A

PROJECT REPORT ON

“STUDY OF OPERATIVE TURNOVER RATE OF IT FIRMS”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

BACHELORS OF BUSINESS ADMINISTRATION DEGREE

UNDER THE SUPERVISION OF SUBMITTED BY:

Komal Kapoor Hans Yadav

Associate Professor Roll no.- 206050

GITM, Gurgaon BBA 6th Sem.

GLOBAL INSTITUTE OF TECHNOLOGY AND MANAGEMENT,

FARRUKHNAGAR, HARYANA
2020-2023

i
 ACKNOWLEDGEMENT

“Gratitude is the hardest of emotions to express and one often does not find adequate words to
convey what one feels and trying to express it.”

The present project file is an amalgamated of various thoughts and experiences. The successful
completion of this project report would have not been possible without the help and guidance
of Komal Kapoor , Associate Professor, GITM, Gurgaon. I take this opportunity to thank all
those who have directly and indirectly inspired, directed and helped me towards successful
completion of this project report.

There are several other people who also deserve much more than a mere acknowledgement at
their exemplary help. I also acknowledge with deep sense of gratitude and wholehearted help
and cooperation intended to me by them.

Hans Yadav

ii
 DECLARATION

I, Hans Yadav , the undersigned solemnly declare that the report of the project work entitled
“STUDY OF OPERATIVE TURNOVER RATE OF IT FIRMS” assigned to me for the partial
fulfillment of BBA degree from Maharshi Dayanand University, Rohtak. It is the original work
done by me and the information provided in the study is authentic to the best of my knowledge.

I declare that the statements made & conclusions drawn are an outcome of my project work. I
further declare that to the best of my knowledge & belief the project report does not contain any
part/work which has been submitted for the award of any other degree/diploma/certificate in
this University or any other University.

Date:

iii
 CERTIFICATE BY INTERNAL GUIDE

This is to certify that the contents of the report entitled “STUDY OF OPERATIVE
TURNOVER OF IT FIRMS” by Hans Yadav , roll no.- 206050, submitted to Global Institute of
Technology & Management for the award of Bachelor of Business Administration (BBA 6TH
Semester) is original research work carried out by her under my supervision. This report has not
been submitted either partly or fully to any other University or Institute for award of any degree
or diploma.

Komal Kapoor
Associate Professor
Department of Management Studies
Global Institute of Technology & Management

iv
 PREFACE

This study examines the underlying forces of service quality influences on Employee turnover
in Information Technology Firms. The study examines which dimensions have a positive influence
on service quality and which dimensions have the most and least important impact on service
quality, as perceived by employer. The findings of this study are based on the analysis of a sample
of 240 respondents. In the survey we have collected information from employer and usually and
thus were able to comment on the services of both. This study analyzed the data from employers.
The results suggest that there are different factors of working environment quality that are
important according to the employees. The dimensionality of perceived employee quality in
international was explored. These dimensions include working environment, incentive
, salary, better service. The findings reveal that these dimensions are positively related to
perceive service quality in and of these dimensions. Personal entertainment is the most important
dimensionas perceived by employer in information technology service quality.
Results of the study reveal that although there have been significant changes in the IT industry,
which is currently in turmoil, yet the emergence of high salary carriers has been successful in
sector. The findings provide evidence for the importance of service quality in both high salary and
good services IT. Results show that employer consider significant difference in the tangible
features of full-service carriers in that they consider it to be an important aspect of service quality.

v
 TABLE OF CONTENTS

Certificate By The Guide ii

Student Declaration iii
Acknowledgement iv
Preface v

Chapter1: Introduction to the Topic 1-9

Chapter2: Industry Profile 10-14
Chapter3: Review of Literature 16-22
Chapter4: Research Methodology 23-26
• Title of the project. 24
• Statement of the problem 24
• Purpose of the study 24
• Objective of the study. 24
• Scope the study 25
• Data collection methods / sources 25
• Sampling plan 26

Chapter5: Data Analysis and Interpretations 27-43

Chapter6: Findings and Limitations 44-46
Chapter7: Suggestion and Conclusions 47-50

