a study on impact of ites sectors in india

8/13/2019 A Study on Impact of ITES Sectors in India

1/82

KARNATAKA STATE OPEN UNIVERSITY

MANASA GANGOTHRI, MYSORE- 570006

A PROJECT REPORT

A Study on I!"#t o$ ITES S%#to&' (n Ind("

for

Executive MBA

Su)(tt%d )y

R"*( P"&"!!" R"tn"+"&

./EMA01

In !"&t("2 $u2$(22%nt o$ t3% &%4u(&%%nt

/o& t3% ""&d o$ t3% d%&%%

Und%& t3% u(d"n#% o$M& K"nn"n

S3"&"d" V(+"' T&u'tNo.5088., nd$2oo& 9"+'3( #o!2%:, 0t3"(n

7t3#&o'', .t3)2o#+, J"y"n""&, "n"2o&%-


2/82

CERTI/ICATE

This is to certify that this project entitled A Study on I!"#t o$ ITESS%#to&' (n Ind("submitted by R"*( P"&"!!" R"tn"+"&with roll no

./EMA01 on July/2013 to the KARNATAKA STATE OPENUNIVERSITY, in partial fulfillment of the requirements for the award ofE;ECUTIVE MA, is a record of bonafied work undertaken by her/him

!"T#$%&T' !(#)$%'

"i*nature + "i*nature +

&ame + a-i atnakar &ame + .r annan

$ate + 31 July 2013 $ate +

$esi*nation +

!"T#$ %&T%'

"i*nature +

&ame +

$ate +

"eal of "tudy entre+


3/82

A Study on I!"#t o$ ITES S%#to&' (n Ind("

CONTENT

SL

NO

PARTICULARS PAGE NO

OVER VIE< O/ PO

PO TERMINO9OGY

= ORGANI>ATION STRUCTURE O/ PO IN?USTRY .

. RATIO O/ MANPO


4/82

OVER VIE< O/ PO

The concept of outsourcin* started with oss erot when he founded %lectronic $ata

"ystems in 142 %$" would tell a prospecti-e client, 5ou are familiar with desi*nin*,manufacturin* and sellin* furniture, but we6re familiar with mana*in* information

technolo*y 7e can sell you the information technolo*y you need, and you pay us

monthly for the ser-ice with a minimum commitment of two to ten years

89 is the act of transferrin* some of an or*ani:ation6s repeated non;core and core

business processes to an outside pro-ider to achie-e cost reductions while impro-in*

ser-ice quality 8ecause the processes are repeated and a lon*;term contract is used,

outsourcin* *oes far beyond the use of consultants )f done well, 89 results in

increasin* shareholder -alue The main difference between 89 and more traditional )T

outsourcin* is that 89 offers companies a way of achie-in* transformational outcomes

much more quickly )n a typical 89 contract, a ser-ice pro-ider takes o-er a specific

corporate function %ffecti-e 89 encompasses much more than just chan*in* who is

responsible for performin* the process )n 89, the outside pro-ider not only takes on

the responsibility to mana*e the function or business process, but also re;en*ineers the

way the process has been traditionally done

The ne


5/82

fortune ?00 companies are bein* outsourced to low wa*ed, %n*lish speakin* countries

such as hilippines and )ndia ountries like )ndia with -ast )T human resources are also

attractin* outsourcin* from @merican )T/Technolo*y companies to outsource their )T

>elp $esks .any of these help desks are state of the art with latest >elp $esk software

and help desk hardware with technical sa--y )T *raduates behind them answerin* your

questions

)t can be defined as the transfer of an or*ani:ation6s entire non;core but critical business

process/function to an e


6/82

literally hundreds of business processes "ome of these ser-ice offerin*s are -ery stableB

some are just emer*in* and are, therefore, lar*ely untested

?o%'t(# M"&+%t O$ PO

u'(n%'' !&o#%'' out'ou(n (n Ind("

Thebusiness process outsourcin*industry in )ndia has *rown by leaps and bounds and

as its si:e increases so does its competiti-e ad-anta*e ompared with 14 when this)ndustry had started inroads into the #nited "tates with 9utbound Telemarketin*

campai*ns, today the -ehicle for these calls;the internet has become cheaper and more

reliable for the a-era*e )ndian business The business has boomed to the e


7/82

C(t(%' t3"t "&% 2%"d(n PO-IT%S 3u)' (n Ind(" tod"y

8an*alore

hennai

>yderabad

.umbai & !(ur*aon,&oida, Aaridabad, (reater &oida'

&ew $elhi

une

These are Tier ) cities that are leadin* )T cities in )ndia

7ith risin* infrastructure costs in these cities, many 896s are shiftin* operations to

Tier )) cities like+;@hmedabad, @mritsar, 8hubaneswar, handi*arh,(uwahati, )ndore,

Jaipur, anpur, ochi,olkata,.an*alore,.ohali, .ysore,&a*purand "rina*ar

Tier )) cities offer lowerbusiness process o-erheadis compared to Tier ) cities, but may

ha-e a less reliable infrastructure system which may hamper dedicated operations The

(o-ernment of )ndia in partnership with pri-ate infrastructure *iants is committed to

brin*in* all around de-elopment and pro-idin* robust infrastructure all o-er the nation

u'(n%'' P&o#%'' Out'ou(n DPO - Ad*"nt"% Ind("

The abundant skilled manpower has made )ndia a tar*et destination for multinationals to

back end their operations in )ndia )ndia ranks hi*h in areas such as qualifications,

capabilities, quality of work, lin*uistic capabilities and work ethics, and thus is ahead of

competitors such as hina, hilippines, )reland, @ustralia, anada etc )ndian companies

ha-e unique capabilities and systems to set, measure and monitor quality tar*ets

)n specific 89cate*ories, )ndian centers ha-e achie-ed hi*her producti-ity le-els;for

e


8/82

ositionin* makes this possible .any state *o-ernments in )ndia are offerin* incenti-es

and infrastructure to set up )T enabled ser-ices

@bout 100,000 en*ineers *raduate from )ndia e-ery year .any of these en*ineers are

employed with call centers for troubleshootin* and pro-idin* technical support at

salaries that are dramatically lower compared to the pay scales in the #" The a-era*e

monthly salary in )ndia is FD00;E00 compared to F2,E00;2,G00 in the #"

"i:e and (rowth of 89 in )ndia

Y%"& S(F% DUS n G&ot3 R"t%

00= 51

00. =1 .5=

005 57 ...

