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Satyam: An end-to-end IT services provider
Satyam Computer Services Ltd. (NYSE: "SAY"), is an end-toend IT solutions provider. It operates in 57* countries, with a customer base of over 570* global companies, including over 165* Fortune 500 corporations. Satyam's highly skilled, dedicated IT professionals, its subsidiaries and Joint Ventures provide customized IT solutions for several industries using a range of technical expertise and experience.
Satyam's range of expertise • • • • • • • • • • Software Development Services Engineering Services Systems Integration ERP Solutions Customer Relationship Management Supply Chain Management Product Development Electronic Commerce Consulting IT Outsourcing
Industry Verticals • • • • • • • • • • • • • Automotive Banking & Finance Services Energy & Utility Government Healthcare Insurance Manufacturing Non-Profits Process Industry Real Estate & Construction Retail Telecom Travel & Transportation
Satyam's subsidiary Satyam Infoway provides Internet Access & Hosting services and Network & Network-enabled services. Satyam's BPO subsidiary Nipuna provides a host of Business Process Outsourcing services. Satyam’s range of consulting and IT skills has helped businesses re-engineer and reinvent their products, services and processes to compete successfully in an everchanging marketplace. Satyam's state-of-the-art software development centers in India, the USA, the UK, the UAE, Canada, Hungary, Singapore, Malaysia, China, Japan and Australia* work with a variety of business and technology partners to design and implement projects onsite, offshore and offsite.
The organization emphasizes on acquiring an in-depth knowledge of the customer's context and needs, and designs solutions fine-tuned to these needs. S
satyam's ideas and products have resulted in technology-intensive transformations that have met the most stringent international quality standards. Simultaneously, Satyam teams proactively work on turning new ideas into products that answer global market needs. One such product is Vision Compass, a web-enabled collaborative enterprise management software. Satyam has developed strategic alliances with leaders in several technical areas. Through a web of over 90* technology and business partnerships, Satyam offers clients comprehensive, cutting-edge solutions. Satyam’s SEI CMM® Level 5 assessment reflects its commitment to Quality processes and products.
Satyam: A customer-centric organization
Satyam's organizational structure is inspired by a unique concept –the Network of Circles. Each Circle offers a specific set of business offerings based on its competency profile. The result is an internal culture where new ideas are nurtured and acted upon and new competencies developed. This way Satyam continuously provides services right across the IT value chain. At the center of the Network of Circles is the customer, whose business requirements are the driving force. Accordingly, the Circles are categorized as: • • • Verticals Business Units (Based on the customer’s line of business) Horizontal Competency Units (Based on competency requirements) Regional Business Units (Based on the regions the unit operates)
It believes that creators of business value must constantly look for ways to use this value to fulfill a larger social responsibility.Satyam's processes are oriented to give the organization a sharp insight into customer needs. Knowledge Dynamics Pte. Education. Street Children and Slum Development. an umbrella organization that brings together committed Satyam Associates. Environment. semi-urban and rural areas. Ltd Joint Ventures .CUSTOMER PHILOSOPHY Satyam's organizational structure reflects our commitment to making the customer the driving force of our all our initiatives. Satyam Computer Services ( Shanghai) Co Ltd Citisoft Plc. SUBSIDIARIES AND JOINT VENTURES Satyam has several subsidiaries and Joint Venture companies that provide solutions in niche areas. their spouses and other family members as volunteers. Satyam's Five Cs Approach • • • • • Communication Collaboration Competency enhancement Customer intimacy Competitive edge CORPORATE SOCIAL RESPONSIBILITY Satyam's Community Outreach Program Satyam believes that wealth creation is incomplete unless it contributes to the well-being of society. Livelihood. Satyam works through Satyam Foundation.As a larger expression of its mission and core values. Satyam Foundation works in the areas of Health. Satyam acts on these inputs and translates them into solutions for the customer. Subsidiaries • • • • • Nipuna Services Limited Satyam Technologies Inc. Thus reaffirming its role as contributing members to the social and economic milieu. HIV/AIDS. Satyam is actively involved in a variety of public service projects serving underprivileged groups in urban.
