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″ HR Practices and Organizational Strategies in select IT companies in India”
Submitted in partial fulfillment for the Award of degree of Master of Business Administration
Submitted By: KHUSHBU ZINDAL, Shriwastav MBA Part I (2 SEM) 2010 - 2011 Submitted To:Mr. Amit
MAHARISHI ARVIND INSTITUTE OF ENGINEERING & TECHNOLOGY, JAIPUR
CERTIFICATE FROM COLLEGE
To whom so ever it may concern
This is certifying that KHUSHBU ZINDAL has prepared this report titled “HR Practices and Organizational Strategies in select IT companies in India” based on this project study. This project is her original work & it is submitted for the fulfillment of the MBA Degree.
Wish her Good success for her future career.
I express my sincere thanks to Mr. Amit Shriwastav for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project.
(Signature of Student)
TABLE OF CONTENTS s.no . 1 INTRODUCTION . 2 OBJECTIVES AND SCOPE . 3 LIMITATIONS TO THE STUDY . 4 THEORETICAL PERSPECTIVE . i. INDUSTRY ANALYSIS OF THE IT SECTOR ii. PROCEDURE FOR SOFTWARE EXPORT iii. GOVERNMENT INITIATIVES iv. QUALITY ASPECTS v. COMPETITIVE POSITION vi. 2. EDUCATION AND TRAINING INDUSTRY : vii. 3.INTERNET SERVICE PROVIDER viii.4. INTERNET ix. 5. E-COMMERCE x. STRENGTHS xi. THREAT xii. COMPANY ANALYSIS xiii.ONWARD TECHNOLOGIES LTD xiv.MASTEK LTD. xv. ATOS ORIGIN xvi.HR PRACTICES AND ORGANIZATIONAL STRATEGIES 1 METHODOLOGY & PROCEDURE OF WORK . 2 ANALYSIS OF DATA . 3 FINDINGS . Particulars Pag e No
SWOT ANALYSIS INTRODUCTION
India has the largest pool of manpower, second only to the US. According to a study conducted by the National Association of Software and Services Companies (NASSCOM)-quantity of skilled knowledge workers in India seems to be a non-issue, and it would be so atleast for another couple of years. The arithmetic out of 1.22lakh engineering graduates qualifying every year in India, about 73,000 are software engineers from IITs and other RECs. Thus, around 73,000 fresh software engineers are expected to be available annually. Total demand for software professionals during the next couple of years is estimated at 1.40 lakh. Against this, India is expected to have a pool of 1.46 lakh software engineers. Besides, quite a few Indian universities have started courses leading to Masters in computer Applications and there are private Training Institutes which offer high level software engineering courses. According to an AIMA survey, 60% of the IT Companies have a written job description of all levels of employees. The rest 40% either have a partly written job description or they donot have anything written at all making it difficult for both the employee and the employer. Most CEOs site lack of skilled professionals as one of the major hindrances to growth in the Indian Software Industry. Reputed software companies might get people at the base level but getting somebody with an experience of more than 4-6 yrs is a problem. The problem of retention was more prevalent in the telecom, IT and the Services sector than manufacturing and traditional sector. When asked about employee retention, the majority among HR
retention levels have either increased or remained same due to better compensation. where the key motivator is the lure of U. but large companies with lower growth rates had acute problems in retaining their employees. the individual department was responsible along with the top management. OBJECTIVES & SCOPE OBJECTIVES: The boom in the information technology revolution has been rising during the recent past and is expected to go on for many years to come. In all industry segments.S market. no matter what industry . healthy competitive environment. the HR Department was strong whereas in mid-sized companies. It was felt that employee retention was a collective responsibility of the HR department. the employee attrition rates at the junior level were on the higher side compared to that at the top management level. Large companies with growth rate higher than 10% did not face serious retention problems. But the case is not so with the IT sector. Attracting the best professionals is never easy. higher profitability of the company. Studied over the last two years. Data shows that in companies with more than 1000 employees. top management and individual departments in an ascending order with the HR Department having the maximum and individual department having minimum accountability. and good working conditions.professionals of IT felt that it was all about retaining good people in the company and creating such situations for the non-performing employees that they quit on their own.
Attracting and retaining talent has become a Herculean task in this sector. Factors favoring retention. This is especially true in the case of the IT industry where the attrition rate has been the highest. Constraints faced by the organization in implementation of retention strategies. In the present condition it is becoming vital to employ quality human resources for optimum performance and increasing efficiency of an organization.segment we consider. The average stay of a software consultant in any given in any given IT company is not more than two years which has further dropped down . It also looks at how this brain drain can be reduced and what methods can be adopted to retain the knowledge worker in the company. The project focuses on 1. 6. The importance of retention in the IT companies. Effectiveness of the methods used to retain people. The objective of this project has been to find out the major causes of employee turnover in the IT companies. 5. 4. 3. 2. Innovative methods adopted by companies to retain people. SCOPE: The Scope of the study regarding Human resources practices and organizational strategies in select it companies in India in the present market scenario. Most effective methods to find the cause of turnover.
So it is imperative for organizations to frame their practices and strategies in such a manner so as to employ. where companies are fighting to combat global business competition. 3. and benefit quality human resources for a considerable period so that they be conducive in reaping profits for the organization efficiently. with skilled professionals being poached or choosing to change jobs. and struggling to survive. employee turnover comes as a double blow. The present skill crisis has caused a panic in the employment market. Although. Information Technology sector is gaining a significant boom after a long recessionary period and skilled and experienced candidates have again started diverting to the area of IT. Presently skilled candidates are more hurriedly changing their jobs from one concern to another. The attrition rate in the industry is at an all-time high. 2. There is a high volatility in recruiting and retaining candidates since new candidates are not enough trained and educated. In such a scenario. even for big players. LIMITATIONS TO THE STUDY Limitations are hereunder described as: 1. The scenario is becoming worse. Since IT sector is rising but a low rate leading to low interest in the sector by skillful candidates who are changing their area of . HR managers in India are realizing that employee retention is a Herculean task for the IT industry.to one year. retain. Companies are facing “double-edged sword-to recruit and to retain talent”. This trend is likely to continue and even accelerate as more companies suffer erosion while business demands continue to escalate.
field or interest to another prospective field. 5. Each changeover has been marked by emergence of technologies that have dramatically increased the number of IT users and applications riding a new wave of growth. 6. THEORETICAL PERSPECTIVE INDUSTRY ANALYSIS OF THE IT SECTOR The IT industry has so far witnessed three major changes. Elements of the previous period remained. HR practices and organizational strategies are not sufficiently followed and training and development stills in waiting process to embark a good performance from a newly recruited candidate. Also there is a heavy losses being measured in IT companies which further losen interest among newer candidates. 7. The pay package is considerable falls down as well as senior relationship is rather harsh than amicable. Therefore new candidates seldom finds difficult to adjust in such situation since their induction is not properly undertaken. but new technology was the . 4. Another limitation is imposed by rising inflation which has created havoc by risen upto 12%.
