See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/273145069

A Study of HRM Practices prevailing in IT-ITES Industry - A Case Study of IT -

ITES organizations of Vadodara City

Article · October 2014

CITATIONS READS

0 10,626

1 author:

Dharmesh Raval
Gujarat Maritime University
11 PUBLICATIONS   29 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Ph.D. thesis Related Research publications, Review Articles,Confrence Paper etc... View project

Integrating Talent Development into Innovation Ecosystem into Higher Education ( INNOTAL) View project

All content following this page was uploaded by Dharmesh Raval on 24 April 2015.

The user has requested enhancement of the downloaded file.

 A Study on HRM Practices prevailing in IT-ITES Industry-

A case study of Vadodara city

D S Raval 1, S B Trivedi2

1 Dr Dharmesh Raval, Associate Professor, School of Management, R K University, Rajkot, India

2 Ms Stuti Trivedi, PhD Scholar, School of Management, R K University, Rajkot, India and Assistant Professor, C K Shah
Vijapurwala Institute of Management, Vadodara, India

Abstract

This research paper highlights the context within which IT/ITES Industry has grown in India and the extent of
human resource management (HRM) practices and systems practised in the sector. Using a mixed method
approach involving both in-depth discussion with senior HR executives and self-completing questionnaires,
the data have been collected from selected IT/ITES companies of Vadodara city. The outcomes highlight the
way specific HRM practices such as recruitment, performance appraisal, training and development, and
compensations are implemented. The study suggests the existence of formal, structured, and rationalized HRM
systems in IT/ITES organizations. A number of insights related to HRM policies and practices are shared by
the HR senior executives interviewed shedding more light on the functioning of the IT/ITES companies and
their challenges. The analysis provides original and useful information to both academicians and practitioners
and opens avenues for further research in the area of HRM systems and practices in the Indian IT/ITES
industry.

Keywords: HRM Practices, IT/ITES Industry.

Introduction

Human influence in business has been constantly rising since the Industrial Revolution, even after machine
and automation has increased to a great extent. There is a shift in the role of humans in business, earlier humans
were more into physical part, now it is increasing on the intellect part. Technology will always help in making
things simple and easy but to remain relevant and stay competitive, effective human involvement is
indispensable for today’s businesses.

Among all sectors in India IT-ITES sector has been one of the sector remaining in the lime light in last 30
years. With abundant intellectual capital in India, the sector has better possibilities of growth. The sector has
increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012.[1]

As this sector recruits intellectual capital, effectively motivating this intellectual capital – intellectuals is a
very big challenge. Human Resource Management practices have also increased in India and a lot of research
work is also carried out on effective implementations of HRM principles for growth of any business enterprise.
This paper is also another such effort in the same direction, looking for HRM practices prevalent in IT-ITES
Industry.

About IT-ITES Industry

IT–ITES industry has two major components: IT Services and Business Process Outsourcing (BPO). The
growth in the service sector in India has been led by the IT–ITES sector, contributing substantially to increase
in GDP, employment, and exports. According to NASSCOM, the IT–BPO sector in India aggregated revenues
of US$100 billion in FY2012, where export and domestic revenue stood at US$69.1 billion and US$31.7
billion respectively, growing by over 9%.[1]

The major cities that account for about nearly 90% of this sectors exports
are Bangalore, Hyderabad, Chennai, Delhi, Mumbai and Kolkata. Bangalore is considered to be the Silicon
Valley of India because it is the leading IT exporter.[2][3] Export dominate the IT–ITES industry, and constitute
about 77% of the total industry revenue. Though the IT–ITES sector is export driven, the domestic market is
also significant with a robust revenue growth.[1] The industry’s share of total Indian exports (merchandise plus
services) increased from less than 4% in FY1998 to about 25% in FY2012. According to Gartner, the "Top
Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL
Technologies.[4]

This sector has also led to massive employment generation. The industry continues to be a net employment
generator - expected to add 230,000 jobs in FY2012, thus providing direct employment to about 2.8 million,
and indirectly employing 8.9 million people.[1] Generally dominant player in the global outsourcing sector.
India's growing stature in the Information Age enabled it to form close ties with both the United States of
America and the European Union. However, the global financial crises deeply impacted the Indian IT
companies as well as global companies in the form of drop in new recruitments. Employees are looking at
different sectors like the financial service, telecommunications, and manufacturing industries, etc for
employment which have grown phenomenally in the last few years.[5]

The birth of IT Services Industry took place in the year 1967 with establishment of Tata Group partnerships
with Burroughs and the first software export zone SEEPZ was set up in Mumbai way back in 1973. The share
of IT (mainly software) in total exports increased from 1 percent in 2001 to 18 percent in 2012 [1]. The ITES
services like back office operations, remote maintenance, accounting, public call centres, medical
transcription, insurance claims, etc are rapidly increasing. Indian IT companies such as HCL, TCS, Wipro,
and Infosys are likely to become household names around the world. A majority of the Fortune 500 and Global
2000 corporations are sourcing IT and ITES from India, as it is becoming the premier destination for the global
sourcing of IT and ITES accounting for near about 55 % of the global market in offshore IT services and
garnering 35 % of the ITES/BPO market out of which Gujarat IT-ITES industry claims about Rs 1,000-crore
market, and is expected to grow up to a Rs 1,500-crore market with around 400 BPO/KPOs and an equal
number of IT/ITES companies in the state.

