High Expansion IT Industry Business Essay Example

640 million by 2050. In order to accommodate this extensive labor force, particularly during its shift from agriculture to industry and services, India must generate 40 million jobs within the next decade. The survey emphasizes the importance of eliminating labor laws that restrict hiring and firing policies while heavily investing in education and skills training to capitalize on favorable demographics. With appropriate policies in place, demographics alone could contribute to approximately a yearly GDP growth rate of around 4% for the following two decades. Nonetheless, failure to implement proper demographic-related policies could result in an annual loss of about 1.5% GDP growth compared to our baseline scenario of 8% until 2020. The positive economic and demographic prospects are anticipated to drive higher demand for high-risk investments, potentially leading to annual GDP growth surpassing 9% over the next ten yearsA survey suggests that the proportion of equities in household savings may double from 5% to 10% by 2020, with inflows into equities increasing six-fold compared to a 2.5-fold increase in bank deposits. In addition, spending on health and education is projected to rise five-fold, while spending on food and drinks could increase by 2.5 times over ten years, reflecting changing consumption patterns. Similarly, there is expected to be higher demand for cars, transportation, housing, and appliances due to increased overall spending levels. However, it should be noted that this surge in workforce will also result in greater demand for commodities at a time when resources are limited and environmental concerns are growing more prominent.

The research methodology involved collecting or generating information through various sources such as questionnaires containing open-ended and close-ended questions, telephonic interviews, face-to-face interviews,

as well as using secondary data gathered from websites of different companies, study materials provided by the research guide, and books.

The decision to choose this proposal is justified by India's cost advantage and availability of skilled professionals which makes it a preferred destination for outsourcing IT and back-office functions.The first quarter of the financial year 2011-12 has shown positive business outlook in sectors like IT, ITeS, and telecom, with increased hiring. According to a survey conducted by TeamLease Services Pvt.Ltd., cities such as New Delhi, Mumbai, Hyderabad, and Pune have witnessed high hiring intentions from the IT and ITeS sector during this period. Major Indian engineering companies like TCS, Infosys, Wipro, and HCL are implementing strategies to increase their market share in the US by competing with international rivals for contracts. Analysts predict that these IT firms will experience a growth rate between 23-27% in FY2012 due to an increase in discretionary projects, improved pricing strategies, and strong business volumes. The Indian IT industry is predicted to reach $225 billion by 2020 and has played a crucial role in positioning India globally. It has had a significant impact on employment, standard of living, and diversity, transforming India's reputation from a slow bureaucracy to an innovative nation known for its entrepreneurs and technology solutions. According to NASSCOM,the sector experienced a 19% growth rate in FY2011 generating $76 billion in revenue.HCL Technologies Ltd., an Indian IT services company based in Noida led by CEO Vineet Nayar,is part of the $6.0 billion HCL Enterprise with consolidated revenues of $3.5 billion in June 2011and over 85k employees across various nationalities.HCL Technologies Limited is a company that operates in 26

countries worldwide and is listed on the National Stock Exchange and Bombay Stock Exchange of India. They offer various services related to hardware engineering, embedded systems, mechanical engineering, software product engineering through their Technology and R&D Services (ERS) business line. Additionally, their Enterprise Transformation Services (ETS) specializes in process transformation, data management, integration services architecture services disruptive technology services IT strategy change management.

The company's Business Processing Outsourcing (BPO) division has offices in India, the UK, and the USA. Within this division, they provide custom application services, IT infrastructure management, and enterprise application services with a specific focus on ERP, SCM, CRM,HCM,EPM,BI,and middleware. This BPO division is now part of HCL AXON under HCL Technologies.