magnitude’ growth in the number of users. the number of applications and IT industry revenues. The third period which began some 20 years ago. videoconferencing. The Internet era provides another opportunity to grab leadership positions.time interaction etc. real. Companies. which are quick to react and take the initial lead. In the second period mini computers led the IT growth and helped automate several business processes. is the Internet era or the wired market era. The wide and instantaneous reach of Internet. This fueled an’ order-of. belonged to the PCs and client server technologies. establish corporate identity. Already the corporates are using the Internet to deliver product information. will grow faster than those who fail to do so. Players Indian software industry has a mix of a few large companies and several small to medium sized companies.not only in the IT sector but several other industries as well. which enabled manufacturers to widen and deepen the market. First generation entrepreneurs. The fourth period. Apart from e-mail. provide customer service. This would obviously require selling at still lower price points and revamping current distribution strategies and marketing approaches. Of applications and IT industry revenues. Internet also provides a cost to effective communication medium. Currently 42 Indian companies have exports of more than Rs 1 billion. advertise etc. who had limited access to finance and low risk taking . it can used to make inexpensive phone calls. which is in its early stages. Much of this was achieved by making IT products available at cheaper rates. The first period marked the beginning of mainframes and ushered in computer technology but usage was limited. displays its potential to fuel another order-of-magnitude growth in the IT industry.driving force in the growth of IT industry in the new period.
e. Choice of location has been driven by availability of infrastructure facilities. Mumbai. via telecommunication/ data communication links. The Jurisdictional Director of STP. The attested copies of the declaration form need to be submitted to RBI after effecting the exports for necessary remittances in this regard from the client. cost of space and manpower availability. have a similar potential to strike it reach. These are further concentrated in a few cities. GOVERNMENT INITIATIVES . Banglore and Chennai have the highest concentration. Hyderabad. Mastek etc. Some of the key players in this industry are Infosys. paper.e. In terms of business size. Smaller companies which are also typically entrepreneur run companies. or in non physical form i. operate most of these large companies. Pune. etc.capabilities. -Of-shore service: In this case software development and services will be done in India and exports are done either in physical form i. Wipro.. PROCEDURE FOR SOFTWARE EXPORT Export of software may be categorized in the following ways: -On-site services: In this category the unit provides the services at the clients site abroad by deputing their professionals. The declaration form for getting remittances in their RBI account is Form "A" and Form "B". Mahindra British Tele. on magnetic media. In the case of physical form the declaration form used is GR form and Softex form for nonphysical form. For exporting the software by the STP unit "Software Declaration Form" in triplicate need to be attested by. Geographical Distribution Most of the software companies are concentrated in western and southern part of India.
Hyderabad. Pune. These include Setting up of STPs: STPs (Software Technology Parks) are autonomous organizations set up the Department of Electronics (DOE). Thiruvanthanapuram. the government has also made several policies to actively discourage piracy. the government has also made several policies to actively discourage piracy. Additional incentives exemption from income tax on export profits. Noida. apart from cracking down on piracy. Bhubaneshwar. The policy sought to encourage privatization of infrastructure. The firms are expected to export 75% of their production and can sell the balance in te domestic market. Local software manufacturers are exempt from excise taxes. Member software units are provided various incentives. Units setup inside the zone can have 100% foreign equity. Export processing zones (EPZ) : The government has set up various EPZs. Curbing piracy: To protect rights (IPR) of software companies. etc. Currently the Government has set up STPs at various cities like Bangalore. which was a radical step at that time. . Telecom policy: In May 1994. Software companies are also exempted from applicability of Minimum alternate Tax (MAT). Under the STP scheme. Authorized sellers ofimported software are allowed to reproduce software in India and sell it without import duty.Government has provided several policies to hold and improve prosepects for domestic software companies. the government released the Telecom Policy to improve the telecom municationinfra structure in India. To provide further incentives to units in the STP government relaxed the 100% export requirement. Gandhinagar.
taking into cognizance the high rate of obsolescence of such products. As the market matures and the users get a hang of the existing regulations. Even though there has been some criticism about the provision of the bill. The new Information Technology Bill The much-awaited Information Technology (IT) Bill was passed by the Lok Sabha in the month of May 2000. Extension of 80HHE to the supporting developers. new amendments can be brought about as and when required. Though e-commerce activities have started of with most ecommerce sites offering payment through credit cards (where the user keys in his credit card number). It would be useful to have a look at the major provisions within the bill and their impact. • • 100% customs duty exemption on all software used in the sector. This will enable supporting developers to enjoy tax concessions. the fact tat the ecommerce transactions / cyber-crimes are still very nascent areas in the Indian context means that it would have been quite impossible for any Bill to have been fully comprehensive.Other incentives include : • Depreciation on IT products allowed at 60% pa. there were many apprehensions . • Exemption of with holding tax on interest on ECB is proposed to be extended to the IT sector as well. Should boost e-commerce The Bill is expected to give a major thrust to e-commerce activities in the country. This will reduce cost of borrowings for IT companies through the ECB route. similar to the supporting manufacturers concept in manufacturing sect. Trying to make the first Bill comprehensive would have only delayed the implementation.
While supporters of zero-tax on the net say that this is essential to boost e-commerce traffic. This is a big grey area which is creating a debate even in the United States. Need to keep electronic records The requirements of maintaining electronic records would mean that all companies would have to progressively move to standardized data storage in electronic from. The creation of digital signatures. With the new set of laws. In this aspect. mm seems quite low. Though most companies do maintain electronic records. What about taxing transactions on the net ? Taxation issues relating to e-commerce transactions have been considered within the Bill. 0.regarding this given the absence of clear-cut laws and the lack of legal recourse available to any consumer. the penalty for "tampering with computer source documents" which stands at Rs. Worrying thoughts on policing of crime Eyebrows are being raised by most people on the provision allowing police officers above DSP rank to raid and arrest people for cybercrimes without a warrant. it is expected that buyers on the net would have the required confidence to transact without fear. their certification and verification is an absolutely new area which opens up large areas for software companies with an expertise in the areas of encryption. Giving the notoriety of the police force regarding their tendency to misuse their powers. those supporting taxation say that this could have an adverse effect on the revenues of state governments. A good part of the new act is the fact that it recognizes digital signatures. Digital signatures would come into play. it is being said that .2. it would now require verification of security procedures for storing such records.
According to EXIM policy software companies with ISO 9000 series or equivalent certification are eligible for grant of Special Import Licenses (SILs). The increasing quality perception will help India transcend the cost barrier and increase margins in offshore business. Apart from global recognition and quality assurance. QUALITY ASPECTS Software companies in India improved their quality tremendously in the last few years. COMPETITIVE POSITION The Indian software sector has several competitive advantages. There are several quality standards. These are • • • • SET's Capability Maturity Model – Level 1 to Level 5 ISO 9000 Tick IT Bootstrap Spice (Software Process Improvement and Capability Determination) The first three are among the main certificates generally obtained by Indian software companies.this will just open another avenue to the police force to earn money and will only lead to more corruption. 15 Indian companies now have the SEI CMM Level 5 certification (out of 23 worldwide). which is allowing it to grow at a fast pace. Some of the key advantages are: Locational advantage . Today they are known for the quality of their software services. Indian has one of the largest number of quality certified software companies in the world. which a software company can obtain. government policy also tends to be favorable to companies holding quality certificate. There are about 170 software companies in Indian with quality certification.