Appendix
• Questionnaires
• Bibliography and References

vi
 CHAPTER 1
INTRODUCTION

1
 INTRODUCTION

The escalating technological changes in the twenty first century have been associated with ever
shifting life styles and livelihood of the people throughout the world. These spectacular
technological changes are the outcome of human intellectual capability, often termed as human
capital. Hence, intellectual capital has become the obvious concern of this century which in turn
diffused to develop hypercompetitive market rivalries in the present world markets. Pfeffer(1994)
argued that the success in the present dynamic, competitive markets depends more on innovation,
speed and adaptability which are largely derived from a firm’s own employees and the way they
are managed. With similar kind of arguments various scholars (Wernerfelt, 1984; Levine, 1995;
Lawler, 1996; Grant, 1996; O’Reilly and Pfeffer, 2000; Becker, 1975) advocated that in order to
gain competitive advantage, the firms need to adopt management practices with high involvement
of human resources. These arguments are the genesis for the development of today’s Strategic
Human Resource Management (SHRM).

Human resources are considered as intangible capital (Leslie, 2003) with distinctive functional
capabilities that control and augment both physical capital and other resources. The strategic
literature has focused heavily on the role of firm-level resources as a source of rent (Barney, 1986;
Amit & Schoemaker, 1993; Peteraf, 1993). According to Porter (1980, 1996), firm may acquire
and or develop capabilities for their advantages over rivals and these capabilities must be
embedded in a unique strategic position.

He argued that capabilities are valuable because they give the firm a lower cost structure or a
basis of differentiation. The structural contingency theory and transaction cost economics posit that
organisational form follow specific attributes of the technology or production system. If a firm is
able to identify and adopt an efficient form, it might enjoy a cost advantage and the differentiation
advantage arises accordingly. Nevertheless, the knowledge management playsimportant part in
organisation’s rent generation, i.e. if a firm can deploy knowledge resources more efficiently and
effectively than its rivals, it may achieve a substantial advantage (Coff, 2003). The presumption of
bounded rationality (i.e. there is a limit on managerial cognitive ability) is at the core of the
knowledge management literature.

2
The portion of economics that intersects with strategic management (e.g. transaction cost
economics, agency theory and human capital theory) has also assumed bounded rationality.
Even game theoretic analyses explore issues of imperfect and asymmetric information. Therefore,
from an economic point of view, competitive advantages arise from management’s ability to: (i)
make competitive moves that rivals cannot respond to effectively, (ii) acquire and manage human
capital in imperfect markets, (iii) design the most efficient production process and (iv) develop
technologies that position the firm well in the competitive market environment.

In practice, firms generally set up their respective Human Resource (HR) division to promote,
protect and utilise their human resources. But, the major constraint facing the firms is thefrequent,
unplanned and uncertain departure of these human resources, i.e. the problem of employee turnover
or employee attrition (though these two terminologies are synonymously used but conceptually
they are different, see conceptual framework in chapter-5). Employee turnover may be defined as
any permanent departure beyond organisational boundaries (Macy and Mirvis, 1983). This
employee turnover is regarded as cost to the organisation and this cost becomes higher when
efficient and skilled employees leave the organisation.

However, one should bear in mind that every rational employee will always try to
optimisehis / her professional career subject to their capability and functional domain. As a result,
pursuit of professional advancement can be considered as employees' chief or sole aim. An
employee’s success in career is primarily judged in terms of salary, professional position and the
brand name of the organisation where the employee works. Therefore, managing human resources
posits two types of challenges – retaining efficient and skilled employees, i.e. tominimize
employees’ departures at the cost of organisation’s competitive strength and at the sametime proper
utilisation of the existing human resources. Organisational effectiveness to a large extent depends
on the capabilities of its employees, especially of its top executives.

In the field of strategic management (or competitive strategy) top managers have traditionally been
viewed as making positive contribution to the firm (Andrews, 1987; Katz, 1974). Here, economics
can also be integrated with the more traditional and favourable strategic management approach to
top executives.

3
This is because, the managerial rents model of Castanias and Helfet (1991, 1992) draws on human
capital theory (Becker, 1964), and analyses top management as a critical resource that may create
positive value for the firm.

Academically, different schools have discussed employee turnover from various perspectives
andhave identified various causes thereof. There are two types of employee turnover - voluntary
(Mowday et al., 1982; Gupta & Jenkins, 1991; Saiyadain & Ahmad, 1997) and involuntary (Shaw
etal., 1998). Employees’ voluntary turnover depends on the demand for their intellectual capital in
the market and the availability of alternative job opportunities in the market. So, the rate of
employees’ voluntary turnover varies significantly across different sectors of an economy. On the
other hand, involuntary turnover occurs due to employees’ retirement, termination, business
diversification of an organisation etc. However, most of the researchers’ attention is focused on
voluntary employee turnover since much of the turnover is voluntary and subject to control by
managers (Morrell et al., 2001; Price, 2001). Organisations are increasingly concerned about
retaining their key employees, for example, high performer employees as well as employees who
make an important contribution to stimulate organisation’s innovative behaviour. High employee
turnover would always be harmful to an organisation’s productivity if these skilled employees leave
organisations frequently (Long et al., 2012).

