Industry Related Insights

Indian IT Sector 2014

Contents of the report

Context and Objectives

IT Sector in India
Overview of IT Companies Studied by Great Place To Work Institute, India
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 Trends
Key Focus Areas
Summary of Analysis
Great Place To Work Observations and Recommendations
Best People Practices
2

Context and Objectives

India Brand Equity Foundation states India is one of the fastest-growing IT services markets in the
world.

India has the potential to build a US$ 100 billion software product industry by 2025
(Indian Software Product Industry Round Table (iSPIRT))

The software products market in India, which includes accounting software and cloud computing-based
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 conducted for:

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 address key people
issues

Sources: IBEF, Moneycontrol.com

IT Sector in India

According to IBEF, India is the worlds largest sourcing destination, accounting for
approximately 52% of the US$ 124130 billion market.

The countrys cost competitiveness in providing IT services continues to be its USP in the
global sourcing market.

The IT sector contributes almost about 9% of the national GDP. As far as national exports
are 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 receives:
- Tax holidays extended to IT sector in India
- SEZ scheme since 2005 to benefit IT companies with single window approval
mechanism, tax benefits, etc.

Sources : Moneycontrol.com, Listdose.com

4

98 IT Companies were studied by Great Place To Work Institute in 2014

The sector featured as one of the largest participants in the study

Manufacturing
and
Production

Information
Technology

25%

19%

Financial
Services and
Insurance

10%

Others
30%
Professional
Services
7%

Retail

9%

No. of IT companies
studied
120
100
80
60
40
20
0

91

98
82

74

2011 2012 2013 2014

2011
2012
2013
2014

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 to

relatively low levels of skills in manpower
and overall business performance.

Need to develop creative ways to minimize

stress, satisfy employee needs, and
match corporate needs to employee goals.

Dealing with the rising diversity in the work

force gender, orientation, race etc.
overlaid with the complexity of generation
diversity

Client and Business Related

Interpreting and managing client

expectations to cause client delight and not
just fulfilling requirement.

Focus on the emerging markets

Need to bundle offerings to the clients in

order to maximize returns and build better
client relationships

Source: nspl.co.in
6

People Challenges identified through Appreciative Inquiries

and client interactions

Attraction of talent
Retention
Engagement
Employer Branding

Great Place To Work Framework & Methodology

Trust Index

Culture Audit

Employee Perspective

Management Perspective

Data Points Used in Analysis

Trust
Index
survey
results
Employee
comments

Culture
Audit
data

What Employees Say

Methodology: Analysis is done on
the basis of the survey filled out by
employees.
8

What Managers Do / Can Do

Methodology: A questionnaire is filled up by
the HR team of the company describing in
detail the current practices and policies
adopted.

Benchmark
data

Key Inferences from Great Place To Work data

The Big Picture

Perception on Camaraderie is most positive. Low perception on Credibility and Pride as

compared to perception across industries
While discretionary effort is comparatively high among IT sector employees, there is a need
to enhance retention and motivation, thereby enhancing advocacy
The sector appears to be doing very well in people practices when it comes to Thanking,
Developing, Balancing and Celebrating. Practices on Grievance redressal and Inclusion need
improvement
Career Growth, Fair Evaluation of Performance, Management Walking the Talk, Familial
Feeling within the organization and Emotionally Healthy and Fun Work Environment are
some of the Key Drivers for the workforce in the IT sector

10

Key Demographic Trends

Age

Tenure

Increase in engagement levels with an increase in age.

Employees having less than 34 years of age (~83% ) are
less engaged while those who are more than 44 years of
age are more engaged (~2%)
The IT sector has least percentage of employees in
older age groups (more than 45 years of age)
A major proportion of IT sector employees belongs to
the Gen Y segment, with lower engagement levels.

Dip in perception beyond 6 months of tenure and

improvement beyond 10 years of tenure
People with tenure between 1 to 5 years are least engaged
(~60%)
People with longer tenure (>10 Years) are the most
engaged (~2%). However, IT industry has the least
percentage of high tenure employees (>11 Years)

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

Position
People at lower hierarchical levels are less engaged than
the 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.
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Gender

Both females and males have similar overall

perceptions

There is no movement in perceptions since 2013.

