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6.0         OVERVIEW

6.0.1 The era of skill-based workers has arrived but if India wants to truly move to the global arena, it has to spruce up its workforce. Small may be beautiful, but not in the IT industry. In the knowledge era and a skill-based economy, it has become imperative that human resources become one of the most essential ingredients of success. The growth of IT companies worldwide depends on its people and the intellectual capital it possesses.

6.0.2 ‘Knowledge workers’ has become a buzzword in today’s IT scenario. And if we look at the top software exporters, they have been growing phenomenally in workforce strength. To make it big in the global software market, India needs to increase its mass of knowledge workers. The establishment of Indian Institutes of Information Technology is definitely a step ahead in the right direction, but what the industry needs is experts in niche areas, in other words, persons with domain expertise. In the era of cutting-edge technologies, it is this skilled workforce that will make all the difference.

6.0.3 The total human resource strength of the IT industry as a whole stands at 425,609. A company-wise break-up of this figure reveals that nearly 525 companies constituting 35% of the IT industry employ an average of 58 persons each, 750 companies constituting 50% of the industry employ an average of 275 persons each, and 150 companies constituting 10% of the industry employ an average of 726 persons each. At least 40 companies have more than 1,000 employees, while some very big companies like TCS, Wipro, HCL and Infosys have staffs above 5,000 each.

6.0.4 Despite having abundant English-speaking skilled workforce, an acute shortage of skilled workforce will affect the country’s software exports in the long run, if remedial actions are not taken immediately.

6.0.5 Geometrical growth of Information Technology in the world as well as India, has created lot of revenues for government and number of avenues for employees. The introduction of computers has changed the way of life every where, including work places and our homes. The life has become quite fast and speed of provisioning of different services has also increased. But all this activities are being managed by number of well qualified professionals. They may be from computer hardware developers, software engineers or marketing managers. As the things are running fast, so they have to be managed fast.

6.0.6 These fastness of services and higher level of education/training standards are not easy to manage by the organisations concerned. As we already know that Human Resource Management of the organisation deals with the individuals putting their hardwork to meet the organisations goals. Managing people is the toughest element of any organisation than land, machinery or finances. Every human beings has its own degree of preferences, likings and  attitude. So, HR managers has to take care of all these things in mind while dealing with the number of people working in the organisation.

6.0.7 Different type of employees/workers recruited for different level of working has to be managed in different styles. The hundreds years of organisational management experience has been converted into a standard personnel management and industry and service organisations are following these HR techniques for their organisational management. Due to availability of  written down procedures and rules by the learned managers, it was felt that HR managing was not so typical.

6.0.8 But, emerging HR trends of Information Technology industry can not be managed properly by the old traditional HR techniques . As it is commonly known that man learns by experience. 50 years of introduction of computers has provided us the areas to be additionally addressed by the HR managers in IT sector. Indian IT industry is not an exception. Moreover, due to existence of old conservative .and protective labour laws it is not possible to meet the ever-growing international competition in the IT services.

6.0.9 Hence, the IT industry has been devising newer Personnel Management/ HR techniques which specifically meet the needs of IT industry. The main reason for this is high standards of education and professional training required for this industry. Secondly, there is excessive job demands for developed countries in this sector and high wage standards. So, HR managers mainly in developing countries like India find it very difficult to retain and recruit their manpower. HR managers worldwide has devised handsome compensation methods like Profit Sharing, Employee Stock Option Schemes ESOP etc. Though over the period few schemes has flopped like ESOP due to heavy fall in company share prices.


6.1.1 As given out in Chapter 1, the employees opinion survey regarding status of HR management in Indian IT Industry and success of emerging HR trends was conducted through the use of a structured questionnaire. The survey was conducted by randomly selecting 100 persons working in Indian IT Industry. The respondents observations in this respect are described in brief in the following paragraphs

6.1.2 The 54% of the were Male and 46 per cent of the respondents were Female. It was observed that IT industry is dominated by the software professionals (46%), computer hardware and marketing services of IT are sharing the other half.

6.1.3 The respondents were asked to comment whether the HR needs of Indian IT industry are different from traditional HR Management systems.. The majority of respondents (69%) view that HR needs of IT industry are different from old economy sector and HR managers in IT industry has to keep this into mind.

6.1.4 The IT industry has been devising newer compensation methods like Profit Sharing/ Stock Options etc. to increase employee welfare and receptivity. 46% of the employees opined that newer compensation methods has a positive effect in IT industry while 26% said that it has a negative effect on employee welfare.

6.1.5 As per 48% of the respondents IT organisation has more concern for profit motive than employees welfare. While 43% were not agree to this proposition

6.1.6 51 percent of the respondents strongly agree/agree to the statement that grievance are handled properly in the Indian IT industry. While 33% think otherwise.

6.1.7 Whether top management awareness about working conditions of the employees and state of working conditions in the IT organisations, 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 4 percent vouched that top management is very well aware about the nature of working conditions and 16 percent say "Much Aware".

6.1.8 Cordial employee employer relationship is very essential in the upcoming highly competitive economy. The state of employee employer relationship in Indian IT Industry was measured through the next question. The state of employee-employer relationship is very encouraging. 58 percent of the respondents has graded it very good and above. While 42 percent consider it satisfactory and below.

6.1.9 Whether Indian IT Industry is able to retain its employees was the a query from the randomly from IT industry employees. 61% of the employees view that Indian IT companies are unable to retain its employees due to most attractive avenues outside . 22% of the respondents has suggested to increase the wages to international level to increase employees retentivity 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 directly institutions and better HR management.