According to a Nasscom report, Surat and Ahmedabad are now positioning themselves on the country's IT
map and the new IT policy would focus on making human resources available to the IT set-ups, developing
infrastructure for the IT industry, easing the process to set up new businesses and lowering land prices. More
than 1000 ICT and BPO companies are operational in Gujarat. 127 new companies are registered with
Comminssionerate of Information Technology. IT units are spreading their markets from US to other regions
like Europe, Middle East and Africa. 14 Special Economic Zones have been planned specifically for IT/ITES.

Recent development in IT/ITES Industry

The economic effect of the technologically inclined services sector in India—accounting for 40% of the
country's GDP and 30% of export earnings as of 2006, while employing only 25% of its workforce—is
summarized by Sharma (2006) [6]. Bangalore is known as the Silicon Valley of India and contributes 33% of
Indian IT Exports. India's second and third largest software companies are head-quartered in Bangalore, as are
many of the global SEI-CMM Level 5 Companies. Mumbai too has its share of IT companies that are India's
first and largest, like TCS and well established like Reliance, i-Gate Patni, L&T Infotech, i-Flex, WNS, Shine,
Naukri, clickjobs.com, Jobs pert etc. are head-quartered in Mumbai, Delhi, Chennai. And these IT and dot
com companies are ruling the roost of Mumbai's relatively high octane industry of Information Technology.
Such is the growth in investment and outsourcing; it was revealed that Cap Gemini will soon have more staff
in India than it does in its home market of France with 21,000 personnel in India.[5]

According to latest GESIA (Gujarat Electronics and Software Industry Associations) report, Vadodara,
formerly known as Baroda, is the third largest and most populated city in the Indian State of Gujarat, after
Ahmedabad and Surat. It has high literacy rate by Indian Standards of 78% (2001). Major Industries include
petrochemicals, engineering, pharmaceuticals, plastics, aircraft, IT, tyres, electronics, fertilizers, chemicals
and Forex. Vadodara is also fast emerging as country’s IT/ITES Hub with recent identification by NASSCOM
as emerging IT/ITES destination. Vadodara is now house to several leading BPO/KPO companies. Recently
Vadodara was rated as emerging best city in India by India Today in overall category. The share of IT/ITES
is 14%, biotechnology-4%, engineering services-23%, chemicals-25%, pharma-12%, electrical-10% and
other-10% as far as industries of Vadodara city is concerned.

HRM Practices and Literature Review

According to Dessler, [7] Human resource management (HRM) refers to the policies and practices involved in
carrying out the ‘human resource(HR)’ aspects of a management position including human resource planning,
job analysis, recruitment, selection, orientation, compensation, performance appraisal, training and
development, and labour relations.

A lot of research work is carried out on HRM for the sheer reason of its importance in managing the firm and
the amount of impact it makes on performance of the firm. Because the performance of a firm largely depends
on the combined performance of the people of that organization, HRM is a major area of focus for academic
and business researchers. HRM practices such as job analysis, recruitment and selection, training and
development, work environment and performance appraisal may enhance the competence of employees for
high performance apart from interaction with technology and processes, relations with employees working
within the departments and the synergy of such effective teamwork decide the operational success (Barney
[8].
and Wright, 1997) To achieve better results, effective synergic interaction in the working group is a
necessary requirement.

HRM is composed of the policies, practices, and systems that influence employees’ behaviour, attitude, and
performance (Noe, Hollenbeck, Gerhart, & Wright,) [9]. To bring sustained and quality results, people within
should pull out beyond the individual as well as workgroup levels and match themselves with the
organizational aspiration in order to make an effective contribution (Sheldon, 1971) [10] ; (Porter et al., 1974)
[11]
; Romzek, 1989) [12].

HRM Practices in IT/ITES Industry

Human Resource is life and blood of IT Industries as skilful talents are the source for competitive advantage
in these industries. The IT/ITES industry is considered most vibrant by nature as it has innovative methods of
work culture like virtual office and virtual migration etc which are exclusive from other sectors as there is high
attrition rate, lack of job satisfaction, job hopping of the employees, flexibilization and individualization which
are very common phenomenon in the industry, which is major concern for the IT Industries. The HRM
practices in Indian IT Industries like employee sourcing and human resource development initiatives are
remarkably different from the manufacturing and other service sector companies.

Recruitment and selection practice is being treated as a tool for realizing strategic intent. Some of the common
recruitment strategies include ongoing recruitment, employee referrals, and realistic job previews,
determination of clear-cut selection criteria. People Development and Training is necessary to the constant
success of every organization. Employee training and development enables employees to develop skills and
competencies necessary to enhance bottom-line results for their organization. Skill redundancy is fast in the
Indian IT Industry, with the changing time and even fast changing technologies Indian companies have started
realizing the importance of corporate training and to overcome this omen organizations give the extreme
priority to training and skill enhancement programs on continuous basis.