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, Career Opportunities

Employee Engagement:
Making Work Fun: Fun at Work, Celebrations
Fostering Camaraderie & Team Work
Enhancing Pride in Job

Workplace Culture:
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Dealing with diversity: Non-discrimination

Communication & Collaboration
Management Competence & Reliability
* Derived from Secondary Research, Appreciative Inquiries, Client Interactions and post considering key industry drivers

Summary of Analysis
Focus on Demographics :
Gen Y (Employees below 35 years of age)
Employees in Below Supervisory & Supervisory Positions
High

Enhance
implementation
of existing
managers
Train Managers to
help in better
implementation

Design/ Institute
stronger people
practices &
communicate to
employees

Training & Development*

Communication &
Collaboration
Pride in Organization & Job
Hiring & Fitment

Culture Audit

Low
13

Medium to long term

focus

Short term focus

Leverage on
Current
practices

Fun at work*
Work-Life Balance
Camaraderie

Non-Discrimination
Work Environment* &
Resources

Trust Index

High

Design &
Institute
stronger
people
practices

*Key Drivers

Great Place To Work Observations and Recommendations

TALENT RETENTION
Lack of job security and desire to stay for longer
periods need to be addressed to enhance retention
Leverage on flexible work options to promote worklife balance thereby minimizing employee stress
Upgrade technology and infrastructure at regular
intervals to enhance employee experience
Design well-defined career paths for all employees
IT Sector employees perceive the need for better
training and leadership development. Need to focus
on manager capability building to ensure proper
implementation of employee development practices

TALENT ATTRACTION

While the perception on hiring for cultural fit is good,

IT sector employees are less positive around hiring
talent for key positions
Focus on designing robust hiring practices in terms
of finding right talent for right job
Leverage on technology to create Employer Brand
Promote Employer Brand by enhancing advocacy in
peer groups

EMPLOYEE ENGAGEMENT

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Need to structure job content better to make work

more meaningful
Provide avenues to employees to contribute to the big
picture
Leverage on team building activities, events and
celebrations to sustain perception of fun and
camaraderie

WORKPLACE CULTURE
Employees perceive a lack of adequate top-down as
well as bottom-up communication & collaboration.
They are also less positive about management
walking the talk
Need to enhance top down communication to
connect employees with the big picture
Create a collaborative environment to encourage
employee participation in decision making
Promote a culture of walking the talk and displaying
integrity across levels

What some of the Best Companies are doing to attract the right talent
and 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 its employees covering key
aspects of the Akamai culture, the companys 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 accepting the job and
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 improving employability,
Comprehensive Selection Process, Campus Connect, Preparatory Training for technology & soft skills and Project Learn to leverage campus talent during the
waiting period

Google India Pvt. Ltd.: How Googlers contribute to hiring - The Hiring Grouplet at Google is a dedicated group of engineers committed to hiring. The
Grouplet partners with the Staffing teams to develop a tool that automates the interview scheduling process by matching candidates with Googler availability,
skill set and team.

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What some of the Best Companies are doing to retain talent

Some Best People Practices :
-Inspiring

Adobe Systems India Pvt Ltd: Inspiring through Ownership - Adobe values their employees ownership by mentioning the key contributors names
on its products. Every customer across the world who uses Adobes products can see the names of the Owners of the product

NTPC Ltd: THE THOUGHT - We light every 3rd light bulb in the country is a statement that every NTPC employee proudly makes

-Balancing

PayPal India Private Limited: MyBalance Program - It provides guidelines for managers and employees to create part time work schedules and
enables higher flexibility at work through efficient time management at work and home.

Intel Technology India Pvt. Ltd.: Live Homework help for Kids They have adopted a unique Intel benefit called Live Homework Help or
Tutor.com, an interactive online tool for employees & their families to get tutorials on wide range of subjects & at levels ranging from junior to as senior as
Masters degree.