Demand for manpower continues to surge Indian has the capacity to supply about 70. India continues to offer significant 'value for money'.000 software professionals each year. Wide gamut of services India's advantage was that it could offer a vide range of software services from clerical support /data processing to sophisticated software systems.the USA. which hardly meets the global demand Indian software industry can therefore continue to have a manpower led growth. Indian has the second largest pool of technically qualified English speaking manpower (second only to the United States) available at a comparatively lower cost. This provided domestic software companies a cutting edge in pricing for software projects. This enables US companies to establish round the clock software factories by subcontracting to Indian companies. while the technically qualified and skilled personnel enabled it to offer quality solutions involving sophisticated software systems. is a 12. . Manpower There is a tremendous latent potential of manpower supply in India. Low cost Much of India's strong in software in the past is attributable to the low cost of Indian programmers. The advantage it enjoys other countries.hour difference with the world's largest market. However the low cost edge has now been considerably eroded with most software professionals getting remuneration at pet with global standards. Even among competing Indian software professionals were paid the least.India enjoys a locational advantage. The low cost and easy availability of manpower at all levels enabled it to offer labor intensive support services. Indian programmers are paid only about 15-20% of his/ her counterpart in developed nations. Nevertheless in terms of cost-quality.
The rising cost of manpower has already eroded India's position as a cheap source of labor to a large extent. connecting Indian software companies with their clients abroad.900 institutions from which about 70.000 software professionals each year. The excess of demand over supply will further push salary levels up ward Salary levels for experienced and qualified professionals are broadly at par with develop countries. it is estimated that India can supply about 75.000 software professionals graduate each year. Government has also encouraged the industry b providing tax benefits to exporters. Risk Factors Manpower availability any cost. Infrastructure facilities India has more than 1200 high-speed communication links of 32-226 kbps. A majority of this infrastructure and communication links are provided by software Technology Parks of India (STPI) Conducive regulatory framework Software industry has enjoyed virtually unbridled liberty to conduct its business in the best possible manner.000 students each year. With many students opting for further studies / other employment streams and several overlap between students at institutions and training centers. This is further supplemented by private training centers which coach about 40-45.Project Management skills Indian companies have 2 rich experience of working with large global software companies. This increases the risk of losing business to completion counties like . High on learning curve Indian companies have over the last decade build expertise on a variety of plat ms-from legacy systems to the latest state-of-the-art systems. The forced subcontracting of large Y2K projects has also provided Indian companies with substantial experience in handling and executing large sized projects. Despite this huge addition to the manpower base each year. the demand-supply situation is expected to remain right during the next 3 years. Indian has more than 1.
China and Russia who have cheaper labour. so as to maximize on productivity. Organizations also have to provide better working facilities to motivate employees to put in their best. Availability of infrastructure The current boom in the software sector can be sustained through an increase in offshore programming activity. . with experience on legacy systems and on latest platforms as well. Employee turnover occurs as employees show little respect for continuity with a single organization and even employers actively 'poach' from competing companies by offering more lucrative salaries. On top of that power and telecom costs are among the highest world. power and telecom links. This places special emphasis on availability of quality infrastructure facilities in the form of hardware / software. about 77% of the software professionals in India have a work experience of less of 7 years. if they would be able to match the quality Indian professionals offer. India's power and telecom infrastructure is poor compared to many developing countries. They have also displayed an ability to learn and adapt quickly to the changing environment. However. to maintain profitability on the increased cost. Corporate therefore need to continuously invest in training to improve skill levels further. Till the time Indian software companies are able to move up the value chain to products and transcend the cost barrier. Manpower turnover It is essential that an organization keeps employee turnover to a minimum. especially in the area of functional domains. Moreover. Most software companies have been providing various incentives and stock option schemes to retain talent. Skill and experience levels Indian programmers have a wide range of skills. software companies will have to increase productivity ie maximize revenue / profits per employee. This is even more important if an employee has to undergo initial training to develop specific skills. especially at senior levels. to carry a risk of low profitability.
which could restrict growth of Indian exports. It also requires retention of legal counsel to follow up with the respective offices.The attempts at privatizing these institutions have not improved the situation in a significant in a significant manner. investing in telecom infrastructure is an additional overhead. as this would antagonize the trade unions. since October 92 only H-1B visas are issued irrespective of the duration of the project.000 visas worldwide for . WTO regards tax exemptions on exports as an indirect subsidy and hence the government may phase out exemption in the near future. The software sector therefore receives negligible most of the leading IT countries in the world. In India public sector companies are generally reluctant to introduce IT in a major way. Public sector companies' policies also tend to be pro-labor. which were caster and faster to obtain. For software companies. Poor government demand In most developed countries government / public sector enterprises constitute largest consumers of IT. H-1B visas require several clearances and take about six weeks to proves. which few companies will be able to afford. For example. Earlier for short term project B-1 visas were issued. Also government policies in future should be framed to encourage development of application software packages. If tax exemption on exports is withdrawn if cable affect software companies adversely. as this can only sustain the carrent growth rates. Government policies Government policies so far have been favorable to software companies. Non-tariff trade barriers Several non-tariff trade barriers exist in foreign countries. Also the US has permitted to allow only 115.
The benefits from these contributions can be drawn only after a specified term of employment. there are various quality levels and standards. Therefore this therefore amounts to an extra tax of about 21% which Indian software companies have to forego. But government has to set machinery in place to provide software companies with venture capital. Quality India has gradually moved into high quality but competitive cost bracket. lenders have been averse to project finance due to lack of tangible assets as security. Uniformity of IPR policies with the 'target . Establishing communication links and other infrastructure and for working capital. This requires a strong policy on IPR and strict enforcement procedures. Several such subtle trade barriers can restrict Indian companies' ability to maintain the current pace of growth. This should enable software companies to raise adequate finance in the form of equity. many of the large companies hold quality certificates. This typically gets exhausted in the first 7-8 months of the year. Moreover Indian companies need to pay more attention to Total Quality Management and not just Production process quality. IPR Indian companies have to move up the value chain to become truly global companies. This year it was exhausted in May itself. The recent spurt in share prices of all the listed software companies reflects the confidence amongst investors.skilled IT professionals. Traditionally. Currently. project and lease finance etc.3%) even if they are deputed on short-term assignments.4% MEDICARE 2. However. Financing Software companies require finance for setting up development centers.9% and FUTA 6. Indian software professionals working in US are also subject to security taxes (FICA 12.
EDUCATION AND TRAINING INDUSTRY : Indian computer education and training industry came into being in around 70s when a few private institutes were set up. China is also emerging as a large market.countries' will also help Indian companies to improve export prospects. While established raining companies have maintained a high growth rate. In 70s and 80s. Private training institutes imparting training. High-end computer training was imparted only in engineering. in basic literacy in computers and low-end courses. the industry has been growing at an explosive pace of around 30-35% per year. Global IT companies' spending on training has been rising rapidly due to technology changes and imperatives to motivate and retain people. basic computer education is a part of the formal training.35bn). Training courses are typically offered by leading IT companies. Total global training market is estimated to be US$16bn (compared to Indian training market of US$. scores of new small companies have sprung up. During the last 5 years. Currently the industry is estimated to be Rs. The industry acquired critical mass and gathered momentum in the late 80s and early 90s. The unit value of a training course in high-end and lowend is vastly different. Also career oriented professionals used to go abroad for training. The global IT training industry is concentrated in USA. 12 bn in terms of revenue. 2. computer science collages/ institutes. In developed countries. . on such a large scale is a peculiar phenomenon in India. These courses focus on proprietary technologies and skill up gradations. the focus of training institutes was on a low-end education for creating awareness about computers.
