industry research - it sector

8/19/2019 Industry Research - IT Sector

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Industry Related Insights

Indian IT Sector 2014


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Contents of the report

Context and Objectives

IT Sector in India

Overview of IT Companies Studied by Great Place To Work® I Challenges in Indian IT Industry

Great Place To Work® Framework & Methodology

Key Inferences from Great Place To Work® data analysis

The Big Picture of Indian IT Industry

Key Demographic TrendsKey Focus Areas

Summary of Analysis

Great Place To Work® Observations and Recommendations

Best People Practices

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Context and Objectives

• India Brand Equity Foundation states India is one of the fastest-growing IT services ma

world.

• India has the potential to build a US$ 100 billion software product industry by 202(Indian Software Product Industry Round Table (iSPIRT))

• The software products market in India, which includes accounting software and cloud c

telephony services, is expected to grow at 14 per cent in 2014.

• Objectives of the current study in the pro-growth scenario, this analysis is being cond

Identifying important trends in the IT sector workforce

Identifying key people focus areas for IT companies

Showcasing Best People Practices that can be adopted by IT companies to addres

issues

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Sources: IBEF


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• According to IBEF, India is the world’s largest sourcing destination, accounting f

approximately 52% of the US$ 124 –

130 billion market.• The country’s cost competitiveness in providing IT services continues to be its U

global sourcing market.

• The IT sector contributes almost about 9% of the national GDP. As far as nationare considered, IT industry accounts for 25% of the total national exports.

• Indian IT sector is also possibly thriving due to the strong Policy support it receiv

- Tax holidays extended to IT sector in India

- SEZ scheme since 2005 to benefit IT companies with single window app

mechanism, tax benefits, etc.

IT Sector in India

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Sources :


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98 IT Companies were studied by Great Place To Work® Institute iThe sector featured as one of the largest participants in the stu

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9182

0

20

40

60

80

100

120

2011 20

No. of

FinancialServices and

Insurance

10%

Manufacturing

and

Production

19%

Others

30%

Professional

Services

7%

Retail

9%

Information

Technology

25%


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Challenges facing the Indian IT industry(from secondary research)

Employee related

• Expensive & Less skilled Manpower:regular increase of salaries by 10-20%every year does not correspond to an

increase in output levels per person thereby

impacting profit levels of the Indian IT

companies.

• Quality of management in IT sector due torelatively low levels of skills in manpower

and overall business performance.

• Need to develop creative ways to minimizestress, satisfy employee needs, andmatch corporate needs to employee goals.

• Dealing with the rising diversity in the workforce – gender, orientation, race etc.

overlaid with the complexity of generation

diversity

Client and Business Related

• Interpreting and managing clientexpectations to cause client delight and just fulfilling requirement.

• Focus on the emerging markets

• Need to bundle offerings to the clients in

order to maximize returns and build betteclient relationships

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People Challenges identified through Appreciative Inqand client interactions

• Attraction of talent• Retention• Engagement• Employer Branding

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Great Place To Work® Framework & Methodology

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Trust Index©

Employee Perspective

Culture Audit©

Management Perspective

What Employ ees Say What Managers Do / Can Do

Methodology: Analysis is done on

the basis of the survey filled out by

employees.

Methodology: A questionnaire is filled up by

the HR team of the company describing in

detail the current practices and policies

adopted.

TrustIndex©surveyresults

Employcomme

CultureAudit©

data

Benchmdat

Data Points Used i


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Key Inferences from Great Place To Wo rk® data


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The Big Picture…

• Perception on Camaraderie is most positive. Low perception on Credibility and P

compared to perception across industries

• While discretionary effort is comparatively high among IT sector employees, therto enhance retention and motivation, thereby enhancing advocacy

• The sector appears to be doing very well in people practices when it comes to ThDeveloping, Balancing and Celebrating. Practices on Grievance redressal and Incimprovement

• Career Growth, Fair Evaluation of Performance, Management Walking the Talk, FaFeeling within the organization and Emotionally Healthy and Fun Work Environmsome of the Key Drivers for the workforce in the IT sector

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Key Demographic Trends

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• Increase in engagement levels with an increase in age.

