Human Resource Challenges and Practices in IT Industry

Proceedings of the fifth case meeting INDIACom-2011 Computing For Nation Development, March 10 11, 2011 Bharati Vidyapeeth? s initiate of Computer Applications and appearance, cutting Delhi man imagination Challenges & Practices in IT assiduity Rakesh S. Patil1, Varsha Patil2 and Pratibha Waje 3 1 Head and 3Lecturer 1,3 Sir Visvesvaraya Institute of Technology, Chincholi (Sinner) Nashik-422 101 (MS) 2 SNG Institute of watchfulness & Technology, Rajgurunagar, Pune (MS) 1 emailprotected com and emailprotected om ABSTRACT The regard of organizations for state and community for organizations will be to a niftyer extent difficult to satisfy in the straightaways competitive line of products surroundings. make-ups competitive advantage could be generated from valet resources (HR) and organization executeance is influenced by a set of effective HRM rehearses. packet is a wealth and job creating manufacturing, which has in just a few years, with child(p) to US $ 1 tri llion, employing millions of professionals worldwide. The Indian packet exertion has burge oned, showing a approximately 50% compounded annual harvest-tide rate over the modern years.Being a cognition- found sedulousness, a high intellectual roof lends competitive advantage to a firm. With a global explosion in market-opportunities in the IT sector, the on the spur of the momentage of prevailforce both in numbers and skills is a prime quarrel for HR professionals. The relate turn outs argon varied indeed recruitment of world-class work force and their retention, honorarium and cargoner formulation, expert obsolescence and employee turnover. This makeup explains the HR challenges and practices in softw atomic number 18 Industries. KEYWORDS HRM, IT,HR Strategy, service 1. INTRODUCTION The economy has transitioned to what both(prenominal) impose The Age of Information? an economy in which gross domestic product is more(prenominal) and more dominated by service. Services pick up every aspect of our lives. We use dose services restaurant services hotels electrical energy and telephones postal, courier and chief(prenominal)tenance services services of hairdressers services of public relations and advert firms lawyers physicians dentists takebrokers and insurance agents movie theatres and swimming pools . When we do buy bang-ups, such as current(a) car or a race c satisfactory car, we often still rely on services to defy them running and fall back them when they break down.Services al broken us to figure our time as well as our money. The twentieth centimeury was the age of machine the twenty-first century will be the age of people Buzzwords standardized globalization, empowerment, indulge functional police squads, downsizing, learn organizations and knowledge workers atomic number 18 changing the way of life of managers and the way they manage people. 2. STRATEGIES & POLICIES OF SOFTWARE INDUSTRIES 1. Motivation & stora ge of Employees Retention and motivation of personnel are major HR concerns today. heap a Gartner multitude comp either excessizing in concern of military man capital in IT organizations has observed that the norm tenure for an IT professional is less than common chord years. Further, the use of cutting technologies, the support of learning and training, and a challenging environment graded high than competitive even up expressions as effective retention practices. Our own recent survey of 1028 parcel professionals from 14 Indian software companies, showed that while the professional gave vastness to ad hominem and cultural job-fit, HR managers viewd that the fundamental to retention was salary and career gladness.Money was a prime motivator for starters, exactly for those into their leash or fourth jobs, their abide by-addition to the organization was more important. Monetarily, offering the outdo salaries in industry is the token(prenominal) every telephone r is doing, apart from performance found bonuses, long-service awards, and stock elections. Many organizations frequently conduct employee satisfaction and organization climate surveys, and are displace up Manpower Allocation Cells (MAC) to mete out the good project to the right person.In fact, some are even protagonisting employees with their personal and domestic responsibilities to satisfy & motivate their hands 2. Best Talent Attraction In a tight job market, some(prenominal) organizations often experience precipitous and synchronal demands for the same kinds of professionals. In their quest for manpower, they are cajoling endowment fund around the world. In such a sellers market, software companies are endeavor to understand which organisational, job, and reward factors contribute to suck ining the beat talent one having the right mix in of technical and person-bound skills.This would mean a knowledge of the tools of the trade combined with conceptualization and co mmunication skills, capacity for analytical and logical thinking, leadinghip and team relieve oneselfing, creativity and innovation. The Indian software industry suffers from a shortage of experienced people such as musical arrangements analysts and project managers, and attracting them is a cardinal HR challenge. 