Singapore. The training company supplies its course material and training methodology. franchisee model of training has become popular. The franchisee bears all the costs and retains typically 60-80% of revenue and the principal company gets the balance towards marketing cost and return on original investment in creating brand equity / course material. Franchisees typically are local people with own real estate premises. technical know-how and course materials to the franchisee. Indonesia. Middle East and USA. Franchisee makes his own investment in the office premises. Philippines. the training company initially with its own center and advertisement. It then gives right to use its brand name. These countries have . such as China. In the franchisee model. creates brand equity. which is consistent across all the franchisees as well as at its own center. This divides the risk of fixed investment over several franchisees and allows the company to grow at a faster pace without taking capital expenditure on its own books. Hong Kong. Training centers entail huge real estate investment. Franchisee model of education With pioneering efforts of NIIT and later Aptech. hardware and other related infrastructure. International presence The leading Indian training companies have set up franchisees / centers in several other countries.Industry Structure Computer education and training industry can be broadly divided in two categories -Use oriented training for basic awareness regarding computer and software packages -career oriented training imparted to professionals who aspire to pursue a career in information technology and software development.
Courses like Microsoft Certified Systems Engineer Similarly. operate and service the packages. Orate and Compaq plan to set up their own centers for training for training in their own proprietary software packages. Demand growth of ERP packages is constrained by availability of skilled and trained manpower to implement. International companies like Unisys.end market) has low entry barriers. there is long-term potential for Indian companies to replicate franchisee model in developing countries and leverage low cost skilled manpower advantage (akin to body shopping) in developed countries. Several leading global payers have set up shop in India. Low entry barriers Training segment(particularly low. Established players have however created entry barriers by setting up a franchise. Novell also givens certificates for authorized Novell engineers. Demand growth of ERP packages is constrained by availability of skilled manpower.demand for computer education and training but shortage of tutors. Although currently revenue contribution from overseas operations is insignificant. as setting up a training center does not require huge investments. IBM Global Services has also set up authorized centers. Inter. IBM. Oracle through is division Global Education Center has set up several authorized training centers. having international affiliations and creating brand image. These global players have started their own training centers and also authorized training centers (ATCs). Upgradation . ERP companies like SAP and Oracle have high dependence on India for supply of trained and skilled manpower. Microsoft has started certified.
In addition to serving individuals. One category of national ISPs own the network backbone and lease the international connectivity while the other category of players lease the network and the international connectivity from other ISPs. ISPs are themselves connected to one another. Types of ISPs National ISPs These ISPs operate points of presents throughout the country.Internet Service Provider Internet Service Providers connect customers to the internet. computer training appears to be very expensive affair. aggressively advertise and market on the platform of assured job. A large no. providing a direct connections from the company’s networks to the internet. The main target of these ISPs is the corporate segment. Quality Owing to subsidized formal education. Training curriculum needs to be changed frequently to meet the current needs of the market. ISPs also serve large companies. the service provider provides an installation software. Moreover the lack of curriculum standards has caused wide disparities in the quality of training imparted by the various players. A presence throughout the country helps these ISPs to cover all the locations for a . 3. For a particular access fee. No regulatory authority There is no regulatory authority to check the standards of education imparted and practices followed by private training institutes.Training requires constant upgradation of knowledge base and hardware to keep abreast with the rapidly changing technology and training requirements. a username and password and access phone number. of private training institutes all over the country.
Cable ISPs These ISPs are normally owned by the cable companies which helps them to get exclusive use of the cables. These ISPs serve both the business and consumer segments usually within a geographic region. Cable access ISPs offer broadband Internet connectivity through the coaxial fiber network. The improvement in productivity makes up for the costs associated with access.particular corporate. The increase in per person use of the web Growth driver in the retail segment Developments of newer applications will drive demand from usage. These usually serves the consumer segment of the market. Fall in prices/ fall in access costs-fall in PCs prices should help in PCs penetration and improve Internet usage. . the Internet penetration will increase. As ISP charge will fall with increasing competition and as they increasingly cross subsidize access charges with e-commerce and advertisement revenues. Regional and Local ISPs These are the ISPs which either operates in the smaller towns or particular states. Growth Drivers for the Corporate Segment -Cost benefits. The ISP Market Growth drivers for the ISP Market The growth of this market is dependent on: • • The increase in number of people accessing the web.Internet access enables savings on both time and cost aspects due to improved communication and information gathering.
Corporate segment Corporate customers have relatively lower price elasticity towards access charges. Corporate customers are easy to retain because service disruptions due to change in change in vendor can be extremely costly. Videsh Sanchar Nigam Ltd. This is also because a good track record is essential to get am enter the market. the competition is fierce because the only service provided is access and. – Increased sales Competitive scenario Retail segment In the retail ISP market. there is very little differentiation that is possible. Since extent of value addition is very low here. So the competition veers around to price. The cu 4.– A presence on the web is now an important requirement to ensure adequate publicity for any corporate to reach out to customers. investors. Internet till recently. therefore. so it is essential to make large upfront investments in infrastructure and service and capture as much of the market as possible. Thus entry barriers are high. – Additionally. business gains the ability to increase sales through ecommerce transactions and decrease dependence on traditional distribution channels. As most of them use the Internet to support business critical applications their focus is on service rather than costs. the only way to compete is by reaching economic volumes. Was the sole internet .
License fee is absent for first five years and is nominal (Re 1) after that. Licensee has the freedom to lease domestic backbone from DOT. The current user base of around 5. SEBs. Though this has been replaced by a new slab system.5 million is expected to show explosive growth over next couple of years. With this government has issued in principle clearance to all ISPs who have applied for international gateway license using satellite technology. The web provides an ideal medium to directly connect buyers . the power grid corporation. However. Key features of the Indian Internet Policy. E-COMMERCE E-commerce refers to business transactions done electronically on the internet. The decision on tariffs has been left to the ISP providers.service provider (ISP) in India. connection charges remain against the highest in the world. Internet has not been able to expand to it’s full potential in India. basic service providers. Major Policy Changes which will help the industry: Private Gateways Allowed The government has granted in-principle clearance to a few Internet service providers for setting up international gateway. TRAI has the right to review and fix the tariff any time during the license period of the licensee. to the companies like MTNL and Dishnet-Dsl subject to some specific conditions. 5. One of the key deterrents has been the price of VSNL’s service. railways or any other authorized operator. The new ISP policy announced by the government saw the private sector led by Satyam enter the market. Despite the tremendous popularity .
Electronic commerce is expected to be the medium of choice in future. This is true of both business and business transactions. Companies selling through this medium would therefore be at an apparent advantage over companies using the traditional route. as it was beyond the reach of small and medium sized companies to invest in propriety consumer networks or even lease them. It provides a platform where buyers and sellers can interact with each other. The availability of inexpensive bandwidth makes e-commerce e cheaper alternative to other physical means of transactions. . avoidance of middlemen’s margins and faster communication provides companies with tremendous leverage to sell at low price points. In the past only large companies could transact electronically. enabling manufacturers to offer several services and increased level of interaction.and sellers who can transact business electronically. than all the traditional means. The advent of Internet has however brought the same power in the hands of the small business. The huge Internet user base has spurred software development and other technology providers. who take advantage of this new medium. The most important aspect of e-commerce is the elimination of middlemen. with the rapid growth in both the Internet user base and manufacturers who offer commerce-enabled websites. have a chance to realign leadership ranks within industry or among regions. The reduced distribution costs. The electronic transactions were also limited to electronic funds transfer (EFT) or electronic data interchange (EDI). Software availability was also limited and often tailor-made. Proactive companies and regions. All that is needed is the basic equipment required to connect to the Internet. In addition it provides a cheaper and faster means of communicating the intentions to buy and \or to sell.