Performance is the mirror of training, which works as a scale for the performance appraisal of an employee. It
is an objective system to judge the ability of an individual employee to perform his tasks. The process of
Performance Appraisal has become the heart of HRM system in Indian IT Industries. Incentives to employees
play a vital role in motivating and retaining them in the organization Compensation and rewards in the Indian
IT industry have long included a basic pay component along with a bonus pay when the company made higher
profits.

Work-Life Balance has become a buzzword for the HR recently. The employees in the present scenario simply
don't find money as the only motivator for performing aggressively; rather give more emphasis to a meaningful
work which offers ample scope for enjoying leisure with the family and taking care of the important household
chores. It is for this reasons that the corporate fraternity has realized the significance of work- life balance and
have started taking initiatives for promoting employee well - being and satisfaction. Employees differentiate
a good employer from any other employer through the feeling of 'well-being' that is generated at the workplace.
A balance between work and personal goals, and wants of an employee contributes positively to the retention
of employees.

Recently, Saxena and Tiwari (2009)[13] examined the HRM Practices implemented by leading IT Companies
such as TATA, Infosys and Wipro in India. They developed the 3cTER Framework of HRM practices and
identified Training and Development, Employer-Employee Relations, Recognition through Rewards, Culture
building, Career Development, Compensation and Benefits as important HRM Practices. Leading IT/ITES
organizations more or less follow HR Practices such as Safe, Healthy and Happy Workplace, Open Book
Management Style; Performance linked Bonuses, 360 Degree Performance Management Feedback System,
Fair Evaluation System for Employees, Knowledge Sharing, Open house discussions and feedback
Mechanism, Reward Ceremonies.
Research Objectives

1. To study the estimation of manpower planning & skills requirement using Human Resource Planning
in selected IT-ITES companies
2. To study the flexible Employee Performance Management Solutions offered by Talent Management
in selected IT-ITES companies
3. To study the process of screening & selecting qualified resources using Recruitment & Selection
process in selected IT-ITES companies
4. To study acquisition of knowledge, skills & competencies of resources using Training & Development
process of IT-ITES companies
5. To study job performance of resources in terms of quality, quantity, time and cost using Performance
Appraisals of selected IT-ITES companies
6. To study the approach of providing monetary value to the resources using Compensation of selected
IT-ITES companies
7. To study the benefits provided by the selected IT-ITES organization for their welfare

Methodology

A list of IT/ITES companies operating in Vadodara was drawn out for research. For the purpose of the study,
organizations employing more than 50 employees were selected as a responding unit. The sampling population
for the study was chosen on the basis of convenient random sampling technique. Respondent were the senior
HR executives. The data have been collected from the respondents based interaction with them which included
in-depth discussions and self completing questionnaire.

Based on above criteria, only 7(seven) companies fulfil the criteria for being selected as a participant company.
Hence sample size is of 7 companies based in Vadodara.

There is an array of good HRM practices but it is practically impossible to cover all the policies at a time,
hence researcher focus on selected seven HRM practices suggested by VSP Rao from the book “ Human
Resource Management- Test and Cases”, 2nd edition authored by VSP Rao, which are internally consistent
with one another. For example, an organization promising employment security needs to pay close attention
to selective hiring of new personnel, for which organizations needs to have an accurate plan about requirement,
demand and supply of human resources, which leads to proper Human Resource Planning. Employees
cannot be retained for a long time unless their attitudes, values, and behaviour fit with those of the organization.
Therefore, identifying these qualities should be an integral part of the Recruitment and Selection. Effectively
Managing Talent requires in-depth understanding of aptitudes, abilities, temperaments, idiosyncrasies, and
personal traits of fellow employees. Mutual understanding among employees usually develops when they work
together for a long time as occurs in organizations that provide employment security. Also, when an
organization institutes Performance contingent Compensation, the employees are motivated to focus on
long-term organizational performance rather than short-term gains if the employers provide employment
security. Organizations emphasizing employment security intend to keep employees longer; therefore, it
makes sense to invest more in Training and Development of these employees. Under a longer time horizon,
training related expenditures should be strategically evaluated and considered an investment toward human
capital rather than merely a cost of doing business. Organizations also need to look after welfare, comfort
and improvement of the resources, intellectually and/ or socially, over and above governmental,
Employee Welfare which is a necessary part of the industry.

About selected IT/ITES companies of Vadodara

Based on above methodology, only 7(seven) companies fulfil the criteria for being selected as a participant
company. The brief introduction of all selected companies for this research work is as under:

AllScripts India at Vadodara with about 400 resources has been established since last 10 years. US based
company it’s a Physicians' offices, hospitals and post-acute care organizations strive toward providing the best
patient care. The solutions, services and community that All scripts offers can help client achieve clinical and
financial goals. AllScripts is dedicated to providing the best possible client experience. They support 180,000
physicians in 50,000 practices, 1,500 hospitals including 100% of US News & World Report’s “Honour Roll”
hospitals and 10,000 post-acute care organizations.

