Human Resource Challenges & Practices in IT Industry

The need of organizations for people and people for organizations will be more difficult to satisfy in the today’s competitive business environment. Organization’s competitive advantage could be generated from human resources (HR) and organization performance is influenced by a set of effective HRM practices. Software is a wealth and job creating industry, which has in just a few years, grown to US $ 1 trillion, employing millions of professionals worldwide. The Indian software industry has burgeoned, showing a nearly 50% compounded annual growth rate over the recent years. Being a knowledge-based industry, a high intellectual capital lends competitive advantage to a firm. With a global explosion in market-opportunities in the IT sector, the shortage of manpower both in numbers and skills is a prime challenge for HR professionals. The related issues are varied indeed: recruitment of world-class workforce and their retention, compensation and career planning, technological obsolescence and employee turnover. This paper explains the HR challenges and practices in software Industries.