During the last few decades, scholars from different disciplines have been trying toidentify
the causal factors behind employees’ voluntary turnover and bring forth various models, theories
and vast empirical case studies on employee turnover.

These researches have provided great academic excellence and enriched the turnover
literature. Most of the turnover models established that job satisfaction plays a key role in the
turnover process.

Organisational psychologists developed various approaches such as job characteristics

approach, social information processing approach and dispositional approach to establish
theoretically the influence of employees’ level of job satisfaction on other important outcomes
(such as job performance, absenteeism and employee turnover).

4
In this regard, Lee and Mitchell (1994) argued that the employee turnover process models are useful
but they have ignored some basic properties of human decision making processes. They developed

an Unfolding Model of the turnover process and argued that some kind of ‘shocks’ in the system
are responsible for making employees to evaluate their job or job situation.

Job offered by other organisations may even be considered as a ‘shock’ to the system and it
forces the employee to think consciously about his or her job situation and compare it to the outside
job offer. In such a situation it is also possible that the employee may be reasonably happy in his
or her job but ultimately leave organisation simply because the offered job is a betterone. It is
argued that once an employee is dissatisfied, a sequence of events may occur such as reduced
organisational commitment, more job search, stronger intention to quit and a higher probability of
employee turnover (Lee and Mitchell, 1994; Mobley, 1977). Later Mitchell et al. (2001) developed
Job Embeddedness employee turnover model combining forces that keep a person from changing
his or her employer.

From individual level decision making point of view, various studies tried to explain employees
turnover intent. In fact, constructs have been developed, like, optimal turnover (when poorly
performing employees decide to leave an organisation) and dysfunctional turnover (can be viewed
in various ways like extremely high rates of turnover translate into increased costs associated with
constantly having to recruit and train new employees and also may tarnish the image of the
organisation). In addition to psychological theories, there are economic theories (e.g., human
capital theory, search theory, matching theory) and social theories (social exchangetheory)
which appeared to be very much pertinent to explain the employee turnover phenomenon.

Innumerable studies have examined the causal factors determining employee turnover. Various
empirical results suggested that job satisfaction and organizational commitment have consistent
and negative relationships with turnover (Jaros, 1997). In this regard, Irving et al. (1997) introduced
a new attitude construct to provide a new measure of occupational commitmentwhereas Shore and
Tetrick (1991) developed a different measure of perceived organisational support. It is argued that
justice perception (Aquino et al., 1997) and burnout (Wright and Cropanzano, 1998) influence
attitudes and that in turn affect employee turnover. In fact, the

5
traditional attitude measure suggested that negative attitudes combined with job search predict
employees’ leaving an organization (Blau, 1993). Whether a job search is successful or not depends
partly on the job market situation. It is alsoargued (Gerhart, 1990) that perception of job market (in
terms of job opportunities) predicted turnover but that search is not of much importance. It is worthy
to be mentioned here that a number of researches have attempted to break traditional attitudes and
develop alternative models [namely, Hulin’s (1991) work on general withdrawal construct,
Mitchell et al.’s (2001) job embeddedness

model, Lee and Mitchell’s (1994) unfolding model]. Studies also reported evidences like work
overload, role ambiguity, role conflict and job stress in determining turnover decisions (Bostrom,
1981; Goldstein and Rockart, 1984; Ivancevich et al., 1983; Li and Shani, 1991; Sethi et al., 1999;
Weiss, 1983).