E-Intelligence, India has grown day-by-day as a leading Search Engine Optimization (SEO), Marketing
Management, Web Designing and Development Company. With about 90-100 employees it is a leading global
full-service digital marketing agency, e-intelligence has been providing customized and constantly revolving
solution-based services for a number of marketing applications across various industry verticals, globally.
They provide a tailor-made solution that enables your business grow globally by overcoming challenges and
out-performing competition

Talent Anywhere Services Pvt Ltd provides companies with an end-to-end solution to develop a global
workforce. Their award-winning model with about 100 employees based at Vadodara unit, others at Pune and
Bangalore is the most proven method for establishing and growing a team in emerging markets. They use a
vertically-integrated approach that ensures our clients' international operations succeed. No other model for
international or offshore operations can compete with their success rate. They work with leading companies
to establish their offices and teams in new locations. They take ownership of ensuring successful
implementation, from recruitment and facilities to ongoing project management.

Rishabh Softwares Pvt Ltd. with about more than 100 employees located at Vadodara branch is into Mobile
App Development, Cloud Development, Software Development, Software Management, Software Testing,
Engineering, BPO and provide services to Telecom, Finance, HealthCare, Supply chain and Education.

A. Live Mind Creative’s Pvt Ltd. is a dynamic and fast-paced start-up, with about 30 employees and with only 2
years of history. They make Smartphone apps which have very simple, down-to earth ideas, but are of immense utility
to consumers. Their presence is felt in three basic areas – in the Smartphone industry, on the web and amongst the youth.
While creating apps, the focus is on making it look good, having a smooth interface and most importantly, making it as
user-friendly as possible.

Window Maker Software Ltd. is one of the world’s leading software companies supplying the window and door
industry. Established in 1983, Window Maker has the experience and expertise to develop innovative market-leading
solutions that are used daily by thousands of customers. As a truly international company, Windowmaker has a presence
across the world. Based in the UK, with offices and Partners across many other countries, Windowmaker software has
been sold in 18 languages to more than 70 countries. Employing over 800 people, Windowmaker has more than 50%
staff dedicated to software development – meaning the products remain at the forefront of new technology, bring new
features and functionality to customers on a continual basis. Provide solutions like Manufacturing, Profile systems,
Machinery links, Third Party Solutions, Software Development, and Software Consultancy.

Voniz.com a Vadodara based company, involving 40 employees provides an individual as well as a running company
the ultimate web solutions. Builds websites using PHP and .NET technologies, they are also in to building software’s
on CRM, ERP, Invoicing, and Hospital Management & Transport Management.

HRM Practices

We have enlisted 7 HRM practices which can be present in any IT-ITES business enterprise. This list has
been generated based on the theory suggested by VSP Rao in his book, “Human Resource Management-
Test and Cases”, 2nd edition authored by VSP Rao. A survey has been carried out in all 7 selected IT-ITES
companies based in Vadodara to get an idea about to what extent these 7 practices are present in the HRM
practices of these respective companies. These 7 practices are listed in details as under:

1 Human Resource Planning

HRP involves gathering of information, making objectives, and making decisions to enable the organization
achieve its objectives. The basic purpose of having manpower plan is to have accurate estimate of manpower
planning with matching skills requirements.

Six Sigma Methodologies in Human Resource Planning

The central idea behind it is if you can measure how many “defects”, you have in a process, you can
systematically figure out how to eliminate them and get as close as to “zero defects” as possible. It helps to
ensure your projects are completed on schedule and sometimes before time.

Companies objectives behind HR Planning

1.1 To help in Forecasting Manpower Requirements

1.2 To cope with changes-economic, environment, organization
1.3 To utilize existing manpower productively
1.4 To promote employees in systematic ways
 Companies HR Planning answer below questions

1.5 Number of resources the organization has

1.6 Different type of resources as far as skills and abilities do the company have
1.7 Different ways the company best utilize the available resources
1.8 Different ways the company keep its resources

Implementation of Six Sigma Technology in HR Planning means

1.9 To provide services that meet global benchmarks

1.10 To ensure robust process within the organization
1.11 To consistently meet and exceed customer expectations
1.12 To make quality a culture within

Does the company have Six Sigma Methodology in Human Resource Planning

1.13 Yes
1.14 No

Is the company SEI CMM level 1, 2, 3, 4, 5 IT Service Company

1.15 Yes
1.16 No

2 Talent Management
Organizations offer various flexible Employee Performance Management solutions which includes goal
management, performance appraisals, multi-ratter/360 degree feedback, workforce and succession planning,
development planning and training.

Company provides Learning Technology Solutions like

2.1 Technology consulting

2.2 Product implementation & development consulting
2.3 Architecture consulting
2.4 Integration & Maintenance Service support consulting

Company supports Content Development Solutions like

2.5 Product, process, domain & Technology training solutions

2.6 Behavioural, soft skills, sales, safety, Compliance
2.7 ERP and Non ERP application training roll out
2.8 Rapid content development solutions

Company supports Consulting like

2.9 Performance Consulting

2.10 Learning Interventions
2.11 Training Need Analysis
2.12 Curriculum Design
2.13 Change Management
 Company aids resources in Documentation services like

2.14 Technical Writing

2.15 Technical Editing
2.16 End user Documentation

3 Recruitment & Selection

Recruitment refers to the process of screening, and selecting qualified people for a job of an organization or
firm, or for a vacancy in a volunteer-based organization or community group.