• Employees having less than 34 years of age (~83% ) areless engaged while those who are more than 44 years ofage are more engaged (~2%)

• The IT sector has least percentage of employ ees in

older age groups (more than 45 years of age)

• A major propo rt ion of IT sector employees belongs to

the Gen Y segment , with lo wer engagement levels.

• People in age group of 26 to 34 years are least engaged

• Both females and males have similaperceptions

• There is no movement in perceptions

•People at lower hierarchical levels are less engaged thanthe employees at managerial and above positions

•While scores have improved marginally for managerial and

senior managerial levels compared to 2013, they have dipped

for below supervisory and supervisory levels further.

• Dip in perception beyond 6 months of te

improvement beyond 10 years of tenure

• People with tenure between 1 to 5 year(~60%)

• People with longer tenure (>10 Years) a

engaged (~2%). However, IT indu stry hpercentage of h igh ten ure emp loyees

Age Tenure

Position Gender


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Key Focus Areas – IT Sector 2014*

• Talent Attraction: – Hiring Right: Hiring & Fitment

– Employer Branding : Pride in Organization, Social Responsibilty

• Talent Retention: – Job Security & Long-term association

– Minimizing Employee Stress: Providing Work-Life Balance

– Work Environment, Resources & Benefits

– People Development: Training & Development, Leadership Development, Ca

• Employee Engagement:

– Making Work Fun: Fun at Work, Celebrations – Fostering Camaraderie & Team Work

– Enhancing Pride in Job

• Workplace Culture: – Dealing with diversity: Non-discrimination

– Communication & Collaboration

– Management Competence & Reliability12

* Derived from Secondary Research, Appreciative Inquiries, Client Interactions and post considering key in


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• Training & Development*

• Non-Discrimination

• Work Environment* &

Resources

Summary of Analysis

• Communication &

Collaboration

• Pride in Organization & Job

• Hiring & Fitment

Low

High

Trust Index©

C

u l t u r e A u d i t ©

High

Short term focusMedium to long term

focus• Enhance

implementationof existing

managers

• Train Managers to

help in better

implementation

Lever

Curre

pract

Design/ Institute

stronger people

practices &

communicate to

employees

Focus on Demographics :

• Gen Y (Employees below 35 years of age)

• Employees in Below Supervisory & Supervisory Positions

Desig

Instit

stron

peop

pract

*Key D

• Fun at work*

• Work-Life Balance

• Camaraderie


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Great Place To Work® Observations and Recommendations

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TALENT ATTRACTION

• While the perception on hiring for cultural fit is good,IT sector employees are less positive around hiringtalent for key positions

• Focus on designing robust hiring practices in termsof finding right talent for right job

• Leverage on technology to create Employer Brand• Promote Employer Brand by enhancing advocacy in

peer groups

WORKPLACE CULTUR

• Employees perceive a lack of adequwell as bottom-up communication &

• They are also less positive about mawalking the talk

• Need to enhance top down communconnect employees with the big pict

• Create a collaborative environment employee participation in decision m

• Promote a culture of walking the talkintegrity across levels

EMPLOYEE ENGAGEMENT

• Need to structure job content better to make workmore meaningful

• Provide avenues to employees to contribute to the bigpicture

• Leverage on team building activities, events andcelebrations to sustain perception of fun andcamaraderie

TALENT RETENTION

• Lack of job security and desire to staperiods need to be addressed to enha

• Leverage on flexible work options to life balance thereby minimizing empl

• Upgrade technology and infrastructuintervals to enhance employee exper

• Design well-defined career paths for

• IT Sector employees perceive the neetraining and leadership developmenton manager capability building to ensimplementation of employee develop


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What some of the Best Companies are doing to attract the righand enhance employer brand image for existing employees

Some Best People Practices :

-Hiring• Akamai Technologies India Pvt Ltd : Hiring Video - Get "Akamaized"! - The company created a speak from heart video of it

aspects of the Akamai culture, the company’s DNA and what it seeks in prospective candidates .

• Cactus Communications Pvt. Ltd. : Job Preview - Shadowing gives the candidate a feel of what he/she would be doing before also helps the company to gauge interest level and behavioural/value profile of the applicant.

