HR TRENDS IN
HR IT SCENARIO
The web is altering the HRD landscape beyond recognition. The key to
corporate success in the fast changing information era is ‘thinking on your
What is this thinking on your knees? Normally as the HR person you
know what the situation is and operate from there. A repositioning is
required in your decision process with questions like why, how and when and
not just what. At this point you operate on your knee i.e. with far more
dynamism and with a lot more effectiveness than thinking on your feet.
The employees are like gypsies, on the move all the time. They camp at some
location, enhance their skills, responsibility levels and move on. This is
particularly true of the professional from Software Industry. Opportunities
are plenty and the next job opening is only a mouse click away. The question
is not about what else you can do to retain an employee but it is about
making him productive, while he is with you. The value addition will then
happen for both the employee as well as the employer resulting in a win-win
situation. This means that the new strategy calls for the recognition that
no employee is expected to be permanently with you. Normal tenure in any
organisation is likely to be between two to three years.
INNOVATION IS THE KEY
Information technology and Internet have
changed several equations. Reaching out to the world market place is
no more the challenge in achieving corporate victories. Out thinking the
competition at electronic speed is the key to winning corporate battles. The
corporate success is sum total of entrepreneurship practiced by your staff.
The key to employee longevity :-Today’s most
successful organisations recognize that to fuel growth and sustain a
competitive advantage, they must make recruiting, hiring and retaining top
talent, as the organisation’s major thrust area. Competent people deliver
the rest don’t matter. Successful business organisations have no choice but
to promote the performers and let non-performers go.
Organisations recognize that that
their ability to gather, manage, analyse, distribute information and
transform themselves into a learning organisation will provide continuity
and ensure for them their leadership role. Systematic organizational
learning should be central corporate philosophy. Learning, must be obviously
followed by changes, which may not necessarily be welcomed by veterans in
the organisation. But ‘change is the only Constant’ for guaranteed success.
Points to note:
The following points are important and must be properly understood.
People have a great deal
of informational knowledge to contribute to the organisation.
People are responsible
opportunities to effect change, not just being expected to change.
Organisations need to
create awareness amongst their employees about their vision and then empower
them to act on that vision.
Establishing a sense of
urgency well ahead of the problem surfacing.
Form inter-functional core
group. Encourage the group to work together as a team.
Plan and create short-term
win targets – reward employees and recognise achievers.
through a knowledge base driven system and institutionalise proven new
Paradigms In HR
Business plans must
consider HR issues, focus and adapt.
Corporate goals must
factor in individual career growth and personal growth must be tied to
corporate growth and vice versa
Job responsibilities must facilitate personal development and learning
should be institutionalized with well-established knowledge bases. Capturing
experience and making it available ‘corporate wide’ should be a permanent
feature of an organizations.
WAR FOR TALENT
The world’s most popular people resource base seems to be falling short of
numbers to meet its own demands. With added pressures of migration and
attrition, can India’s IT industry achieve its software and services revenue
target of $87 billion by 2008?
Country: India. Population: 1 billion-plus. If that sounds like too many
people, think again. Plug in English-speaking and low labor costs, and
suddenly we can envision $50-billion software exports target by the end of
this decade. Not impossible, if we consider the scarcity of IT manpower
across the world. Take a look at the US, already with a 10- million-strong
IT workforce, which needs to fill 1.6 million new
jobs in the next one year.
Japan is no different and estimates close to a million new jobs. Germany is
looking for 20,000 IT specialists and Italy is seeking 15,000 additional
manpower. Their choice destination—India.
Ironically, the country which has been such a popular people resource for
the IT industry the world over, is struggling with numbers to meet its own
demand. To meet the overall software and services (domestic and export)
target of $87 billion by 2008, according to the Nasscom-McKinsey report, the
country will require a minimum of 2.2 million knowledge workers for its
domestic needs. This implies that the present strength, which stands at
12,00,000 (December 2004), has to increase about twice, not just in quantity
but in quality as well.
According to industry estimates, majority of the demand for manpower will be
in the area of IT-enabled services. While Nasscom puts the requirement at
11,00,000, MIT says IT-enabled services and e-business will need 12,70,000
workers by 2007. Experts insist that since this sector does not require very
highly skilled manpower, we can easily meet this demand. "IT-enabled
services is a wonderful opportunity for India and for such services you
don’t need highly skilled professionals. You just need smart graduates who
can speak English, all you need to do is train them. For instance, in a call
center, they need to be trained on accents and customer services,"
4 R’s of HR in IT
Reduct FTE/same pay
Broad job descriptions
Flexible compensation programs
Positive problem-solving spirit
Denial (This is and
Treating everyone the same
Navigating the bureaucracy
WHAT OTHERS ARE DOING
Increasing freedom at the
(on-the-spot hiring, broadbanding, etc.)
Identifying tech skills in
Quality of boss
Direction of department
Exposure to new technologies
Confidence in the company
Access to capital resources
Caliber of co-workers
Ability to influence department success
TAKING THE LEAD
See ourselves as
Develop critical skills
and competencies in ourselves, then others
Build compensation around
results not tasks; competencies, not seniority
Constantly align and balance resources to meet changing needs
SEARCH FOR TOMORROW
- Attract, retain and reward
the best performers (Encourage all to be the best)
- Increase flexibility
- Reduce fixed costs
- Reduce administrative
effort (Simplify, simplify, simplify)
- Utilize the full range of
Shortage of IT workers
options, profit sharing, incentives
Recruiting sign on bonuses
Reduced cycle time for
Campus/ job fairs /
Focus on value
Financial and human value
Commitment to core
Linkage between culture an
Mutual support and
collaboration ( teamwork)
Risk and innovativeness
LONG TERM SOLUTIONS
skills and career skills ( teamwork and communication)
KEY SUCCESS FACTORS
What they want
Long term perspective’
Co ordinated approach
Career development I
2.4 OUT SOURCING
In the last few years, more and more companies around the world are looking
towards India for outsourcing their software requirements. The changing
business environment is demanding new applications. In particular, the
spread of client-server computing in decentralised organisations involves
the development of applications specific to a user's business.
Outsourcing is becoming a strategy for forward thinking IS managers. It is
no longer just a means for reducing costs, but a tool for adding value to
business. It enables organisations to concentrate on their core business,
carry out business re-engineering and provide information that is valid,
timely and adequate to assist decision making at the management level and
quality and cost control at the middle and lower levels.
As a result, outsourcing has gradually grown beyond the traditional idea of
"having a third party running the data centre". It has come to mean, "any
use of an outside contractor to replace or extend in-house resources".
Outsourcing is closely linked with corporate strategy, since it must support
the organisation's major initiative in using IS. It should enhance and add
value to the business. A rule of thumb to start and gain experience is, "if
IS is low cost and of high value addition, keep it within the organisation,
i.e. in-source. If IS is high cost and of low value addition, consider
In the past few years, whenever organisations around the world have
outsourced to India, the Indian software companies have substantially helped
to cut costs in software development projects or MIS environments, while
maintaining high quality. Moreover, all these cost and quality advantages
are coupled with the use of state-of-the-art technologies.
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
jump to US$ 5 billion
and reach as high as US$ 10 billion by 2010 A.D.
1st Chapter ....................HRD MANAGEMENT IN IT INDUSTRY
Find the next chapter.................HR PROBLEMS OF INDIAN IT
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