Company recruits from Internal Sources of Recruitment

3.1 Promotions and Transfer

3.2 Job postings
3.3 Employee Referrals

Company recruits from External Sources of Recruitment

3.4 Advertisement
3.5 Employment Agencies
3.6 On campus Recruitment
3.7 Employment Exchanges
3.8 Education and Training Institute

Company’s recruitment process might include

3.9 Aptitude Test

3.10 Technical Interview
3.11 HR Interview

Company’s selection process might include

3.12 Preliminary Interviews

3.13 Application blanks
3.14 Written Tests
3.15 Employment Interviews
3.16 Medical examination
3.17 Appointment Letter

4 Training & Development

The term Training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching
of vocational or practical skills and knowledge that relate to specific useful competencies.

Company supports few of the below mentioned training types

4.1 Induction Training

4.2 Talent Transformation
 4.3 Class room training
4.4 E-Learning
4.5 Compliance and Regulatory training
4.6 Rapid Learning

Company supports any of the below mentioned Development programs

4.7 Personal Development Plan (PDP)

4.8 Entry-level program (ELP)
4.9 New Leaders’ Program (NLP)
4.10 Leaders’ Program (LP)
4.11 Business Leaders’ Program (BLP)
4.12 Strategic Leaders’ Program (SLP)

5 Performance Appraisals
It is a method by which the job performance of an employee is measured in terms of quality, quantity, cost
and time

Performance Appraisal– does it fulfil below mentioned objectives----

5.1 Give feedback on performance of employees

5.2 Identify employee training needs
5.3 Document the criteria’s used for giving organization rewards
5.4 Form a basis for personnel decision: salary increase, promotion, disciplinary actions etc.
5.5 Provide opportunity for organizational diagnosis and development
5.6 Align employee objectives to business goals
5.7 Measure and assess employee’s performance periodically and provide feedback and support to achieve
qualitative, quantitative and process targets
5.8 Evaluate and track Hi-Performance and achievers based on competencies

Motive behind Appraisal System in the company is

5.9 Resources develop and perform along with the company

5.10 Measure and track the pace of the resources

6 Compensation
Compensation is a systematic approach to providing monetary value to employees in exchange
for work performed. Compensation may achieve several purposes assisting in recruitment, job performance,
and job satisfaction.

Promotion
It is an advancement of an employee’s rank or position in an organizational hierarchy system. It may be
employee’s rewards for good performance. Before company promotes an employee it ensures that the person
is able to handle added responsibility by screening the employee with an interview, test or giving them training,
on the job training

Company provides satisfactory Industry Standard Compensation Plans

 6.1 Yes
6.2 No

Basis of Promotion

6.3 Seniority
6.4 Merit

7 Employee Welfare
Welfare means anything done for the comfort and improvement, intellectual or social, of the
employees over and above governmental, which is not a necessary of the industry.

Company have among below mentioned Welfare Activities

7.1 Education
7.2 Medical
7.3 Housing
7.4 Canteen
7.5 Sports
7.6 Recreation activities
7.7 Club membership
7.8 Insurance

Company provides below mentioned benefits to the employees

7.9 Wings Within

7.10 Leaders Program
7.11 Recognition
7.12 Long Services Award
7.13 Benefits

Study of HRM Practices in selected IT-ITES companies of Vadodara City

For each seven practices, a survey was made in each of the 7 selected companies and after interaction with
key HR professional of respective companies, we have gathered the data as under in Tabular Form, which is
analysed as well.

Analysis and Interpretation

Table 1.1 Human Resource Planning

Talent A. Live Window

Human E- Rishabh
AllScripts Anywhere Mind Maker
Resource Intelligence, Softwares Voniz.com
India Services Creative’s Software
Planning India Pvt Ltd.
Pvt Ltd Pvt Ltd Ltd
√ √ √ √ √ √
1.1 √

√
1.2 √ √

√ √ √ √
1.3
 √ √ √ √ √ √ √
1.4

√ √ √ √ √
1.5

√ √ √ √ √ √
1.6

√ √ √ √
1.7 √

√ √ √
1.8

√ √
1.9 √

√ √
1.1

√ √ √
1.11 √

√ √ √
1.12

√
1.13 √ √

√ √ √
1.14 √

1.15 √ √

√ √ √ √ √
1.16

Total 14 7 10 10 9
8 8
Scores
Average 87.5% 43.7% 62.5% 62.5% 56.2%
50% 50%
Scores
Table 1.1: Out of the total scores the overall average is 50%, Rishabh Softwares Pvt ltd meets the overall
average, AllScripts India scores highest with 87.5% of average scores and E-intelligence India scores the least
with 43.7% average scores as far as Human Resource Planning is concerned. Almost 100% of the sample
collected, the main objective behind implementing Human Resource Planning is to forecast manpower
requirements, to promote employees in a systematic way, 85% of them implement to know the skill matrix of
the resources, 57% - of them to utilize existing manpower productively, and to take optimum utilization of
human resources, whereas less than 50% of the companies implement six sigma technology in human resource
planning to meet global requirements, to consistently match and exceed customer expectations as well as to
develop a quality culture. Hardly any sample being collected is a CMM level company, which is considered
as quality benchmark as far as IT-ITES industry is considered.