St&%nt3'


9/82

reation of *lobal brands

89 = all center offerin*s

%


10/82

C"22 C%nt%& E!2oy%% #o't

USA US 1,000 "nnu"22y

Au't&"2(" US 7,000 "nnu"22y

P3(2(!!(n%' US 1,050 "nnu"22y

Ind(" US 7,500 "nnu"22y

&early E?I of #" and %uropean multinational companies now use outsourcin* or

shared ser-ices to support their financial functions E2I of %uropean multinational

companies ha-e outsourced financial functions o-er the past two years

@dditionally, E1I of %uropean companies and EGI #" companies plan to use these

ser-ices in the ne


11/82

.cinsey6s research found that @ustralia and &ew ealand are the most mature

economies in terms of acceptance of 89 ser-ices, followed by "in*apore )n most other

countries there is almost no history of outsourcin* other than product support

CHINA

)n the outsourcin* field, hina is the bi**est challen*e in the future and the lar*est threat

to )ndia 7ith the lar*est population and fastest economic *rowth, hina has at least two

stren*ths in the *lobal outsourcin* market+ manufacturin* and )T

The main ad-anta*es of hina are as follows+

Hower .anpower costs+ The hinese workers cost about 1? percent less than

equally qualified )ndians

Japan @d-anta*e+ hina is likely to *row throu*h the Japanese outsourcin*

route The ad-anta*es that hina has are Japan6s pro


12/82

Hack of a *ood Kuality record in "oftware+ )ndia has a better ima*e as a quality

supplier mostly due to its track record of better quality software than hina

How %n*lish speakin* population+ This is the bi**est drawback of hina )t has a

-ery small proportion of the population speakin* fluent %n*lish

Hess mature+ The )ndian business processes are much more mature hina has

only recently entered into 89 @s such, despite lower billin* rates, total project

costs in hina would turn out be hi*her because of the hi*her o-erheads

incurred

PHI9IPPINES

)n the hilippines the manpower costs are 40 to G0 percent lower as compared to # and

#" The a-era*e salary cost is around FE00;G00 per month in the 89 sector The

country has a shorta*e of manpower mainly due to the small population as compared to

)ndia The manpower base for 89 is only 300,000 i*ht now the country is *ettin*

business from nearly E0 companies employin* more than 12,000 people with re-enues

of #"F 2?0 million

The main ad-anta*es of hilippines are as follows+

Har*e scale technical trainin* pro*ram+ The *o-t has initiated a no of policies

by which the skills can be pro-ided to a lar*er population

)mpro-ed telecom and office infrastructure+ hilippines scores o-er )ndia in this

respect

3rd lar*est %n*lish;speakin* nation in the world+ This is a -ery important

ad-anta*e

7ell de-eloped )T skill set+ )t is considered 2nd only to )ndia due to performance

in software

osts of technolo*y workers+ This is!which represents the bi**est recurrin* costs

for, say, a 828 site' is only around 14I to 2?I in the hilippines to that of

comparable workers from the #nited "tates


13/82

Aormer @merican colony+ @s a former @merican colony, @merican culture and

lan*ua*e is widely emulated here These cultural and communications skills

could pro-e to be so appealin* to @merican firms that they would outwei*h

sli*htly hi*her labor costs in the hilippines

The main disad-anta*es of hilippines are as follows+

How *raduate turnout+ hilippines has a low *raduate turnout !only D00,000 per

annum' This compares -ery unfa-orably with )ndia

&ot ha-in* a record of hi*h quality+ )ndia has consistently deli-ered -ery hi*h

quality in "oftware and has built a -ery hi*h reputation in it

olitical instability+ The country has frequent elections which makes it difficult

for companies to outsource as there is lack of uniformity of policies with chan*es

in the (o-t

&o disaster reco-ery facilities or multi;location facilities+ @fter the 7T

bombin* terrorism has become a -ery important issue for the #" companies in

particular and they want that the 89 pro-iders should ha-e multi location

facilities which can be used in case of any terrorist attack

)ssue of scalin* up+ hilippines face the important issues of scalin* up )ssueslike scalin* up ha-e stunted the *rowth of 89 acti-ities bein* outsourced to

hilippines The lar*est call entre in hilippines of @9H has only G00 people

The si:e of the hilippines 89 industry is only F100 million, whereas )ndia6s 89

industry is presently at F1? billion !2001;02'

IRE9AN?

)t was one of the front runners in the 89 and started much earlier than )ndia Thus it

has built *ood brand equity in #" )t has a -ery conduci-e re*ulatory framework and is

known for e


14/82

lack of a lar*e human resource pool )t has nearly ?00 companies employin* more than

D0,000 people @lso it compares -ery poorly with )ndia and hina in terms of .anpower

costs )reland is actually the bi**est e


15/82

performance and reliability This is also termed application ser-ice pro-ider !@"'

ser-ice

u'(n%'' P&o#%'' O$$ '3o&(n

8usiness process off shorin* is the transfer of business tasks !medical transcription' or

business processes !call centers' to a low;cost country like )ndia or the hilippines The

interaction is conducted o-er telecom networks and the )nternet 9ff shorin* typically

include tasks like transaction or accounts processin*, credit card processin*, call centers,

translation, and transcription .ost of this work can be sent without the need for in;

person interaction The off shorin* of support functions is still relati-ely new The off

shorin* wa-e be*an with )T/software ser-ices in the 1G0s and accelerated in the 10s

with the 2 hysteria 7ith the *lobal economic slowdown, off shorin* has -aulted to

the forefront as an effecti-e cost;cuttin* technique that takes ad-anta*e of labor price

differentials and fa-orable skill/performance ratios

u'(n%'' T&"n'$o&"t(on Out'ou(n

8usiness transformation outsourcin* !8T9' is a natural e processes are outsourced to one best;of;breed

-endor Ho*istics are outsourced to another )T de-elopment and maintenance to another

-endor isk miti*ation is a primary dri-er behind multi sourcin* 9ne aspect of

multisourcin* is to use multiple suppliers to eliminate lock;in and achie-e so;called best;

of;breed ad-anta*es This is especially true for #" and %uropean firms, which often


16/82

like to spread offshore de-elopment to a -ariety of -endors and locations .ultisourcin*

also co-ers the different deli-ery models These include+

9n shorin* ; outsourcin* to another company within the #nited "tates

&ear shorin* ; outsourcin* to .e


17/82

S3"&%d S%&*(#%' Do& (n 'ou(n

"hared ser-ices, a form of 5internal outsourcin*,5 enables corporations to achie-e

economies of scale by creatin* a separate internal entity within the company to perform

specific ser-ices, such as payroll, accounts payable, tra-el and e


18/82

M"n"%&

T%" 9%"d%& 8 @u"2(ty An"2y't'

A%nt'

. RATIO O/ MANPOH Technolo*ies Htd e


19/82

successes in these areas a low;key affair,L said "hi- &adar, chairman and %9,

>H Technolo*ies Htd, at the conference call

PO

89 business recorded a four per cent sequential *rowth in June 2003 quarter

with or*anic re-enues re*isterin* a si*nificant D4 per cent *rowth, while

contribution to o-erall re-enues stands at G4 per cent .anpower in the se*ment

increased by 43? to 1,D44 permanent employees on the companyCs rolls and

added se-en clients durin* the June 2003 quarter

In$&"'t&u#tu&%

)nfrastructure ser-ices business mana*ed by >H omment has started yieldin*

results from *lobal markets, re*isterin* a two per cent sequential *rowth in

re-enues and contribution to o-erall re-enues stands at D per cent @ total of GD

new employees were added durin* the June 2003 quarter, takin* total headcount

to 41D

>H Technolo*y !>H Tech' has earned a net income of F ?2 million durin* 1;