• INautix Technologies: Campus Talent Acquisition - Pre-placement Roadshow at campuses, Self-Development Workshop for imComprehensive Selection Process, Campus Connect, Preparatory Training for technology & soft skills and Project Learn to leverage c

“ waiting period”

• Google India Pvt. Ltd.: How Googlers contribute to hiring - The Hiring Grouplet at Google is a dedicated group of engineers cGrouplet partners with the Staffing teams to develop a tool that automates the interview scheduling process by matching candidates w

skill set and team.

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What some of the Best Companies are doing to engage employat work


-Celebrating• Shoppers Stop Limited: Parichay – They celebrate the Annual Cultural Program called as “ Parichay ”, which aims at bringing

together, wherein families get to know where their children work, the culture of the organization and most importantly, talents of th

• Apollo Tyres Ltd: Just Married - A Quarterly get-together to convey best wishes to recently wedded couples is conducted. Thconsists of fun events, presentation and video on Apollo Group and Seniors’ address & wishes .

• Adobe Systems India Pvt Ltd: Celebrating Milestones: Adobe’s 30th Anniversary - In honor of Adobe's 30th anniversary, celebrated through a series of communications, celebrations, and conversations. The celebration included Employee Feature Stor

Differently Abled Kids, Dinner and Drinks Party, Fireworks Show and Interactive timeline of notable milestones through Instagram/

• Google India Pvt. Ltd.: Employee fun activities - Every manager at Google is given a budget, called “play dough,” to spendThe definition of "fun" is different for everyone, and since they celebrate the differences across teams and cultures, they let their “

what was best for their communities. Teams can spend the funds however they please, as long as they do something enjoyable ou

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What some of the Best Companies are doing to foster an openinclusive and collaborative workplace culture


-Including• Lemon Tree Hotels Limited: Inclusive Employability - Since 2007 the company has been hiring and inducting people with

People with disabilities, the hiring plan for year 2013 comprised of hiring people from economically weaker societies, destitutes, in

• Concentrix Technologies (India) Private Limited : Managers training on Diversity - The company ensures that it trainson Diversity and Inclusivity. They also get experts from Nasscom Diversity & Inclusion council to their premises to train their Mana

-Speaking• Intuit Technology Services Private Limited: Intuit TV - Intuit’s business leaders use Intuit TV to reach employees with high

Intuit TV encourages two-way communication. Employees can submit questions live during the broadcast or even in advance.

• INautix Technologies: I Feel The Passion – A series of communication sessions, wherein a session is held every quarter w present the organization’s goals to all managers and above. After the sessions, managers cascade the information to all associate

-Listening• Adobe Systems India Pvt. Ltd: Feedback Walls - To generate peer conversations, Adobe has physical Feedback Walls. Ea

conducts an event, launches a practice etc., it encourages its talent to share their thoughts with them.

• Cactus Communications Pvt. Ltd.: Happometer poll – It is an intranet poll, asking Cactizens to rate their happiness quotie

resulting metric is the CACTUS Happometer. HR meets those with low ratings individually and strives to resolve their issues in con

-Collaborating• Novo Nordisk Service Centre Private Limited: Employee working groups - To increase employee engagement in the c

working groups formed such as Take Action! Group for CSR, Health & Fitness Group, Fun@Work Group, Shuttle Service Group,

Work Group

• Cisco Systems (India) Private Limited: Coding Marathon - This coding event was designed as a mark of tribute to coding

until a problem is solved, for talented engineering teams to unleash their creativity and come up with working solutions for real-tim problems in a daylong effort.

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THANK YOU


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Annexure

SOURCES –Secondary Research

• http://www.ibef.org/industry/services.aspx

• http://listdose.com/top-10-industries-that-contribute-to-indian-economy/

• http://www.nspl.co.in/Front-Page-Articles/Challenges-faced-by-Indian-IT-Companies

• IBEF IT & ITES Sector report- August 2013

• Firstcall Research Report on ORACLE FINANCIAL SERVICES SOFTWARE LTD- Res

FY14 )

• Moneycontrol.com

• http://www.bvicam.ac.in/news/INDIACom%202011/46.pdf

• Research Paper on Human Resource Challenges & Practices in IT Industry (Referenc

of the 5th National Conference; INDIACom-2011)

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