respondents , 63% were of the opinion that flexible work schedule
helps in motivating them to some extent and 16% stated that the motivation was to
a large extent.
 However 21% sated that it had no effect at all in the motivation of employees.

5.2 CONCLUSIONS
 Flexible work schedule was seen to have a growing impact on their work
schedule.
 Work timings and remuneration were seen to have least impact as performance
boosters.
 Many stated flexible work schedule as a motivating and retaining factor.
 However, work culture seemed to have a greater impact on employee
performance.
 Eventhough the firms employ flexible work schedule, majority of the respondents
were of the opinion that it was not very effective in their organizations.
 A few however stated that it was effective to some extent. Most male employees
were of this opinion.
 Remuneration though was found not to play a significant role as it thought to be.
 The employees felt that flexible work schedule could not bring down the costs
incurred to the company.
 Flexible work schedules were found to be more influencing among employees of
the age between 20-30.
 Employees within this age group considered flexible work schedule to have some
impact on their performance, retention, productivity as well as in motivating them.
Through the study it can be seen that flexible work schedule is gaining importance in
the software industry to bring about better results to both the employee and the
organization as a whole. It is seen that flexible work schedule does have an effect on
the performance of employees, motivating factor and also helps in retention.

5.3 SUGGESTIONS
 Flexible work schedules needs to be implemented more in software companies. It

helps in improving employee performance and productivity.
 Flexible work schedules can help cut down costs if implemented properly and
effectively.
 Flexible work schedules are being greater importance among employees, hence
firms should effectively implement it.
 Both male and female employees should be given equal importance while
deciding flexible work schedule.
 Majority of the employees preferred morning shifts. Since this cannot be given to
all employees, firms should adopt flexible work schedules, which will help
employees to come for work which they find more productive and least tiring.
 Not all employees may be able to come in for morning or afternoon shifts, hence
the importance of flexible work schedule comes in.
 Eventhough firms employ flexible work schedule, it was seen that they were not
implemented effectively in most firms since majority of the employees were of the
same view.

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Effectiveness of Flexible Work Schedule on the Performance of Employees

1.1 PEOPLE & THEIR WORK PLACE

Managing people is increasingly a complex phenomenon. Market expands globally,

The IT industry, being a knowledge-based sector, requires a workforce that is highly

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In recent years a growing interest among concerned professionals in bringing about

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1.1.1 What People Want From Work?

 Work is about the Money

Employee recognition is limited in most organizations. Employees complain about the

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An effective employee recognition system is simple, immediate, and powerfully

The quality of the supervision an employee receives is critical to employee retention.

Frequent employee complaints center on these areas.

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 failure to hold scheduled meetings, and

 The perception of fairness and equitable treatment

 Opportunities to learn and grow in their careers

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 Threaten an employee's job or income

1.2 FLEXIBLE WORK SCHEDULE

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1.2.1 WHAT ARE COMMON USES OF A FLEXIBLE WORK SCHEDULES?

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 Matching employee work hours to peak productivity time periods.

1.2.2 WHAT ARE SOME BENEFITS OF A FLEXIBLE WORK SCHEDULE?

 Reduced commuting fuel costs.

1.2.3 WHAT ARE SOME DISADVANTAGES TO A FLEXIBLE WORK

Other disadvantages occur should also be considered, including:

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1.2.4 WHO DECIDES IF AN EMPLOYEE CAN HAVE A FLEXIBLE WORK

1.2.5 IMPLICATIONS OF FLEXIBLE WORK SCHEDULE

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benefit from a cafeteria approach to scheduling arrangements, including family leave,

1.2.6 Employer Benefits of Flexible Working

Attract Skilled & Motivated Staff - Retain Talent

Motivate & Energized Staff

Increased Employee Satisfaction

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Increased Management Skills

Reduced Operating Costs

Improved Business Performance

Good For Small Business

Reduces Business Expenses

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2.1 STATEMENT OF THE PROBLEM

2.2 OBJECTIVES OF THE STUDY

 To study the effectiveness of flexible work schedules on the performance of the

 To study the role of flexible work schedules as a motivating factor.

2.3 HYPOTHESIS OF THE STUDY

 Hypothesis 1 - Ho: Flexible work schedule has no significant effect on the

 Hypothesis 3 - Ho: Flexible work schedule has no effect as a motivating factor in

2.4 METHODOLOGY OF THE STUDY

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2.5 METHOD OF ANALYSIS

 Calculation of simple frequency to understand the response to my questionnaire.

The graphical tools used in the study were

2.6 SCOPE OF THE STUDY

2.7 SIGNIFICANCE OF THE STUDY

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2.9 PLAN OF THE STUDY