2000 which is an increase of 134 per cent

30GE software en*ineers were added last year which meant a *rowth of ?1 per cent

ustomer si:e increased to 24

They ha-e offices in 1? countries worldwide

Their customers include &TT $ata, M$9, Toshiba and )ntelsat

THE KEY OPERATING STRATEGIES O/ HC9 TECHNO9OGIES ARE AS

/O99O


20/82

2 The or*ani:ational structure fosters an entrepreneurial spirit

3 )ndependent @udit, ompensation and elated arty ommittees ha-e

been formed @udit ommittee, headed by ambassador, ichard 8urt, has

formulated *uidelines for insider tradin* and best practices

ompensation committee, headed by obin @brams, has appro-ed of an

%mployee "tock 9ption plan to co-er 1 per cent of the employees

D They ha-e a distin*uished )nternational 8oard of $irectors This

international e


21/82

3 %quity in-estments for -alue acquisition+ >H Tech is in-ol-ed in

de-elopin* cuttin* ed*e technolo*ies alon* with some smaller

companies, and may *o in for a -alue acquisition to enhance shareholder

-alue soon

D .er*ers and acquisitions+ Thou*h the company has been acti-ely

e-aluatin* .=@ opportunities in the #" and %urope, yet it has not

finali:ed a deal as yet They intend to acquire companies with stron*

technolo*y, network ser-ices orientation and a quality client base .r

"hi- &adar stated that the companies that they had tar*eted were *oin*

throu*h a low phase, due to which their -aluations were not correct "o

the company could not *o forward with their acquisition plans

? The company has in-ested F13 million in technolo*y funds and other

related areas

4 The non;linear model can lead to better scalability throu*h the creation of

5soft cores5 such as the 8luetooth soft core, .odem software, 12

"oftware and 8luetooth "tack

E!3"'(' on 4u"2(ty &%*%nu% (: t3&ou3 t3% $o22o(n

1 )ncreased contribution from hi*h -alue and hi*h mar*in ser-ices;

howe-er it must be noted here that re-enue *rowth this time is lower than

the last time

2 E2 per cent of the company6s re-enue6s come from technolo*y

de-elopment ser-ices, software product en*ineerin* and networkin*

ser-ices

3 The company has a de;risked business model

D The top ?, top 10, top 1? customers contribute 23 per cent, 3? per cent

and D4 per cent of re-enues respecti-ely

? The repeat business of the company from e


22/82

E The company6s offshore re-enues are *rowin* at a @( of E1 per cent

for 1;00

E!3"'(' on %"&n(n' 2%d &ot3

1 The company has been focusin* on mo-in* up the -alue chain, due to

which the bill rate has increased both for offshore centric !11D per cent'

and onsite ser-ices !10 per cent' o-er K1 last year

2 @-era*e re-enue per employee durin* K1 2001 has also increased to s

32 million per annum and *ross profit per employee has also *one up to

s 1? million

3 .ar*ins of the company ha-e also impro-ed

E!2oy%% ?%*%2o!%nt "nd Cont&()ut(on

1 >uman resources are the backbone of any information technolo*y

company and the lon*;term success of >H Tech also depends crucially

on their human resources

2 Their total manpower stands at D1? !inclusi-e of DD people taken in

durin* the quarter'

3 G3I of their total manpower is established in )ndia

D The company6s attrition rate is 114 per cent while the a-era*e trainin*

duration per employee stood at 13 days annuali:ed for K1 2001

)T;%nabled "er-ices !)T%"' or 89 !8usiness rocess 9utsourcin*' as it is better

known holds tremendous potential for )ndia Thou*h )T%" in )ndia has become almost

synonymous with call centers in public perception, it encompasses much more The term

)T%" can be defined as outsourcin* of such processes that can be enabled with

information technolo*y and co-ers areas as di-erse as finance, > !human resource',

administration, healthcare, telecommunication, manufacturin* etc These ser-ices are

usually deli-ered to remote areas throu*h the telecom and )nternet medium and imply

transfer of ownership and mana*ement of the process from the customer to the ser-ice

pro-ider


23/82


24/82

Ehi!it 2

G&ot3 o$ ITES Indu't&y

US n

2000 ?4?

2001 30

2002 1,D?

2003 2,300

200D ?,200

Third-party service providers gaining prominence

9ne of the main proponents of outsourcin* is (eneral %lectric !(%', which started

operations in )ndia in 1E, has the lar*est )T%" operation in )ndia with more than

12,000 employees The )T%" story started in )ndia with the capti-e centers of .&s like

(%, >"8, @merican %


25/82

6ustomer care also $no#n as call center includes data!ase mar$eting, customer analytics,

telesales7telemar$eting, in!ound call center, #e! sales and mar$eting, sales and mar$eting,

sales and mar$eting administration. %he hype surrounding the industry can !e eplained !y

the "act that this segment is not only the largest revenue earner ('&/ *10 mn in 03). 8ut

is also the "astest gro#ing segment (103+ in 03) in the industry (Ehi!it 3). It also has to

its credit the status o" !eing one o" the largest employment generators. %he segment

employed 000 people in 03 a stupendous gro#th o" 11+ compared to the previous

year.

% D? ?00 2,100 D00

ayment "er-ices 210 0 11,000 ?E1

@dministration 310 4E4 2?,000 EG4

ontent de-elopment D4? 33 DD,000 12G

9 ro#th over 02 &ource: asscom

inancial service is the second highest revenue earner "or the industry. %he segment includes

!illing compliance, ris$ management, "inancial reporting and "inancial analysis. %his segment

earned revenue o" '&/ 10 mn in 03 (0+ y-o-y increase) and it employed 25000 people

in 03. &ome o" the 8;< players active in the !an$ing, "inancial services and insurance

(8&I) are I6I6I ?, payment services,

administration, healthcare, retail, telecom and hospitality.

Challenges facing the industry


26/82

Mu'3&oo(n o$ '"22 !2"y%&'

@ttracti-e *rowth rate of the 89 industry has resulted in many reckless start;ups

"e-eral companies from unrelated sectors without the required eowe-er, )ndia is runnin* out of the supply of *ood quality mana*erial

talent There ha-e been recent cases of mid;si:ed companies losin* 89 orders for not

bein* able to demonstrate a competent team that can mana*e a lar*e workforce >i*h


27/82

le-el of attrition further complicates the problem @t least 40,000 of the 1E1,000

workforce chan*e jobs e-ery year The supply of skilled manpower to the industry needs

to e mana*ement

ey @ccount .ana*ement

Ainancial .ana*ement

8usiness $e-elopment

@ccount >andlin* rocess .i*ration

Team mana*ement

.entorin* and coachin*

rocess )mpro-ement

Kuality @ssurance

eportin*

osterin* and schedulin*

"upportin* a*ents as the ".%

rocessin* Transactions

%nd ustomer )nteraction

8usiness strate*y

> lannin*

Ainancial .ana*ement skills

Headership and .oti-ation

roject .ana*ement

.etrics and Kuality mana*ement rocess impro-ement tools

Technolo*y .ana*ement

9perations .ana*ement

Aorecastin*, "taffin* and

"chedulin*

.entorin* and oachin* skills

eople .ana*ement skills

.)" and reportin* tools

)ndustry knowled*e

roduct nowled*e

rocess nowled e

Co!%t%n#(%'R%'!on'()(2(t(%s


28/82

6 CAREER P9ANNING 8 GRO


29/82

@nother benefit is that local outsourcin* firms can pro-ide -aluable in;country

e


30/82

"er-ice %


31/82

"er-ice %


32/82

8usiness ard $ata %ntry into any Aormat

$ata %ntry from hardcopy/rinted .aterial into tei*h speed )ma*e;"cannin* and $ata capture ser-ices


