"Recruitment and Selection Process in It Industry": Research Project Report ON
"Recruitment and Selection Process in It Industry": Research Project Report ON
"Recruitment and Selection Process in It Industry": Research Project Report ON
ON
“RECRUITMENT AND SELECTION PROCESS IN IT
INDUSTRY"
DECLARATION
the Institute of Co-operative & Corporate Management Research and Training, Lucknow
hereby declare that all the information, facts and figures used in this research project
me.
I also declare that this project report has been prepared by me and the same has never
been submitted by the undersigned either in part or in full to any other University or
Institute or published earlier. This information is true to the best of my knowledge and
belief.
Date:-------------------
ii
ACKNOWLEDGEMENT
I would like to extend my sincere & heartfelt obligation towards all the per helped me in
this endeavor. Without their active guidance, help, cooperation I would not have made
Lucknow and my mentor -------------------- for her valuable advice, guidance and &
I would like to thank all the respondents for giving me their precious time, relevant
iii
PREFACE
It was a privilege for us to work in a reputed organization- IT Industry This has given us
an opportunity to work in a truly professional environment where team work score over
executed and evaluated training helps a lot in inoculating good work culture. The project
The project training has provided me an opportunity to gain practical experience, which
summarize all our experience and knowledge acquired up till now, in this report. This
project is a keen effort to obtain the expected results and fulfill all the information
required.
At the end annexure and bibliography are given for effective understanding.
iv
TABLE OF CONTENT
Certified by mentor ii
iii
Declaration
iv
Acknowledgement
v
Preface vi
About organizations
Organizations chart
Aims and objectives
Any specific information of the
organizations
Annexure 95-96
v
CHAPTER 1:
INTRODUCTION
1
HUMAN RESOURCE DEPARTMENT
“Human Resource Management function that helps managers recruit, select, train and
develop members for an organization. Obviously, HRM is concerned with the people’s
dimension in organizations.
said that people are our single most important assets. Because of the unique importance
of HUMAN RESOURCE and its complexity due to ever changing psychology, behavior
and attitudes of men and women at work, in all business concerns, there is one common
people, and not mere direction of material resources. Human capital is the greatest asset
direction of people. Each manager of people has to be his own personnel man. Personnel
management is not something you really turn over to personnel department staff.
2
RESPONSIBILITIES OF HUMAN RESOURCE DEPARTMENT.
HRD maintain daily attendance record through branch manager via E-mail.
He takes the decision related to the recruitment, selection and training of the
They are taking surprising visit in every branch and collect information about
employees.
3
HUMAN RESOURCE PLANNING
This is handled by doing the planning at the beginning of every year. At the end of the
year, the Human Resource department from each Branch receives the requirement for the
person for whole year. Then the planning of recruitment and training is done by training
RECRUITMENT
Recruitment is a process of searching for prospective candidates for the given job in the
industry. As we know it is very important for an industrial concerns to have efficient and
effective personnel with right quality and at right time and at right place available
whenever they are needed. Every organization needs employee time by time because of
for the right candidate. And so it needs to encourage this type of right candidates
Sources of Recruitment
department.
Campus Recruitment.
Placement consultants.
Samchar.
4
Recruitment Process
Selection
Selection is the process of taking individuals out of the pool of job applicants
Selection is based on probation base, they are taking experienced person for 6
While the selection of the senior level post, is taken by head office at Mumbai.
5
RECRUITMENT AND SELECTION PROCESS
Meaning:
Recruitment and Selection system refers to sourcing and building efficient Human
This policy complies with, and supports, the Company’s Equal Opportunities Policy
by:
Ensuring that every stage of the recruitment and selection process is carried out in
Ensuring that all decision points are fully documented to assist with subsequent
monitoring.
Making the whole procedure as open as possible, to ensure that all candidates
understand why decisions have been taken and, where they wish, to obtain
meaningful feedback.
6
There are seven main stages to the procedure:
Pre-advertisement
Short-listing
Post-selection procedures
Induction
Monitoring
To assist you analyze your workplace to identify recruitment or selection issues for
Revisit your workforce profile to find where your female employees are.
Put in place a policy requiring recruitment and selection processes to select the
Develop a quality, consistent process for recruitment that delivers diverse recruits.
Have a recruitment strategy that links to your business plan, and to a strategy to
retain employees.
7
Reviewing Recruitment and Selection Opportunities
Monitor each stage of the recruitment process to identify any practice that may
Being short-listed
Being interviewed
Ensure all job profiles/descriptions reflect the real requirements of the job, rather
Write job profiles in language that encourages both men and women to apply –
including women of and Differing backgrounds. For example, avoid use of jargon
PRINCIPLES:
Following are the guiding principles for recruitment and on-boarding process.
• Attracting and recruiting the right people is one of the most important activities of the
8
organization and is the responsibility to be owned by each and every employee of the
organization.
• They will ensure a diversity, both gender and ethnicity by targeted candidate sourcing
• While skills and profile matching play an important role, they will hire people who are
team players and have the right attitude most relevant to the culture of the organization.
• They believe in becoming a company of giants and emphasis is in hiring people who
• They believe in providing their employee with fulfilling career paths. Towards this, they
will post vacancies internally as a preferred option while evaluating external candidates.
• They believe that each candidate interviewed irrespective of whether she/he is selected
should become a friend of the organization. They treat all the candidates with the utmost
respect. They will be open and fair in communication with them; this way they also
• They will continuously assess, identify and cultivate strategic talent pools including
those at the universities, management schools, and community forums to address their
9
HIRING APPROVAL
• All recruitment activities shall be undertaken based on the hiring plan as approved by
the Business Head, HR Head & the CEO. For each approved position, a hiring requisition
will be required prior to initiation of any recruitment activity. If the hiring was not
included in the planned budget, it will also require approval from the CEO based on a
• Recruitment expense will be allocated to the concerned business unit, and expenditure
should be budgeted and pre-approved by the business unit head and the HR Head.