CAD/CAM services and customized software development . would mean dealing with customers whom one has never seen and most probably will never see. despite being designed and maintained well. A large proportion of the e-commerce sites suffer from poor sales and few visitors. COMPANY ANALYSIS ONWARD TECHNOLOGIES LTD Onward. Problems with E-commerce: Despite the tremendous benefits offered by e-commerce it suffers from problems. The success stories witnessed so far have been more of exception rather than rule. Designing. One of the most serious impediments e-commerce is the perception that financial transactions over the internet are not safe. provides system integration services mainly in the area of banking. without additional investments.commerce also makes it possible for companies to easily tap new overseas markets and market segments. While manufacturers are yet offer their complete range of products and services. Business can unbundled their activities to providers who can deliver comparable or even better quality at lower rates.The global reach of electronic commerce also enables optimum use of resources. and can improve the competitive edge and margins. Shopping on Internet has not yet developed fully. The worldwide reach offered by e-commerce. customers on their part are reluctant to pay on-line owing to fears of credit card theft. The tools currently available are still in their evolutionary stage. producing and maintaining an e-commerce site requires high level of skills. Apart from this electronic commerce also has a business risk. E. This would go a long way in reducing production costs.
Onward. 9. The company’s poor performance in the past can be attributed to its loss making domestic and South East Asian operations. Operations of the company’s US subsidiary have stabilized and has been able to market itself well.for both domestic and international markets. the company closed down it’s underperforming businesses. The company’s days of low growth and mounting losses are over and it is now entering the growth trajectory. during the FY 98. mainly aimed at the domestic market. Growth in revenues will be driven mainly by exports division. The company’s ERP product MAMIS failed to create any impact on the market and has been largely unsuccessful. Onward is well placed to capitalize on the domain knowledge acquired over the years. Mastek. Mastek is one of the . which made a loss during FY 99. Profits and margins. the company has not been able to establish itself amongst the top players. However. has turned around its operations to register a PAT of Rs. software development. is one of the oldest Indian software companies with exposure to software services as well as products.3Mn for the current year. networking etc. The company has now restructured its operations to concentrate more on the export markets which was ignored by the company so far. MASTEK LTD. are expected to witness exponential growth rates. on the other hand. The company downsized its its employee strength and has written off its bad debts. system integration. The company was traditionally involved in hardware. The company has increased its focus from products to software services and the move has paid rich dividends. Revenues are expected to grow more or less in line with the industry. Despite being one of the oldest players in the country. which were typically labourintensive and carries low margins.
The company is one of the pioneers in the CRM area. and Automotive-gives the company a deep understanding of client’s business. With over 27000 internationally experienced business technologists to serve clients in over 30 countries. which is one of the fastest growing segments in ERP today. It has world-class experience in ebusiness. This understanding allows it to focus on tuning clients vision into value driven results. margins are relatively higher. It’s leading B2B. quickly and effectively. Hi-Tech & Telcos. software companies end up poaching .leaders in Customer Relationship Management (CRM)an extended ERP application. Also. Retail & CPG. HR PRACTICES AND ORGANIZATIONAL STRATEGIES RETAINING Retaining skilled manpower is a major challenge before Indian software companies. Consulting and Systems Integration. B2C e-Solutions portfolio is backed by an innovative relationship model which drives value creation for its clients. CRM is expected to account for 25% of the total income. Atos Origin’s core business is to provide value to its clients by helping solve their business problems with enabling technologies. Banking & Finance. ATOS ORIGIN Formerly known as Origin Information Technology Ltd. Quite often. Atos Origin is a proven end-to-end front to back office business solutions enabler. Outsourcing and Online Services. Atos Origin helps transform enterprises into communities. The company’s excellent industry sector expertise-Manufacturing & Process.
they fall short of requirement. The companies with less than 5% growth rate keep a training budget of upto 0. The companies having growth rate between 25-50% earmark between 3-5% and companies within growth rate higher than 50% spend as much as 7. companies such as Silverline Technologies are hiring software professionals from overseas. That is . sharing of vision.5% on training. At lower levels. providing training for skillbuilding. opening up new positions within. TRAINING Companies are now spending a huge amount of money in training to keep the employee morale high so that they donot change loyalties. the IT department had the maximum attrition rate. companies are outlining special training budgets to prevent employee attrition. but quality of software professionals is also important “human capital is definitely a growing concern”. leadership workshops.professionals from each other as they compete to attract the same pool of talent. Both technology and segment expertise are needed in good combination. Some of the factors responsible for influencing the employee retention are the mergence of new competing industries and increase in competition from various multinationals. Upgrading skills-It is not only the quantity. In India. but in most cases. The retention can be improved if the company focuses on career counseling. University courses do provide some exposure to these technical and business skills. In a bid to tide over the problem. Today. building a coheasive orgainstion culture.5% of its turnover. In the telecom and IT Industry. joint decision making and others. Such requirements are primarily to ring in project management skills in segment and technology. there is a shortage of people with a combination of both these skills. technical skills are more needed and business skills are necessary at higher levels.
why. we miss the point that there is more to benchmarking than coping interesting practices. The links of pay and performance are becoming more pronounced. That is why. But some organizations step further by relying solely on performance . The compensation package has increased by 10-25% for the telecom and IT Industry whereas the industry average stands at 5-10%. linked to performance. have in-house institutes where freshers are trained for six months to an year. Performance based pay. the blink of an eye matters more than anything else and today. stir up your own recipe. performance criteria and company culture. Specially. benchmarking for compensation is a sure shot topper on the to-do list for most HR professionals. companies such as Sonata Software. Naturally then. Most companies have some element of compensation. but keep it within the norms. COMPENSATION In a dot com world. These are important ingredients for employee satisfaction. pay is becoming the accelerator paddle for change initiatives worldwide. As business skills are also important. candidates invariably undergo further training and acquire handson experience before being assigned to live projects. when we fail to reap the same success that our competitors seem to enjoy. many Indian software companies are opting for non-computer professionalsand offering them three to six months training. But while window shopping for best practices in reward system. Professional appraisal systems and performance-linked awards are also important. The secret of attaining best practices in a reward system lies in aligning it with business goal. But bnot without some strings attatched. Salaries are hitting the roof but so are organizational demands from employees. In such a scenario. So.Nobody can deny the role of rewards and recognition in attracting and retaining talent. speed counts for business like never before.
slaes commission plane.delivery to structure executive compensation. Study competitors trends. The award is determined by company and individual performance gaianst preestablished targets. gain-sharing and even performance sharing plans. Profit sharing plans-Are funded by the organizations profits based on a specified formula. Gain-sharing plans-Allow employees to share in productivity gains in accordance ith a pre-determined formula.Provides recognition for an individual’s work accomplishments. performance incentives have been implemented worldwide for all employees. Bonus and incentive plans-Earlier restricted to the small pockets of employees. Many smart employers are moving towards an annual incentive system. These are paid immediately after a significant job performance event. team awards. are now spreading to other levels as well. usually as a percentage of their base salary. The popular technique is to use annual incentive bonuses linked directly to goal achievement. The profit sharing pool is then allocated to employee’s by some means. At IBM. Normally the plans are established with participant involvement and are typically designed for .Making waves in the field of compensation is the variable-pay module. Spot bonuses. performance is a major factor in pay management. You will find a wide assortment. Most variable pay awards are paid in cash on an annual or semi-annual or quarterly basis. Substantial increases like this truly perk up energy level of employees. individual incentive/bonus plans. At GE. This works for middle and upper management positions and even for teams and individuals lower down the hierarchy. Variable pay works best when the company performance is equal to or better than the industry average.
