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A Study of Talent Management Strategies in I.T. Sector in India

Ms. Pranita S. Jumade

(Lecturer)
KCES COEIT Department of Management,
Jalgaon (M.S.)

Dr. Shubhada Kulkarni

(Associate Professor)
Institute of Management and Research,
Jalgaon (M.S.)

Abstract:
Murthy (2010) defined talent management as managing the entire employee lifecycle from attracting and
hiring to promoting and finding a successor upon retirement. It also includes identification of the key gaps
between the talent in place and the talent required to drive business success. Talent management is about more
than just attracting and retaining talent. It is also about researching, developing, and implementing a series of
human resource (HR) initiatives and looking at how these initiatives fit together to manage the talent available
to an organisation. According to a survey by manpower group in 2013, 61% of the managers in corporate
sector reported that there are serious talent shortages and they are also unable to source the right people for
right jobs. This has resulted in difficulty to meet client needs for the corporate. In 2014, 64% of the managers
reported talent shortages according to the manpower survey report of talent shortages of 2014. According to
the Information Technology Association of America, Information Technology (I.T.) is defined as the study,
design, development, application, implementation, support or management of computer-based information
systems. The I.T. sector, therefore, includes industries such as hardware, software, e-commerce, internet
applications, computer services etc. The I.T. sector has earned itself a name as an important contributor to the
GDP of several nations. A huge number of people are employed in this sector in India and therefore managing
the talent of the employees is a huge challenge. So there is a need to study the talent management strategies that
are undertaken in this sector.
With talent management becoming an area of growing concern, the purpose of this paper is to know the
importance of talent management in corporate sector and to know the talent management strategies of I.T.
Sector in India. The research type is descriptive research and the secondary data is collected through online
journals, websites and books.
Building and enhancing employee potential with the help of talent management will not only benefit employees,
it will also support the organization in meeting its goals and objectives.
Keywords: Talent Management, I.T. Sector, Strategies, Talent Shortages.

Introduction:

competitive

human resource practices, and take a

business world companies are looking to

proactive approach to talent management.

add

According

new

In

todays

capabilities

to

their

core

businesses. To achieve their mission and

to

the

Global

Talent

Management and Rewards Study

vision, organizations need to consider the

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India Report, one of the greatest challenges

need to focus on talent management

faced by the employer is Talent skills

strategies and to implement them more

misaligned with company needs and one of

effectively.

the greatest challenges faced by the

Literature Review

employee is they do not have appropriate

Talent Management

skills or access to training for available

Talent management is fast gaining top

roles. This results in difficulty to meet

priority for organizations across the world.

client needs which ultimately decreases the

Talent management was initially designed

performance of the organisation.

to improve the process for recruiting and

Towers Watsons 2012 Talent Management

developing people with the required skills

and Rewards Survey findings highlights

and aptitude to meet current organizational

that consistently around the world, nearly

needs. The various aspects of talent

three in four organisations report moderate

management are recruitment, selection, on-

to great challenges attracting critical-skill

boarding,

employees and more than half report

management,

difficulty retaining them. Despite growth

leadership

rates moderating and a large workforce,

planning, career planning, recognition and

92% of Indian employers report challenges

reward

in attracting critical-skill employees as

Heinen and ONeill, 2004; Scheweyer,

compared to the global average of 71%.

2004). Competition and the lack of

Retaining

too

availability of highly talented and skilled

Indian

employees make finding and retaining

companies report challenges retaining them

talented employees major priorities for

as compared to the global average of 56%.

organizations (Fegley, 2006).

On recent university graduates, the survey

Murthy (2010) defined talent management

finds

some

as managing the entire employee lifecycle

improvement in attracting this segment of

from attracting and hiring to promoting and

employees but retaining them continues to

finding a successor upon retirement. It also

be a challenge area. Over half the Indian

includes identification of the key gaps

companies reported challenges retaining

between the talent in place and the talent

recent graduates as compared to the global

required to drive business success. Talent

average of 20%. Thus there is a greater

management is about more than just

remains

critical-skill
a

that

concern

there

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employees
as

has

86%

been

mentoring,

performance

career

development,

development,

(Romans

and

replacement

Lardner,

2006;

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attracting and retaining talent. It is also

work quality, qualification are improved

about

(Venkateswaran, 2012).

researching,

developing,

and

implementing a series of human resource

Process of Talent Management: People

(HR) initiatives and looking at how these

are, undoubtedly the best resources of an

initiatives fit together to manage the talent

organization. Sourcing the best people from

available to an organisation.

the industry has become the top most

Benefits of Talent Management: Talent

priority of the organizations today. In such

management is on the anticipation of future

a competitive scenario, talent management

organizational employee or staffing needs,

has become the key strategy to identify and

career advancement, and internal workforce

filling the skill gap in a company by

matters

is

recruiting the high-worth individuals from

associated with general and contextually

the industry. It is a never-ending process

relevant competence as a foundation for

that starts from targeting people. The

successful

process regulates the entry and exit of

(Schweyer,

2004).

employee

Talent

performance

and

organizational competitiveness (Brown and

talented people in an organization.