33/82

>i*h speed lar*e -olume scannin*

9 $ata Arom "canned pa*e / ima*e

"can = 9 paper 8ook in to $

@$98% $A on-ersion "er-ices

on-ersion from paper or e;file to -arious formats

oo+ K%%!(n "nd A##ount(n

(eneral Hed*er

@ccounts ecei-ables and @ccounts ayable

Ainancial "tatements

8ank econciliation

@ssets / %quipment Hed*ers etc

/o& P&o#%''(n S%&*(#%'

)nsurance claim form

.edical Aorm / .edical billin*

9nline Aorm rocessin*

ayroll rocessin* etc

Int%&n%t 8 On2(n% 8


34/82

The key to success in rampin* up talent in a 89 en-ironment is a rapid trainin*

module The trainin* component has to be seen as an important sub;process, requirin*

constant re;en*ineerin* 8usiness rocess 9utsourcin*+ The Top ankers 7&" has

emer*ed as the top 89 in )ndia, pushin* 7ipro "pectra mind to the second position,

accordin* to a sur-ey done by &@""9. The basis of rankin* is the re-enues

*enerated by the 89 companies in 2003;0D, as per #" (@@ @ list of top fifteen 89

companies in )ndia is *i-en below

7&" (roup7ipro "pectra mind$aksh e;"er-iceson-er*es>H Technolo*ies

enta))) 9ne source.phasi"%NHTracmail(TH Htd-ustomer>T.T2D/E ustomer"utherland Technolo*ies

T3% !"&"%t%&' $o& t3% 'u&*%y "' %mployee "i:e !9peration le-el e


35/82

G&"tu(ty(ratuity is one of the retrial benefits *i-en to the employee in which the

employer e-ery year contributes a particular amount The fund created can be used by

the employee for the purpose of lon*;term in-estment in -arious thin*s such as a house

etc

G&ou! M%d(#"2 #2"( In'u&"n#% S#3%% This insurance scheme is to pro-ide

adequate insurance co-era*e of employees for e


36/82

C%22u2"& P3on% 8 9"!to!ellular phone and / or Haptop is pro-ided to the employees

on the basis of business need The employee is responsible for the maintenance and

safe*uardin* of the asset

P%&'on"2 H%"2t3 C"&% DR%u2"& %d(#"2 #3%#+-u!'"ome of the 896" pro-ides the

facility for e


37/82

benefits and income ta< payable )t is applicable of all the employees of the or*ani:ation

The "alary consists of 8asic, $@ and on-eyance @llowance The Aleouse ent @llowance, Hea-e Tra-el @ssistance, .edical eimbursement,

"pecial @llowance

R%u2"& G%t to%t3%& "nd ot3%& #u2tu&"2 !&o&"'The companies or*ani:es cultural

pro*ram as and when possible but most of the times, once in a quarter, in which all the

employees are *i-en an opportunity to display their talents in dramatics, sin*in*, actin*,

dancin* etc @part from that the or*ani:ations also conduct -arious sports pro*rams such

as ricket, football, etc and re*ularly play matches with the teams of other or*ani:ations

and colle*es


38/82

7 PER/ORMANCE MANAGEMENT SYSTEM O/ PO

INTRO?UCTION

The history of mana*ement in )ndia can be traced to the %n*lish %ast )ndia ompany,

!1400O1GED' chartered by Kueen %li:abeth ) for trade with @sia @fter independence in

1DE, )ndia subscribed to a model which placed a stron* emphasis on central plannin*

and a bi* role for *o-ernment owned ublic "ector %nterprises !"%s' who were

established to control the 5commandin* hei*hts5 of the economy @fter the economic

reforms of 11 the country6s economy became much more inte*rated to the world

economy, which was the effect of liberali:ation in our country and *lobali:ation

worldwide The concept of human resources has under*one drastic chan*es as far as the

)ndian )ndustry is concerned The a*e;old concept of >uman esource .ana*ement has

chan*ed to >uman esource $e-elopment This chan*e has come as a result of thechan*e in industry from manufacturin* in the public sector to information technolo*y in

the pri-ate sector

PER/ORMANCE MANAGEMENT IN HUMAN RESOURCES

The e-olution of the concept of performance mana*ement as a new >uman esource

.ana*ement model reflects a chan*e of emphasis in or*ani:ations away from

command;and;control toward a facilitation model of leadership This chan*e has been

accompanied by reco*nition of the importance to the employee and the institution of

relatin* work performance to the strate*ic or lon*;term and o-erarchin* mission of the

or*ani:ation as a whole The performance mana*ement process pro-ides an opportunity

for the employee and performance mana*er to discuss de-elopment *oals and jointly

create a plan for achie-in* those *oals $e-elopment plans should contribute to


39/82

or*ani:ational *oals and the professional *rowth of the employee ritical to the success

of this new model, a fleuman esource mana*er The major challen*es are+

&"nd %4u(tyeople still consider 89 to be 5low brow5, thus makin* it

difficult to attract the best talent

St"nd"&d !&%-Bo) t&"(n(n@*ain, due to the wide -ariety of the jobs, lack

of *eneral clarity on skill sets, etc, there is no standard curriculum, which

could be desi*ned and followed

%n#3"&+' There are hardly any benchmarks for compensation and

benefits, performance or > policies %-eryone is chartin* his or her own

course

St"nd"&d' o$ !%&$o&"n#%

Jo) d%'#&(!t(on %''%nt("2 $un#t(on'

St&"t%(# !2"n Annu"2 o"2'

O)'%&*"t(on /%%d)"#+

P%&$o&"n#% A!!&"('"2

P%&$o&"n#% ?%*%2o!%nt


40/82

)n both the pre;job trainin* as well as in benchmarks, the role performance mana*ement

plays is not too small erformance appraisals whether they be pre/post trainin*, offers

the company a quick *lance throu*h the effecti-eness and the worthiness of a person in

the or*ani:ation and also helps in effecti-e placements

PER/ORMANCE MANAGEMENT IN PO IN?USTRY

8usiness process outsourcin* !89' satisfaction le-els are on the up O but while more

or*ani:ations are now confident when ne*otiatin* outsourcin* contracts

.ost stru**le with on*oin* mana*ement and makin* the deal deli-er on*oin* -alue,

ar*ues "imon Hindley, rincipal onsultant at 9rbys onsultin*

9-er the last couple of years, the outsourcin* market has turned a corner and the

widespread perception of failure has been replaced by a *rowin* acceptance that 89

can really deli-er on its potential benefits O from reduced cost to supportin* business

*rowth throu*h effecti-e access to key skills 9r*ani:ations now ha-e a le-el of

confidence in ne*otiatin* outsourcin* contracts that is enablin* far more to achie-e

strate*ic objecti-es -ia a 89 arran*ement

)ndeed, in a recent independent study undertaken by 8enchmark esearch on behalf of9rbys onsultin*, 2 percent stated the contract e


41/82

e-en just make sure they stay on track O then other key factors need to be identified,

monitored and acti-ely mana*ed a*ainst "ome will be on*oin* re*ular measuresB others

should be modified o-er time to reflect chan*in* business priorities, and current business

strate*y and initiati-es

This wider Pbalanced scorecardC approach to performance mana*ement is not only of

