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Human Capital Strategies of IT SMEs in India


Affiliations
1 Professor of Strategy, Head & Dean, Faculty of Management Studies, University of Delhi, Delhi, India
2 Professor of Practice, FORE School of Management, New Delhi, India
     

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The IT SME sector in India makes a major contribution to the Indian economy but is quite under-researched compared to the large IT sector. SME's have challenges and opportunities that are distinct and unique. A key driver of competitive advantage in the case of IT SME firms is their human capital strategies, which is the subject matter of investigation in this paper. Our study is based on a questionnaire survey and in-depth interviews with management. We find that freedom to work independently and less bureaucracy are important in influencing employees to work in IT companies in the SME sector. Lower salary levels compared to the large firms is a constraint on hiring and retention. Rapidly changing IT technologies pose multiple challenges and opportunities for IT SME firms.

Keywords

IT SMEs, India, Human Capital, Human Resource Strategies, Technology, Competitive Advantage
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  • Human Capital Strategies of IT SMEs in India

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Authors

Vivek Suneja
Professor of Strategy, Head & Dean, Faculty of Management Studies, University of Delhi, Delhi, India
Rajesh Sikka
Professor of Practice, FORE School of Management, New Delhi, India

Abstract


The IT SME sector in India makes a major contribution to the Indian economy but is quite under-researched compared to the large IT sector. SME's have challenges and opportunities that are distinct and unique. A key driver of competitive advantage in the case of IT SME firms is their human capital strategies, which is the subject matter of investigation in this paper. Our study is based on a questionnaire survey and in-depth interviews with management. We find that freedom to work independently and less bureaucracy are important in influencing employees to work in IT companies in the SME sector. Lower salary levels compared to the large firms is a constraint on hiring and retention. Rapidly changing IT technologies pose multiple challenges and opportunities for IT SME firms.

Keywords


IT SMEs, India, Human Capital, Human Resource Strategies, Technology, Competitive Advantage

References