GDCs. An innovative organization. Ltd. ISO 9001: 2000. eSCM) Global presence (Operations in 57* countries across 6 continents) Long lasting customer relationships (Nearly 80 % of repeat business) Flexible engagement models (RightSourcing delivery model. emerging as the preferred IT services provider for major global business corporations. Landmarks • • • • • • Pioneered the IT Offshore Development concept in India First established a satellite link for communicating with client sites Developed the unique RightSourcing delivery model Established India Development Centers for clients First to have acquired BVQI’s ISO 9001:2000 certificate Developed eSCM model for ITES/BPO space with Carnegie Mellon University and Accenture Advantage Satyam • • • • • • • • • • • World class processes (SEI CMM® Level 5. THE SATYAM EDGE Satyam: The preferred IT services provider With nearly a decade-and-a-half of experience in servicing global MNCs and Fortune 500 clients with end-to-end IT services. IDCs. JVs) Evolved competency and solution-based services Technology-led innovator Experience in serving top-notch customers that include four of Top 10 Fortune 500 corporations Strong Domain knowledge Highly qualified IT professionals State-of-the-art infrastructure Offshore advantage . Satyam has come a long way. Satyam has been a pioneer-of-sorts in the Indian IT industry.• • Satyam Venture Engineering Services Pvt. solutions and products. CA Satyam ASP Pvt. Ltd.
These ‘new workplaces’ are characterised by ‘flat’ and non-bureaucratic organisational structures. informal relationships. offer relatively non-hierarchical work cultures. With competition for talent intensifying. employee-friendly human resource policies. the need to retain key employees has gained weight. .A PROFILE OF INDIAS SOFTWARE INDUSTRY The global IT services market is estimated to be worth around US$ 570 billion in 2003. India has competition from the likes of China and Southeast Asia as other outsourcing destinations. The strength of the Indian software is indicated by the fact that the Indian software and services exports have managed to grow by around 26%-28% over the past few years despite the economic downturn that swept worldwide markets. The IT industry has contributed substantially to the rapid economic growth and cultural transformations that have taken place since the 1990s. drawing young people into a global industry that is very different from anything India has seen before. and flexible management policies. both Indian and MNC. thereby providing high-value services to its clients.3%. which create high levels of stress. WORK CULTURE AND MANAGEMENT As a global industry with strong connections with American companies. as India has become more integrated into the global economy. the growth potential for the sector continues to be immense. But at the same time. as per Gartner's estimates. attractive working environments and high salaries. the rapid growth of this industry has produced visible and not-so-visible social and cultural transformations in cities such as Bangalore. altering the urban landscape and creating previously unimaginable pockets of wealth and avenues for geographical and social mobility within the urban middle classes.2 billion stands at a mere 3. The booming IT industry (including software services outsourcing and IT enabled services) has become emblematic of the success of the liberalisation agenda in India and of the ongoing process of globalisation. As such. the Indian software services and BPO industries have introduced novel management systems and work cultures into the Indian workplace. India's market share with estimated exports of US$ 12. emphasis on teamwork. the advantage of low employee costs could dry out and the sector could get commoditised. the industry is known for its high-pressure work atmosphere and long working hours.000 jobs in a short span of time. Moreover. employee dissatisfaction. Going forward. Besides. It generated about $ 23 billion worth of annual export earnings in 2005 and has creating about 800. While cost leadership has been the competitive edge of the Indian software sector over the years. Increasing competition and pressure on billing rates are among the key reasons forcing the Indian software industry to make a fast move up the software value chain. this seems to be threatened now by multinationals that are replicating the Indian outsourcing model and setting up bases in the country. Most IT companies. and high attrition rates.