-alue to the business in dri-in* continuous impro-ement and business focus, it also

helps the 89 ser-ice pro-ider in terms of pro-idin* *reater clarity of customer

perceptions and satisfaction, and clearer specification of business priorities and how the

ser-ice pro-ider can help them be deli-ered

@lthou*h initially some ser-ice pro-iders may be wary of the additional effort and

in-estment required, the wiser ones will reali:e the potential for pro-idin* wider ser-ice

and project support %ffecti-e on*oin* mana*ement can also *reatly reduce the risk of

client dissatisfaction and therefore ultimately help a-oid subsequent re;tenderin* of the

contract or ser-ices bein* taken back in;house

PROCESSES O/ PER/ORMANCE MANAGEENT IN PO IN?USTRIES

8usiness process outsourcin* !89' has become an essential trend in the current

di*itali:ation and *lobali:ation en-ironment which influences the strate*y of enterprise

*reatly )n this paper, current research and results are discussed as well as their

deficiencies Then based on business process performance measurement, the total life

cycle mana*ement framework of 89 is brou*ht forward to sol-e challen*es identified

throu*h these deficiencies @t last business process performance and mana*ement

system and rele-ant concrete methods such as business process based risk analysis,

hierarchical fu::y co*niti-e map to simulate the cause;effect lo*ical relationships amon*

performance indicators are presented as well to support the analysis and decision in the

total life cycle mana*ement

ompanies of today and tomorrow are confronted with intense *lobal competition,

demandin* customers with rapidly chan*in* desires, shrinkin* response times and

shortened product life cycle


42/82

>owe-er, *lobali:ation also *i-es companies an opportunity to take a fresh look at their

competiti-e strate*y and e


43/82

7hile from the point -iew of outsourcin* company and combined with many failure

cases, the principal challen*e and obstacle stems from loss of control on outsourced

acti-ities which always leads to the hu*e risk and hi*h failure rate "o the key to success

in all 89 se*ments, re*ardless of process or industry, is the ability to measure process

performance before a process is outsourced and durin* the life cycle of the en*a*ement

@lthou*h 89 is a *rowin* trend and has finally mo-ed from concept to reality, the

eowe-er with the rapid )T

application de-elopment in 89 and dramatic impro-ement of business process

mana*ement, the procurement of process data turns to easier and business process;based

89 mana*ement with technical support is *ettin* possible

TOTA9 9I/E CYC9E MANAGEMENT O/ PO ASE? ON PROCESS

PER/ORMANCE ANA9YSIS

Throu*h the abo-e literature re-iew and to meet the challen*e abo-e mentioned, it isinno-ati-e and feasible to propose technical support to 89 *roundin* on businessprocess analysis and put forward total life cycle mana*ement framework of 89 basedon business process performance analysis


44/82

Tot"2 9($% Cy#2% M"n"%%nt o$ PO-/&"%o&+

The total life cycle framework is proposed in attempt to shed li*ht on the relationship

between 89 and business process performance the total life cycle mana*ement

framework is proposed here @nd in the -iew of constructin* 89, its total life cycle iscomposed of se-en phases which are illustrated in Ai*1 %ach phase will be elaborated

in the followin* section

D An"2yF(n "nd !2"nn(n out'ou(n

)t is ob-ious that 89 will brin* opportunities accompanied with risks to an outsourcin*

company "o before the make or buyU decision, it is -ery critical to take an all;sided

analysis )n this sta*e, the analysis, which is normally based both on performance and

risk factors, firstly focuses on current business process if a-ailable Thus a comparison

can be made between the pre;outsourced and outsourced process

D S%2%#t(n '%&*(#% !&o*(d%&'


45/82

)n this sta*e a set of e-aluation criteria must be defined to select prospecti-e 89

ser-ice pro-ider These criteria typically include cost, quality, )T capability and financial

stability @fter listin* the e-aluation criteria in a hierarchical way, decision method like

@> or e


46/82

@fter the adaptation period, outsourcin* company now chan*es its role from operational

mana*ement into a more strate*ic one !monitorin* the 89 acti-ities and performance'

and forms a mana*ement team in char*e of coordination (enerally, because the

methods used by the mana*ement team to super-ise 89 acti-ities are scheduled by the

contracts !such as re*ular reports deli-ered by ser-ice pro-iders, periodical meetin*' and

lack of effecti-e technical support and analysis methodolo*y, this phase is always

confronted with many problems

D6 End(n Cont&"#t

@t the end of an outsourcin* contract the outsourcin* company has three options+ to

rene*otiate the contract with the same supplier, to chan*e supplier or to in;source the

acti-ity a*ain The two first options hi*hli*ht the cyclical nature of 89 while the last

one corresponds to its termination

D7 Con't&u#t(n )u'(n%'' !&o#%'' !%&$o&"n#% "nd "n"%%nt 'y't%

)n the abo-e framework shown in Ai* 1, this phase locatin* in the centre is put forward

to pro-ide effecti-e support for the most crucial three phases in the life cycle+ analy:in*and plannin* outsourcin*, contractin* and ne*otiatin*, mana*in* on*oin* supplier The

importance of this phase is usually ne*lected or underestimated by stakeholders of

outsourcin* acti-ities which may cause many serious problems durin* the e


47/82

performance measurement system, process monitorin*, and process dia*nosis and

process impro-ement Airstly after determinin* business process lo*ic and collectin*

related process parameters, business process models are built by e


48/82

Ai*ure 2+ 8usiness process performance and mana*ement system

D u'(n%'' !&o#%'' !%&$o&"n#% 'y't% #on't&u#t(on

erformance measurement of 89 is a constant challen*e @ll too often mana*ers *i-eup tryin* to create inte*rated performance measurement systems !."' because of the

difficulties in mana*in* inter;or*ani:ation transactions 8ut unless this problem is

addressed it is difficult to see how 89 can be realistically de-eloped in the future @nd

it is su**ested that a switch from transaction based ." to process based ." Q3R is

more likely to achie-e a robust and focused ." leadin* to better and more consistent

customer ser-ice le-els rocess performance normally measured from the followin*

aspects+ ser-ice cost, time, ser-ice quality, ser-ice differentiation and so on @nd from

the -iew of stakeholders is also another way to construct process based ."

! R('+ "n"2y'('--- $&o )u'(n%'' !&o#%'' od%2 to $"u2t t&%%


49/82

The risk related to a concerned process model which is associated with the cost of failure

process as well as system una-ailability is an important topic in the research of business

process performance The requirement to impro-e the process is also an attracti-e issue

To meet these challen*es, it is necessary to e-aluate the risk of new process models "o

it is -ery important that reliability analysis and risk assessment from se-eral aspects of

process modelin*, such as process structure and process functions To reali:e rele-ant

risk analysis and assessment, the fault tree analysis technique is presented This kind of

technique was de-eloped by > @ 7atson of the 8ell Telephone Haboratories in 141;

142 in an air force contract and it is also effecti-e for qualitati-e and quantitati-e

measurement 7ith reference to si*nificant research and results of QDR, at first, the

process models are depicted by rele-ant process modelin* tools issued by our research

team and then these process models will be mapped to related fault tree structures

@fterwards throu*h the minimal cut and path sets of fault tree technique, a methodolo*y

for identifyin* critical acti-ities in process models as well as in fault tree from reliability

and structural point -iew are put forward @nd this sort of technique can also be applied

in other aspects to e-aluate process models

D= E:t%nd%d $uFFy #on(t(*% "!'