10
CANDIDATE SOURCING:
The hiring manager along with the Human Resource Department would decide the
channel / source to use based on the nature of the recruitment. The following sources of
• Internal Sources:
- Whenever any vacancy arises, the possibility of fulfilling the requirement internally via
- Recruitment agencies
11
INTERVIEW PROCESS:
• All candidates are required to undergo a face to face interview with the interview panel
before selection.
• One on one meeting shall be preferred as the interview format, however depending on
the constraints panel interviews / telephone / video conference screening could be used.
• For recruitment at junior levels, job fairs, universities etc, where large volume of
candidates, Company will use recruitment tests for purpose of short listing. The candidate
may be tested on the basic aptitude, analytical skills or other skills required for the job of
the candidates.
• The interview process will focus on the evaluating the candidates suitability in terms of
• Each interviewer will complete the interview feedback form and submit it to HR. HR
will compile the results from a various interviews and provide these to the line manager
The following are the guidelines wit respect to the interview levels. The line manager will
Position,
Level Equipment Hiring Decision by Interview by Salary Fitment Offer Letter Signed
by
Direct Report CEO Head CEO/ HR Head, Management Team (for relevant functions)
Approval - CEO
12
Proposal – HR Head CEO
State Head/ Regional Function Heads, Cluster Heads Regional Branch Heads,
Proposal – HR Head
functional Heads Regional Branch Head / National Functional Head, Regional HR,
For campus / bulk hiring process, each panel will be specifically authorized with respect
to hiring decision, pay by the HR Head & CEO prior to the process.
13
RECRUITMENT EXPENSES:
• The candidate will be informed about the nature of the expenses that are reimbursable
and the supporting documents required (in original). HR will ensure that candidate fills
the necessary reimbursement forms and that he/she receives the reimbursement at the
earliest.
• Outstation/International Candidates - COMPANY will pay for appropriate air fare and
expenses incurred for the stay for candidates who they decide to fly from other locations.
Prior approval from the Regional HR Leader / HR Head is required to invite candidates.
For candidates from International Locations, prior approval from the HR Head needs to
be taken.
14
PRE-EMPLOYEMENT CHECK:
This will include both a professional reference check as well as the background check.
• Professional reference check will be completed by the hiring manager. COMPANY will
request contact information for 2 references from the candidate, and check the quality of
previous work experience and key personal characteristics/conduct/ previous record etc.
• For key positions in areas, COMPANY will also perform a background check to assess
Address details
Passport details
Date of birth
Any negative feedback and comment in the reference check will be investigated by HR
and if found genuine shall be a cause for disqualification of the candidate or dismissal
from employment.
15
OFFER PROCESS:
• Once the hiring decision is finalized, HR will prepare an offer / fitment as per the
compensation structure and grade and keeping in mind the internal equity.
• The offer would be communicated to the selected candidates by the hiring manager
along with HR. The candidate will sign the contract letter to formally accept employment
PRE-EMPLOYMENT PROCESS:
joining process for the employees. HR will provide the candidate a check list prior to
16
RELOCATION FOR EMPLOYMENT:
Where the employee has to relocate and has been pre-approved by the HR Head and the
staffing leader, the relocating candidate shall be eligible for the following relocation
assistance:
The joining employ has the option to avail temporary accommodation (which
includes laundry) for the first two weeks arranged by organization. The stay in
on specific approval from the Head HR. Where the stay extends beyond 4 weeks,
the respective will not be paid housing allowance foe the corresponding period.
reimbursed for one week and for SRM/equivalent and above will be reimbursed
up to two weeks.
Food expenses during the period will be reimbursed as per actual up to Rs 500/-
Employees are advised to use the designated moving agencies as per rates
17
EMPLOYEMENT OF RELATIVES:
The organization employs, purely on merit, the relatives of our employees as long as it
does not create a potential conflict of interest. To avoid a potential conflict of interest and
Relatives are not assigned to a position where he/she has the opportunity to check,
process, and review, approve, audit or otherwise affect the work of the persons
display favoritism to relatives, one should contact the Department Head or Human
Resources Department.
18
DEFINITION OF RELATIVES:
Relatives would include husband, wife, children, parents, sisters, brothers, first cousins,
Employees who are aware of candidature of their relatives for the organization must
immediately report to the HR function in writing for information and records. Failure to
immediately report such cases will be considered as a serious violation of the recruitment
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INTERNSHIP PROGRAM:
students. Such internships will provide opportunities to students to learn while making
real contributions to the company. COMPANY will follow the following process:
intern hires.
• HR to coordinate with the hiring manager to develop the project plan for the hire
Based on the demonstrated capability, the intern will be provided with the
20
INTERNSHIP CRITERIA:
Typically, the intern will be a pre-final year student of the Bachelor or Master
stream as required.
Interns will be expected to manage their won accommodation and it will not be
Intern will be required to sign the confidentiality and code of conducts documents
of the company.
The overall purpose of the new hire integration process is to ensure that the new
21
PRE EMPLOYMENT INDUCTION:
COMPANY’s employee induction process shall begin as per the employee accepts the
Welcome pack: As soon as the candidate accepts the offer, a welcome pack will
the relocation process and the visa requirement will be outlined in this checklist.
22
POST JOINING ORIENTATION AND INDUCTION:
classroom training and induction where the employee will receive presentations
and trainings on various topics that would further ingrain the into the organization
On the job training: Besides formal training sessions, the employee will undergo
progress.
PROBATION POLICY:
Probation is a trial that is mutual opportunity for the employee and COMPANY to
productivity, attitude and compatibility, attendance and punctuality, and any other
All new hires will be placed on probation for a period of 6 months from the date
of joining
23
REFERRAL BONUS AMOUNT :
• The Referral Bonus Program is operated under the authority of the Budget and Control
Board’s Employee Bonus Guidelines. Under these guidelines, an employee may receive
multiple bonuses, the total of which may not exceed $2,000 in any fiscal year.