Although IT and ITES companies employ these ‘soft’ management techniques to a large extent. and adding value to one’s resume through work experience. These trends have made IT work increasingly mechanical and routinised. several aspects of the work culture of the IT industry itself promotes this pattern of high mobility. While there is considerable variation across the different sectors of the IT and among companies (especially between Indian companies and multinationals). which in the long run benefits the IT industry. and explain the general lack of interest in unionisation or collective action in this industry. Indirect forms of control derive from contemporary management theories in the West. These factors mitigate against possible conflict between employees and managements. software engineers tend to move into management positions at a young age. The IT work culture encourages an ethos of individualism in which employees seek career development primarily by jobhopping. and the like. contributing to the high attrition rates for which the industry is known. Moreover. direct methods of monitoring and control are becoming more prominent as the work process has become increasingly ‘process-driven’. and that they are well-paid technical and white collar jobs. employability and career growth depend on continually improving one’s ‘skill sets’ to keep up with rapid changes in technology. . and when they are not satisfied with their jobs they vote with their feet.. Software services outsourcing companies as well as business process outsourcing companies (BPOs) employ a mix of ‘direct’ and ‘indirect’ or ‘normative’ methods of organisational control. Such methods include the creation of a strong corporate culture and organisation into teams. This pattern contributes to the fluidity of the software labour market and the pattern of labour flexibility. thus individuals are responsible for developing their careers. there are also common patterns that can be identified. these ‘knowledge workers’ do not see themselves as ‘labour’ in the classical sense. the relationship between management and employees is different from that in ‘old economy’ industries. because computer programming and backend business services are defined as ‘knowledge professions’. due to the fact that the educational. and are advocated as more humane and employee-friendly than the direct methods of bureaucratic control typical of large ‘old economy’ companies. While software and BPO companies struggle with high attrition rates and design novel HR policies in order to retain employees. This trend is due primarily to the trend towards standardisation of software production process based on quality certifications such as the CMM Level Five. which in turn erodes job satisfaction and may lead to the deskilling of the workforceIn the IT and ITES industries. social class and age difference between employees and managers is minimal. Employees tend to deal with managements as individuals. often by changing jobs. and the modular system of software development used by most large services companies. In the software industry. certifications.
In fact. apart from performance-based bonuses. Our own recent survey of 1028 software professionals from 14 Indian software companies. Being a knowledge-based industry.. their value-addition to the organization was more important. and are setting up Manpower Allocation Cells (MAC) to assign 'the right project to the right person'. Further. some are even helping employees with their personal and domestic responsibilities to satisfy & motivate their workforce! Attracting the Best Talent In a tight job market. offering 'the best salaries in industry' is the minimum every company is doing. People?a Gartner group company specializing in management of human capital in IT organizations?has observed that the average tenure for an IT professional is less than three years. and reward factors contribute to attracting the best talent?one having the right blend of technical and person-bound skills. job. Money was a prime motivator for 'starters'. the support of learning and training. a high intellectual capital lends competitive advantage to a firm. Many organizations frequently conduct employee satisfaction and organization climate surveys. Intellectual capital comprises human capital and intellectual assets?the latter being any created bit of knowledge or expertise. This would mean a knowledge of 'the tools of the trade' combined with conceptualization and communication skills. the use of new technologies. many organizations often experience precipitous and simultaneous demands for the same kinds of professionals.HR Challenges in the Indian Software Industry Software is a wealth and job creating industry. leadership and team building. In such a seller's market. In their quest for manpower. The Indian software industry has burgeoned. and a challenging environment ranked higher than competitive pay structures as effective retention practices. they are cajoling talent around the world. The Indian software industry suffers from a shortage of experienced people such as systems analysts and project managers. Monetarily.. With a global explosion in market-opportunities in the IT sector.. which has in just a few years. employing millions of professionals worldwide. . grown to US $ 1 trillion. and stock options. long-service awards. technological obsolescence and employee turnover. Retention and Motivation Retention and motivation of personnel are major HR concerns today. the shortage of manpower both in numbers and skills is a prime challenge for HR professionals. showed that while the professional gave importance to personal and cultural job-fit. showing a nearly 50% compounded annual growth rate over the recent years.. The related issues are varied indeed: recruitment of world-class workforce and their retention. but for those into their third or fourth jobs. compensation and career planning.. creativity and innovation. HR managers believed that the key to retention was salary and career satisfaction. and attracting them is a key HR challenge. capacity for analytical and logical thinking. software companies are striving to understand which organizational.