Table 1.2 Talent Management

Talent Talent A. Live Window

E- Rishabh
Managemen AllScript Anywhere Mind Maker
Intelligence Softwares Voniz.com
t s India Services Creative’s Software
, India Pvt Ltd.
Pvt Ltd Pvt Ltd Ltd
2.1 √ √ √ √ √ √

2.2 √ √ √ √ √ √
√

2.3 √ √ √ √ √

2.4 √ √ √ √
√
 2.5 √ √ √ √ √

2.6 √ √ √ √
√ √

2.7 √ √

2.8 √ √ √

2.9 √ √
√

2.1 √ √ √
√ √

2.11 √ √ √
√

2.12
√ √

2.13

2.14 √ √ √
√

Total Scores 9 8 9 10 6 5 10

Average Scores 64.2% 57.1% 64.2% 71.4% 42.8% 35.7% 71.4%

Table 1.2 Out of the samples collected, E-intelligence, India is close to overall average score of 50% with
57.1%, Rishabh Softwares Pvt, ltd and Voniz.com scores the highest average score while Window maker
scores the least average score of 35.7% as far as managing the Talent is concerned. 100% of the sample
collected provides learning technology solutions like product implementation & development consulting, 85%
of them provide technology consulting, behavioural-soft skills-safety compliance solutions, and 71% provides
architecture, integration-maintenance-service support, product-process-domain consulting and learning
interventions. 57% supports training need analysis and aids in end user documentation. Less than 50% sample
collected, provides ERP application training, rapid content development solutions, helps resources for their
performance consulting, does not encourages participative management or do not involve resources in framing
curriculum design and not a single sample encourages change management.

Table 1.3 Recruitment & Selection

Talent A. Live Window

E- Rishabh
Recruitment AllScripts Anywhere Mind Maker
Intelligence, Softwares Voniz.com
& Selection India Services Creative’s Software
India Pvt Ltd.
Pvt Ltd Pvt Ltd Ltd
√ √
3.1 √

√ √ √ √ √ √
3.2

√ √ √ √ √ √
3.3 √

√ √ √
3.4

√ √ √
3.5

√ √ √
3.6 √ √
 √
3.7

√ √ √
3.8

√ √ √ √ √ √ √
3.9

√ √ √ √ √ √ √
3.1

√ √ √ √ √
3.11

√ √ √ √
3.12 √ √

√ √ √ √
3.13

√ √ √ √ √
3.14

√ √ √ √
3.15 √ √

√
3.16

√
3.17 √ √ √ √ √ √

Total Scores 15
12 11 9 11 12 9
Average 88.2%
70.5% 64.7% 52.9% 64.7% 70.5% 52.9%
Scores

Table 1.3 Out of the samples collected, the overall average score is 50%, Rishabh Softwares Pvt ltd and
Voniz.com are near to overall average scores while AllScripts scores the highest average score as far as the
process of recruitment and selection is concerned. 100% of the sample prefers recruitment from employees
referrals which includes aptitude test –technical interview as their recruitment process and at the end issue
appointment letter, 85% of them offer job postings within branches, conducts preliminary interviews and
employment interviews. 71% of them goes for campus recruitment, followed by written tests, HR interview,
57% collects application blanks and less than 50% gives advertisement for walk-inns, recruits from
employment agencies, employment exchanges, and conduct medical examination before joining.

Table 1.4 Training & Development

Talent A. Live Window

E- Rishabh
Training & AllScripts Anywhere Mind Maker
Intelligence, Softwares Voniz.com
Development India Services Creative’s Software
India Pvt Ltd.
Pvt Ltd Pvt Ltd Ltd
4.1 √ √ √ √ √ √

4.2 √ √ √

4.3 √ √ √ √ √

4.4 √ √ √ √ √ √

4.5 √

4.6 √ √ √ √

4.7 √ √ √
 4.8 √

4.9 √ √

4.10

4.11

4.12 √ √

Total Scores 8 4 3 6 3 3 6

Average Scores 66.6% 33.3% 25% 50% 25% 25% 50%

Table 1.4 Out of the total sample collected, the 50% of overall average scores, AllScripts India scores the
highest with 66.6% and Talent Anywhere Services Pvt, Ltd and WindowMaker Software Ltd scores the least
with 25% on Training and Development. 85% of the samples provide induction training, e-learning, 71% of
them provide class-room training, 57% of them provide content development training, and less than 50%
provides talent transformation, compliance and regulatory training, personal development plans, entry-level
programs, leader’s program like business and strategic leaders.