In 2005, under the leadership of Vineet Nayar , there was a management transformation at HCL Technologies which introduced the "Employees First" working model. This unique approach empowers employees to drive growth globally and has gained widespread recognition and praise today. As a leading global IT services company,HCL Technologies has been acknowledged for its modern management approach.Harvard Business School studied HCL Technologies as a case and Fortune magazine recognized it for having "the world's most modern management." BusinessWeek also acknowledged HCL as one of the top five influential emerging companies, while Hewitt Associates named it the Best Employer in India. In terms of acquisitions and joint ventures, HCL acquired Capitalstream in February 2008 for $40 million to expand its offerings targeting the BFSI market with products like FinanceCenter. Additionally, they launched Sluicegate in 2007. On December 15th, 2008, HCLT purchased the UK-based AXON Group for $658 million and rebranded it as HCL Axon.

HCL Technologies collaborates with clients worldwide to support their business

development and transformation. Since its IPO in 1999, HCL has focused on "transformational outsourcing" and offers software-led IT solutions, remote infrastructure management services, R&D services, and BPO. With offices in 26 countries and a global offshore infrastructure, HCL provides comprehensive services across various industry verticals. The company embraces the philosophy of "Employees First, Customers Second," empowering its workforce of over 77 thousand employees to create value for clients.

As of June 2011 (source: http://www.hcltech.com), HCL Technologies and its subsidiaries had consolidated revenues of $3.5 billion.HCL operates in various industries, such as Manufacturing, Aerospace & Defense, Financial Services, Telecom, Retail & CPG, Life Sciences & Healthcare, Media & Entertainment, Travel, Transportation & Logistics , Automotive , Government , Energy & Utilities , Consumer Electronics , and Healthcare. The key factor that sets HCL apart in today's competitive environment is its people. It is crucial to engage the right individuals who fit into the organization and utilize their strengths while also developing them in areas where there are gaps. This not only helps them become future leaders but also ensures success in their current roles.

Organizations face the challenge of focusing on their human assets rather than just facilitating change for greater productivity improvements. The global shortage of IT professionals is not limited to the Indian software industry alone. According to a survey report by W.Strigel, founder of Software Productivity Centre Inc., there was projected to be a shortage of one million software professionals by 2006. In fact, a survey discovered that 75% of US companies planned to reengineer their applications using newer technologies but found that 72% of their existing staff lacked the necessary skills and 14% were

considered untrainable.

Based on Strategic Review Reports by NASSCOM from 1996-2001, India is expected to need 195,000 IT professionals in 2004 and approximately 370,000 by 2010.Due to the high demand for IT employees, directors are now considering individuals from non-IT professional sectors and recent science graduates who can be trained. Similar to other professions, software professionals prioritize finding the best place to work. This has resulted in leading companies in the industry striving to create an ideal workplace environment. The global nature of the IT industry and project-driven atmosphere have brought cultural diversity into these organizations. To promote a values-driven culture, companies establish and share their values throughout the organization, which often include performance, competency, competition, innovation, teamwork, quality customer service,and employee care.

Software companies follow practices such as a flat organizational structure, open and informal culture, authority based on expertise rather than position hierarchy, and flexible working hours. The aim is to create a pleasant work environment that fosters loyalty and commitment among employees. It is crucial for HR strategy to align with business strategy in order to effectively integrate both aspects within the company's operations. HR professionals are expected to play a strategic role in supporting business plans, particularly regarding HR policies related to recruitment retention motivation and compensation.In this context, HR focuses on adapting to changes, aligning resources with future needs, improving organizational effectiveness, and promoting employee development. A literature review conducted on HCL Technologies revealed that India's fourth largest information technology services company has achieved significant growth with a 51% increase in net income. HCL has outperformed TCS and Infosys in terms of volume growth by taking an aggressive approach across all geographic

regions and industries. To meet varying market demands in Asia and other regions, HCL implements different strategies based on demand fluctuations. With a global workforce of 77,000 employees, HCL is expanding its service offerings in emerging markets like Asia Pacific, Latin America, and Africa through investments in human resources. The software industry faces challenges in attracting and retaining talented individuals due to its reliance on headcount. However, HCL has implemented the successful "Employees First" scheme which recognizes the importance of employee engagement for customer satisfaction. This innovative program prioritizes the needs of employees over clients and has had a transformative effect on the company. It has resulted in increased customer loyalty, improved engagement, and higher revenue.The program focuses on providing individuals with everything they need to succeed such as space for growth,time for reflection,and tools to utilizeThe focus at HCL is on maximizing personal potential rather than monitoring professional performance. They support employee development through practical assistance and talent development sabbaticals, providing expert guidance and opportunities for career growth while promoting inner peace and democratic empowerment. Their "Employees First" program includes elements such as Support, Knowledge, Recognition, Empowerment, and Transformation. This program has gained worldwide recognition and is now a case study at Harvard Business School.