Pfeffer and Moore (1980), Pfeffer (1983, 1985), Wagner et al. (1984) and various otherscholars
have observed the demographic constitution of an individual that influences several important
behavioural pattern (job tenure, communication with the firm, job transfer, promotion and turnover)
of the employees. Both ‘age’ and ‘job tenure’ of employees are appeared to be important influential
factors in determining voluntary employee turnover (Bluedorn, 1982; Price and Mueller, 1986) and
are found to be negatively related with turnover (Cotton and Tuttle, 1986;Griffeth et al., 2000). In
fact, employee turnover is more prevalent among younger employees with lesser tenure. One of the
explanations of younger employees’ frequently change of organisations is that they are in a
transitional phase in their career path and the vast majority of them try to explore the various career
options available.
Studies have also carried out to establish relationship between gender and turnover and it has
appeared that Mangione’s (1973) study found no significant relationship; Stumpf and Dawley’s
(1981) study found that men were more likely to quit job but Hom & Griffeth’s (1995) and Cotton&
Tuttle’s (1986) studies found that women are more likely to leave the organisation than men.
Most of the employee turnover studies are typically focused on employees, leaving from
rather than entering in to the organisation. A wide range of causes behind employee turnover have
been identified which interpret that a high amount of voluntary turnover adversely effects
organisational effectiveness.
However, employee turnover may not always adversely effects organisational effectiveness

6
because it allows infiltration of new skills, ideas and new technological knowhow into the
organisation and all of these have positive effects on organisational efficiency. Dalton et al., (1981)
have shown that employee turnover can also be beneficial for an organisation because functional
employee turnover would be the replacement of unproductive employees with productive ones,
whereas organisation’s dysfunctional employee turnover would be interpreted as losing productive
employees.

It is not surprising that the cost of employee turnover in terms of hiring, training, and
productivity loss and can add up to more than five per cent of an organisation’s operating expenses.

(Waldman et al., 2004). Holtom et al., (2006) argued that employee turnover results in multiple
direct and indirect costs, tangible and intangible costs, and a loss of social capital which may be
critical to organisational success. Considering the broader employee turnover literature, there have
been many research articles exploring the various aspects of turnover and several models of
employee turnover have been disseminated. In addition, several meta-analyses have been
conducted focusing on the predictors or antecedents of turnover (Cotton and Tuttle, 1986; Griffeth
and Hom, 2001). Researchers have modeled numerous situational and individual determinants of
the process of turnover (Lee & Mitchell, 1994; Niederman et al., 2007).

Despite enormous research interest many models and empirical studies have tended to focus on
a narrow range of predictors, traceable to March and Simon’s (1958) ‘factors-desirability’ and ‘ease
of movement’. The scope of antecedents to employees voluntary leaving an organisationhas
recently been expanded (Maertz and Griffeth, 2004; Mitchell et al., 2001) in the mode of studying
antecedents as reason rather than as attitudinal predictors (Westaby, 2005).

The present study is focused on turnover of IT/ITeS (Information Technology/ Information

Technology enabled Services) employees since voluntary employee turnover has long been an
important issue for the workforce of information technology firms. In fact, technology based firms
are facing a series of problems with employee retention (Aylin and Webber, 2000) such thatmany
technical employees plan to leave their job after 12 months, when the time is up, they often quit,
confident that they can find something else whenever they want (Mitchell et al., 2001).

7
Boyar et al. (2012) reported that the competition for highly trained IT employees will likely impact
employee mobility and increase the opportunity to change jobs within India and globally. It has
been observed by Mohandas (2010) that about 80 percent of Indian employees are open to
switching jobs in the six months. Therefore, it becomes essential for the organisation to understand
the reasons why employees leave their organisations. Keeping all these things inmind, the
present study deals with the aspect of voluntary employee turnover with specific reference to
India’s IT sector.

India witnessed a dramatic change in its IT / ITeS industry since 1984. Though some IT firms like
TCS was established way back in late 1960’s. During 1970’s the IT industry in India did not
develop properly and effectively due to the then government’s import restrictions and strict foreign
exchange and regulation act which actually put limits on import of computer peripherals and its
allocation. In the mid of 1990’s major policy reforms were made to recognize software as an
industry to invest and the announcement of CSDT (Computer Software Data Tapes) policy which
liberalized exposure to the latest technologies to compete globally and to capture a global software
exports and that was the notable turning point in the Indian software and IT industries.

The liberalization policy in 1991 gave a further boost to the IT industry in India. In recent
decades the Indian IT industry has attracted substantial attention from the international media and
business interests for its high potential, high quality and cost effective manpower resources
(Zachariah and Roopa, 2012). Competition among organisations to attract and retain potential
workforce prevail as there is acute shortage of skilled IT professionals in response to demand and
as a result job-hopping becomes common phenomenon among IT professionals, which is a costly
affair for the organisation (Fitz- enz, 1997).