Table 1.5 Performance Appraisals

Talent A. Live Window

E- Rishabh
Performanc AllScripts Anywher Mind Maker Voniz.co
Intelligenc Softwares
e Appraisals India e Services Creative’ Software m
e, India Pvt Ltd.
Pvt Ltd s Pvt Ltd Ltd
√ √ √ √ √ √ √
5.1

√ √
5.2 √

√ √ √ √
5.3

√ √ √
5.4 √ √ √

√
5.5

√ √ √
5.6

√ √ √ √
5.7 √ √

√ √ √
5.8

√ √
5.9

√ √
5.10 √ √ √ √

Total Scores 9 7 4 5 7 4 5

Average 90% 70% 40% 50% 70% 40% 50%

Scores

Table 1.5 Out of total sample collected, AllScripts India scores the highest 90% and TalentAnywhere Services
Pvt Ltd and WindowMaker Software Ltd scores the least 40% on Performance Appraisal system. 100% of the
samples uses performance appraisals to give feedback on performance of employees, 85% of them uses to
form a basis for personnel decisions like salary increment, promotion etc or to take an disciplinary actions, it
is also useful to them to assess resources’ performance periodically and provide feedback to achieve
qualitative-quantitative targets, and also to measure and keep a track of the pace of resources, 57% of them
uses it as a document for giving organization rewards and less than 50% uses it to identify employees training
needs, for organizational diagnosis and development, to evaluate and track high performers.

Table 1.6 Compensation

Talent A. Live Window

E- Rishabh
Compensatio AllScript Anywher Mind Maker Voniz.co
Intelligence Software
n s India e Services Creative’ Softwar m
, India s Pvt Ltd.
Pvt Ltd s Pvt Ltd e Ltd
6.1 √ √ √ √ √ √ √

6.2

6.3

6.4 √ √ √ √ √ √ √

Total Scores 2 2 2 2 2 2 2

Average Scores 50% 50% 50% 50% 50% 50% 50%

Table 1.6 Out of the total sample collected, all the companies’ scores overall average for their compensation
criteria is concerned. 100% of the samples collected agreed that they are being paid according to industry
standards and the basis for their promotion is on merit and not seniority.

Table 1.7 Employee Welfare

Employee Talent A. Live Window

E- Rishabh
Welfare AllScripts Anywhere Mind Maker
Intelligence, Softwares Voniz.com
India Services Creatives Software
India Pvt Ltd.
Pvt Ltd Pvt Ltd Ltd
7.1 √ √ √ √ √

7.2 √ √ √ √

7.3 √ √

7.4 √ √ √ √

7.5 √ √ √ √ √ √ √

7.6 √ √ √ √ √

7.7 √

7.8 √ √ √ √ √

7.9
 7.10

7.11 √ √ √ √ √ √ √

7.12 √ √ √

7.13 √ √ √ √ √ √

Total Scores 11 8 5 5 9 6 5

Average 84.6% 61.5% 38.4% 38.4% 69.2% 46.1% 38.4%

Scores

Table 1.7 Out of total sample collected, Rishabh Softwares Pvt. Ltd and Voniz.com scores the least on giving
benefits to employees, whereas AllScripts with 84.6% scores the highest on giving benefits and welfare
activities of resources. 100% of them are getting sports encouragement, recognition, 71% of them get the
benefit of further education, recreational activities, insurance, 57% of them receive medical facilities, canteen
facilities, and less than 50% get the benefit of housing facility from the company, club memberships, receives
long services awards and no samples collected gives the advantage of wings within i.e promotion-transfer
opportunities within the branches and no company offers leadership program.

Conclusion

As far as Human Resource Planning is concerned, hardly any sample being collected is a CMM level company,
which is considered as quality benchmark as far as IT-ITES industry is considered. Majority of the companies
agrees that it is used majorly for forecasting human resources, to promote employees in a systematic way, for
implementing skill matrix of the resources, to utilize existing manpower productively, and to take optimum
utilization of human resources, whereas less than half of the companies implement six sigma technology in
human resource planning to meet global requirements, to consistently match and exceed customer expectations
as well as to develop a quality culture. Mainstream of the sample collected provides learning technology
solutions like product implementation & development consulting, provide technology consulting, behavioural-
soft skills-safety compliance solutions, provides architecture, integration-maintenance-service support,
product-process-domain consulting and learning interventions and supports training need analysis and aids in
end user documentation etc whereas ERP application training, rapid content development solutions,
performance consulting, participative management or involving resources in framing curriculum design etc
are not common practices provided by the sample companies and none encourages change management.
Almost sample prefers recruitment from employees’ referrals which includes aptitude test, technical interview
as their recruitment process, offer job postings within branches, conducts preliminary interviews and
employment interviews, goes for campus recruitment, followed by written tests, HR interview, collects
application blanks and whereas giving advertisement for walk-inns, recruitment from employment agencies,
employment exchanges, conducting medical examination before joining etc are less preferred. Induction
training, e-learning, class-room training, content development training are most common types of training
followed by sample companies, and whereas talent transformation, compliance and regulatory training,
personal development plans, entry-level programs, leader’s program like business and strategic leaders etc are
encouraged in a smaller amount.