Being ?the best place to work with? As with any other professional. performance and value-addition. although compensation is not the motivator in this industry. innovation. values are determined and shared throughout the organization. emphasis is now on profit sharing (employee stock option plans) or performance-based pay. and care and consideration for people. competencies. quality. and the 'project-environment' (as opposed to ?product environment?) has added new cultural dimensions to these firms. Typically. teamwork. The global nature of this industry. open and informal culture. Skills. Flat structure. and flexi-timings are some of the norms software firms follow. This pressurizes HR teams to devise optimized compensation packages.Compensation and Reward Increasing demands of technology coupled with a short supply of professionals (with the requisite expertise) has increased the costs of delivering the technology. what really matters to software professionals is selecting 'the best place to work with'?which is what every company is striving to be. and commitment supercede loyalty. hard work and length of service. competence. authority based on expertise and ability rather than position. with the result that software companies have moved from conventional pay-for-time methods to a combination of pay-for-knowledge and pay-for-performance plans. keeping in view the long-term organizational objectives rather than short-term production-based bonuses. This makes incentive compensation a significant feature. competitiveness. With the determinants of pay being profit. customer service. areas in which values are expressed are: performance. The idea is to make the work place a 'fun place' with the hope of increasing loyalty and commitment. In a value-driven culture. .
the IT sector will need 1. Fellow of the Carnegie Mellon University. but found that 72 per cent of their existing staff lacked the skills needed in these technologies. as well fresh. Software professionals themselves expect their employers provide them with all the training they may need in order to perform not only in their current projects. The other major areas of concern for HR personnel in this context are. but also in related ones that they may subsequently hold within the organization. an organization needs to be customer responsive. motivation. (1999) has projected the shortage of software professionals to be one million by 2006. Consequently. the HR professional as a strategic partner needs to encourage a culture of superior quality to ensure customer satisfaction?the only real measure of quality of a product or service. trainable science graduates. and effectively linking with suppliers and vendors to build a value chain for customers. and 14 per cent were not even re-trainable. The shift to a customer focus redirects attention from the firm to the value chain in which it is embedded. Up-gradation of Skills through Re-training Rapid and unpredictable technological changes. The HR professional is expected to be a strategic partner contributing to the success of business plans. quality is of utmost importance for the Indian companies. organizational effectiveness. a survey reports that 75 per cent of US companies planned to reengineer their applications using newer technologies. it is predicted that in the year 2004 itself. recruitment managers are exploring new sources of IT manpower from non-IT professional sectors. Integrating HR strategy with Business Strategy The strategic HR role focuses on aligning HR practices with business strategy.95. management of change. As observed by Watts Humphrey.70. W. matching resources to future business requirements. HR practices within a firm should consequently be extended to suppliers and customers outside the firm.Coping with the Demand-Supply Gap Shortage of IT professionals is global in nature and not peculiar to the Indian software industry alone. which earn most of their revenues through exports. quick decision-making. NASSCOM 1996-2001). This trend will continue. and in the year 2010 almost 3. leading an industry in price or value. With globalization and rapid technological change. which to a great extent depend on HR policies pertaining to recruitment. For India. Strigel. In fact. "?as software .000 professionals. and the increased emphasis on quality of services are compelling software businesses to recruit adaptable and competent employees. Hence. To be competitive today. founder of Software Productivity Centre Inc. Employee attitudes correlate highly with customer attitude. Responsiveness includes innovation. and reward.000 IT professionals will be required (Strategic Review Reports. and employee development Encouraging Quality and Customer focus Today?s corporate culture needs to actively support quality and customer orientation. retention.
which they believe will increase organizational effectiveness. jobs will become short term. As business partners. On the basis of the new learning they want to work in higher segments of software value chain. they do not necessarily gain motivation. and want work to be exciting and entertaining?a trend that requires designing work systems that fulfill such expectations. they may abruptly lose interest and seek an immediate change". but also on how to reinvent careers when the loyalty of the employees is to their 'brain ware' rather than to the organization. And when the rate of technological change is high?may be higher than the time required to acquire competence in one area? professionals could undergo psychological turbulence owing to the need to work in a new technology throughout their career. they need to adopt an all-embracing approach to understanding organizational issues. as innovators. As interventionists. they would reinvest their gain back into their work. They want to gain new knowledge. and their effect on people. which will be utilized by their organization. and the opportunities and threats facing the organization. Therefore. motivate and retain key 'knowledge workers'. . Finally. Today's high-tech employees desire a continuous up-gradation of skills. HR practitioners must also play a proactive role in software industry. This is because a creative engineer or scientist who has learned how to accomplish something has little interest in doing it again.professionals gain competence. a new concept of career and human resource management is bound to emerge. they should introduce new processes and procedures. Once they have satisfied their curiosity. In Conclusion With the advent of a work situation where more and more companies are having to concede that their valued employees are leaving them. As strategists. they need to be aware of business strategies. As employees gain greater expertise and control over their careers. With lifetime employment in one company not on the agenda of most employees. The focus of this new paradigm should not only be to attract. constant up-gradation of employee skills poses yet another challenge for HR personnel. HR professionals require to achieve integration and fit to an organization's business strategy.