etc. look forward to Monday mornings. GE and Hewlett Packard making an arrangement with a third party Concierge Services Co. Fair and competitive pay is a starting point but don’t let be the end of the road. Whatever the company does should be shared and transparent. stock options. Tomorrow. it distributes free telephone coupons to the family members. (for it is not today). where their ideas are valued. The most common type of plan is the Stock option plan. A few companies like Hughes Software. COMPANY AS A PROVIDEREmployee satisfaction is the bottomline. stock options and other perks. but company-wide programs also exist. where they belong. The softer events are driven around the company organising leisure for its employees. foreign trips. thereby helping them keeping in touch. where their work is appreciated. where they can trust each other.Companies are encouraging non-monetary packages like LIC Policy. to keep their staff happy. everytime it sends its employees abroad for work. credit cards. where the employee is offered shares which he can buy in the future. enjoy working late sometimes. A workplace should be created where employees feel important. human organization. one can safely expect most companies to accord a high priority to work-life issues. ESOPs-Very much popular with the IT sector. technology. Companies need to give their employees salary compensation with the needed infrastructure. don’t just pay for performance. to help employees core management. One of the companies. The employee’s gain is equal to market value of the stock at the time it is exercised. less the grant price. The . build a living. career development Plans. There are considerate touches. so. A beginning has been made. The assumption is that the recipient of stock options are motivated to help the company perform well.specific workgroups. The price at which employee can buy the stock is equal to the market price at the time the stock option was granted. in turn stocks will appreciate in value.
increase in level of professionalism and competitive compensation packages. transparency. Open communication. This is an issue full of potential and one that is still under-developed. Companies must realize that during recession. Some companies have initiated the concept of an evening at a Pub once a month. level of delegation commensurate with accountability and responsibility. Flexi-time-Often part-timing or Flexi-timing is put forward as a solution for women and men who will increasingly share the challenge of managing family and work time. This might lead to an employee looking out for greener pastures.idea is hardly a new one (office picnics span various work ages and will continue to do so) but has been given a make-over in order to promote the idea of having fun. CAREER GROWTHOrganizations sometimes neglect individual aspirations and goals. At the same time. As Indian software companies discover the role of recreation and stress relief in employee development and retention. Some of the methods used by the Onward Technologies to retain . So it is very crucial for any organization to take interest in individual development also. more companies are beginning to offer recreational facilities to their employees. More and more companies are spending time and thought on the idea of adopting the role of a leisure-provider. it is more crucial to retain good employees as they can chart a sharper strategy for the company growth. this helps companies save money by reducing fixed employee cost. A solution which helped individuals work at a pace and place decided by them. ORGANISATION CULTUREAn open and friendly organization culture is important for employee retention.
What they mean by openness is the fact that they encourage. creativity is . Mastek is one of the few that have a Corporate Objective of Employee Satisfaction on equal footing with the objectives of profitability and revenues. Methods used by Mastek Ltd: Congenial atmosphere Excellent emoluments and employee benefits Pioneer in Technology Wide range of career streams Global opportunities Congenial atmosphere As a company. That is where. and even demand that.Human Resource are Industry standard compensation ESOPs Training on new Technologies Proper career planning Performance-based compensation and rewards Good work environment Open communication and transparency. apart from being one of the first companies in India to provide ESOPs has been a pioneer in offering a stimulating and broad employee growth plan. The first and most revered value being “Open Atmosphere”-Openness extends beyond calling everyone by first names and not having cabins in the office. Mastek has some stated values. which they practice more than preach. and they raise their disagreements and hold differing views on everything. they push their assumed boundries. Mastekeers question what they do. Mastek.
Mastek is the first IT Company to introduce ESOPs for its employees and is the only Company that has the concept of ‘Runtime’. UK. All employees and their families are booked in 5-Star hotels with all expenses borne by the company. Singapore. and its emolument packages are already best in the industry. besides offering a string of Fringe Benefits to the employee. where the entire staff of Mastek.derived in the organistaion. board a train and head for a three-day holiday. This is just one of the many ways in which they demonstrate that ‘Mastekeers’are a part of one-big family where everyone is respected for their contributions. Mastek encourages people to “Just Go Do It”-which means an excuse-free approach. alongwith their families. Excellent emoluments and Employee benefits Mastek is an employee-driven company with a human-face and approach. Freedom at work is the freedom to change the way things are. Germany. Japan. in spite of different schedules. to deliver results at all costs and nothing is more challenging and motivating to a software professional than seeing himself achieve results. day after day. Malaysia. from the CMD to the peon. Most of Mastek’s projects are for Fortune 500 Companies worldwide. but never at the cost of the result. Rave technologies provided its employees with: . with operations in the USA. Many other small gestures by the company which go a long way in retaining people are: Sending home bouquets on Anniversaries and Birthdays Taking care of few expenses during marriage Different types of allowances Global opportunities Mastek’s network is spread throughout the Globe. Switzerland and Belgium.
a more attractive compensation package or a chance to venture out on one’s own. There are times when an employee resigns to join another company but after some time. Companies are also promoting from within. This is especially true with the IT industry. Yearly): Movie tickets to employees every two months etc. a number of measures are adopted to create an internal environment which leads to higher employee retention. Half yearly. In Telecom and IT industries. An employee resigns from an organization for better prospects or fulfillment of his career aspirations. a resignation is accepted not with regret but with a bit of spice. The new job may not be upto his expectations or he may be more comfortable with his previous team. thereby. The lure could be increased technical work opportunities. The reasons may be many. opening growth opportunities in inter as well as intra division within the Company. HR efforts can play an important role to reverse this dangerous trend in the IT industry. All too often. But employees who leave donot always come back. Quarterly. Today IT companies are facing a shortage of knowledge workers because the rate at which they loose employees is almost double the rate at which they hire employees. They take with them some positive and some negative experiences and an image of the . companies are focusing on employee benefits where employee welfare is given extra importance. he decides to return to his previous job. higher responsibilities.A higher compensation as compared to the industry ESOPs Rewards and Recognition Other individual as well as team-based rewards spread across the year (Monthly. Various other recognition programs To minimize attrition.
websites and so on. analyzing.i) Primary Sources and ii) Secondary sources i) Primary sources: . suitable appointments were to be fixed and therefore market survey is to be followed. And while neglecting the process of employee exit. who spread the word around. interpreting and summarizing in a significant manner for the purpose of framing out necessary conclusion and findings of data perceived and formulated for deriving out the meaningful information. magazines.is a process of collecting. So the Indian software industry should formulate a result-oriented manpower framework to get over the labour pains faster. ii) Secondary sources: -Where the data is obtained from some published and printed sources such as newspaper.company. PROJECT TITLE: “HR PRACTICES AND ORGANIZATIONAL STRATEGIES IN SELECT IT COMPANIES IN INDIA” Process: Methodology or process involving in the Research followed during the course of summer training is as follows: a) Collection of data: .The data collected through market . METHODOLOGY & PROCEDURE OF WORK Research: . many of us discount this fact completely.This is an important aspect in formulating the objective of research process where the data is collected via two process: .Where the data is collected primarily by interviewing and personal observation and is original in nature and accurate to the considerable extent. a) Analyzing of collected data: . Employees whether working with a company or separated are ambassadors. which they share with the outside world. To carry our research necessary telephonic calls needed to be done.
