Abhigyan

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

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
     

   Subscribe/Renew Journal


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
User
Subscription Login to verify subscription
Notifications
Font Size

  • Buddhapriya, S. (2006). Adding value through human capital management: Greater responsibility for HR. Abhigyan, 23(4), 12-21.

  • Burke, Ian. G., & Jarratt, D. G. (2004). The influence of information and advice on competitive strategy definition in small-and medium-sized enterprises. Qualitative Market Research: An International Journal, 7(2), 126-138.

  • Carr, J. (2005). The Implementation of technology-based SME management development programmes. Journal of Educational Technology and Society, 8(3), 206-215.

  • Coviello, N. E., & Martin, K. A. M. (1999). Internationalization of service SMEs: An integrated perspective from the engineering consulting sector. Journal of International Marketing, 7(4), 42-66

  • Di Gregorio, D., Musteen, M., & Thomas, D. E. (2009). Offshore outsourcing as a source of international competitiveness for SMEs. Journal of International Business Studies, 40(6), 969-988.

  • Ferreira, J. J. M., Azevedo, S. G., & Cruz, R. P. (2011). SME growth in the service sector: A taxonomy combining life-cycle and resource-based theories. The Service Industries Journal, 31(2), 251-271.

  • Gartner. (2022, January 18). Press Release. Gartner forecasts worldwide it spending to grow 5.1% in 2022.

  • https://www.gartner.com/en/newsroom/press-releases/2022-01-18-gartner-forecasts-worldwide-itspendingto-grow-five-point-1-percent-in-2022

  • Glancey, K. (1998). Determinants of growth and profitability in small entrepreneurial firms. International Journal of Entrepreneurial Behavior & Research, 4(1), 18-27.

  • Grant, R. M. (2016). Contemporary strategy analysis (9th ed.). Wiley.

  • Kirkwood, J. (2009). To grow or not? Growing small service firms. Journal of Small Business and Enterprise Development, 16(3), 485-503.

  • Moy, J. W., & Lee, S. M. (2002). The career choice of business graduates: SMEs or MNCs?. Career Development International, 7(6), 339-347.

  • NASSCOM & PWC (2018). Through the looking glass: Are IT and ITeS SMEs geared for the next growth wave? https://nasscom.in/knowledge-center/publications/through-looking-glass-are-itandites-smes-geared-next-growth-wave

  • NASSCOM (2022). Strategic report. https://nasscom.in/sites/default/files/publication/nasscomannualstrategic-review-executive-summary-2022.pdf

  • Nunes, P. M., Gonçalves, M., & Serrasqueiro, Z. (2013). The influence of age on SMEs' growth determinants: empirical evidence. Small Business Economics, 40(2), 249-272.

  • Ouchi, W. G. (1979). A conceptual framework for the design of organizational control mechanisms. In Readings in Accounting for Management Control (pp. 63-82). Springer US.

  • Overell, S. (1996). HR must lead British firms on every front. People Management, 2(3), 14.

  • Raman, R. (2006). Strategies to retain human capital in business process outsourcing (BPO) industry. Abhigyan 23(4), 32-37.

  • Shin, J. K., Seo, J. H., & Hirakawa, H. (2010). Market orientation and technology innovation in Korean IT SMEs: The moderating role of cross-functional cooperation and cooperation with outside organizations. Studies in Regional Science, 40(4), 921-939.

  • Stewart, J., & Knowles, V. (2000). Graduate recruitment and selection: Implications for HE, graduates and small business recruiters. Career Development International, 5(2), 65-80.

  • Teo, H. A., & Poon, J. T. F. (1994). Career choice of undergraduates and SMEs in Singapore. International Journal of Career Management, 6(3), 20-26.

  • Von Gelderen, M., Frese, M., & Thurik, R. (2000). Strategies, uncertainty and performance of small business startups. Small Business Economics, 15(3), 165-181.

  • Wilkinson, A. (1999). Employment relations in SMEs. Employee Relations 21(3), 206-217.

  • Williams, H., & Owen, G. (1997). Recruitment and utilisation of graduates by small and medium sized enterprises. London: DfEE.


Abstract Views: 234

PDF Views: 0




  • Human Capital Strategies of IT SMEs in India

Abstract Views: 234  |  PDF Views: 0

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