HCL has a hierarchical organizational structure with positions ranging from entry level to executive level. The recruitment process is divided into three categories: TPG Team for talent planning, TAG Team for placing candidates in projects, and EHS Team for environmental health & safety. The TAG Team handles tasks like inviting applications, conducting interviews, negotiating salaries, and making job offers. Meanwhile, the EHS Team takes care of onboarding procedures and formalities.

HCL

operates as a process-driven organization that centralizes workforce demands through their GRA portal (Global Resource Activity).This portal is accessible by the Sales team, Account Managers, and Project Managers. The TPG squad can monitor all resource activities in projects through this portal including billable resources, bench resources, resigned resources,and those on leave. The portal also displays any resource deficits in ongoing projects as well as new demands. Additionally,the GRA platform serves as a tool to track resource activity including their billability status and release dates. When a demand is published on the GRA portal,it undergoes evaluation by the TPG squad. If there are available internal resources to meet the demand, they suggest utilizing those same resources. Once chosen, the demand is closed within GRA. However, if there is no suitable internal resource for a specific demand, it is transferred to the TAG squad.

In HCL Technologies recruitment process, requirements are transferred from TPG to Recruitment Manager after proofs have been provided.The position is then distributed among team members who create CVs/profiles of potential candidates.These profiles are then narrowed down and an initial HR discussion takes place to verify experience levels, communication skills, availability notice period and salary negotiation details.After the technical and HR discussions, an offer letter is issued.The TAG team handles onboarding and support for candidates transitioning from TAG to the TPG squad.The TAG team focuses on campus recruitments to attract talented individuals from top technology and graduate colleges worldwide, aiming to join HCL each year. HCL's objective is to foster a culture that values innovative business methods and customer satisfaction, achieved by recruiting exceptional talent from various campuses and nurturing them into future leaders. Notably,

business unit heads and senior management team members like CEO Vineet Nayar were all recruited from campuses. Campus recruitments are conducted in prestigious institutions across India, as well as global campus hiring to build a diverse team from elite institutions worldwide. With a presence in 31 countries and a workforce of 80,000, HCL is truly a global powerhouse.

Moreover, an Internship Program has been implemented in Singapore to recruit skilled fresh talent from universities there. This program aims to conduct surveys, benchmarks, and POCs for global and regional clients while valuing collaboration with top professionals in various fields. These proposals offer a mutually beneficial professional alliance. The Internship Program provides selected students with valuable professional experience in a great work environment with numerous learning opportunities. It also allows for direct interaction with prominent global clients, providing students an insider's view of life at HCL and facilitating their adjustment to the corporate world.HCL has established a centralized TAG team to streamline campus recruitment. This team collects talent requests from different LOBs and shares them with the campus hiring team in advance. The TAG team determines which colleges to visit and where they should be located for recruitment purposes. Criteria for campus hiring include aptitude, subject knowledge, communication skills, and no location restrictions. HCL prefers candidates willing to relocate anywhere due to its offices across India and internationally.

For lateral hiring, HCL follows the 80:20 model where fresher applicants constitute 20% of the fulfillment process and the remaining 80% is filled through lateral hiring methods. The primary objective of the TAG team is to invite applications using various means such as advertisements, referrals, job portals, external agencies, and RPO

services.