"ince fu::y co*niti-e maps !A.s' Q4R are a -ery intuitional and powerful tool for

simulation and analysis of dynamic systems, they are introduced to model the cause;

effect lo*ic relationship between process performance indicators and support reasonin*

of anticipated business process performance A.s were ori*inally de-eloped in 1G0

by osko, and since then successfully applied to numerous domains, such as

en*ineerin*, medicine, control, and political affairs A. is a modelin* methodolo*y for

comple< decision systems, which ori*inated from the combination of fu::y lo*ic and

neural networks @n A. Q2R describes the beha-ior of a system in terms of concepts

and each concept represents an entity, a state, a -ariable, or a characteristic of the

system The proposed mechanism utili:es the fu::y causal characteristics of A.s as a

new modelin* technique to *enerate a hierarchical network of interconnected

performance indicators The wei*ht which indicates the fu::y cause;effect influences


50/82

from one indicator to another comes from e practices

The outputs of which could be used for 9r*ani:ation de-elopment rather than for mere

employee efficiency impro-ement asual and subjecti-e appraisals will not be able to

stand the test of fairness and le*ality if challen*ed Airms are thus bein* forced to

emphasi:e a participati-e but joint management by objectives followed by a

participati-e, joint;periodic appraisal, to brin* more clarity into the system

8ecause companies in-ol-ed in 89 are confronted with many challen*es especially

like the lack of performance measurement and mana*ement throu*hout the lifecycle, this

paper proposes a total life cycle mana*ement framework of 89 based on business

process performance @lso concrete methods such as business process based risk

analysis, hierarchical fu::y co*niti-e maps to simulate the cause;effect lo*ical

relationships amon* performance indicators are presented as well to support the analysis

and decision of the most important three sta*es in the 89 life cycle

)t is su**ested that a careful consideration of this framework and the use of related

supportin* technical methods can pro-ide insi*hts for 89 ser-ice pro-iders,

outsourcin* company, )T mana*ers and academicians


51/82

SUCCESSION P9ANNING O/ PO IN?USTRY

"uccession plannin* is an essential part of corporate strate*y in most )T or*ani:ations

7hile the desi*n of the succession chart looks *ood on paper, it has often been found

that the plannin* process fails to meet requirements at the time of fillin* a key position

that has just been -acated )t is not an easy task dealin* with the e-er;chan*in* equations

of the leadership pipeline @ccordin* to a report by #";based business research firm

uttin* %d*e, while many companies ha-e succession plans, -ery few follow throu*h

with the ri*orous implementation required )n fact, E0 percent of succession plans fail

due to bad e needs )t is essential to

adopt a disciplined approach to match > resources with the anticipated needs of an

or*ani:ation This includes ali*nin* the succession plannin* process with business

strate*y

The purpose of the talent re-iew is to fi*ure out the talent required to implement the

business strate*y and constantly stren*then the talent pool The talent re-iew and

plannin* process helps us identify talent for emer*in* roles in the or*ani:ation, says

8ijay "ahoo, -ice;president !talent en*a*ement and de-elopment' and head of >,

7ipro Technolo*ies ommitment from the top mana*ement is another key factor for


52/82

ensurin* the success of succession plannin* "ahoo re-eals that in 7ipro, the chairman

!@:im remji' and -ice;chairman and %9 !Mi-ek aul' *i-e enormous importance and

their personal time for talent re-iew and plannin*, and personally super-ise the

de-elopment and implementation of the talent plan for key roles

@ccordin* to "ahoo, the other essential factors are+ !a' accountability, as the succession

plannin* pro*ramme requires ownership at all le-els in the or*ani:ation %ach mana*er

should be responsible for assessin* and de-elopin* the talent in his or her team !b'

onstant attention, as it can be temptin* to o-erlook the need for succession plannin* in

the face of more immediate needs

P2"nn(n t3% !&o#%''

The bench stren*th of current and future leaders *i-es a competiti-e ed*e to e-ery

or*ani:ation @t 7ipro, the succession plannin* pro*ramme is called Talent e-iew and

lannin* !T', and it is the most critical part of the or*ani:ations leadership buildin*

and talent mana*ement process 9nce our business strate*y for the year is finali:ed, we

identify the critical roles to e


53/82

@t )nfinite omputer "olutions !)"', which has a *lobal headcount of 1,G00, employees

ha-e also taken up hi*her roles without a chan*e in desi*nation, with support from

functional heads and senior mana*ement teamsS @ skill;*ap analysis is done of the

candidates, and requisite trainin* pro-ided to make them able successors

C2%"& $o#u'

)t is a known fact that while most mana*ement is interested in de-elopin* a pool of

successors for key positions, they find it a difficult task to ensure the success of their

efforts "uccession plannin* can *et -ery complicated 9r*ani:ations must therefore

ha-e a clear focus

7ipro has quarterly talent en*a*ement and de-elopment !T%$' re-iews, and action

points of each "8# and -ertical are tracked 7e also track the number of senior

positions that are filled internally, which *i-es an indication of the success of the

pro*ramme @t the macro le-el, the retention fi*ure also reflects the effecti-eness of the

succession plannin* pro*ramme, since one of the objecti-es of the pro*ramme is to help

employees reali:e their career aspirations and thus retain them in the or*ani:ation

"ystematic succession plannin* does *enerate leadership talent, and an or*ani:ation can

measure its effecti-eness by lookin* at the leadership talent it has created and pro-idedto the industry 7ipro is one of the top companies when it comes to creatin* top;class

leaders in the )T industry .any of our e


54/82

&ew Headers ro*ramme, 7ipro Headers ro*ramme, 8usiness Headers ro*ramme and

"trate*ic Headers ro*ramme for different leadership positions that an employee will

assume in the or*ani:ation

.ost or*ani:ations do skill;*ap analysis of the selected candidates @ schedule is drawn

for the prospecti-e indi-idual to acquire the knowled*e, skills and competencies within a

time;frame, says "under ajan, *eneral mana*er, > = administration, )" >e adds

that the trainin* could be throu*h internal pro*rammes or on;the;job !local as well as

*lobal' to *ain cross;functional or cross;*eo*raphical e


55/82

1 RE professionals all o-er the world, workin* is all;enter or ontact enter or 89

industries are breakin* their heads to formulate etention "trate*ies but nothin* isworkin* in their fa-or The a-era*e attrition rate in this sector is still 3?;D0I &o perks,

no rewardsVjust nothin* is workin*

8efore proceedin* further, letCs see why people are lea-in*S 7hy there is hi*h attrition

rate


56/82

Aor hi*her "alary

Aor >i*her education

.is*uidance by the company

olicies and procedures are not conduci-e

&o personal life

hysical strains

#neasy relationship with peers or mana*ers

HetCs also see as what are the -arious benefitsVthat ha-e been eospitali:ation e


57/82

char*es for the shared accommodation The purpose is to pro-ide to the

employees to lead a more comfortable work life balance

? R%#&%"t(on, C"$%t%&(", ATM "nd Con#(%&% $"#(2(t(%'The recreation facilities

include pool tables, chess tables and coffee bars ompanies also ha-e well

equipped *yms, personal trainers and showers at facilities

4 Co&!o&"t% C&%d(t C"&dThe main purpose of the corporate credit card is enable

the timely and efficient payment of official e


58/82

a-ailin* this pro-ision Aleirin* and retainin* *ood

employees ha-e become the chief concerns of nearly e-ery company in e-ery industry