Tannock, 2009).

The stages included in talent management

Firm investments in training result in better

process are as follows:

organizational performance (Bartel, 1994;

Kalleberg and Moody, 1994; Russel et al.,

It is the preparatory stage and plays a

1985). The specific strategic focus of talent

crucial role in success of the whole process.

management systems leads to higher scores

The main objective is to determine the

in measures of financial outcomes such as

requirement of talent. The main activities

company

of this stage are developing job description

profit,

company

and

talent

Understanding the Requirement:

productivity and market value, increases

and job specifications.

nonfinancial outcomes at the company

level such as company attractiveness, time

second stage of talent management process

for replacement, achieving business goals,

that involves targeting the best talent of the

operational

industry. Searching for people according to

excellence

and

customer

Sourcing the Talent: This is the

satisfaction, non-financial outcomes on

the requirement is the main activity.

talent level such as job satisfaction,

performance

important to attract the talented people to

motivation,

commitment,

Attracting the Talent:

It is

work with you as the whole process

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revolves around this only. After all the

also

main aim of talent management process is

knowledge and future possibilities of

to hire the best people from the industry.

improvement. It gives you a brief idea if

Recruiting the Talent: The actual

focus

on

behaviour,

attitude,

the person is fir for promoting further.

process of hiring starts from here. This is

the stage when people are invited to join

Measuring the actual performance of an

the organization.

employee is necessary to identify his or her

Selecting the Talent: This involves

Performance

Appraisal:

true potential. It is to check whether the

meeting with different people having same

person

can

be

loaded

with

extra

or different qualifications and skill sets as

responsibilities or not.

mentioned in job description. Candidates

who qualify this round are invited to join

can handle the work pressure and extra

the organization.

responsibilities

Career Planning: If the individual

well,

the

management

Training and Development: After

needs to plan his or her career so that he or

recruiting the best people, they are trained

she feels rewarded. It is good to recognize

and developed to get the desired output.

their efforts to retain them for a longer

Retention: Certainly, it is the sole

period of time.
Succession Planning: Succession

purpose of talent management process.

Hiring them does not serve the purpose

planning is all about who will replace

completely. Retention depends on various

whom in near future. The employee who

factors

job

has given his best to the organization and

specification, challenges involved in a job,

has been serving it for a very long time

designation, personal development of an

definitely deserves to hold the top position.

employee, recognition, culture and the fit

Management needs to plan about when and

between job and talent.

how succession will take place.

such

as

pay

package,

Promotion: No one can work in an

Exit: The process ends when an

organization at the same designation with

individual gets retired or is no more a part

same job responsibilities. Job enrichment

of

plays an important role.

(http://www.managementstudyguide.com/ta

Competency Mapping: Assessing

employees skills, development, ability and

the

organization.

lent management-process.htm)
Objectives of the Study

competency is the next step. If required,

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1.

To

study

the

concept

of

talent

technical competence among labour market

management.

candidates. Employers who cite a lack of

2. To know the importance of talent

technical/hard skills are most likely to say

management in corporate sector

the shortage is due to either a lack of

3.

relevant

To

know the

talent management

professional

qualifications

or

strategies of IT Sector in India.

skilled trades certifications. This lack of

Research Methodology

technical competence is due to lack of

1. Research Type: The research type is

training of employees.

descriptive

The percentage of impact on the service of

2. Scope: The scope of the study is limited

clients has increased due to talent shortages

to the study of the talent management

or lack of technical or professional skills.

strategies of IT sector in India.

According to the survey, talent shortages

3.Data Collection:

have

Secondary data is

major

impact

on

the

overall

collected from books, online journals and

organization. Reduced competitiveness and

websites.

productivity

Importance of Talent Management in

employers, while 40% cite a reduced ability

Corporate Sector: According to a survey

to serve clients. One in four believe that

by manpower group in 2013, 61% of the

skills gaps result in reduced innovation and

managers in corporate sector of India

creativity, 24% report a negative impact on

reported that there are serious talent

employee morale, and 23% cite increased

shortages and they are also unable to source

employee turnover. Less than one in five

the right people for right jobs. This has

(18%) name higher compensation costs as a

resulted in difficulty to meet client needs

consequence of talent shortages in key

for the corporate. In 2014, 64% of the

areas. The main concern in India is the

managers

shortages

reduction in innovation and creativity due

according to the manpower survey report of

to talent shortage. With these facts the need

talent shortages of 2014. The foremost

of

reason for talent shortage is an overall lack

competitiveness of business world have led

of applicants is the most commonly

to the growing importance of talent

reported challenge among employers facing

management

in

corporate

a talent shortage in Asia Pacific. The

(Manpower

Group,

Talent

second most important reason is lack of

Survey, 2013).

reported

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talent

talented

is

named

by

employees

41%

and

of

the

sector.
Shortage

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The companies view talent management as

industry which has contributed on a huge

an important tool in their growth. The

basis in the development of the country.

companies have talent specific initiative in

Information Technology (IT), a knowledge-

place and they give them top priority in

based

their

the

potential of becoming an engine of

companies the talent is identified by

accelerated economic growth, productivity

competencies and the HR professional view

improvement for all sectors of the economy

to increase career growth opportunity.

and

Many

According to the Information Technology

organization.

of

the

In

most

of

organisations

view

industry,

means

of

the

efficient

governance.