Therefore, it becomes necessary to design effective employee retention strategies in the IT

industry, to control its employee turnover. For designing effective employee retention strategies
companies need to know the reasons behind the employees’ turnover intention and this is the
rationale of the present study.

Although employee turnover involves costs to an organisation but the cost aspect is

8
beyondthe scope of this study. The present study is solely confined to identify the nature and
extent of some plausible causal factors of employee turnover and is an endeavour to ascertain
the underlying reasons for the Indian Information Technology (IT) employees to leave a firm
voluntarily. According to Fred (1957), human behavior is controlled by an interlocking system
of nonlinear feedback loops and it is far beyond present day resourcesto take full and accurate
account of all the feedback effects that occur in human society.

However, the present study envisages that employees’ attitudes towards life and work are
guided by their surrounding socio-cultural and economic environments and making an
endeavour to study under Indian environment. In this regard the study mainly concentrated
on six plausible factors [e.g., for ‘Higher Salary’, ‘Higher Portfolio’, ‘Scope of Foreign
Assignment’, ‘Higher Company-Brand-Name’, ‘Breach of Commitment’ and ‘Others’
(which includes employee’s job dissatisfaction, familial compulsion and the other similar
factors)] which may have influenced the Indian IT professionals to leave their jobs
voluntarily. The study is based on primary survey which examines relative factors
dominance across gender and age-groups which may drive them to leave the firm.

9
 CHAPTER 2
INDUSTRY PROFILE

10
 INDUSTRY PROFILE

Information Technology (IT) is a phenomenon that has dramatically changed the daily lives of
individuals, the modes of business operations as well as the market competitiveness. IT comprise
of design, development, implementation and management of computer-based information
systems, particularly software applications and computer hardware. Today, it has grown to cover
most aspects of computing and technology. The Information Technology-enabled Services (ITeS)
industry provides services that are delivered over telecom or data network to a range of external
business areas. Examples of such Business Process Outsourcing (BPO) include customer service,
web-content development, back office management and network consultancy etc. Therefore, IT
acts as a facilitator, an enabler and also assumes the role of custodian. It facilitates large volumes
of information to be stored, processed and/or transferred at lightning speed. Only few selected
specialized companies in the world are engaged in IT business but most corporations and
institutions use information technology to enable functions (like better communication between
staff, suppliers, customers, asset management etc.) that drive their business.

The constant upgrade in IT, along with increasing global competition, is adding complexity
of several orders of scale to the related business and trade. The new organizational network
structures are actually holding survival and growth in such an environment of complexity.
Effective implementation of IT decreases liabilities by reducing the cost of expected failures and
increases flexibility by reducing cost of adjustment. The capabilities and flexibilities of
computer-based communication systems become operative to business to respond to any specific
information communication requirement (e.g., Facebook, LinkedIn, My Space, Twitter etc. and
social networking websites become pervasive in business to communicate both collaboratively
and cooperatively between enterprises and their constituencies). The impacts of IT on all trade
industries and business have never been denied and it affects workers at all levels in the
organizations, from the executives to middle managements and lower-level workers So, there is
no way to deny that in the present complex socio-economic environment, computer-based
information systems become one of the basic necessities of life, livelihood, business and trade.
Information and Communication

11
Technologies (ICTs) have already been evolved as the key enabling infrastructure across
industries and become a powerful driver of enhanced living conditions around the world.

12
2.1 Global IT/ ITeS Industry Profile
The worldwide IT-service providers are now adopting methods focusing on operational
excellence through on-going innovation, diversifications, renewal partnerships and new
business strategies (NASSCOM, Strategic Review, 2012).

Information and Communication Technologies (ICTs) have already been evolved as the
key enabling infrastructure across industries and become a powerful driver of enhanced living
conditions and opportunities around the world. Over more than a decade, the Networked
Readiness Index (NRI) has provided the useful conceptual framework to evaluate the impact of
ICTs at a global level and a benchmark to the use of ICT readiness and use in an economy (NRI
is a composite index, comprises of four sub indexes: Environment index-encompasses political
and regulatory environment; Readiness index- encompasses infrastructural and digitalcontent,
affordability and skills; Usage index- takes into account of individual usages, businessusage and
Government usage; and Impact index-covers economic impacts and social impacts). The
network readiness landscape of the world as assessed in the NRI 2013 by the Global Information
Technology Report (GITR) 2013, published by World Economies.