• Referral bonus payments may be paid in a lump sum or in periodic payments until the
new employee has completed his or her probationary period. Payments cannot be made
until the referred candidate has been employed for a minimum of one month. For
- $250 referral bonus awarded after three months from the hire date,
- $250 referral bonus awarded after six months from the hire date,
24
REFERRAL BONUS PROGRAM ADMINISTRATION :
The Referral Program operates in accordance with the following program requirements:
• Referral bonuses are awarded at the discretion of management with the Agency Director
• Funding for the program must come from existing agency resources.
• The Agency will provide a form for completion and submission by either the applicant
or the referring employee with the applicant’s application indicating that the referring
• The Agency will designate a position as “hard-to-fill” before the position is posted.
• Employees selected for eligible positions must be employed by the agency for at least
one month before a referring employee may be eligible to receive a referral bonus.
Referred candidates cannot be current employees of the hiring agency in any capacity, to
include temporary, temporary grant, research grant, time- limited project, or contract
employees. Both the referring employee and the referred candidate must be employed by
the agency when any referral bonus is paid receive the referral bonus.
• Any disputes arising from the application of this program will be the responsibility of
the Agency Director or his designee to resolve and will not be considered a grievance
• The agency HR Office will monitor the use of the Referral Bonus Program and will
report annually to the Office of Human Resources information on the use of the Referral
Bonus Program.
• The hiring process will be fair and consistent with agency policy and procedures, with
25
no bias for or against candidates whose selection might make another employee eligible
Amount paid to the employees who refer the candidates and if they get selected varies
from Rs. 7000 to Rs.2000 based on the grade of the employee refereed and the refereed
candidate placed.
Only middle level and senior level management employees have the opportunity of
referring the candidates. This policy/scheme is not applicable to the top management
employees. Also the employees who are under probation or training period are not
26
RECRUITMENT AND SELECTION
for employment and stimulating them to apply for jobs in the organization”. Recruitment
is the activity that links the employers and the job seekers.
Recruitment is a linking activity- bringing together jobs to fill and those seeking jobs. A
good recruitment program should attract the qualified & not unqualified. Recruitment is a
costly affair. There are legal implications of incompetent selection – negligent hiring.
“Organizations must consider recruitment as a strategic war to attract talent, and must
develop and implement aggressive talent acquisition strategies in order to dominate the
labor market within a given industry. With the impending retirement of the baby-boomer
generation and the lack of availability of high quality senior-level talent, many companies
consider talent acquisition to be the most important business challenge facing them
today”.
Recruitment of candidates is the function preceding the selection, which helps create a
pool of prospective employees for the organization so that the management can select the
right candidate for the right job from this pool. The main objective of the recruitment
qualified applicants for the future human resources needs even though specific vacancies
27
do not exist. Usually, the recruitment process starts when a manger initiates an employee
Attract and encourage more and more candidates to apply in the organization.
Create a talent pool of candidates to enable the selection of best candidates for the
organization.
Recruitment is the process which links the employers with the employees.
Help reduce the probability that job applicants once recruited and selected will
Meet the organizations legal and social obligations regarding the composition of
its workforce.
Begin identifying and preparing potential job applicants who will be appropriate
candidates.
So, those people who are involved in the process have a high level of
responsibilities.
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Management’s Role in Recruitment
Recruitment planning is anticipating and using all available flexibilities and strategies to
maintain the workforce. Human Resources Responsibilities along with the civilian
Recruitment Team can help through this process by further explaining strategies and
Responsibilities include:
Defining and capturing the need (understanding the position, its functions, duties,
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Recruitment needs are of three types
PLANNED
i.e. the needs arising from changes in organization and retirement policy.
ANTICIPATED
UNEXPECTED
30
The Recruitment Process
31
SOURCES OF RECRUITMENT
Every organization has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the
organization itself (like transfer of employees from one department to other, promotions)
to fill a position are known as the internal sources of recruitment. Recruitment candidates
from all the other sources (like outsourcing agencies etc.) are known as the external
sources of recruitment.
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SOURCES OF RECRUITMENT
33
Internal Sources of Recruitment
1. TRANSFERS
100
80
60 East
West
40
North
20
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
2. The employees are transferred from one department to another according to their
3. PROMOTIONS
the employees are promoted from one department to another with more benefits
performance.
5. Retired and Retrenched employees may also be recruited once again in case of
people save time and costs of the organizations as the people are already aware of
6. The dependents and relatives of Deceased employees and Disabled employees are
also done by many companies so that the members of the family do not become
34
The advantages of internal recruitment are that:
business operates will need shorter periods of training and time for 'fitting in'.
3. Internal promotion acts as an incentive to all staff to work harder within the
organization.
4. From the firm's point of view, the strengths and weaknesses of an insider will have
been assessed. There is always a risk attached to employing an outsider who may
1. You will have to replace the person who has been promoted
2. An insider may be less likely to make the essential criticisms required to get the
35
External Sources of Recruitment
External recruitment makes it possible to draw upon a wider range of talent, and provides
the opportunity to bring new experience and ideas in to the business. Disadvantages are
that it is more costly and the company may end up with someone who proves to be less
effective in practice than they did on paper and in the interview situation.
There are a number of stages, which can be used to define and set out the nature of
Job Analysis is the process of examining jobs in order to identify the key requirements of
each job. A number of important questions need to be explored: the title of the job to
which the employee is responsible for whom the employee is responsible a simple
description of the role and duties of the employee within the organization.
1. Choose employees either from the ranks of your existing staff or from the
3. Provide information which will help in decision making about the type of
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4. Identify and profile the experiences of employees in their work tasks (information
documents such as training manuals. Information can be leaned directly from the
person carrying out a task and/or from their supervisory staff. Some large
officer.