-Supporting
SAP Labs India pvt ltd: Maternity Return Program Run Mummier is a program by which employees on maternity leave experience a smooth
transition when they return to work by keeping in touch with their colleagues and work-related matters through Amicos, who are SAP employees who
volunteer to stay in touch with the new mothers.

Adobe Systems India Pvt Ltd: Sickness disability coverage The cover provides valuable income replacement if an Adobe member becomes ill
and is on loss of pay. The cover provides a weekly benefit of INR 10,000 up to twelve months.

-Developing

Aspire Systems (India) Pvt. Ltd.: Anubhava - Anubhava is an experience sharing based development session series which gives managers an
opportunity to share Best Known Methods (BKMs) and also to network with managers across the site.

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Radio City 91.1 FM: Reverse Mentoring - Every year in the month of January which is the Mentoring Month, Reverse Mentoring is organised. Here
any employee can decide on the subject/ skill he/she wants to learn. The mentors are generally junior and middle management (i.e.. Junior or Peer). The
objective of this initiative is to learn a new skill, or understand and appreciate the working of another department.

What some of the Best Companies are doing to engage employees

at work

Some Best People Practices :

-Celebrating

Shoppers Stop Limited: Parichay They celebrate the Annual Cultural Program called as Parichay, which aims at bringing associates and families
together, wherein families get to know where their children work, the culture of the organization and most importantly, talents of their own children

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

Adobe Systems India Pvt Ltd: Celebrating Milestones: Adobes 30th Anniversary - In honor of Adobe's 30th anniversary, the companys past was
celebrated through a series of communications, celebrations, and conversations. The celebration included Employee Feature Stories, Performance by
Differently Abled Kids, Dinner and Drinks Party, Fireworks Show and Interactive timeline of notable milestones through Instagram/Twitter campaign in India

Google India Pvt. Ltd.: Employee fun activities - Every manager at Google is given a budget, called play dough, to spend on a fun group activity.
The definition of "fun" is different for everyone, and since they celebrate the differences across teams and cultures, they let their play dough users decide
what was best for their communities. Teams can spend the funds however they please, as long as they do something enjoyable outside of the office.

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What some of the Best Companies are doing to foster an open,

inclusive and collaborative workplace culture
Some Best People Practices :
-Including

Lemon Tree Hotels Limited: Inclusive Employability - Since 2007 the company has been hiring and inducting people with disabilities. Besides hiring
People with disabilities, the hiring plan for year 2013 comprised of hiring people from economically weaker societies, destitutes, insurgency widows.

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

-Speaking

Intuit Technology Services Private Limited: Intuit TV - Intuits business leaders use Intuit TV to reach employees with high-quality video broadcasts.
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 wherein the CEO and COO
present the organizations goals to all managers and above. After the sessions, managers cascade the information to all associates in a semi-town hall fashion.

-Listening

Adobe Systems India Pvt. Ltd: Feedback Walls - To generate peer conversations, Adobe has physical Feedback Walls. Each time the company
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 quotient on a scale of 1-10; The
resulting metric is the CACTUS Happometer. HR meets those with low ratings individually and strives to resolve their issues in consultation with line managers .

-Collaborating

Novo Nordisk Service Centre Private Limited: Employee working groups - To increase employee engagement in the company, there are various
working groups formed such as Take Action! Group for CSR, Health & Fitness Group, Fun@Work Group, Shuttle Service Group, Food Group, Environment
Work Group

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Cisco Systems (India) Private Limited: Coding Marathon - This coding event was designed as a mark of tribute to coding enthusiasts who dont rest
until a problem is solved, for talented engineering teams to unleash their creativity and come up with working solutions for real-time, business-impacting
problems in a daylong effort.

THANK YOU

Annexure
SOURCES Secondary Research

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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- Result Update (Q4
FY14 )
Moneycontrol.com
http://www.bvicam.ac.in/news/INDIACom%202011/46.pdf
Research Paper on Human Resource Challenges & Practices in IT Industry (Reference - Proceedings
of the 5th National Conference; INDIACom-2011)