These advertisements can be found in newspapers, trade/professional/technical journals, job portals, and networking sites among others. They provide an overview of job duties, salary packages, and growth opportunities within the organization. This strategy targets a large audience or seeks skilled individuals who are geographically dispersed. A dedicated team designs these ads to attract as many applicants as possible.
This approach has two main goals: creating a comprehensive database of profiles and improving the organization's brand image by increasing visibility in the market. Referrals are highly valued in recruitment and are strongly encouraged through specific policies. Employees are motivated to recommend qualified candidates from outside HCL for any open positions, but this policy only applies to candidates with at least two years of relevant experience. Candidates hired through newspaper advertisements, job fairs, or walk-ins are not eligible for the reward. If an eligible employee refers a candidate who is ultimately hired and both employees remain employed, the reward will be given three months after the candidate joins. The amount of the reward depends on the position that the referred candidate is selected for.

Recruiters select positions for employee referrals and post them on The Insider Edge-Job Portal. Employees can refer their friends by submitting their CVs through the Transform Your Buddy section of the portal. Recruiters review and confirm CVs against specific positions, either shortlisting or rejecting profiles. If a referred candidate is shortlisted, then notification is sent to the referring employee. In cases where no suitable candidate is found, an email will be sent to notify the employee.

Shortlisted referred candidates go through a selection process without involvement from their referrer's input or influence in decision-making.If a candidate

referred by an employee is selected within three months and both parties are still employed by the company, the referee will receive a referral fee. The employee will be notified via email about this selection, and the payment will be made three months after the candidate joins, provided that both parties are still with the company. Before releasing the payment, recruiters for both parties will verify their employment, and notification will be sent to Employee Health & Safety (EHS). It should be noted that referral payments are considered taxable income.

HCL collaborates with external agencies for just-in-time hiring of specialized skills such as ERP, JAVA, Testing, etc. These agencies excel in recruiting and selection processes and maintain a database of candidates. They provide shortlists or conduct searches to find suitable candidates. Additionally, HCL also hires third-party candidates from these agencies for short-term assignments.

Companies often receive unsolicited applications from job seekers at various times. The number of applications received depends on economic conditions, the reputation of the company, and how job seekers perceive job availability. These applications are stored in a database until there is a suitable vacancy. At that point, the company informs candidates to apply through formal channels.

Currently, HCL outsources its entire recruitment process through Recruitment Process Outsourcing (RPO). A contract is signed between HCL and the RPO agency to fill specific positions within an agreed timeline.The outsourcing agency assists with initial candidate screening and creates a talent pool for final selection by HCL, reducing time and costs in recruitment processes globally. Initially piloted as P400 project in India by HCL, the successful execution of the recruitment model is now implemented in Malaysia. The TAG

squad reviews CVs and applications for open positions, while the recruitment executive evaluates the profiles. Shortlisted candidates are contacted for further screening, including assessing experience, salary expectations, willingness to relocate, and communication skills. If approved by the executive, candidates proceed to the first round of technical interviews conducted by a panel of experts. Once cleared through both rounds of technical interviews, candidates move on to HR discussions evaluating fitment for appointment; however, final decision regarding appointments is made by HCL management. An approved list of technical panelists at level E3 (Project Manager) and above is created through consultations between LOB Head, HR Manager, and Recruitment Manager. Only these approved panelists are authorized to conduct interviews. HR discussions primarily cover topics such as salary negotiations, cultural fit, attitude etc., led by the recruitment executive.The salary offer at HCL is determined using an annually updated salary grid, which is based on market surveys conducted by HEWITT ASSOCIATES. This grid consists of four scopes, and the wages offered depend on recommendations and enlistments made by the executive in charge. Once the wage is accepted, HCL releases an online offer letter to the candidate. However, no detailed transcript is shared with the candidate.

THE RESEARCH PROCESS

Steps in the Research Process:

1.Specifying the research job ;research aim:

The first step in the research process involves defining the research job, specifically focusing on studying "Recruitment and Selection in IT industry-A STUDY IN RELATION TO HCL Technologies Ltd."

2.Developing the research program:

The second phase of developing a research program includes gathering information from various sources.

Data beginnings:

During this phase, researchers have options to collect primary data (newly gathered for a specific purpose) or secondary data (previously collected

information). [continues]