59/82

ompanies that understand what their employees want and need in the workplace and

make a strate*ic decision to proacti-ely fulfill those needs will become the dominant

players in their respecti-e markets

The fierce competition for qualified workers results from a number of workplace trends,

includin*+

@ robust economy

"hift in how people -iew their careers

han*es in the unspoken 5contract5 between employer and employee

orporate cocoonin*

@ new *eneration of workers

han*es in social mores

Hife balance

oncurrent with these trends, the emer*in* work force is de-elopin* -ery different

attitudes about their role the workplace Today6s employees place a hi*h priority on the

followin*+

Aamily orientation

Kuality of life issues

@utonomy

To hold onto your people, you ha-e to work counter to pre-ailin* trends causin* the job

churnin* "mart employers make it a strate*ic initiati-e to understand what their people

want and need ;; then *i-e it to them

R%t%nt(on St&"t%(%'

This is not an e;rofessionalsVsit down and concentrate on your basics ) ha-e classified retention

strate*ies into two parts+ .ain and @ncillary

M"(n &%t%nt(on 't&"t%(%'


60/82

This is not an e;rofessionalsVsit down and concentrate on your basics

1 Coun(#"t(on' - G%tt(n You& P%o!2% to C"&%

ommunication is the first step toward creatin* the kind of en-ironment that people

care about, and if they care, they just may stay )6m not talkin* about a lot of &ew

@*e strokin* desi*ned to brin* out the inner person or false praise that creates a

misplaced sense of security )nstead, keep your people in the loop about what6s

happenin* with the company @t any time, all of your employees should ha-e a

pretty *ood idea of how business has been, and they should be aware of what issues

the company is attemptin* to address

That means that you re*ularly keep your people up to date with important e-ents

affectin* the company )f &o-ember was *ood, let them know, and while you6re at it,

tell them what you e


61/82

after all, the people who do the work e-ery day They may ha-e some ideas to

impro-e producti-ity, and when they do come up with one, let e-erybody know

where it came from ost a 5bra* board5 in your break room, or circulate an internal

newsletter that touts these contributions The pay;off is a conta*ious feelin* of pride

and, perhaps, some new efficiency that sa-es the company money

2 S%t C2%"& E:!%#t"t(on'

o >ow often do you appraise your employees/team;membersS

o 7hat are your ea-e you

communicated to themS

o 7hat will be the consequences, if they failS

o 7hat will be the rewards, if they e


62/82


63/82

= P&o!%& R%"&d(n

@ research reports says that in today6s scenario,

o

E0I of your employees are less moti-ated today than they used to beo G0I of your employees could perform si*nificantly better if they wanted

to

o ?0I of your employees only put enou*h effort into their work to keep

their job

@s you mi*ht be aware of %mployee eward co-ers how people are rewarded in

accordance with their -alue to an or*ani:ation )t is about both financial and non;

financial rewards and embraces the strate*ies, policies, structures and processes used to

de-elop and maintain reward systems The ways in which people are -alued can make a

considerable impact on the effecti-eness of the or*ani:ation, and is at the heart of the

employment relationship

The aim of employee reward policies and practices, if any in your or*ani:ation is to help

attract, retain and moti-ate hi*h;quality people (ettin* it wron* can ha-e a si*nificant

ne*ati-e effect on the moti-ation, commitment and morale of employees ersonnel andde-elopment professionals will be in-ol-ed frequently in reward issues, whether they are

*eneralists or speciali:e in people resourcin*, learnin* and de-elopment or employee

relations eep followin* parameters in mind, while desi*nin* a reward policy+

. u(2d " 3(3 d%&%% o$ &%#on(t(on *"2u% (nto %*%&y &%"&d you o$$%&

eco*nition is the most cost;effecti-e moti-ator there is 7hile the hi*h cost of other

rewards forces us to *i-e them sparin*ly, reco*nition can be *i-en any time, at -ery littlecost

"ome -ery ordinary items and e-ents can be imbued with e


64/82

sincere thank you can be deli-ered at any place and at any time, costs absolutely nothin*

and can be more moti-ationally powerful than a substantial monetary bonus

9r*ani:ations can pro-ide inno-ati-e reco*nition in an infinite number of ways

Aor eypothetical )ncident' a small manufacturin* company made its

employees feel like heroes when they attained a major safety milestone ; 100 days

without a sin*le accident 9n the mornin* of day 100, it was announced that a catered

lunch would be ser-ed the ne


65/82

*i-e substantial rewards to those who really deser-e them "mart or*ani:ations are

lookin* for opportunities to reduce across;the;board entitlements, and thereby find more

resources for discretionary performance;based rewards, without increasin* the total cost

of rewards

6 T&ou)2%'3oot you& &%"&d 'y't% to "+% 'u&% t3"t 3"t (t (' &%"&d(n (' 3"t

you &%"22y "nt to 3"!!%n

The Haw of ewards ; 57hat you reward is what you *et5 ; )s e


66/82

There is a well;accepted law of beha-ioral psycholo*y, that if you want someone to

repeat a beha-ior, you should positi-ely reco*ni:e it immediately Arom this law, smart

super-isors and mana*ers can learn a -ital lesson+ Hook for any employee doin*

somethin* ri*ht, ri*ht now, and reco*ni:es it

@ support to this, here is my fa-orite reward story+

57hen a senior mana*er in one or*ani:ation was tryin* to fi*ure out a way to reco*ni:e

an employee who had just done a *reat job, he spontaneously picked up a banana !which

his wife had packed in his lunch', and handed it to the astonished employee with hearty

con*ratulations &ow, one of the hi*hest honors in that company has been dubbed the

5(olden 8anana @ward55

G(*% %!2oy%%' " #3o(#% o$ &%"&d'ewards are as different as the people who

recei-e them and it doesn6t make sense to *i-e rewards that recipients don6t find

rewardin* Aor eow do you know what will be rewardin* to employeesS @sk them "mart or*ani:ations

are also lettin* employees choose their own rewards from reward menus and catalo*s

ersonali:in* rewards shows that a company cares enou*h to disco-er what 5interests5

each employee, rather than just distributin* *eneric items )t also reduces the followin*

dan*er+ )n one or*ani:ation ) was -isitin*, an employee opened a bi* drawer in his desk

and disdainfully showed me all the 5worthless trinkets5 he had collected o-er the years

In#&%"'% t3% 2on%*(ty o$ you& &%"&d'This can be done in a number of ways+ 9ne

of the keys to reward lon*e-ity is symbolism The more symbolic an item is of the

accomplishment, the more likely it is to continue remindin* the employee of why it was