37
SELECTION PROCESS
Selection is the system of functions and devices adopted in a given company to ascertain
whether the candidates’ specifications are matched with the job specifications and
requirements or not. The obvious guiding policy in selection is the intention to choose the
individual candidate who can most successfully perform the job from the pool of
qualified candidates.
function. The ability of an organization to attain its goals effectively and to develop in a
dynamic environment largely depends upon the effectiveness of its selection program. If
right personnel are selected, the remaining functions of personnel management become
easier, the employee contribution and commitment will be at optimum level and
valuable asset to the organization and if faulty selection is made, the employee will
Selection Procedure
JOB ANALYSIS: Job analysis forms the basis for selecting the right candidate. It
includes a detailed study of the positions for which recruitments are to be made, in the
HUMAN RESOURCE PLAN: Under this plan estimates are laid for the future
requirement of employees. This forms the basis for the future recruitment function.
38
RECRUITMENT: It refers to the process of searching for prospective employees and
appropriate candidates from the applicants’ pool by adopting suitable techniques for
screening.
the short listed candidates for assessing the candidate’s ability, aptitude, reasoning and
from the prospective applicants and to assess the applicant’s suitability to the job.
from which inferences about future behavior and performance of the candidate can be
o Aptitude Test: This test measure whether an individual has the capacity or
latent ability to learn a given job if adequate training. Aptitude test can be
further subdivided in to
Intelligence test
Emotional test
Skill test
Psychometric test
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o Achievement Test: These tests are conducted to measure the value of a
candidate.
o Interest Test: These tests are inventories of the likes and the dislikes of the
activities.
value system.
INTERVIEW: In this step, the interviewer matches the information obtained about the
candidate through various means to the job requirements and to the information obtained
through his own observation during the interview. Tests can be of following types:-
o Stress interview
o Panel interview
40
MEDICAL EXAMINATION: Certain jobs require certain physical qualities like clear
vision, percept hearing, unusual stamina, tolerance of hard working conditions, clear tone
etc. medical examination reveals whether or not a candidate possesses these qualities.
REFERENCE CHECK: At this step candidates are required to give the names of
references in their application forms. This is done in order to verify the information
JOB OFFER: After taking the final decision, the organization has to intimate this
decision to the successful as well as unsuccessful candidates. Those selected are offered
the job and the candidate has to communicate his/her acceptance to the offer. He/she can
also approach the organization for the modification of the job letter and in case things are
EMPLOYMENT: The Company may modify the terms and conditions of employment as
41
RECRUITMENT AND SELECTION PROCESS
AT HR SERVICES PRIVATE LIMITED
Recruitment is the process of identifying that the organization needs to employ someone
up to the point at which application forms for the post have arrived at the organization.
Selection then consists of the processes involved in choosing from applicants a suitable
candidate to fill a post. Recruiting individuals to fill particular posts within a business can
be done either internally by recruitment within the firm, or externally by recruiting people
Private Limited begins with management determining the exact need of the posts to be
filled. There are a number of posts which have to be filled, for example ASM, SE, SA,
FSA, SM, and TL etc. for the different businesses. Then, the management shortlists the
resume of the candidate whose attributes match with the job description and specification
required for the job. The organization get many resumes of unsolicited applicants on a
daily basis which they shortlist according to the qualification and experience for a
particular post. As the candidate visits to submit his resume he is asked to fill in the first
page of Interview Record Sheet as shown in Appendix 1, which he takes along with him
The recruitment process at IT INDUSTRY starts with the enquiry/ walk-in management
of the candidate when he submits his resume, which consists of registration of the
candidates and eligibility verification of the candidate’s name, phone number, age,
qualification and experience. It also consists of taking two references of peers and
providing job brief and information regarding compensation, career progression and
42
Then, after the formalities, a preliminary interview/ screening is conducted by the
personnel of the HR department who screen and shortlist the candidates on the following
attributes:
Job Understanding
Willingness to work
Compensation clarity
Energy Level
Sample sales
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CHAPTER 2:
INDUSTRY PROFILE
44
INDUSTRY PROFILE
Introduction
Indian Software industry has tremendous growth and economic policy has a substantial
revision in 20th century. The IT industry offer opportunities for foreign direct investment.
Due to liberalization, industries were grown by which foreign reserves as well as
employment opportunities have increased. In the initial days, IT firms export software to
other countries because here man power is widely available with low cost. As the
potential of the software industry was identified government of India developed high
speed infrastructure to meet the demands of foreign clients. Indian software companies
developed high quality as well as unique software to meet the needs of multinational
companies as a result they obtain a wider range of software development tasks. IT/ITES
sector has listed incredible growth over the decade, achieving iconic position all over the
world and a reputation for cost-effective delivery of services. IT companies in India have
set up over 600 delivery centres all over the world. The revenues have grown from 1.2
percent (1997-98) to 8.1 percent (2013-14). India maintains top position in the global
sourcing arena, for about 55 percent in the year 2013 (of the global sourcing market size)
compared to 52 percent in 2012. (source:NASSCOM) Today the world‟s largest
outsourcing destination for IT industry is India, which is around 52 percent of the US
dollar 124-130 billion market. The IT industry employs roughly 10 million Indians which
ultimately contribute to the economic growth of the country. The Unique Selling
Proposition (USP) of Indian IT services is its cost competitiveness which is 3-4 times
cheaper than the USA. Many firms like TCS, Infosys, and Wipro have met top
certification for the quality standards. According to the report of National Association of
Software and Service Companies (Nasscom), GDP share has grown widely when
compared to other industries [142]. India exports information and software services rather
than products to 95 countries all over the world. The top 43
5 firms in terms of revenue are TCS, Wipro, Infosys, HP India, and IBM [143]. Top
companies contribute 80% of revenues from Indian Software industry.
45
Evolution of IT Industry
During 1950s people are not aware of the term “software”, the term was bundled with
hardware by some multinational companies like IBM and ICL with some basic languages
like PASCAL etc. These two are the largest hardware companies which provide basic
services. In mid 1970‟s India exported its first software service. The problem here to
export software is companies had to design its own hard ware system which needs to
fulfill worldwide standards. In order to import the hardware system government of India
impose heavy duty tax which the Indian companies cannot afford on their own. After few
years Indian government has reduced the tax duty with condition that exporters would
recover twice the value of foreign exchange spent on importing the computers. Then the
era of software begins in India.