6.1.10 Existing Indian labour Laws/Rules are not strictly applicable to Indian IT Industry as IT sector employees are quite different from general factory workers and are well educated and trained. The separate Labour Laws/Rules should be designed for IT Industry:. This hypothesis was presented to the respondents. The 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 11% has given divergent views. Further, 67% of the respondents has opined that old agitational techniques of trade unions are not desired in IT industry.

6.1.11 Whether excessive competition in Indian IT sector is harming the overall long term prospects of employees in this sector . 53 percent of the respondents has replied in Yes to this question. While 35 percent has a negative viewpoint..

6.1.9 The largest 57 percent of the respondents view that there should be only welfare association in Indian IT industry. 21% need no trade union and 13% like single trade union only.. 9 percent of the respondents opted for multi trade union.

6.1.10 In the end respondents were asked to give their overall assessment/ grading of emerging trends of 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 excellent, very good and good. While 35% gave a assessment of satisfactory and poor


6.2.1 Hence, it can be concluded that Emerging HR trends of Indian It industry are quite different from the old economy industry. India is considered one of Super Power in Information Technology and allied fields. Majority of world leaders in IT sector are outsourcing their requirements from Indian IT Industry and recruiting Indian IT professionals. Hence, the Indian Government must allow the Industry to meet international competition and desired environment in respect of Labour Laws and financial rules must be liberalized for this Indian IT Industry. Moreover, HR managers in Indian IT Industry must keep the sensitive nature of IT professionals and state of greater opportunities outside in mind for devising HR policies for their organisations China is also entering this area vigorously and Government of India must help Indian It industry to meet this challenge.





  Dear Sir/Madam,

I am a management student of Fore School of Management. As part of course I a undertaking this project study. I would a request you to kindly answer a few questions. This questionnaire gives you the opportunity to express your opinion regarding various aspects of emerging HR trends in Indian a new IT Sector.

As a a you are all aware that Information Technology (IT) industry is achieving a great success in Indian employment context. As you are to a part of IT industry and must be observing that the HR trends of IT sector are quite different from the conventional old economy sectors.

The results shall be submitted to the university in the report format for the usage of researchers and other concerned authorities. As is the case for entire study, no individual will be identified. Only group averages will be reported.

Thanking You 

Date .....

Personal Profile of the Respondent

1.     (a) Place of survey..................................

(b) Name.............................................

(c) Address...........................................

(d) Male/Female.......................................

(e) Educational qualifications:

(i) Non Tech Graduate or below

(ii) Non-Tech Post-Graduate

(iii) B.Tech/BCA etc.

(iv) M.Tech/MCA/MBA

(f) Your Nature of Job:

(i) Computer Hardware

(ii) Computer Software

(iii) Marketing Services of IT

(iv) HR/ Personnel management

2. Whether you feel that HR needs of Indian IT sector are different from old HR practices.(Please Tick)

(i) Yes    

(ii) No

(iii) Can Not Say

3. Whether new compensating methods being adopted by the various IT companies are positively effecting the employees welfare?

(i) Positive Effect

(ii) Negative Effect

(iii) No Effect

(iv) Can Not Say       

4. "Indian IT sector companies has a positive attitude towards its employees and are not neglecting their welfare and prospects for their profit sake." Do you agree with the statement.

(i) Yes

(ii) No

(iii) No Comments

5 "The grievances of the employees in Indian IT sectors are handled properly". To what extent do you with this statement.

(i) Strongly Agree

(ii) Agree

(iii)No Comments

(iv) Disagree

(v) Strongly Disagree

6. How much do you think the top management of your organisation is aware of the working conditions of its employees?

(i) Not at all aware

(ii) Very little aware

(iii) Somewhat aware

(iv) Much aware

(v) Very much aware

7. What is the state of employee employer relationship in Your Organisation

(i) Excellent

(ii) Very Good

(iii) Satisfactory

(iv) Poor

8. The most of the employees of Indian IT sector or highly educated and sensitive in nature. Moreover, the opportunities outside are very attractive, Whether Indian IT Industry is able to retain its employees.(Please Tick)

(i) Yes

(ii) No

(iii) Comments

9. What the HR managers of Indian IT sector should do to increase the retentivity rate of its employees (Please Tick)

(i) Increase wages to international level

ii) Increase foreign postings        

iii) Increase profit sharing

(iv) More promotions

(v) Any other(please specify) __________________________

10. "Existing Indian labour Laws/Rules are not strictly applicable to Indian IT Industry as IT sector employees are quite different from general factory workers and are well educated and trained. The separate Labour Laws/Rules should be designed for IT Industry:. Do you agree with this proposition.

(i) Strongly Agree  

(ii) Agree

iii) No Comments

(iv) Disagree

(v) Strongly Disagree

11.     Whether old methods of employees association/trade union like strike or Gherao etc. are desirable in Indian IT Sector (Please Tick)

 (i) Yes

(ii) No

(iii) No Comments

12. In your view whether excessive competition in Indian IT sector is harming the overall long term prospects of employees in this sector.

(i) Yes

(ii) No

(iii) No Comments

13. Whether do you feel there is any roll of trade union in the IT Industry?

(i) No Trade Union

(ii) Single Union

(iii) Multi Union

(iv) Only welfare association

(iv) Can not say

14. Give your overall assessment of HR Management in Indian It Industry.

(i) Excellent

(ii) Very Good

(iii) Good

(iii) Satisfactory

(iv) Poor

15. Please give your comments and suggestions to bring further improvement in HR Management in Indian IT Industry.

Thank You,




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12. Shadecor George W, " Statistical Methods" The IOWA State University Press, AMES, IOWA, USA (6th edition)

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14. Ehrmann, Stephen C. "Reaching Students, Reaching Resources: Using Technologies to Open the College." _Academic Computing_, April 1990, pp. 10-34.

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Find the 5th Chapter ....................SURVEY ANALYSIS



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