Abstract

The case analyzes the management of human resource in the IT industry with a special emphasis on the factors responsible for the high rate of employee turnover in the industry. The IT industry, being a know-ledge-based sector, requires a workforce that is highly competent. Also, the demanding nature of work in the industry requires effective strategies to retain its workforce. With growing demand for Indian IT profe-ssionals overseas and with multinational IT companies establishing their offices in India, retention becomes very difficult. To handle the challenge, companies have started using a variety of retention tools such as ESOPs and RSUs. They have also taken other initiatives like improving the work-life balance of their employees, encouraging learning and development, developing a positive organi-zation culture, etc. to retain their employees. The case examines the retention tools used by Indian IT companies to combat attrition. It ends with the discussion on the challenges the Indian IT industry faces in the future in view of the growing need to retain its talent pool.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Trends in attrition in the IT industry in India
• Drivers of attrition in the IT industry
• Various retention strategies formulated for retaining employees
• and Importance of recruitment, compensation & rewards, work-life balance, learning and development, organization culture and leadership in reducing attrition.

Keywords

Information Technology, Attrition, Infosys Technologies Limited, Wipro Technologies Ltd, Tata Consultancy Services, TCS, Satyam Computer Services Limited, Employee Retention, ESOPs, NYSE, MindTree Consulting, NASSCOM, Recruitment, Hewitt Associates, Compensation, Employee Stock Purchase Plan, ESPP, Restricted Stock Units, RSUs, Organization Culture, Work-life Balance, Flexi-timing, Leadership,Wipro Leaders' Program