A NEW DIMENSION OF KNOWLEDGE ON THE FACTORS OF ATTRITION IN IT UNLISTED CONSULTING FIRMS IN CHENNAI[/b]
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Author[/b]
Neeraja Ramanath
Head HR, IT Firm, Chennai
Part Time PHD Scholar
Karpagam University
Coimbatore
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Co Author[/b]
PHF. Dr.N.Panchanatham
Professor & Head Department of Business Administration
Annamalai University,Chidambaram
Abstract[/b]
The asset of an organisation is the employees. Whatever and how many ever machines and technology uproots in the world, employee/manpower play a vital role in the growth of the organisation. There is no replacement for human resource. As all resource have pros and cons manpower also has pros and cons. The benefits are many but the problem is only on called Attrition. Attrition means the employees terminates their employer due to any variable reasons. The study of their rate is called as Attrition rate. The reasons for attrition can be many. This study is based on IT consulting firms like manpower outsourcing, consultants, body shop etc. The research is to find and analyse the top reasons for attrition in growing firms of manpower consulting in Chennai only. The findings will be analysed thoroughly and few user friendly solutions will be provided. The Chennai city is selected for study because, once known as the Detroit of India because of its automobile industry, Chennai is getting much of its current economic growth from the information technology sector. Chennai has a highly literate population and the availability of skilled technical talent at a reasonable price-point, over time, has attracted many multinational companies to set up their operations in the city. The more interesting story, however, is the rise of entrepreneurship in Chennai, a relatively new phenomenon (Newstex Entrepreneurship Blogs Chatham: Newstex. (Jan 8, 2013). This study is to understand the reasons for attrition in dimension of Management and the infrastructure.
Keyword: Attrition, organisation, Manpower, IT consulting firms
Objective[/b]
To analyse and find the reasons for attrition in small growing IT consulting firms in Chennai location only. The main objective is to analyse
1. To analyse if the attrition is due to the lack of brand name for the organisation as it is unlisted co,
2. To list out the drawbacks in organisational structure and
3. To ascertain the capital support requirement to manage the employees at time of bench as the main reasons for attrition.
Introduction[/b]
Indian IT industry once in early 1950 was at the boom as narrated by Peter Ducker. India was found to have the highest linguistic proficiencies compared to other countries. The resources were available at nominal cost. After the deep fall of the dotcom in 2000, to all wonders the rapid growth of IT industry in India have helped to increase the share for software export of IT industries.
Indian IT professionals no longer a hot commodity (EIU Views Wire. (Jul 1, 2003)) Indian IT professionals no longer a hot commodity many countries are rolling up the welcome mats those they once laid down for Indian IT professionals. But this may not matter since IT work that was once done abroad is increasingly being done in India Once wooed by countries around the world, Indian IT professionals are no longer such a hot commodity. Indeed, countries like the US, Germany and the UK – stung by the economic slowdown and the need to protect jobs at home -- are increasingly less welcoming of Indian IT professionals. SHRM's report shows the greying employee population is the most important demographic trend for 2006. Those surveyed say the aging workforce, retirement of a large number of baby boomers around the same time and demographic shifts leading to a shortage of skilled workers are some of the issues likely to have a major impact on the workplace. The rapid growth and entry of new players have resulted in the poaching of
employees in high numbers. Salaries at the entry level have risen 10-15% while
25-30% at the top level. With the revival in the economy, the war for retaining talent has begun once again. The fourth quarter results of information technology (IT) giant Infosys show that the attrition rate in the company has gone up from 11.1 per in the year ended 31 March 2009 to 13.4 per cent in the year ended 31 March 2010. This is in keeping with an industry-wide trend where the rise in the number of job opportunities has led to an increase in the number of people switching companies for greener pastures.(Business World). The astronomical growth rate in the industry is an important reason responsible for rising