67/82

*i-en Aor instance, a T;shirt of coffee mu* with a meanin*ful inscription will continue

rewardin* those who wear it, or use it, lon* after its initial receipt There are many

tokens of appreciation ) still keep on or near my desk that remind me of the joy of past

accomplishments, while the monetary rewards ) ha-e recei-ed are lon* spent and lon*

for*otten

@nother way to increase the lon*e-ity of rewards in your or*ani:ation is by usin* some

kind of point system ather than rewardin* each indi-idual beha-ior or

accomplishment, points can be awarded, which employees can accumulate and

e-entually trade for items from a reward menu or *ift catalo* This keeps the

anticipation of rewards fresh for lon*er periods of time )t also addresses the need for

reward indi-iduali:ation

9ne company that desi*ns moti-ational systems offers an electronic debit;card system to

help lar*er clients cope with the comple


68/82

demoti-ators can be dramatically reduced by solicitin* employee in-ol-ement in

identifyin* hi*hest;priority demoti-ators and by enlistin* top;mana*ement commitment

to support their reduction

)t is probably self;e-ident that considerable sensiti-ity is needed in the administration of

any reward system 9ne demoti-ators that is probably endemic in any reward system

modification !especially as an or*ani:ation mo-es from entitlements to more

performance;based rewards' is a sense that somethin* is bein* taken away %mployees

need to be educated about the reasons that this is bein* done, understand the ultimate

benefits to them and the or*ani:ation, and should probably ha-e some input into the

chan*e process

To a-oid the perception of unfairness, it is important, first and foremost, that the process

for allocatin* rewards is -iewed by employees as bein* impartial This requires an

objecti-e measurement system that few or*ani:ations ha-e 7ithout such objecti-e

measurement, any reward system is probably destined to failure

An#(22"&y R%t%nt(on St&"t%(%'The quality of the super-ision an employee recei-es

is critical to employee retention eople lea-e mana*ers and super-isors more often than

they lea-e companies or jobs )t is not enou*h that the super-isor is well liked or a nice

person, startin* with clear e


69/82

12 The ability of the employee to speak his or her mind freely within the or*ani:ation is

another key factor in employee retention $oes your or*ani:ation solicit ideas and

pro-ide an en-ironment in which people are comfortable pro-idin* feedbackS )f so,

employees offer ideas, feel free to critici:e and commit to continuous impro-ement )f

not, they bite their ton*ues or find themsel-es constantly 5in trouble5 ; until they lea-e

13 Talent and skill utili:ation is another en-ironmental factor your key employees seek

in your workplace @ moti-ated employee wants to contribute to work areas outside of

his specific job description >ow many people could contribute far more than they

currently doS ou just need to know their skills, talent and e


70/82

1? our best employees, those employees you want to retain, seek frequent

opportunities to learn and *row in their careers, knowled*e and skill 7ithout the

opportunity to try new opportunities, sit on challen*in* committees, attend seminars and

read and discuss books, they feel they will sta*nate

14 A #"&%%&-o&(%nt%d, *"2u%d %!2oy%% u't %:!%&(%n#% &ot3 o!!o&tun(t(%'

(t3(n you& o&"n(F"t(on @ commonplace complaint or lament ) hear durin* an e


71/82

0 CHA99ENGES /OR HR PRO//ESSIONA9 IN PO IN?USTRY

u'(n%'' !&o#%'' out'ou(n DPO (' " )&o"d t%& &%$%&&(n to out'ou(n (n "22

$(%2d' A PO d($$%&%nt("t%' (t'%2$ )y %(t3%& !utt(n (n n% t%#3no2oy o& "!!2y(n

%:('t(n t%#3no2oy (n " n% "y to (!&o*% " !&o#%''

8usiness rocess 9utsourcin* !89' is the dele*ation of one or more )T;intensi-e

business processes to an e


72/82

9ur customer ser-ice offerin*s create a -irtual customer ser-ice center to mana*e

customer concerns and queries throu*h multiple channels includin* -oice, e;mail

and chat on a 2D/E and 34? days basis

"er-ice %


73/82

9ur employee )T help;desk ser-ices pro-ide technical problem resolution and

support for corporate employees

"er-ice %


74/82

o $ata entry from )ma*e file in any format

o 8usiness Transaction $ata entry like sales / purchase / payroll

o $ata entry of %;8ooks / %lectronic 8ooks

o $ata %ntry + ellow a*es / 7hite a*es eyin*

o $ata %ntry and compilation from 7eb site

o $ata apture / ollection

o 8usiness ard $ata %ntry into any Aormat

o $ata %ntry from hardcopy/rinted .aterial into te


75/82

G S#"nn(n, OCR (t3 Ed(t(n Ind%:(n S%&*(#%'

"er-ice %i*h speed )ma*e;"cannin* and $ata capture ser-ices

o >i*h speed lar*e -olume scannin*

o 9 $ata Arom "canned pa*e / ima*e

o "can = 9 paper 8ook in to $

o @$98% $A on-ersion "er-ices

o on-ersion from paper or e;file to -arious formats

oo+ K%%!(n "nd A##ount(n S%&*(#%'

"er-ice %


76/82

o )nternet "earch, roduct esearch, .arket esearch, "ur-ey, @nalysis

o 7eb and .ailin* list research etc

C3"22%n%' $o& " HR P&o$%''(on"2 (n PO

1 8rand equity+ eople still consider 89 to be 5low brow5, thus makin* it

difficult to attract the best talent

2 "tandard pre;job trainin*+ @*ain, due to the wide -ariety of the jobs, lack of

*eneral clarity on skill sets, etc, there is no standard curriculum, which could be

desi*ned and followed

3 8enchmarks+ There are hardly any benchmarks for compensation and benefits,

performance or > policies %-eryone is chartin* their own course

D ustomer;companies tend to demand better results from outsourcin* partners

than what they could actually e


77/82

1 7&" (roup

2 7ipro "pectra mind

3 $aksh e;"er-ices

D on-er*es

? >H Technolo*ies

4 enta

E ))) 9ne source

G .phasi"

%NH

10 Tracmail

11 (TH Htd

12 -ustomer

13 >T.T

1D 2D/E ustomer

1? "utherland Technolo*ies

The parameters for the sur-ey was+ %mployee "i:e !9peration le-el e


78/82

used by the employee for the purpose of lon*;term in-estment in -arious thin*s

such as a house etc

(roup .edical claim )nsurance "cheme+ This insurance scheme is to pro-ide

adequate insurance co-era*e of employees for e


79/82

ersonal >ealth are !e*ular medical check;ups'+ "ome of the 896" pro-ides

the facility for e


80/82

e*ular (et to*ether and other cultural pro*rams+ The companies or*ani:es

cultural pro*ram as and when possible but most of the times, once in a quarter, in

which all the employees are *i-en an opportunity to display their talents in

dramatics, sin*in*, actin*, dancin* etc @part from that the or*ani:ations also

conduct -arious sports pro*rams such as ricket, football, etc and re*ularly play

matches with the teams of other or*ani:ations and colle*es

7eddin* $ay (ift+ %mployee is *i-en a *ift -oucher of s 2000/; to s E000/;

based on their le-el in the or*ani:ation

%mployee eferral "cheme+ )n se-eral companies employee referral scheme is

implemented to encoura*e employees to refer friends and relati-es for

employment in the or*ani:ation

aid $ays 9ff

.aternity Hea-e

%mployee "tock 9ption lan

CONC9USION

)nspite of all these benefits, the attrition rate in 89 industry is -ery hi*h, whyS 7hat is

the reason for an employee to lea-eS These and many more are the questions that need

immediate attention from the industrial *urus


81/82

2 Aind nothin* better to do

3 %ducation le-el doesn6t matter

D (ood work en-ironment

? (ood 8enefits

4 Alei*her education

D .is*uidance by the company

? olicies and procedures are not conduci-e

4 &o personal life

E hysical strains

G #neasy relationship with peers or mana*ers


82/82

)t will not be possible for the industry to arri-e at a blanket a*reement on poachin* but

bilateral a*reements between companies are bein* si*ned 8asic norms are bein* put in

place and code of ethics is bein* stressed upon by industry players within the sector with

respect to > practices 7e are encoura*in* companies to adopt responsible beha-ior in

order to ensure that the industry does not become a -ictim of its own actions )ndustry

needs to *o a**ressi-e but not cannibalistic5

a study on impact of ites sectors in india

Documents