India has largest technical skilled employees working with low salaries and they shift
from one industry to industry to other because of fewer companies. The Indian
programmers were available with less than 12 dollars and the Indian firms are ready to
complete the software projects for the half of the cost when they compared with abroad.
This creates a numerous jobs for Indian employees and free profit opportunity for foreign
companies. There is a shortage of employees in US for the projects in their companies
and in India oversupply of employees lead to match the demand and supply in both
countries because of this software industry. The Government of Andhra Pradesh
particularly setup several IT parks and hubs to reduce unemployment. Companies that
come under these parks are tax free and have extraordinary facilities with high speed data
communication and internet. The central government gave the power to state government
regarding licenses, import or export procedures. Tata Consultancy Services (TCS) was
the first software company in India and got export assignment in 1973. TCS has begun to
outsource application work for Central Bank of India. The company sent some engineers
to abroad in order to excel in their platforms. The main competitive advantage for Indian
software companies are cost reduction and the ability to communicate in English. The
main reason to export software is to increase foreign exchange in India. In 1970s the
main challenges for software industry are
46
1. Rigid government rules:- Government of India restricted that all multinational
companies must invest their share less than 50 percent whereas Indian companies
share must be more than 50 percent.
2. Lack of trained personnel: - As already exited employees‟ skill does not match to the
organizations need, companies need to train the employees.
3. Heavy import tax: - As the companies need hardware to match the need of software
industry, they used to import from other countries in as India impose heavy taxes.
4. Education in India: - The courses in India do not match to the need of the companies,
so companies need to train in soft skills.
NASSCOM
Before 1990s the policies of Indian Government is very rigid if any oversees company
want to start in India. By that time the government does not have any foreign reserves,
then the government of P.V.Narasimha Rao, decided for liberalization, so that industries
had started tremendously . Multinational Companies started to invest in India because
they identified huge manpower with low cost. This created a huge foreign reserves as
well as employment opportunities to young and fresh software engineers with high
47
remuneration. The IT industry has identified as a knowledge industry due to its
Information Technology Enabled Services (ITES) and IT services. The Business Process
Outsourcing industry has quickly developed with a sign of new initiatives. With
significant growth of BPO and IT industry, India has become one of the most chosen
offshore destinations (source: The NASSCOM - McKinsey Study 2002). Due to the
tremendous growth of ITES industry results a enormous inflow of foreign direct
investments that have set up huge facilities all over the India which results the entry of IT
industry into the BPOITES sector. The tremendous growth of IT-ITES sector in India,
has contributed to the growth of GDP, unemployment reduction and promotion of
exports. The IT industry substantially contributed to India‟s GDP 1.2% in FY 1998 to
7.5% in FY 2012[147]. The IT industry has proved itself as job creating and wealth
industry, in few years, employing several millions of software professionals all over the
world.
According to the report of NASSCOM, IT industry has added 1,60,000 employees in the
year 2013, which provides indirect employment to 10 million people and direct
employment to 3.1 million people . In the year 2014, IT services have increased to $99
billion. NASSCOM has also forecasted that Indian ITES and IT industry is likely to grow
around $300 billion by the financial year 2020, particularly concentrating on the areas
like software products and ecommerce.
In 1993 the US Immigration made several restrictions to issue H-1 and B-1 visas and they
paid less salary to Indian employees and Indian software professional need to pay social
security and related taxes to US government which is a burden to the employees and also
companies. So, companies plan not to send them but to complete the project in India
according to the needs and wants of clients. This creates lack of talented personnel in US,
mean while Y2K problem also create an opportunity for Indian employees. In order to
overcome the Y2K problem US need the employees who are aware of COBOL
programming which has been outdated in 1990s, but in India still the language was
taught, this helped the employees to increase employment opportunities in India and
abroad.
48
Revenue
The IT-ITES industry Revenue trends over the last five years is as follows.
49
Exports
The segment-wise export revenue trends are shown in the following table.
Indian software industry seems to be dazzling because all private and government
talented scientists, liberalized government policy, employees available with low alary.
The weaknesses are lack of updated infrastructure, lack of new product innovation, lack
of financial support. The companies need to locate head office in India and implement
order to reduce the gap between demand and supply in IT industry. The growth of E-
50
Challenges of Indian Software Industry
1. Education System in India:- The education system in India is not updated and students
does not have any practical exposure. So, organizations must educate the students as
2. Lack of Monitoring in Education sector:- Generally AICTE (All India Council for
Technical Education) only look after the facilities in the organization, but other than
other still there must some more committees to guide the colleges in order to improve
4. Poor Communication skills: - Students from rural background have good subject
knowledge but unable to express in English which a major drawback for students.
5. Lack of Industrial Experience: - Students must have industrial exposure and update
students should have practical so that they can implement in corporate field.
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7. Impact of US economy:- As most of companies depend on US for projects faced a severe
problem during recession. So, companies must concentrate not only on US but also
other countries.
8. Other resources:- During recession Indian companies retrenched the employees because
they do not have projects, so companies need to look after not only Multinational
9. Huge cost:- Companies specialized in particular technology can become obsolete after
few years, so companies (or) employees cannot work permanently, they want to
10. Different legal laws and norms:- As different countries have different legal laws and
norms, companies need to know every country laws before they invest
Mission Statement
Vision
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Services Offered
The company also provides software products to the banking, insurance, financial
services to large, medium size banks in India and also overseas. The company outlook is
to develop economies according to changing business scenario with help of accessing the
talent pools in India. The Infosys Company also offers Business Process Outsourcing
order processing. The company associates with IBM, Intel, Microsoft and Oracle.