In such a situation.The cost of replacing an employee is estimated as up to twice the individuals annual salary and this does not include the cost of lost knowledge Hence Satyam felt that a study on employee retention was needed to understand ways in which they can improve retention . the average attrition rate faced by the software industry is somewhere around 30-35 percent. This means that while there is plenty of supply at the entry level . This has resulted in increased levels of poaching and attrition cases.54 million graduates pass out of the country’s educational institutions).000 engineering students and 1. Presently.it is important to retain the best employees. not all are ‘industry-ready’ or equipped with the necessary skill sets to become useful to the companies.there are huge gaps in the middle management and senior management levels.NEED FOR STUDY While India does have a large talent pool (annually 167.
OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE To study the extent of Employee Retention at satyam development centre Bangalore and identify the factors affecting the same SECONDARY OBJECTIVE • To collect and analyse the perceptions of the internal employees on the various factors affecting employee job satisfaction which inturn affects retention of employees like Working condition Opportunity of growth Rewards and recognition Sensitivity of the company to the employee needs Team work and support from the reporting managers Performance appraisal process Training and development programs To collect and analyse the perceptions of the employees who left the company on the reasons and factors which forced them to leave the organization To study about the various retention strategies adopted by different organizations in different sectors • • .
They felt that the negative responses given would have an impact on their own jobs. .LIMITATIONS Not much response was received for exit interviews There may be a bias in the employees responses received from the internal interviews conducted with the current employees.
e. The total sample size taken for exit interview was 100. employees who were handling projects in telecom. .But the sample size considered was 25. Thus it is descriptive in nature. and for the internal interviews employees who have a work experience of 1 year or more were set as the sampling frame from which the sample population was randomly chosen.RESEARCH METHODOLOGY RESEARCH DESIGN The study is carried out to determine the level of employee retention in a particular vertical business unit called TIMES.(employees who left the company the previous year). sectors of satyam development centre Bangalore. infrastructure. entertainment.In the second phase survey was done on the current employees to find their satisfaction level and to improve retention.i. as the objectives were clearly mentioned when the study was conducted SAMPLING DESIGN the first phase of the project exit interviews were conducted. media. SAMPLING TECHNIQUE In The sampling technique used was simple random sampling as the employees were picked randomly who falls into a time frame of 1 year of exit. A sample size of around 20 employees were considered for this which included 5 senior managers and the rest 15 employees with work experience of 1 yr or more with satyam.
DATA COLLECTION PRIMARY DATA The primary data for the exit interviews were was collected through mailers and the data for the internal interviews on the current employees was collected through face to face interviews SECONDARY DATA The secondary source of data collection was through the use of internet and reference books. ANALYTICAL TOOLS USED Simple percentage analysis Spss analysis .
• The employees feel that a more informal atmosphere should be brought in and also the transportation timing should be more flexible according to their working hours. .ANALYSIS &INTERPRETATION Perception of employees about the working conditions in satyam RESPONSES VERY SATISFIED SATISFIED DISSATISFIED VERY DISSATISFIED FREQUENCY 26 24 0 0 PERCENTAGE 52% 48% 0% 0% FREQUENCY 0% 0% VERY SATISFIED 48% SATISFIED 52% DISSATISFIED VERY DISSATISFIED INTERPRETATION • From the above table we infer that around 52%employees are very satisfied with the working conditions and around 48% employees find the conditions just satisfactory. • As far as the working atmosphere of Satyam is concerned the employees are more or less satisfied with it.