Two groups of economies dominate the top 10 ranks of NRI: North European economies
and the so called Asian Tigers. Among the North European countries, four out of five Nordic
economies[Finland (1st), Sweden (3rd), Norway (5th) and Denmark (8th)] represents in the NRI
top ten ranks. Iceland, the last of the Nordics, is at 17th place. The Asian Tigers: Singapore (2nd),
Taiwan, China (10th), the Republic of Korea (11th) and Hong Kong SAR (14th)have made a
remarkable performance.

Table 2.1: World’s Top 10 Countries in terms of Networked Readiness Index (NRI) 2013
2013 Rank Country/ Economy 2012 Rank Change of Ranks
(out of 144 countries) (out of in 2013
142
Countr
ies)
1 Finland 3

2 Singapore 2 =

3 Sweden 1

13
4 Netherlands 6

5 Norway 7

6 Switzerland 5

7 United Kingdom 10

14
Among the 144 countries, the performance of Nordic countries in terms of readiness is
particularly outstanding and four out of five of them dominated the top 10 ranks. Finland (1st)
reaches the top of the NRI rankings for the first time. Sweden achieves impressive level of
excellence and consistency and Singapore achieved the extreme efficiency and business
friendliness of its institutional framework. Singapore has a strong intellectual property protection,
intense competition, and high university enrollment rate lead to these outstanding outcomes. The
Netherlands climbs two ranks to 4th place.
The country’s level of ICT readiness is also very high with a strong skill base and a world
class infrastructure. Norway’s performance, on the other, is outstanding with respect to the
individual usage and in the infrastructure and digital content. Switzerland, the 6th rank holder, has
full liberalization in its ICT services and its average mobile cellular tariffs are among the highest
in the world. The United Kingdom (7th), offers one of the most conducive environments for ICT
development. Most noticeably, the country ranks 1st for the role of ICTs in giving rise tonew
organisational models and 2nd for the impact of ICTs in creating new services and products,
which highlights the importance of ICTs for innovation in service- based economies. Denmark
(ranks 8th overall) tops the individual usage pillar with very high rates of internet usages,
households with personal computers, broadband internet subscriptions and mobile broadband
subscriptions. The United States was ranked 1st in GITR (2001) NRI ranking but slips to 9th place
in 2013.
However, the country still possesses much strength, which has contributed to making it
the world’s innovation powerhouse for decades. Taiwan, China (ranked 10th) has a major
manufacturing base for electronics and high-tech products and has become an innovation hub.
Taiwan’s performance is, however, undermined by the relatively mediocre quality of its political
and regulatory environment.
Despite worldwide adverse economic environment, the top 100 IT services companies, in 2009,
grew their revenues by a healthy 13% on average (includes both organic and acquisitivegrowth).
World’s top 100 companies in the IT services industry ranked by annual IT services revenues and
the list includes software implementation companies, offshore development companies,
communication services suppliers, network integrators, outsourcing partners, desktop
management companies, datacenter specialists and IT consultancy firms (Balder Verberne and
Michel van Kooten, 2009, 2010). The world's leading companies in IT services are IBM, HP and
Fujitsu .

15
Table 2.3: Number of IT Services Companies by Country Segmentation (2009)

IT Services Companies by
Country
Name of Country Number of
Companies
United States 56
India 7
Japan 6
United Kingdom 6
China 5
Rest 20
Source: Balder Verberne and Michel van Kooten.

IBM ranks second in the top 20, is another multi-national company founded by Herman
Hollerith in 1896. The company produces both software and hardware products and offers
services in areas ranging from mainframe computers to nanotechnology. The major products
of the company are Web Sphere, DB2, Lotus, Tivoli and Cognos and the company, has software
revenue of $22,485 million (22.5 percent of the total revenue) as of 2011. Oracle, a multi-
national computer technology corporation, has appeared as the third largest software company
in the United States and in the world with a software revenue exceeding$20,000 million (69.4
percent of the total revenue) as on 2011.
IBM ranks second in the top 20, is another multi-national company founded by Herman
Hollerith in 1896. The company produces both software and hardware products and offers
services in areas ranging from mainframe computers to nanotechnology. The major products
of the company are Web Sphere, DB2, Lotus, Tivoli and Cognos and the company, has software
revenue of $22,485 million (22.5 percent of the total revenue) as of 2011. Oracle, a multi-
national computer technology corporation, has appeared as the third largest software company
in the United States and in the world with a software revenue exceeding$20,000 million (69.4
percent of the total revenue) as on 2011.
The fourth rank is grabbed by SAP AG, a multi-national software development and consulting
corporation, founded in 1972 in Mannheim by the former IBM engineers, Dietmar Hopp, Hans-
Werner Hector, Hasso Plattner, Claus E Tschira and Claus Wellen reuther. The corporation
provides enterprise software applications to businesses of all sizes. The software revenue of
this corporation becomes $12,558 million (75.4 percent of its total revenue of
$16,654 million)
16
 CHAPTER 3
REVIEW OF LITERATURE