Infosys set up Special Economic Zone units to reduce taxes, particularly in Chandigarh
100% tax deduction for exports during the first five years, whereas 50% tax deduction for
Partnership
Infosys Technologies limited have partnered with ACDI/VOCA in the agricultural sector
Trip 360 to help retailers and consumer packaged goods and it is a platform of real time
Company started its operations not only in India but also in Sweden, In 2011, the
company started on their own as Infosys Shanghai Company Ltd. Infosys established first
53
Software Development Block at their Technopark in Kerala, another Technopark with
1800 seats capacity of Software Development Block is also under construction. In the
year 2011, Infosys Technologies Ltd was changed to Infosys Ltd. In November 2011,
Infosys entered in to an agreement with the company Atlas Copco AB to render the
this project Infosys covered around 230 places in Atlas Copco, and by these they
provides huge employment in around Czech Republic. In 2011 there was a drastic change
Competitors
The main competitors for Infosys are Cognizant, Tata Consultancy Services, Mahindra
Achievements
The Company won excellence in corporate governance in the year 2001, 2002, and 2003.
According to Reputation Institute‟s Global Reputation pulse 2009 Infosys was ranked
among the top 50 respected companies in the world. Infosys provides huge employment
opportunities in India and abroad. In 2002 Infosys started BPO services in India to render
the services to the most of financial and banking industries. The company was selected as
„Best Outsourcing Partner‟ covering the needs of chief information officers in the capital
market firms. According to Most Admired Knowledge Enterprises (MAKE) study the
54
PROFILE OF MAHAVEER INFOWAY LIMITED
Mahaveer Infoway Limited has headquarters in Hyderabad and also has branch offices in
Bangalore and Hubli. The company offers several services to their clients. The company
was incorporated on May 13, 1991 as a private limited company initially the name was
Mahaveer Leafin and Holdings private Limited. The Managing Director, Ashok Kumar
finance and business management operations. In the year 2000 January 7th the company
amends the name from Mahaveer Leafin and Holdings Limited to Mahaveer Infoway
Limited. In the year 2010-11 the company has two subsidiary companies that is
Mahaveer Telecom Private Limited and Mahaveer Projects Private Limited. Mahaveer
Services Offered
Mahaveer Infoway limited provides technical oriented solutions and render services in
55
The Mahaveer Infoway Limited personnel are expertise, experienced in diverse fields of
Karnataka has 200 employees, having 1 Acre Campus in Aryabhatta Technology Park.
The company basically provides three operations that are Information Technology,
High-Quality services
Mahaveer Infoway Limited offers high-quality testing services using an offshore, on-
siteor a combination of offshore and on-site models. Clients not only look after the
quality of the projects but also the economy of the project. As projects differ from client
Mahaveer Infoway limited personnel, provides the software solution services to clients at
Offshore projects
projects and also includes managerial talent. The company renders in services in
numerous places like USA, India and Singapore. All the subsidiaries are interlinked with
high speed network and operating environment. Mahaveer Infoway Limited company has
adequate levels of system redundancy, security for the clients regarding their projects.
Some projects often require working in the client premises according to their
requirement; the company provides an on-site delivery model for executing a testing
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assignment for clients. The Project manager will test the application at the client‟s
premises so resolve doubt regarding software and he should also report to head office
Mahaveer Infoway Limited Company has 10 years of business experience and they are
experts in the field of IT. Company with updated infrastructure ensures clients‟ quick
delivery with quality output ultimately satisfies the customers. Mahaveer Infoway
Limited follows thisprocess to complete the project: Identify the business objectives,
evaluate the requirements for the project, design and architect web application according
to the requirement, which develop life cycle of the project with project managers, testing
In the year 1987, Satyam Computers Services Limited (SCSL) was started as a private
limited company in Andhra Pradesh and promoted by B. Rama Raju and B.Ramalinga
Raju. It is one of the fourth largest I.T. service providers in India. Later in the year 1991
the company became Public limited company. Satyam was awarded ISO 9001
business and Engagement models and service offerings. Satyam offers a wide range of
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services includes Software Development Services, Embedded Systems, Engineering
customize according to the different business needs. The company renders service to
Satyam operates in two different sectors: IT services and Business Process Outsourcing.
Company has a majority stake in complex IT in February 2013 In the year 1999, Satyam
Enterprise Solutions, Satyam Renaissance Consulting and Satyam Spark Solutions were
Certifications
The company has adopted the latest Certifications like CMMI Level 5, PCMM, ISO
27001, BS 15000, ISO 20000, AS9100 and Six Sigma Methodologies. Satyam Enterprise
Ventures
In the year 2001, Satyam Computer Services and the US-based Idea EDGE Ventures
entered into an alliance to set up a 50:50 joint venture Satyam Idea EDGE Technologies
Services and US-based Idea EDGE ventures come to an agreement with 50:50 to render
services to the Mobile Internet. Satyam declared to deliver the services in China in the
year 2002. Satyam Computer Services announce business Continuity center in Singapore,
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Global solution center in Malaysia in the year 2002. Satyam and Microsoft decided to
Competitors
The main competitors for Mahindra Satyam are Cognizant, Tata Consultancy Services,
Achievements
In 2003 the company was awarded the IBM Lotus award for a knowledge management
solution. Satyam Computer Services got 15 million dollars worth outsourcing contract to
the World Bank. In the year 2005 Satyam acquired a London based company i:e; Citisoft
Plc, another Singapore based company. Satyam was awarded the CNBC best performing
stock of the year by the Institute of cost and works accountants of India. Satyam
Computers render its services to Brisbane to different sectors such as local government,
finance, insurance, mining. Satyam Computer acquired Nitor Global Solutions with a
worth of 5.5 million dollars. Satyam Computer Services Limited has won the Asian
Corporate Social Responsibility Award under the poverty alleviation. IMC RamKrishna
Bajaj National Award Trophy was awarded to the company in service sector in 2001. In
the year 2008, Satyam BPO has won two prestigious shared service awards from the
Take Over
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In the year 2009 scam was explored in Satyam Computers Limited and the shares of the
company has scored a huge loss, then Tech Mahindra take over the company and named
Anand Mahindra states, though the organization is the part of Satyam but still the group
countries is one of the India‟s most revered brands; the company was started in the year
requirement. A Tata Consultancy service is the first company to get software projects in
India and started its first international assignment in the year 1971. Tata Consultancy
shares are listed in both National Stock Exchange and Bombay Stock exchange. Tata
Research Design and Development centre in Pune was the first India‟s IT R&D division,
in the year 1981. At Trivandrum, company opened a new corporate training facility in the
year 1997. Tata Consultancy Service Mission statement is to maximize the business
success of the customers through the installation, maintenance and support of better-
Mission
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Its mission is to help customers achieve their business objectives by providing
innovative, best-in-class consulting, IT solutions and services and to make it a job for all
Vision
Its vision is to decouple business growth and ecological footprint from its operations to
address the environment bottom-line. Their aim is to grow sustainably and help their
customers achieve sustainable growth through green solutions and service offerings.