3. Compensation and pay back increase demands of technology coupled with a short supply of professionals (with the requisite expertise) has compound magnitude the costs of delivering the technology.This makes incentive compensation a significant feature, with the result that software simulate Right INDIACom-2011 ISSN 0973-7529 ISBN 978-93-80544-00-7 Proceedings of the 5th National Conference INDIACom-2011 companies postulate moved from courtly pay-for-time methods to a combination of pay-for-knowledge and pay-forperformance plans. With the determinants of pay cosmos profit, performance and value-addition, emphasis is now on profit sharing (employee stock optio n plans) or performance-based pay, keeping in setting the long-term organizational objectives earlier than short production-based bonuses.Skills, competencies, and commitment supercede verity, hard work and continuance of service. This pressurizes HR teams to devise optimized compensation packages, although compensation is not the motivator in this industry. 4. Increasing loyalty and commitment As with any other professional, what actually matters to software professionals is selecting the best place to work with, which is what every company is striving to be. The global nature of this industry, and the project-environment has added new cultural dimensions to these firms.In a value-driven market-gardening, values are determined and shared throughout the organization. Typically, areas in which values are expressed are performance, competence, competitiveness, innovation, teamwork, musical note, customer service, and care and consideration for people. matte structure, open and informal gardening, authority based on expertise and ability rather than position, and flexi-timings are some of the norms software firms follow. The conception is to make the work place a fun place with the hope of increasing loyalty and commitment. 5.The Demand Supply Gap paucity of IT professionals is global in nature and not peculiar to the Indian software industry alone. W. Strigel, founder of Software Productivity subject matter Inc. (1999) has projected the shortage of software professionals to be one million by 2006. In fact, a survey reports that 75 per cent of US companies planned to reengineer their applications using newer technologies, but found that 72 per cent of their animated staff lacked the skills needed in these technologies, and 14 per cent were not even retrain able. graph zero(prenominal) 1.Annual demand for IT Professionals For India, it is predicted that in the year 2004 itself, the IT sector will need 1,95,000 professionals. This trim down will continue, and in the year 2010 closely 3,70,000 IT professionals will be infallible (Strategic come off Reports, NASSCOM 19962001). Consequently, recruitment managers are exploring new sources of IT manpower from non-IT professional sectors, as well fresh, trainable apprehension graduates. 6. Integrating HR strategy with railway line Strategy The strategic HR agency revolve aboutes on aligning HR practices with pedigree strategy.The HR professional is anticipateed to be a strategic partner impart to the success of business plans, which to a great extent depend on HR policies pertaining to recruitment, retention, motivation, and reward. The other major areas of concern for HR personnel in this context are, thinksing of change, matching resources to future business commandments, organizational force, and employee phylogenesis. 7. Encouraging Quality and Customer focus Today? s corporal culture inevitably to actively support theatrical routine and customer orientati on.With globalization and rapid proficient change, quality is of utmost importance for the Indian companies, which earn most of their revenues through exports. Hence, the HR professional as a strategic partner needs to encourage a culture of superior quality to take care customer satisfaction, the hardly real judge of quality of a product or service. To be competitive today, an organization needs to be customer responsive. Responsiveness includes innovation, rapid decision-making, leading an industry in worth or value, and effectively linking with suppliers and vendors to build a value chain for customers.Employee attitudes correlate exceedingly with customer attitude. The shift to a customer focus redirects attention from the firm to the value chain in which it is embedded. HR practices inside a firm should consequently be extended to suppliers and customers outside the firm. 8. Value admittance training for up-gradation of Skills Rapid and unpredictable technological chan ges, and the increased emphasis on quality of services are compelling software businesses to recruit adaptable and competent employees.Software professionals themselves expect their employers provide them with all the training they whitethorn need in order to perform not only in their received projects, but also in related ones that they may subsequently hold within the organization. As observed by Watts Humphrey, associate of the Carnegie Mellon University, as software professionals growth competence, they do not necessarily crystalise motivation. This is because a creative engineer or scientist who has wise to(p) how to accomplish something has little interest in doing it again.Once they know satisfied their curiosity, they may of a sudden lose interest and seek an prompt change. And when the rate of technological change is high may be higher than the time required to acquire competence in one area professionals could permit psychological turbulence owing to the need to w ork in a new technology throughout their career. They deficiency to gain new knowledge, which will be use by their organization. On the basis of the new learning they want to work in higher segments of software value chain. Therefore, uninterrupted up- reduplicate Right INDIACom-2011 ISSN 0973-7529 ISBN 978-93-80544-00-7 pitying preference Challenges & Practices in IT Industry gradation of employee skills poses yet some other challenge for HR personnel. 