17
 REVIEW OF LITERATURE

Thompson, (2005) analyze that employee turnover is one of the key problems globally within
the Information industry. It has involved certain changes in employement stability and involved
a set of core strategies which seek to improve inadequate employment service with less rates of
turnnover. Using the analysis tool defined by Jobber (2001) it is a useful task to look at IT
competitive strengths that contribute to increasing employeer value. As mentioned above the
decresing quality of its employeer service is one of the weaknesses of IT industry and its need to
be Solved in order to become highly recognizable by global customers. Of concern however is that
maintaining quality of service at profitable levels has become increasingly difficult bearingin
mind the threats faced by IT industry both macro and micro environmental contexts. In considering
these threats this report uses a analytical framework to illustrate those factors of relevance to IT
competitive capabilities and profitability. Examples of these threats include the fact that
competitive salary prices have consistently increased and will do so into the future whileprice wars
between various companies have become ever more intensive due to increased competitive levels
in the industry. This is due to existing rivalries as well as new entrants within the market segment.
In contrast to its rivals IT industry has preferred policies of adding extra value through employment
service rather than ones of pure discounts on salary. Similarly,investment in technology such as
the development of an HRMS system enhanced its strength in terms of cost-effective salary and
co-curricular systems. These developments have been supported by skilled management and
governance procedures which have generally resulted in ITindustry enjoying a strong financial
framework benefiting from previous successful operations.

Porter (1980) suggests competitive forces such as rival, employee and other powers, newentrants
as well as substitutes greatly impact on a company’s competitive capabilities in its industrial
context. As mentioned above competition levels are high in the Information industry matched with
employee becoming even more sophisticated in terms of their employment decisions related to
their capabilities Also of note is that in the consideration of turnover related situation in the
employee both in India and globally express more concerns in relation to Better working
environment for their employee. These broader trends have generated significant threatsto IT
companies in such facets as increased employment expenses due to enhanced
18
Working environment checks. It is reasonable to suggest that at this point the brand image of IT
industry is a principal icon reflecting the ethos of employment service within IT industry.However,
considering changing employment behavior and attitudes towards working environment it is a
difficult challenge for IT industry to adjust its marketing strategy and brand image reflecting these
changing psychosocial trends. This indeed can be seen as a criticalweakness for IT industry. An
integrated view at board level regarding the changing working conditions and the use of a
differentiation marketing strategy leveraging employee servicestrengths will enable IT industry to
maintain a strong competitive position in the long term.

Jobber (2001) describes that IT industry is recognized globally as a brand emphasizing

professional and employee orientated service and this aspect is also one of the most important
competitive advantages for the industry. However due to changing working environment forecast
and growing and past concerns over costs in the IT industry it is vital for IT to take stock of
competitive pressures from budget IT companies. Budget IT focus on delivering reduced cost
through marketing strategies targeting people who are price sensitive as well as short-haul business
passengers. It is obvious that IT has exploited a differentiation marketing strategy basedon building
up a strong brand image reflecting high quality employment service and one which seeks to create
added value to the experience of employer in terms of luxury and comfort.

Wirtz & Johnston, (2003) says a key indicator is that the load factor represents and determines
the breakeven point between cost and profitability. It is also affected by other cost related factors
in determining the profitability of an IT company. IT industry is a successful example inobtaining
better performance in respect of its load factor for employee. For international facilities IT
chooses secondary catalogues for larger cities avoiding high costs linked withemployee tariffs for
primary services. In order to compete with budget IT companies has marketed itself as a value
adding IT operator but has sought to focus also on cost control in orderto improve competitive
capabilities. The competitive advantages better services in contrast are those in employing price
as a strategy in attracting consumers especially short-haul business employee seeking higher priced
salary and bonus offerings Budget operators are more flexible in responding to increasing cost
pressures on profitability which have threatened IT operations and corporate growth. As one
response to

19
these pressures IT invested in technology in order to control its cost levels while attempting to
avoid sacrificing employee service quality in achieving profitability. Critical concerns generated
at this stage in considering changing employee behaviour and attitudes towards IT industry are to
what extent IT will be able to maintain and enhance its brand image of superior employee service.
Similarly continued cost pressures such as high technology prices as well as operational costs
related to enhanced security will continue to be a challenge for IT in maintaining profitability in
competing with budget operators.

