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maksood
Hello,
I am really very Happy to be a part of such a wonderful group.
I am browsing the CiteHR almost everyday and i am very impressed with
the valuable Information shared through it.
I need some data to make a project on Retention and the ways in
Which i can control the attrition in the IT and ITES Sector.
The Attrition is not confined to Operations, but also includes the
support functions like training and infrastructure.
Would greatly appreciate your valuable inputs on the subject.

I Also, need a help with your valuable suggestions and views on
the Topic of What and What not to OUTSOURCE IN HR.
As it is very important for my friend who is giving His Thesis on the above topic.
I know it for sure that all the elite members of this group would give there most valuable contribution.
Thanks in Advance.
Thanks & Regards.
Maksood Shaikh

From India, Pune
pranati
49

The Indian IT industry taking the hr road to success!

Manpower is the most crucial resource in the high growth IT-ITES industry in India. It is also the primary factor for the country's immense success in the overseas markets, the one key asset that will help India sustain its edge in the years ahead.

During 2004, as the IT-ITES industry picked up momentum, almost all players, including both Indian and MNC organizations, stepped up their hiring. According to NASSCOM studies, while around 284,000 professionals were employed by the IT-ITES industry in 1999-2000, the numbers jumped to one million in 2004-05. In the last year alone, as IT-ITES companies scaled up their operations and enhanced their investments, the sector hired around 150,000 personnel.

As demand for skilled personnel went up, issues related to employee selection and retention and compensation levels took center stage. Companies focused on how they could hire and hold the professionals that mattered and looked at HR strategies that focused on employee engagement and offering personnel rewarding experiences within the organization.

The NASSCOM-Hewitt Total Rewards Study of 2004, the annual analysis of the compensation, benefits and practices deployed by the Indian IT-ITES sector, was one such research that helped provide a complete picture of the existing HR scenario across the industry.

By providing indepth information and insights on HR issues, the survey showed companies how elements of the rewards systems could be linked to business results.

The Study, now in its third year, helped IT-ITES organizations in India understand market practices related to total rewards and ascertain market pay across all levels. In this way, it helped facilitate decision making in areas such as compensation and benefits including pay philosophy, pay quantum, pay structure, internal parity, items of pay, etc.

The NASSCOM-Hewitt report threw up the following findings. It indicated that:

The median salaries for the software development job family in the IT industry had shown an average increase of nine percent across levels on TCC during 2004 in comparison to 2003

Most levels saw a double digit percent year-on-year increase in compensation, with junior and middle management levels reporting a higher year-on-year increase in comparison to senior levels.

Organizations used compensation as an attraction and retention strategy, especially at these levels

Software development saw one of the highest increases in salaries with an average increase of 13.7 percent in 2003-04

The trend towards increase in compensation was on account of factors such as exponential growth of the IT sector, war for talent and increase in job complexity

INDIAN IT-ITES COMPANIES: MOTIVATING THE WORKFORCE WITH CREATIVE HR STRATEGIES

Realizing that keeping manpower motivated was extremely important to retention of personnel, a number of leading Indian software and services players have put in place special HR strategies over the past two to three years.

Raising salaries have of course been an important element of these plans and things have indeed been looking up. Attrition rates, for instance, have come down, particularly in the last two quarters of 2004-05.

Companies such as Wipro and Satyam, which raised offshore salaries by 15-17 percent and 18-20 percent during the October-November, 2004 phase reported higher employee retention as a result of the measure. Infosys has said in its guidance that it expects salary hikes to the tune of 12-15 percent in Financial Year 2006.

MNCs, which have also rationalized their salary levels, keeping them closer to what their Indian counterparts offer, have also created a trend for employee retention by Indian companies.

LOOKING BEYOND SALARIES: FOCUS MOVES TO SMART PEOPLE MANAGEMENT TOOLS

Apart from salaries, Indian software and services and ITES companies are also focusing on smart people management tools and strategies to keep their people happy.

Players such as Wipro are offering employees a restricted stock option program. Even TCS, which has traditionally seen low attrition levels (below the 10 percent mark), are offering additional benefits. The company gave out shares to its personnel after its famed IPO.

ITES-BPO services companies in India are also giving a keener look to their People's perks, while working cooperatively with contemporaries to keep poaching down. Signing of bilateral agreements between ITES firms is not uncommon. Organizations are putting in place norms and a code of ethics to keep employees from straying.

ITES-BPO firms are also providing a host of benefits to employees from luxuries such as housing schemes, low rate loans, pick and drop, attractive catering to having spouses working in the same organization and recruiting the non recruitables (like housewives and old age people).

At the end of the day, it is apparent that better HR policies can result in more committed and loyal manpower. As long as IT-ITES organizations concentrate on issues such as employee retention, provide work environments that combine work with pleasure, encourage continuous learning and treat employees as important "internal" customers, India will remain a leading provider of high quality, highly motivated IT talent.

THE GOOD NEWS…

Leading Indian software and services majors, who have launched special strategies to develop and strengthen their workforce, have done so with significant success. Here's what some of the reputed Indian software companies have managed to do with their attrition figures:

Infosys kept its attrition level at 10.4 percent during the quarter ended September, 2004, making it among the lowest figures within the software and services industry

Wipro and Satyam have witnessed a drop in their attrition levels over the third quarter of 2004, as compared to the second quarter. While Wipro recorded a six percent drop (from 18 to 12 percent during Q3), Satyam dropped its attrition ratge from 19 to 15 percent.

i-flex Solutions brought down its attrition from 19 percent for the quarter ended June, 2004 to 16 percent for the quarter ended September, 2004

HCL Technologies successfully controlled its attrition rate, bringing it down to 13.1 percent for the quarter ended Septemerber, 2004, lower than 14 percent in the quarter ended June 30, 2004

Some of the smaller companies were also able to do a better job of controlling attrition

An overall slow-down in hiring by MNCs, also helped attrition levels come down

To have and to hold!

A look at how IT-ITES companies are holding on to their people:

Anti-poaching agreements

Better perks

Higher compensation levels

Well-laid career plans essential for retaining employees

Better recruiting methods to filter the right people for right places

Balance between performance expectations and growth aspirations

NASSCOM Making a case for employee retention

NASSCOM's ITES-BPO Forum is taking up the issue of HR management and looking at strategies to improve the skilled manpower scenario. Here's how:

NASSCOM's ITES-BPO forum has identified HR as one of the key challenges of the ITES-BPO industry and has formed a special task force to address short-term challenges such as Attrition

To arrest this trend, NASSCOM is suggesting that companies look into various options like good rewards, bonding programs, flexible working hours and providing a stronger career path to employees

According to NASSCOM a scientific and analytical approach should be implemented by Indian IT services and ITES companies to address their people's issues

Pay checks alone are not enough to motivate employees. Management also needs to consider other aspects like secure career, benefits, perks and communication

http://nasscom.in <link updated to site home>

From India, Mumbai
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