Giving feedback on performance of employees, documenting performance for personnel decisions like salary
increment, promotion etc or to take an disciplinary actions, for assessing resources’ performance periodically
and to provide feedback for achieving qualitative-quantitative targets, for measuring and keeping a track of
the pace of resources, using it as a document for giving organization rewards etc are more common
performance appraisals and whereas identifying employees training needs, organizational diagnosis and
development, evaluating and tracking high performers etc are less common performance appraisals. All the
samples agreed upon being paid according to industry standards and the basis for their promotion is on merit
and not on seniority. Most of the companies encourages sports, recognition, provide benefit of further
education, recreational activities, insurance, medical facilities, canteen facilities, whereas housing facility,
club memberships, long services awards, advantage of wings within i.e promotion-transfer opportunities
within the branches etc are not highly encouraged by the samples collected and hardly anyone of them
provides leadership program.

References

1. "Indian IT-BPO Industry". NASSCOM. Retrieved 15 December 2012.

2. Canton, Naomi. "How the 'Silicon Valley of India' is bridging the digital divide". CNN. Retrieved
December 6, 2012.
3. RAI, SARITHA. "Is the Next Silicon Valley Taking Root in Bangalore?". New York Times.
Retrieved March 20, 2006.
4. Gartner Says Top Five Indian IT Services Providers Grew 23.8 Percent In 2011
5. Technology - Capgemini in India milestone". Ft.com. 1 November 2009. Retrieved 22 July 2010.
6. “ Software Industry in India”, Camitava, March 2011
7. “ Human Resource Management”, 2007, Garry Dessler, pg 4
8. Barney, J. B. & P. M. Wright (1997). On Becoming a Strategic Partner: The role of Human
Resources in Gaining Competitive Advantage. Working Paper
9. Noe, R. A., Hollenbeck, J. R., Gerhart, B., and Wright, P. M. (2007), Human resource management:
Gaining a competitive advantage, McGraw-Hill, USA
10. Sheldon, M.E. (1971) ‘Investments and Involvements as Mechanisms Producing Commitment to the
Organization’, Administrative Science Quarterly, 16: 142–50.
11. Porter, L.W., Steers, R.M., Mowday, R.T. and Boulian, P.V. (1974) ‘Organizational Commitment,
Job Satisfaction and Turnover among Psychiatric Technicians’, Journal of Applied Psychology,
12. Romzek, B.S. (1989) ‘Personal consequences of employee commitment’, Academy of Management
Journal, 32: 649–61.
13. Saxena and Tiwari(2009): “ Human Resource Management Practices of IT Industry: A
Comprehensive review; Pakistan Business Review, January 2012
Annexure 1

HRM Practices AllScripts E-Intelligence Talent Anywhere Rishabh A Live Mind WindowMaker Voniz.com
Softwares

1 Human Resource Planning

1.1 * * * * * * *
1.2 * * *
1.3 * * * *
1.4 * * * * * * *
1.5 * * * * *
1.6 * * * * * *
1.7 * * * * *
1.8 * * *
1.9 * * *
1.10 * *
1.11 * * * *
1.12 * * *
1.13 * * *
1.14 * * * *
1.15 * *
1.16 * * * * *
2 Talent Management
2.1 * * * * * *
2.2 * * * * * * *
2.3 * * * * *
2.4 * * * * *
2.5 * * * * *
2.6 * * * * * *
2.7 * *
2.8 * * *
2.9 * * *
2.10 * * * * *
2.11 * * * *
2.12 * *
2.13
2.14 * * * *
2.15 * * *
2.16 * * * *
3 Recruitment & Selection
3.1 * * *
3.2 * * * * * *
3.3 * * * * * * *
3.4 * * *
3.5 * * *
3.6 * * * * *
3.7 *
3.8 * * *
3.9 * * * * * * *
3.10 * * * * * * *
3.11 * * * * *
3.12 * * * * * *
3.13 * * * *
3.14 * * * * *
3.15 * * * * * *
3.16 *
3.17 * * * * * * *
4 Training and Development
4.1 * * * * * *
4.2 * * *
4.3 * * * * *
4.4 * * * * * *
4.5 *
4.6 * * * *
4.7 * * *
4.8 *
4.9 * *
4.10
4.11
4.12 * *
5 Performance Appraisals
5.1 * * * * * * *
5.2 * * *
5.3 * * * *
5.4 * * * * * *
5.5 *
5.6 * * *
5.7 * * * * * *
5.8 * * *
5.9 * *
5.10 * * * * * *
6 Compensation
6.1 * * * * * * *
6.2
6.3
6.4 * * * * * * *
7 Employee Welfare
7.1 * * * * *
7.2 * * * *
7.3 * *
7.4 * * * *
7.5 * * * * * * *
7.6 * * * * *
7.7 *
7.8 * * * * *
7.9
7.10
7.11 * * * * * * *
7.12 * * *
7.13 * * * * * *

View publication stats