Values
also understand clients need even in the most complex environments. They not only save
the money but also work with updating technologies with superior quality.
2. Expertise and Excellence:- Employees with years of experience can meet client
needs, complex technology projects over the long term as the firm adds software,
Services Offered
The Company offers a wide range of services to different industries like banking,
company acquired public sector unit CMC Ltd in the year 2001, also the company
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extended its services to China and Uruguay. E-Commerce was identified as an excellent
Tata Consultancy Companies acquired WTI Advanced Technology Ltd and Phoenix
Global Solutions (India) Ltd in the year 2004-05. The company became a public limited
company in the year 2004. Tata Company attains three firms in the year 2005. The
company agreed a joint venture with State Bank of India. The Tata Company offers C-
Edge world class services for banking and financial sectors. Tata Infotech Limited
merged three companies such as Airline Financial Support Services (India) Ltd, Aviation
Tata Consultancy Services offers different computer enabled services to the Government
of Madhya Pradesh in the year 2006. The Company started its Business Process
Outsourcing services in Philippines. State Data Centre in the state of Uttar Pradesh was
established by Tata Consultancy. The company acquired five year contract with du,
telecom service provider in the United Arab Emirates in the February 2011. Tata
Consultancy Services signed a contract with Europcar, in the year 2012 as company was
satisfied with TCS and gave another agreement in French. Company spent a total of five
Competitors
62
The competitors of Tata Consultancy Services are Cognizant, Wipro, Infosys, and
Customized Solutions
TCS offers customized solutions according to market changes in order to improve profit
margins and reduce risk. The Mission of the company is to provide innovative, high
frameworks and practices, including IEEE, ISO 9001: 2000, CMMi, SW-CMM, P-CMM
and Six-Sigma.
and provided suggestions to help the government of India for effective and efficient
technology access to the entire state by setting up IT centres within 2-3 Km of every
household.
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2. AP Online:- It provides multiple services for citizens in AP, anytime anywhere. It has
generated employment for over 2,000 people, with over 1,300 kiosks in operation. The
rural India and has developed Indian farmers into progressive knowledge-seeking net-
citizens.
In the year 1945, Wipro Ltd was started by Azim H Premji. He started the company with
the edible oil manufacturer and later enters to fast moving consumer goods and provides
facilities have secured ISO 9001 certification in the year 1994-95. Wipro‟s headquarters
is located at Bangalore and it is the first software technology in India, which got ISO:
Services Offered
Wipro provides a wide range of IT services like Business Process Outsourcing, systems
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renders services not only to local companies, but also globally. The company also
Certifications
PCMM Level 5 and SEI CMM Level five certified IT services were provided by the
company which is the first IT Company globally. The company renders services to
America, Europe, Middle East and Asia Pacific with innovative services and excellences
Achievements
The Banker Technology Award was won by the Wipro technologies in the year 2004 by
Financial Times. The company acquired Quantech Global Services, a US based company
with the investment of 3 million dollars during 2006. Wipro Ltd purchased mpower
Austrian based company, New Logic Technologies AG, with the investment of 26 Euro
million. In the years 2004, 2005, and 2006 Wipro received BEST award from American
In the year 2007 company acquired both CMango a US based firm and CMango India
based firm with investment of 20 million dollars. Company purchased with 1022 million
from North-West Switchgear Ltd in consumer care and lighting business. The Hydrauto
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million dollars. Wipro Limited with a joint venture of Motorola formed WMNESTSERV
Integration Pack for a high technology. In order to provide global Legal Process
Outsourcing for Microsoft Intellectual Property, the company joined with Microsoft
Corporation.
In the year 2010, Wipro launched Hospitability Management solutions at HITEC city.
The company signed five year partnership with Central Bank of India in the year 2010
having 24 hour customer care services with different applications. Wipro Limited
Competitors
The competitors of Wipro are Cognizant, Tata Consultancy Services, Infosys, and
Wipro provides a wide range of services including network design and build, integration
with existing IT applications and managed services. In addition, Wipro will also build an
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enterprise customers. In January 2011, the company and Callidus Software Inc entered
Asia-Pacific region.
CHAPTER 3:
67
OBJECTIVES OF THE
STUDY
68
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
SECONDARY OBJECTIVE:
To study the attrition level and its linkage with recruitment techniques used.
IT Industry.
To develop and maintain procedures which will assist in ensuring the appointment
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CHAPTER 4:
RESEARCH
METHODOLOGY
70
RESEARCH METHODOLOGY
The study seems to be the observation and a description of the project where we try to
find out the hidden aspect or bring out the concept for further explanation, but some
scientific method and techniques classified it as the research, that’s why the following
research methods, techniques and components are used to facilitate the study
Descriptive research design is a scientific method that is used in this study which helps in
observing and describing the behavior of a subject without influencing it in any way to
This design allows observation without affecting normal behavior. It is also useful
because it is not possible to test and measure the large number of samples needed for
These types of experiments are often used by anthropologists, psychologists and social
scientists to observe natural behaviors without affecting them in any way. It is also used
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Though the results from a descriptive research can in no way be used as a definitive
answer or to disapprove a hypothesis but, if the limitations are understood, they can still
be a useful tool in many areas of scientific and normal study research such as this project.
