Innovative HR
practices in IT
industries and IT
based departments
Group Members:
Mr. Tushar Panchal
Ms. Mitika Mahajan
IT INDUSTRY:
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Study, Design, Development, Application, Implementation,
Support Or Management of Computer-based Information
Systems
The global IT services market
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Grow at a compound annual growth rate (CAGR) of 5% by
2017
Market value of US $1,147 billion by 2017
North America dominates the global IT market with 42% of
market share
India, China,Vietnam and Philippines are major outsourcing
drivers of world because of their lower cost and skilled talent
pool.
Innovative HR practices in IT industries and
IT based departments
CHALLENGES FOR IT INDUSTRY:
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Volatility in currency exchange rates
Shrinking Talented pool
High labour cost in developed countries
Innovative HR practices in IT industries and
IT based departments
CURRENT TRENDS IN GLOBAL IT
MARKET
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Emerging verticals for IT
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New economies are emerged as the IT adopters such as
Asia Pacific and EMEA
For global sourcing Tier II locations are the most
attractive due to
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Healthcare, government and utilities are the highest IT
adopters nearly twice than previous year.
Higher savings in administration
Lower infrastructural costs
Large pool of talent in the form of skilled professionals
Companies have become more ‘customer focused’.
The contracts are now for shorter term
Innovative HR practices in IT industries and
IT based departments
OVERVIEW OF INDIAN IT INDUSTRY
Contribution in GDP
7.5 %
Value of IT domestic Market
Rs. 786 bn(2010-11)
Value of IT domestic Market
Rs. 918 bn (2011-12)
Growth Rate
16.7 %( From 2010-11)
Direct Employment
2.8 mn People
Indirect Employment
8.9 mn People
Within
Global
Sourcing 58% (2011)
Industry Market Share
Innovative HR practices in IT industries and
IT based departments
PRESENT INDUSTRY STRUCTURE
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Tier I Players
Tier II Players
Offshore Global Services Provider
Pure Play BPO Providers
Captive BPO Units
Emerging Players
Innovative HR practices in IT industries and
IT based departments
ADVANTAGES TO INDIA
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Technically Skilled Professionals
English speaking population
Robust Telecom Infrastructure
Rendering Customized, end to end and Niche Services/
Solutions
Lower costs of offshore outsourcing
Favorable Governmental Policies
Quality Orientation
Innovative HR practices in IT industries and
IT based departments
CURRENT TRENDS IN INDIAN IT
INDUSTRY
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Accepting emerging technologies
Increased customer-centricity
Deepening focus on new markets
Adopting new business models
Innovative HR practices in IT industries and
IT based departments
PESTEL ANALYSIS OF IT INDUSTRY
POLITICAL ENVIRONMENT
 Government rules and regulation toward a particular
business environment.
 National Task Force(NTF) on IT & software development
 Fiscal incentives
 IT committee has been set up
 Indian government has strengthened the IT act, 2000 to
provide a sound legal environment.
Innovative HR practices in IT industries and
IT based departments
ECONOMICAL ENVIRONMENT
 Inflation is rising
 Contract availability is decreased from US and Europe
 Decreased working pay
 Decreased Employee Utilization Rate
 Retrenchment Pressure on employees
 Downsizing Pressure on Companies
Innovative HR practices in IT industries and
IT based departments
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SOCIAL ENVIRONMENT
The social factors affecting IT industry ranges from
employee right, language barriers, race nationality of
company or other issues.
Second largest English speaking scientific professionals are
there in India after U.S.
Great number of institute and universities offer IT course
creating room for availability of IT professional at lower
cost since there is job competition.
4 million technical workers train 67,785 professionals
every year
Innovative HR practices in IT industries and
IT based departments
TECHNOLOGICAL ENVIRONMENT
 TELEPHONY:
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India now second largest mobile cellular users after China
(1,091.9 million) Cheaper 3G services and Smart phones.