Here close ended questionnaire being followed by me during the course of the summer training market survey. b) Interpreting of data: . c) Summarizing of data: . .it is a sampling where the limited number of selected respondents is figured out based on some criteria so that only those respondents can be asked for the purpose of filing questionnaire.it is the significant step where the data collected and analyzed is interpreted in the forms of graphs and figures is depicted in the report called Project report. A considerable skill and knowledge is involved in analyzing the data for the purpose of interpreting thereof. Questionnaire being considered necessary for the survey of the project being undertaken was: a) Close ended questionnaire: . Questionnaire: .Questionnaire is a set or group of questions being framed for the purpose of obtaining market perspective about a particular aspect or topic.where the respondents is limited to the choice of answer being delivered by the interviewer itself so that quick and fast means of responses be derived out without wasting much time. Sampling: .Thereby necessary summary is prepared which is essential in the project report of the summer training being done under an organization.survey and published sources is then processed to obtained necessary inferences and findings for the purpose of achieving the objective as well as to derive necessary conclusion.Systematic sampling: .
ANALYSIS OF DATA Q:1) What are the HR challenges that the organization faces? Is retention of Human Resources a critical issue? 5 1 1 Training 1 2 Compensation 1 0 Retention 9 Any other 3 Q:2) What is the employee turnover rate in the company? Recruitment Manpower Planning Below 5% 5-10% 10-15% 15-20% Above 20% 15 17 8 6 4 Q.50 respondents.4) Rank the factors favoring satisfaction of the employees and retention: 1 5 Job satisfaction 1 2 Growth opportunities 1 1 Rewards and recognition 9 Compensation .Respondent size:.3) What are the methods adopted by the company to find the cause of the turnover? Also rank them according to effectiveness. Exit interview 8 Climate Survey 11 Employee Satisfaction Survey 7 Grapevine 18 Any other method (Please 6 specify) Q.
5) What are the methods adopted by the company to recruit and maintain people? 7 1 2 8 ESOPs Performance based rewards 1 0 9 Flexi-time Any other (please describe) 4 Job satisfaction Career growth Q.Other benefits 2 Any other 1 Q. started reducing Not at all 3 2 5 5 7 Q.6 What do you suggest to improve training & development? 1 8 1 Should be amicable 5 Should be conducted by experienced trainer 1 2 5 Should be interesting rather monotonous T & D should be on regular basis Q. by how much? Yes.7) Has the attrition rate reduced after the implementation of organizational strategies? If yes. to a considerable extent 1 Yes but to a little extent Yes.8) What are the constraints faced by the organization in implementation of retention strategies? 1 4 1 Insignificant R & D 1 Low focus on development & renovation of employees 1 6 9 Slow Adaptation to changing technology Employee restrains .
• Retention problems are like cancer that can hit any company anytime. and work place satisfaction and career development opportunities.9) How do you overcome these constraints? 1 8 1 By creating awareness 0 By implementing flexible organizational policies 1 5 7 By general meeting periodically By suitable training to existing employees Q:10) Which are the most preferred organizational strategies and Human resource practices by your employees? 1 2 6 Job satisfaction 1 Growth opportunities 0 8 Flexi-time Performance based rewards 9 5 Other benefits Compensation FINDINGS Following are the essential findings brought down hereunder: • Complex business equations made more difficult y competitors all offering great incentives. but there are ways to combat leaving. . few realize that they have a retention problem. is that even though most companies recognize that they could improve.Q. • The problem however. good work environment. • The biggest challenge employer’s face is the changing nature of workplace with advent of new technologies and practice. most importantly knowing your staff needs and how to provide them.
60% of the companies report increased employee turnover . “Who is hit?” lower levels are the most vulnerable. Small companies are becoming increasingly vulnerable and departure of even one person hits hard. • Opportunity to work on particular technology leads to employees leaving the company. Employees are also looking at poor management and whether companies have innovative means of rewarding people.• The buoyant job market is one of the most serious issues facing employers who are struggling to keep staff. • Salary is not the single most important factor. • The number one reason for employees to leave is lack of opportunities for career development. people chasing money and senior professional positions and the challenge of providing interesting and varied work and global opportunities • People are becoming increasingly selective about who they work for “Can I be proud of the company I work for?” • It’s a candidate tight market where there are more jobs than candidates and employees feel they are better informed about what the market is providing and employment conditions in competitor companies to make career-shift judgements. • • Highly undesirable turnover can cost companies significantly. • Other areas of difficulty are poaching by competitors. where the companies are big with more number of employees and it becomes difficult to assign projects according to skills. • • • The Indian scene 87% of the organizations feel attrition concerns acutely. This is more so.
• • 52% of the employees also feel retention as an issue Exit interviews and employee satisfaction survey do help. These are the two most commonly used methods used to find the cause of turnover. Major causes of employee turnover Employer’s version 1) Growth opportunities 2) Opportunity to work on new technology 3) Compensation 4) Rewards and recognition 5) Good work environment(open culture) Employee’s version 1) Compensation 2) Career advancement 3) Job challenges 4) Work life balance 5) Boss 6) Education 7) Health Some of the constraints faced by many of the companies in implementation of organizational strategies are: 1. Coping with high salary expectations and demands 2. Matching organizational v/s individual demands .
there is a lot of smuggling of components from countries like Singapore and Taiwan into India. Most Indian firms have formed strategic alliance with international companies like Hewlett-Packard and Acer. Based on the software export growth in India. The threat India could face in this area are from Philippines and Pakistan .S. Availability of western educated management personnel Lack of regulation in the software industry Burgeoning middleclass of nearly 150 million consumers No baggage of outdated software technology Time difference advantage with countries like United States. Desire to work abroad SWOT ANALYSIS Strengths India’s strengths in the Information Technology arena are• Availability of unlimited pool of cheap and talented software personnel • • • • • • Presence of the biggest English speaking population after the U. However the LAN and the peripheral markets are growing at fantastic rates and could be good investment areas for companies which are looking to invest in overseas IT manufacturing. Since the import duty on hardware component is relatively high. offshore programming ventures will continue to remain profitable for the next few years.3. Technology change 4. It manufacturing in India is going to be on the line of assembling components manufactured in other countries. Hence investment in PC manufacturing is not expected produce immediate profits.
most of them are still working at the bottom rung of the ladder. 2. a Tokyobased orgainsation that conducts IT related research.both of which like India have a large pool of trained IT personnel.a threat from countries like china. Awareness in people is rising and they are begin to show interest in IT Threats Chinese Threat to Indian IT Sector Currently the “China Threat” is perhaps the most spoken about issue in the industry. Philippines and a few other European nations who are making their presence felt in the global industry. with very few program analysts or system designers. Enough to galvanize even one big software house. China has about 400. 2. Since the trends is slow and company are on a rising scale despite. Opportunities: 1. IT industry is rising in India may lead to the growth of the company for better future prospects. . However. Weaknesses: 1. into setting up a separate think tank to look into the issue. it is not difficult to see why.000 people working in different rungs of the software industry. Steep fall in IT market. a candidate is feared to enter into it. According to the Asian Technology Information Prgoram. TCS. lack of quality manpower and inability to move up the value chain add up to one thing. Finally fear of infrastructural bottlenecks.