3. CHALLENGES FOR IT INDUSTRY The main challenges to the IT Industry are i. Recruitment be after ii. Performance management iii. Training and breeding iv. Compensation management v. HRM as self-coloured 1. Recruitment Planning Recruitment planning is most important component in new people management with special reference to IT industry.We vex to deal with humankind assets so it becomes important and have good quality of people in the organization. We have to take the recruitment planning in very serious manner to undert ake that we can bear best talent in the organization. 2. Performance management straight the challenges how to manage the performance of your employees. You have to get right person in a organization to manage your business. The challenge should be to create a performance culture where you can provide opportunities for enhance performance, where optimum performance becomes a way life. 3.Training and phylogenesis This is another challenging area in IT industry. We have to chalk out a suitable strategy for training & development so that employees are well equipt to handle the challenges in advance. 4. Compensation management The IT industry is one of the high gainful industries. This is very competitive industry, we have to attract best talent, offer best practical compensation package to the employees. Now IT companies are having ESOP with the compensation package. But the really challenge should be how we are able to incorporate all the sub placements in HR.Ultimately this woul d help the organization for achieving exceptional performance. People have to be groomed to get in with the performance culture. We have to create an environment that stimulates the creation of knowledge, its sustenance will be the challenge for IT companies in the future. HR plane section cannot function with traditional systems. Now the role will shift to HR facilitator, to accelerate change process. HR facilitator will have to involve the whole organization in this process and act as a guide, coach, counselor and facilitator.Any organization in the IT industry will have to face these challenges like Infosys, Satyam, Pentafour, DSQ Software, Micro soft India, Intel India. These IT companies are leaders in their own stride. They have excellent recruitment policies, huge data bank, and arrangement agencies. They are also having rigorous tests to delay that they can get high compose talent that will fit in their culture. They have best performance system that evaluates the orga nization as whole. They have been able to tackle the quantum of performance with fairly high-octane manner.The prime tasks for these IT companies are to build corporate culture. They are diverting all the efforts to build performance driven culture. The major issue for these companies to get right man for right job. We have to find person with the required skills, experiences, mindsets, and also he essential be suitable for these organizations. 5. Attrition and Retention IT companies are having high degree of friction. The challenges for these companies are to keep this attrition rate as low as possible. Various companies adopt diverse techniques to retain their employees like high pay packets, ESOP, other benefits.So we have to keep this attrition rate as low as possible to retain super achievers. culmination With the advent of a work space where more and more companies are having to suffer that their valued employees are leaving them, a new concept of career and human resou rce management is bound to emerge. The focus of this new paradigm should not only be to attract, motivate and retain key knowledge workers, but also on how to reinvent careers when the loyalty of the employees is to their brain ware rather than to the organization.With lifetime employment in one company not on the schedule of most employees, jobs will become short term. Todays hightech employees desire a continuous up-gradation of skills, and want work to be exciting and entertain a trend that requires designing work systems that fulfill such expectations. As employees gain greater expertise and control over their careers, they would reinvest their gain back into their work. HR practitioners must also play a proactive role in software industry. As business partners, they need to be aware(predicate) of business strategies, and the opportunities and threats facing the organization.As strategists, HR professionals require to achieve integration and fit to an organizations business st rategy. As interventionists, they need to adopt an allembracing get on to understanding organizational issues, and their effect on people. Finally, as innovators, they should introduce new processes and procedures, which they believe will increase organizational effectiveness REFERENCES 1. Noe, R. A. , Hollenbeck, J. R. , Gerhart, B. and Patrick, P. M. (2007) gentle resourcefulness solicitude Gaining aCompetitive wages, Tata McGraw-Hill, newly Delhi. 2. Prasad, K. (2005) Strategic Human Resource Management Text and Cases, Macmillan India Ltd. , New Delhi. 3. Kandula,Srinivas R. (2003) Human Resource Management in practice with 300 models Techniques and Tools, Sage, Delhi 4. Rao T. V. , Rao Raju, and Yadav Tara. (2001). 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