HR MANAGEMENT IN IT INDUSTRIES

COMPUCOM SERVICE LIMITED

Compucom Software Limited (CSL) is an information technology (IT) company. The Company operates in three business segments: software services and solutions, learning solutions and wind power generation. CSL operates in areas, such as software design and development, IT education and learning solutions, wind power generation, customer support out-sourcing in telecommunications, business process outsourcing (BPO) services/call centers and knowledge process outsourcing (KPO) services. Software services include export and domestic sale and service of software. Learning solution includes imparting computer education in government schools, providing computer education to general public through franchisees and authorized business associates and providing facility management support to RajComp and IT finishing school. As of March 31, 2010, it had five wind power plants two in Sikar and two in Jaisalmer, Rajasthan and one in Krishna, Andhra Pradesh. Its products include iCARE and iOBTS.

1. To enlist emerging HR trends in Indian IT Industry

2. To review literature and research done in this area.

3. To find out lacking areas regarding the HRD in IT sector. 4. To measure the perceptions of IT sector employees in respect of application of HRD in their organisation. 5. To suggest the measures to fill the gaps and improve motivation level of employees and HR management in IT industry.

SAMPLING TECHNIQUE 1. The study was exploratory in nature. Primary and secondary data available with these organizations was also used for this project study. 2. In order to measure the employee s perceptions of emerging HR trends in different IT organization, the survey was undertaken. The survey was based on structured questionnaire. The questionnaire was mainly based on objective type close-ended question, but few open ended questions were also included. SAMPLING SIZE The 100 respondents were selected among the executives and staff working in various IT organizations. SAMPLING AREA The area of research was Sitapura, Jaipur (Raj.), India.

LITERATURE REVIEW
INNOVATIVE PRACTICES IN HR Internet and intranet employee services Strategic human resources Centralized HR departments and call centres 360-degree performance appraisals HRIS systems Employee self-service Resume scanning and Internet recruitment Automated time and attendance systems Team policies and development Outsourcing Business process reengineering (BPR) LINKING PAY TO PERFORMANCE Managers usually like to award employees according to they perform individually or in a group to meet the organisational goal. The reward is given on the basis of performance appraisal methods.

OUTSOURCE
In the past few years, whenever organisations around the world have outsourced to India. In 2004-05 more than US$ 2500 million worth of software development work was outsourced to India (The total software exports from India during the year was US$ 4085 million). This was 56% higher than outsourcing orders in 2003-04. It is estimated that the quantum of outsourcing may jump to US$ 5 billion and reach as high as US$ 10 billion by 2010 A.D.

DATA ANALYSIS & INTERPRETATION

1. RESPONDENTS PROFILE - EDUCATION-WISE

Respondents' Qualification Percentage Of Respondents

Education of respondents

Non-Tech Graduate and 11% Below Non-Tech Post Graduate 23% B.Tech/ BCA etc. M.Tech/MCA Etc. TOTAL 34%

11% 32%

Non-tech post graduate

23%

Non-tech post graduate B.Tech/BCA etc. M.Tech/MCA etc.

34%

32% 100%

As per the above Figure the IT industry is dominated by the software professionals as shown as 34% & 32% from the total is technical graduates and post graduates.

2. WHETHER HR NEEDS OF INDIAN IT INDUSTRY ARE DIFFERENT

The majority of respondents (69%) view that HR needs of IT industry are different from old HR practices.

Respondents' Observation

Percentage Of Respondents

HR need in IT

Yes No Cannot say TOTAL

69% 23% 08% 100%

23%

8%

Yes No
69%

Cannot Say

3. EFFECT OF NEW COMPENSATION METHODS

46% of the employees opined that newer compensation methods has a positive effect in IT industry while 19% said that it has a negative effect on employee welfare. 26% view that it has no major effect and 9 percent has replied in CAN NOT SAY. effect of compensation method

Respondents observation Positive Effect

Percentage of Respondents 46% 19% 26% 9% 100%

positive effect
9% 26% 19% 46%

negative effect no major effect cannot say

Negative Effect No major Effect Cannot say TOTAL

4. WHETHER IT INDUSTRY HAS POSITIVE ATTITUDE

TOWARDS ITS EMPLOYEES
While 48% of the respondents' replied in negative and 43% gave a positive reply. So, there is a profit motive operating more than employees proper welfare management in Indian IT Industry.

Respondents' Observation

Percentage Of Respondents

Employee's welfare

Yes No No comments TOTAL

43%
9% 43%

Yes No No Comment

48% 09% 100%

48%

5. GRIEVANCE HANDLING IN INDIAN IT INDUSTRY IS PROPER

In the Question No. 5 of the questionnaire the respondents were to comment upon the positive hypothesis that grievance handling is done properly in the IT organisation. The five choices provided were strongly agree, agree, no comments, disagree and strongly disagree.
Respondents' Observation Strongly Agree Agree No Comments Disagree Strongly Disagree TOTAL Percentage Of Respondents 12% 39% 14% 26% 09% 100%
26% 39% 14% 9%

Grievance Handling

Strongly Agree
12%

Agree No Comments Disagree Strongly Disagree

6. TOP MANAGEMENT AWARENESS

65% of the respondents view that the top management's are not aware or little aware about the employees working conditions in the IT organisations Only 6 percent vouched that top management is very well aware about the nature of working conditions and 18 percent say "Much Aware".

