The Importance Of Information Technology Industry In India

6.1 INTRODUCTION

Information technology as an industry today occupies a strategic place in Indian economy and business. Its origin and growth in India have been phenomenal during the last two and half decades. Not only the economic and business environment has undergone a change but one can also see changes in the social sector as well. The education and employment fields have changed. It has played a key role in putting India on the global map. The information technology industry in India basically consists of the software development sector. The industry consists of a large number and growing number of firms. According to NASSCOM the number of Indian software firms has grown from around 432 in 1996-97 to over 1300 in 2010[1].

The profile

The semi structured interview method used to collect the data from HRD of the selected IT units of Pune, to cover up what conventional and non- conventional retention practices implemented by the IT units, the effectiveness of retention practices and different level of hierarchy mostly participates in turnover. The study was conducted in IT units located in and around Pune at Hingiwadi IT park, Magarpatta, Koregoan, Rajiv Gandhi IT park PCMC. The IT units listed under Maratha Chambers of Commerce and Industries and Agriculture (MCCIA). The units considered are IT services and software development having the status of National and Multi-national (six were Multinational and four were National).

An attempt is made to present the people management dimensions while referring to different aspects of employee management and study of various measures being designed and implemented to retain the employees in the selected above ten IT-units. An attempt is made to identify several retention strategies and practices in these companies to retain their employees and examine whether the IT organizations have any common strategies for retaining

Table- 6.1: Conventional retention practices v/s IT units Conventional retention Practices IT units X1 X2 X3 X4 X5 X6 X7 X8 X9 X10

Performance Appraisal         X X

Incentives         X 

Career Growth     X    X 

Best Salary Packages         X 

Regular Employee feedback Sessions         X 

Regular Rewards and Reorganization         X 

Better work environment         X 

Recreation X X  X X  X X X 

Recognition of achievement       X  X 

Exit Interview         X 

Job rotation and Job enrichment X X  X     X 

Motivational Atmosphere X       X X 

Weekly feedback from Employees X X X X X   X X X

Employee Stock Ownership plan(ESOP) X X X X X   X X X

The Table-6.1 information is further complied in Table-6.2 to understand which conventional practices are most and less effective.

Table- 6.2: Implementation % of conventional retention Practices.

Conventional retention Practices Implementation %

Performance Appraisal 80%

Incentives 90%

Career Growth