Chinese industry has US presence for long. Besides. There is a cross-industry consensus. It is definitely going to happen and most companies have to sit up and take notice. even on their language skills. Chinese manpower is approximately 15% cheaper than India. but the Chinese are working hard. China’s other big advantage is exposure to the US market. companies must look at valued employees place . they have a cost advantage and might soon surprise us. they are honing up on their English-language skills. China could become a strong contender in a couple of years from now. More importantly. at the end of the day. RECOMMENDATIONS Following recommendations have been obtained after the completion of the project which may of significant help to the company: • To aid in retention. And to avoid being taken over by them. Besides. the threat from China and other emerging countries boils down to two things-the imperative to move up the value chain and remove infrastructure bottlenecks. The country already boasts of a much beeter IT infrastructure than India with a 55 Gbps gateway compared with India’s 800Mbps. There is definitely a threat from China in the long run. Though china is a relatively new entrant in the software sector. The rising cost of doing business in India makes our offerings less competitive. we need to beef up work on infrastructure. China is three years behind India in terms of offshore outsourcing. however. Right now.That could change soon. with 20000 new software professionals expected to be added every year. especially at the low end of the value chain. The Chinese are reviving up their IT industry.
Senior executives can make this happen by discussing both company goals as well as employee’s ambitions. Yet. clear links to business needs and skills to successfully perform their roles is a must. Take care of your people. Focus on three important things-Money. • • Look at retention linked performance bonuses for managers who are good at retaining their people. Of work life balance would be providing financial support to learn one new non-work skill every two years. Treat employees as you would treat valuable investments and ensure that they have clear job roles. • • • • Employee satisfaction is the key to business success. very few are rained in this skill. Companies need to continually invest to ensure that they are a step ahead and know what competition is doing. An eg. • Both employees and employers are equally responsible for employee retention. Be a people’s person Provide an environment which assists in work life balance Create an atmosphere where employees perceive the company as being interested in partnering them in their career. • • This can be done by having an open communication across the organization. One of the most important tasks for any manager is hiring an employee. • • • • • Invest efforts and money in becoming an employer of choice and build company branding to overcome retention dilemmas. Culture. Different strokes for different folks Increase professionalism . they will atke care of your business. Responsibility lies with management in hiring managers. Career development. Right hiring will ensure longer retention cycles.highly and attempt to meet these with the core values of the organization.
Enable by empowering 3. Training on new technology Rewards and recognition 1. Inculcate right leadership in your supervisors 2.• • • • • Make appraisal as a robust process Involve people in decision making Ensure there is enough measurement of people satisfaction Compensation Increase organizational transparency Enable Enlist Encourage 1. Create a sense of belongingness 3. Encourage from heart Training 1. Intrinsic motivation Capture the heart 1. Train and re-train 2. Employee welfare CONCLUSION Conclusively at the end of the project report I must say that it was a fruitful experience of gaining essential skills and knowledge pertaining to the objective of understanding of HR practices and organizational strategies being imparted in the organization. Emancipate action 5. Open up communication 2. Enlist support 4. promotions 2. Drive learning 4. Extrinsic salary benfits. Skill based training 3. .
The grant for study leave with pay has encouraged the employees of these organizations to take up higher studies and achieve additional qualifications for higher jobs. Provision of the due solution favourable in all condition to them and conduces with maintaining healthier relation with company in respect of efficient ways and duration of training to the required personnel and development for the future course of action in order to achieve organizational goals. A Brief summary: i. and their maintenance of training in line with the literature on the subject available in various books on Human Resource. enable participants to develop managerial knowledge. efforts made by these organizations to sponsor employees to various training programs have enabled to get acquainted with jobs and also increase their aptitude. Moreover. skills and knowledge. On the study of Human resource practices in selected IT companies it is observed that the organizations are having has well established policies on human resource development. Weekly arrangement and meeting with all employees were scheduled and their problems were heard one by one. The research study also shows that while designing training programs a special care is also taken with respect to . Recording and undertaking of interpretation of the problems pertaining to the training and development of different employees.The Conclusive words ending up the report in the manner below: All these activities related to human resource and personnel were conducted. iii. These accelerative learning programs result in long-term understanding. thus offering good value for time and money. skills and confidence to take worthy decisions. ii.
challenging but non-threatening situations. Internet sites www. physical facilities and location to facilitate trainees comfort. Publications Business Today Human capital .com B.rave-tech. .the faculty. Their management development programs are based on the thinking that people most when they are enjoyable.indiainfoline.com www. Their different background and vast experiences have provided invaluable insights into the dynamic and challenging world of business. From the research study it emerges that power finance corporation has sound effective training policies and practices.atosorigin.com www. Highly experienced professionals and academicians conduct these programs. ANNEXURES TO THE REPORT BIBLIOGRAPHY Following sources have been referred for the completion of the project report: - A.
Kinsey Report on retention AIMA study on retention LIST OF DIAGRAMS AND TABLES S. 39 3. Reports Mc. 40 4.6 – Page No.8 – Page No.2 – Page No. 39 Table – 5. Fig. Q:1) What are the HR challenges that the organization faces? Is retention of Human Resources a critical issue? Recruitment Manpower Planning . Fig. Diagram Tables Table – 1. 1. 5. 9.C.4 – Page No.6 – Page No. Fig. 7.10 – Page No.8 – Page No. 41 Table – 9. Fig.No. 38 2. 41 5.10 – Page No. 3. 40 Table – 7.4 – Page No. Fig. 38 Table – 3. 42 QUESTIONNAIRE Name of the financial authority: Age: Designation: Respected Sir/ Madam It would be really kind on your part to take out a few minutes from your busy schedule and fill up this questionnaire which would be analysed for the completion of my report.2 – Page No. 42 1.
4) Rank the factors favoring satisfaction of the employees and retention: Compensation Job satisfaction Growth opportunities Rewards and recognition Other benefits .3) What are the methods adopted by the company to find the cause of the turnover? Also rank them according to effectiveness. Training Compensation Retention Any other (please specify) _____________________________________ Q:2) What is the employee turnover rate in the company? Below 5% 5-10% 10-15% 15-20% Above 20% Q. Exit interview Climate Survey Employee Satisfaction Survey Grapevine Any other method (Please specify) Q.
by how much? Yes. started reducing Not at all Q.8) What are the constraints faced by the organization in implementation of retention strategies? . Any other Q.5) What are the methods adopted by the company to recruit and maintain people? Compensation comparable with the best in the industry Job satisfaction Career growth ESOPs Performance based rewards Flexi-time Any other (please describe) Q.7) Has the attrition rate reduced after the implementation of organizational strategies? If yes.6 What do you suggest to improve training & development? T & D should be on regular basis Should be amicable Should be conducted by experienced trainer Should be interesting rather monotonous Q. to a considerable extent Yes but to a little extent Yes.
9) How do you overcome these constraints? By suitable training to existing employees By creating awareness By implementing flexible organizational policies By general meeting periodically Q:10) Which are the most preferred organizational strategies and Human resource practices by your employees? Compensation Job satisfaction Growth opportunities Flexi-time Performance based rewards Other benefits 1 RECOMMENDATIONS . 3 ANNEXURES . 2 CONCLUSION . i) ii) iii) REFERENCES LIST OF FIGURES AND TABLES QUESTIONNAIRE .Employee restrains Insignificant R & D Low focus on development & renovation of employees Slow Adaptation to changing technology Q.