PERCEPTION OF EMPLOYEES ON THE OPPORTUNITIES FOR CAREER GROWTH RESPONSES very good good satisfactory poor FREQUENCY 22 15 13 0 PERCENTAGE 44% 30% 26% 0% FREQUENCY 0% 26% very good good satisfactory poor 44% 30% INTERPRETATIONS • About 44% of employees feel that there is a very good opportunity for growth in terms of career in satyam.Some of them could make significant growth in their career as they got plenty of opportunites and so they are highly satisfied • There are around 30% of employees who feel its good and around 26% who feel its satisfactory • The employees are highly satisfied that they have a lot of onsite opportunities coming their way which they are very happy about since they get a lot of exposure. .
They are very happy with the present processes .they feel that they are not recognized for a good work done at the right time and the rewards are not satisfactory There are around 56% people who are very happy with the recognition process and they feel that they are being rewarded by the pat on the back awards for the good work done.PERCEPTION OF EMPLOYEES ON THE REWARDS AND RECOGNITION RESPONSES very good good satisfactory poor FREQUENCY 3 25 15 7 PERCENTAGE 6% 50% 30% 14% REWARDS AND RECOGNITION 14% 6% very good good 30% satisfactory 50% poor INTERPRETATIONS More than 40% employees are not happy with the rewards and recognitions given by the company.
PERCEPTION OF EMPLOYEES ON THE TRAINING AND DEVELOPMENT CONDUCTED BY SATYAM RESPONSES very good good satisfactory poor FREQUENCY 3 24 21 2 PERCENTAGE 6% 48% 42% 4% TRAINING AND DEVELOPMENT 4% 6% very good 42% 48% good satisfactory poor INTERPRETATION .
They feel more knowledge sharing should be there between the different circles within the company.• More than 40% of employees feel that the training and development program can be improved in the sense more programs could be implemented which can really help their work easier and which they can apply in their current job.They feel the training timings should be more flexible and a need of more practical exposure .
PERCEPTION OF THE EMPLOYEES ON THE PERFORMANCE APPRAISAL PROCESS CONDUCTED BY SATYAM RESPONSES very satisfied satisfied dissatisfied very dissatisfied FREQUENCY 4 9 21 6 PERCENTAGE 10% 23% 52% 15% PERFORMANCE APPRAISAL PROCESS 15% 10% 23% very satisfied satisfied dissatisfied very dissatisfied 52% INTERPRETATION • This is one process on which employees expressed a whole lot of dissatisfaction .
.They feel that the process could be improved as they feel that the normalization process that goes into this procedure is not fair and they are not getting what they deserve even after giving their best to their job.They feel that when they raise some requests.• .Satyam should bring about some change in this area PERCEPTIONS OF EMPLOYEES ON HOW SENSITIVE IS SATYAM TO EMPLOYEES NEEDS AND PROBLEMS SENSIIVITY TO EMPLOYEE NEEDS 27 26 25 24 23 YES NO FREQUENCY INTERPRETATION About 48% employees feel that the company needs to be more responsive to their problems and needs.they don’t get quick responses. FREQUENCY PERCENT • This is highly YES 26 52% demotivating and NO 24 48% could be seen as one TOTAL 50 100% of the major factor for employees leaving the firm .
they feel that there should be more interactions and meetings with them to increase the comfort level of employees .PERCEPTIONS OF EMPLOYEES ON THE TEAM WORK AND THE SUPPORT FROM THE REPORTING MANAGERS RESPONSES very good good average bad FREQUENCY 24 15 1 0 PERCENTAGE 59% 38% 3% 0% TEAM WORK AND SUPPORT FROM REPORTING MANAGERS 3% 0% 38% 59% very good good average bad INTERPRETATIONS • • • Majority of the employees surveyed are very happy about the team they work in and the support given by the project lead and the supporting managers They feel the reporting managers are very friendly .understanding and guide them very well in their project There were some employees who expressed dissatisfaction about their relationship with the reporting managers.
All the employees are very happy and satisfied with the team they work in and specified that they received good support from their superiors .They feel that the normalization process is unfair and is not consistent or uniformly applied based on their performance Relationship with the team mates and the support from the project leads and the reporting managers is appreciable.FINDINGS The main finding from the exit interviews is that majority of the employees left the organization due to lack of recognition and growth opportunity Employees both the current employees as well as the employees who left the company feel that the company should improve its annual performance appraisal process.
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