Association

force for the new talent and for the existing

Technology (I.T.) is defined as the study,

talent. Even rewarding plays an important

design,

role in talent retention. Base pay and Job

implementation, support or management of

security are the two main areas for

computer-based information systems. The

retaining talent in coming years. Other than

I.T. sector, therefore, includes industries

this, training plays an important role in

such as hardware, software, e-commerce,

motivating the employee. Organizations are

internet applications, computer services etc.

using

the

The I.T. sector has earned itself a name as

training programs. In more than 90% of the

an important contributor to the GDP of

organizations

recruiting

several nations. The IT industry in India

developing and retaining employees is

continued to be the largest employer in the

going to increase over the next three years.

country employing nearly 3.1 million

Talent Management Strategies in I.T.

professionals. The sector has largest share

Sector: In India, many developments have

in total services exports.

taken place due to the globalisation.

The growth and prosperity of India's IT

Globalisation has entered many of the

industry depends on some crucial factors.

sectors and industries in India. One of the

These factors are as follows:

sectors which have developed rapidly is the

service sector of India. The contribution of

qualified people.

this sector has made India as a developing

economy at a faster pace. One of the parts

is reasonably low compared to the

of this sector is the Information Technology

developed nations.

for

budget

1st October, 2015

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improving

for

America,

tremendous

organizational culture as a main driving

certification

of

has

development,

Information

application,

India is having large number of

The cost of skilled Indian workforce

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India has a huge pool of English-

Learning Programme or Induction training,

speaking IT professionals.

Continuous

Learning

Programme,

A huge number of people are employed in

Leadership

Development

Programme,

this sector in India and therefore managing

Foreign Language Initiative, Workplace

the talent of the employees is a huge

Learning

challenge. So there is a need to study the

technical and professional skills. These

talent management strategies that are

training and development strategies are

undertaken in this sector.

used by TCS in order to improve the skills

Many of the talent management strategies

and retain talent.

are followed in the industry:

3. Tapping of the talent is the crucial part

1. One of the biggest IT giants like Infosys

for the organisations in India and Asia

Technologies

Employee

Pacific. Many of the organisations face the

Engagement as an important part of talent

challenge of talent shortages. They do not

management process. A good brand image

find right people for right job or positions.

for the company is created in external

The organisations seek a new talent outside

environment and a formal employment

existing talent pools by becoming a partner

brand is created and communicated to the

with local educational institutions to ensure

employees.

the curriculum is aligned with their talent

considers

Employees

are

given

programme

to

improve

the

opportunities to be heard informally.

needs.

Managers and leaders are trained on

4. The work process in the organisations

principles of employee engagement. New

operating in India and Asia Pacific is also

managers and supervisors are taught the

structured

fundamental

talent

employees. The focus have increased to

management. Meaningful and customizable

improve the talent by identifying the high

career paths for employees are provided

potential employees through performance

that allow for a sense of purpose and

appraisal and to build their career by

direction in the organization and provide an

undertaking development activities. The

element of challenge to employees.

work process is redesigned according to the

2.

Training and development strategy is

changes in the external and internal

used to manage and retain the talent of the

environment. The organisation even offers

employees. Various kinds of training

flexible

concepts

of

to

work

manage

the

arrangements

talent

and

of

also

programmes are conducted like Initial

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provides virtual work options to the

potentials and to build their career paths.

employees.

The top talent management strategies for

5. The companies in I.T. sector have

the organisation recently are leadership and

identified that the job security and base pay

succession planning and training and

are the motivators for the employees and

development.

the factors through which talent is retained.

Conclusion:

The compensation system is recognised as

essential in building the right workforce.

a motivator for the greater results. Besides

Employees are the biggest asset for any

base pay and job security other factors like

organisation and therefore it is necessary to

health care benefits, retirement benefits

invest in them and to retain them for the

child

equity

growth and success of the organisation. The

participation are also undertaken in some of

impact of talent management strategies has

the organisations.The companies consider

remarkable

effects

talent management and retention as a

productivity

of

strategic part of the organisation. The talent

employees. Proper alignment of Talent

management strategies are aligned with the

management strategies with organisational

organisational goals to ensure the growth of

goals will be helpful to sustain in the

the

competitive environment for long period of

care

arrangements

organisation.

The

and

organisations

motivate the employees to accept the

Talent

management

on

output

organization

is

and
and

time.

change as it is helpful to develop their

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