Total: 906.6 million Mobile Cellular users. Active users : 699
6% of population, around 70.6 million use 3G services
Indian cellular consumers were enjoying the cheapest tariffs
but after 2G scam the tariffs may rise.
India has the second largest telephone network after china.
Enterprise telephone services, 3G, wi-max and VPN are to
grow.
Innovative HR practices in IT industries and
IT based departments
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INTRNET:
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India had as on 2011, 100 million active internet users.
10.2 % of population use internet services
India now third biggest internet user 137 million after China
(538 million) and US (245 million).
NEW IT TECHNOLOGY:
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Web 3.0 represents the next transition in the evolution of web
applications
Innovative HR practices in IT industries and
IT based departments
LEGAL ENVIRONMENT
 IT Act 2000:
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Email would now be a valid and legal form of communication in
our country that can be duly produced and approved in a
court of law.
Companies shall now be able to carry out electronic using the
legal infrastructure provided by the Act.
Digital signatures have been given legal validity and sanction in
the Act.
The Act now allows Government to issue notification on the
web thus heralding e-governance.
Innovative HR practices in IT industries and
IT based departments
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Indian Copyright Act (10 May 1995):
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The right of a copyright holder.
Position on rentals of software.
The right of the user to make backup copies.
Most importantly the amendments imposed heavy punishment
and fines for infringement of copyright of software.
Innovative HR practices in IT industries and
IT based departments
ENVIRONMENTAL FACTORS
 Environmental conservation and protection is an issue
which has gained prominence because of deteriorating
environmental balance which is threatening the
sustainability of life and nature.
 Energy Efficient Process and Equipments:
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Companies are focusing on reducing the carbon footprints,
energy utilization, water consumption etc.
Being a major player in the global IT market Infosys has
introduces measure to help in the reduction of carbon
emission by trying to reduce its water consumption, electricity
utilization, carbon emission and partnering with other
companies in troubleshooting this global dilemma.
Innovative HR practices in IT industries and
IT based departments
PROBLEM STATEMENT
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As Information Technology Industry is facing crisis in
terms of projects from USA and Europe, the
organizations need to adopt some innovative practices.
The benefits for these innovative practices ranges from
retaining the employees whose expertise is most
important for ongoing projects to train and motivate
them for further innovations for growth and sometimes
for survival.
What are the innovative HR practices organizations are
adopting in IT Industry, in Gujarat?
Innovative HR practices in IT industries and
IT based departments
OBJECTIVES OF THE STUDY
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To identify traditional HR practices
To identify responsible factors for innovativeness
To evaluate relationship between high tech culture and
innovative HR practices
To investigate scope for innovations available in HR practices
To evaluate whether OCB plays an important role for
innovations or not
To identify whether leadership style encourages innovations in
HR practices or not
Innovative HR practices in IT industries and
IT based departments
RESEARCH METHODOLOGY
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Research Design: Descriptive and Exploratory
Sources of Data: Secondary and Primary
Data Collection Method: Survey
Sampling Method: Stratified Random Sampling
Data Collection Instrument : Structured Questionnaire
Innovative HR practices in IT industries and
IT based departments
REFERENCES
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http://articles.economictimes.indiatimes.com/2012-0711/news/32619668_1_bench-strength-utilisation-rates-new-recruits
http://www.indianembassy.org/indiainfo/india_it.htm
http://www.indianembassy.org/indiainfo/india_it.htm
http://mobithinking.com/mobile-marketing-tools/latest-mobilestats/a#subscribers
http://www.assocham.org/events/recent/event_314/Dept_IT.pdf
http://www.fundoodata.com/industry-companies/informationtechnology-%28it%29/19.html
http://info.shine.com/ListofCompany/IT/6.aspx
http://articles.economictimes.indiatimes.com/2012-0518/news/31765463_1_growth-rate-india-s-gdp-sachin-pilot
http://www.companiesandmarkets.com/MarketInsight/InformationTechnology/Global-Information-Technology-Market/NI5265
Innovative HR practices in IT industries and
IT based departments
Innovative HR practices in IT industries and
IT based departments