Respondents' Observation Not at all aware Very little aware Somewhat aware Much aware Very much aware TOTAL

Percentage Of Respondents 20%

Management Awareness

Not at all aware

45%
18%

6%

20%

Very little aware Somewhat aware

11% 18% 06% 100%

11% 45%

Much aware Very much aware

7. EMPLOYEE EMPLOYER RELATIONSHIP IN IT INDUSTRY

58 percent of the respondents has graded it very good and above. While 42 percent consider it satisfactory and below.

Relationship

Respondents Grading

Percentage Of Respondents

14%

14%

Excellent Very Good

44%

Excellent Very Good Satisfactory Poor TOTAL

14% 44% 28% 14% 100%

28%

Satisfactory Poor

8. EMPLOYEES RETENTIVITY IN INDIAN IT INDUSTRY

Their opinions in this regard are presented below in "YES/NO/NO COMMENTS. 61% of the employees view that Indian IT companies are unable to retain its employees due to most attractive avenues outside. Only 23% viewed that they are able to retain the employees.

Retentivity

Respondents Grading

Percentage Of Respondents

16%

23%

Yes
Yes No No Comments

23% 61%

61%

No

No Comments 16% TOTAL 100%

9. HOW TO INCREASE EMPLOYEES RETENTIVITY IN INDIAN IT INDUSTRY

22% of the respondents have suggested increasing the wages to international level to increase employees retentively in Indian IT industry. 36% want more foreign postings, 10% suggest increase profit sharing and 11% suggested more promotions. 21% of the other suggestions included lateral induction from lower the institutes and better HR management.

Increase Retentivity

Respondents' Suggestions

Percentage Of Respondents 22% 36% 10% 11% 21% 100%

Increase wages
21% 11% 10% 36% 22%

Increase Wages Increase abroad postings Increse Profit Sharing More Promotions Others

Increase foreign postings Increase profit sharing More promotions Others TOTAL

10. APPLICABILITY OF EXISTING INDIAN LABOUR LAWS IN INDIAN IT INDUSTRY

The comfortable majority of respondents (89%) strongly agree or agree with the hypothesis that Indian IT sector requires separate labour management system/ regulations. While only minority of 13% has given divergent views.
Respondents' Observation
Strongly Agree
2% 7% 2%

Existing law

Percentage Of Respondents 57 % 32 % 02% 07% 02%

Strongly Agree Agree

Agree

No Comments
32% 57%

No Comments Disagree Strongly Disagree

Disagree Strongly Disagree TOTAL

100%

11. EFFECT OF EXCESSIVE COMPETITION IN INDIAN IT INDUSTRY

Whether excessive competition in Indian IT sector is harming the overall long term prospects of employees in this sector. 53 percent of the respondents have replied in Yes to this question. While 35% has a negative viewpoint. Excessive Competition
Yes No No Comments

Respondents' Observation

Percentage Of Respondents

Yes
12% 35% 53%

53% 35% 12% 100%

No No Comments TOTAL

12. OVERALL ASSESSMENT OF EMERGING HR TRENDS IN INDIAN IT INDUSTRY

The overall assessment on five point scales of excellent, very good, good, satisfactory and poor. 65% of the respondents were in positive grading of very good and good. While 35% gave a assessment of satisfactory and poor

Overall assessment

Respondents Grading Very Good

Percentage Of Respondents 42% 23% 21% 14% 100%

14% 42% 21%

Very Good
23%

Good Satisfactory Poor

Good Satisfactory Poor TOTAL

13. ESSENTIAL TO FURTHUR IMPROVEMENT OF HR IN INDIAN IT INDUSTRY

The assessment on three point scales of very essential, essential, not much essential are 63% of the respondents were in positive grading of very essential and 48% feels it little essential. While 15% gave of not much essential

Improvement in Industry
Respondents Grading
5% 32%

Percentage Of Respondents

Very Essental
63%

Very Essential
Essential Not Much Essential

63% 32% 5% 100%

Essential Not much Essential TOTAL

1. Hence, it can be concluded that Emerging HR trends of Indian It industry are quite different from the old economy industry. 2. India is considered one of Super Power in Information Technology and allied fields. 3. Majority of world leaders in IT sector are outsourcing their requirements from Indian IT Industry and recruiting Indian IT professionals. 4. Many innovative HR practices has done in IT industry earlier.

1. From the above analysis I would suggest that managers should give emphasis on employee welfare, compensation, more HR practices in organization. 2. Managers should give proper feedback to employees and provide learning guidance to them for motivation. 3. Government should make specified laws for IT workers. 4. Top managers should punish those who only concentrate on their interests and not on the employees working under them. 5. Apply proper HRD strategies for IT workers for their career planning. 6. The Indian Government must allow the Industry to meet international competition and desired environment in respect of Labor Laws and financial rules must be liberalized for this Indian IT Industry.

The survey is done in few IT companies of an area due to unreachability. Survey conduct most of the time in report preparation because of busy schedule of employees. Many employees refused to fill the survey form. Survey is conducted only in convenient areas. It was not possible to conduct survey in all IT companies of jaipur.

Kothari, CR." research Methodology Methods and techniques", Wiley Eastern Limited. Website of Compucom Software Limitedwww.compucomtech.co.in Website of Compucom Institute of Technologywww.ciitm.org. Helen Murlis and David Fitt, "Job Evaluation in a Changing World," _Personnel Management, May 1991, pp. 39-43.