Type of data
Primary Data
In primary data we had conducted Personal Interview with the Branch Manager of IT
IT INDUSTRY
Secondary Data
Secondary data was used for this study as the research design is descriptive in nature so
we tried to collect the data available through other sources on the subject. Some times,
primary data is also collected through observation method to facilitate the research work
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Sources of data
The following sources are used for collecting the data for this study:
Books
internet
Journals
News papers
Personal sources
73
CHAPTER 5:
DATA ANALYSIS AND
INTERPRETATION
74
DATA ANALYSIS AND INTERPRETATION
(i) 6 Month
(ii) 3 Month
(iii) 1 year
6 month ,
10%
3 month ,
less than 1 30%
month, 60%
1 year, 0%
Interpretation
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Q2. Is CBI (Competency based interview) questions are being adapted at IT
(i) Yes
(ii) No
Analysis
Yes , 20%
Can't say,
50% No, 30%
Interpretation
According to figure 50% we cannot say that Competency based interview questions are
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Q3. Both technical and behavioral factors are taken into consideration at the time of
recruitment ?
(i) Yes
(ii) No
Analysis
Yes,
10%
Can't say,
30%
No, 60%
Interpretation
According to figure , not 60% technical and behavioral factors are taken into
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Q4. When application are called for the interview they know that who will be present
(i) Yes
(ii) No
Analysis
yes, 0%
Can’t say,
20%
No, 80%
Interpretation
According to 80% employees do not know who will be present in the interview panel
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Q5. What is best sources in information of reference check for an employee?
(iii) HR Office
Analysis
Good
questioning Personal
tefhnique , 30% Reference, 40%
HR Office, 20%
On the job
performance,
10%
Interpretation
According to 40% personal reference is best and remaining 20 and 30 % are margin.
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Q6. Which recruitment source are being adapted most in IT INDUSTRY?
Analysis
Advertising Interest
Agency, 0% resources, 10%
Employee
reference, 20%
Head hunting,
70%
Interpretation
According to 70% head hunting is mostly adopted by Yamaha for recruitment process.
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Q7. What is the mode of recruitment information received by applicant?
(i) Post
(ii) Electronically
(iii) Both
(iv) None
Analysis
None, 0%
Post, 30%
Both, 50%
Electronically,
20%
Interpretation
applicant.
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Q8. If by post than how many days after you requested the pack being received?
(i) 1 to 2 days
(ii) 2 to 3 days
Analysis
Above 2 days,
0%
2 to 3 days, 40%
1 to 2 days, 60%
Interpretation
According to 60% after 1 to 2 days of request the pack has being received.
82
Q9. Is there is professional equity in recruitment and selection policies in IT
INDUSTRY?
(i) Yes
(ii) No
Analysis
No, 30%
Interpretation
According to 40% yes there is professional equity in recruitment and selection policies
in IT Industry.
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Q10. What is the present recruitment hiring ratio?
(i) 1 on 20
(ii) 1 on 5
(iii) 5 on 15
(iv) 6 on 12
Analysis
5 on 15, 20%
1 on 5, 30%
Interpretation
84
Q11. What is the average joining ratio?
(ii) <25%
(iii) >75%
(iv) None
Analysis
None, 0%
>75%, 60%
<25%, 10%
Interpretation
According to 60% average joining ratio is more than 75%.
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CHAPTER 6 :
FINDINGS
86
FINDINGS
method.
According to figure , not 60% technical and behavioral factors are taken into
According to 80% employees do not know who will be present in the interview
process.
by applicant.
According to 60% after 1 to 2 days of request the pack has being received.
policies in IT Industry .
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CHAPTER 7 :
RECOMMENDATIONS
88
SUGGESTIONS
The company should introduce a mobile recruitment team who can go from places to
To avoid the drain out of candidates because of less pay, company should
alary to enhance their performances and company should arrange further workshops for least
drained at all instead should be hired and given training according to the
candi dat es. In addition to this, employee references are the best source to get
skilled candidates.
Jobsites and Online (Consultancies) are the best source to reduce the time
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CHAPTER 8 :
LIMITATION
90
LIMITATIONS-
The major limitation of any study is time & money and so goes for my also which
Had it been more time, I included other IT Industry industries also would have
compared it with IT Industry . The other factor deterred the study was money.
91
CHAPTER 9 :
CONCLUSION
92
CONCLUSION
This study has focused on the recruitment process Of IT Industry. The study has been
conducted from the employees working for recruitment process in It Industry The
s t rat egy i s concerned. However a few drawbacks were found and suggestions are
Since the company is at its early stages and since recruitment is carried out on
93
BIBLIOGRAPHY
94
BIBLIOGRAPHY
BOOKS
PRESS RELEASE
Monthly magazines
business world
Front line
WEBSITE
www.shuchita.com
www.hr.ac.in
www.answer.com
95
ANNEXURE
96
QUESTIONNAIRE
i. 6 Month
ii. 3 Month
iii. 1 year
i. Yes
ii. No
97
Q3.Both technical and behavioral factors are taken into consideration at the time of
recruitment.
i. Yes
ii. No
Q4. When application are called for the interview they know that who will be present
i. Yes
ii. No
Q5. What are best sources in information of reference check for an employee?
i. Personal reference
iii. HR Office
98
Q6. Which recruitment source are being adapted most in IT INDUSTRY?
i. Internal resources
i. Post
ii. Electronically
iii. Both
iv. None
Q8. If by post than how many days after you requested the pack being received?
i. 1 to 2 days
ii. 2 to 3 days
99
Q9. Is there is professional equity in recruitment and selection policies in Renovative
i. Yes
ii. No
i. 1 on 20
ii. 1 on 5
iii. 5 on 15
iv. 6 on 12
i. 50%
ii. <25%
iii. >75%
iv. None
100