Hoovers (2006), says that employee factor is one of the most important determining factors of
profitability within the information industry. It is necessary here to be aware of working conditions
in looking at the impact of technology factor in contributing to profitability. The employee
environment in the US had massive ramifications for profitability in the information industry
globally with many companies as continuing to experience losses and the threat of closure. Not
only was harm to working environment by companies reduced but also internationalinternational
working experienced a decline. At this stage technological factors were generally disappointing
for most IT companies yet the performance of IT industry has been demonstrated to be better than
its rivals in the ensuing period. Therefore, it is unsurprising to note better revenues and higher
profit margins being reported by IT. Arguably this may have been as a resultof lower employee
turnover related concerns in Asia but instability arising out of the turnover attacks in Bali,
Indonesia may in the future create more security related pressures for south-east Asian IT
operators. Also, disasters such as the emotional weakness and its impact on employeein the
region may also potentially have a long term impact on IT.

Jacques (1962) argues that every employee will display strong feelings toward levels ofpayment
in terms of comparing equitable rewards based on the difficulty of jobs/tasks and skills
possessed/required. This is to say the employees with higher levels of education and technical
skills will seek higher pay and do so where increased productivity has been achieved. However,
productivity levels are not only linked with monetary rewards. Thus, pure payment increases are
not necessarily contributory factors to increased productivity. As such the HRM of IT can be
criticized because the encouragement of monetary rewards is not solely enough and

20
considerations must be made for long term staff development in rewarding and securing increased
productivity.

Azmi et al. (2010) examined the dimensions of service quality for low-cost carrier and
subsequently to determine the relationships between the dimensions of employee service quality
and employee satisfaction for offering their IT services. The study revealed that employee caring
and tangible was the most important dimension of employee quality for low-cost carriers, followed
by “reliability”, “responsiveness”. However, only “caring and tangible” dimension contributed
significantly to the prediction of satisfaction on the service of low-cost carriers. Hence, the
researcher made an attempt to measure the existing factors of service quality in addition to safety
and security, promptness and confidence building factors in domestic IT in Tamil Nadu.

Joshi et al. (2010) attempted to study the employee service quality in the selected regions, in order
to find out the theoretical framework related to the concepts of employee Service quality in
Technology Sector. The objective of this paper was to explore the key dimensions of employee
service quality for employee services in the technology sector and to ascerta in which aspect of
employee service quality has significant impact on employee satisfaction. The paper has also
suggested remedial measures to the companies under study.

Parves and Yin (2010) explored and examined the perception of students with regard to
antecedents and dimensions of employee service quality in a higher education context. Both
qualitative and quantitative research methods are employed. The findings showed that information
and past experience are significant determinants to form and evaluate employee service quality in
a higher education context, and that service quality is a second order construct. The core
dimensions of service quality are academic service quality, administrative service quality and
facilities service quality in the context of Central University (CQUni).

Dariush and Peyman (2011) identified the gaps between employee‟ expectations and employee”
perceptions in IT services. In this study, the services were divided into seven groups such as
tangibility, employees, responsiveness, reliability and assurance, working patterns, image and
empathy. The study clarified the gaps between employees' expectations and employee

21
perceptions. This survey also intends to confirm the relationship between perception and loyalty.
The loyal employee has higher perception in contrast with those who are not loyal, and finally
loyal employee have lower gaps between expectations and perceptions than those are not.

Nuriye et al. (2011) measured and compared the differences in employers’ expectations of the
desired IT service quality in terms of dimensions of reliability, assurance, facilities, employees,
working patterns, customization and responsiveness. Around 421 questionnaires were collected
from employees and 400 from international employees from different Turkish airports by using
5- point Likert type self-report questionnaire. The findings of the study demonstrated that
significant differences exist between the employee and international employee groups regarding
their income level. The findings also indicated that for employee’s “assurance” was ranked as
the most important service quality dimension and “reliability” was ranked by international
employee as the most important dimension.

Annie Mattoo et al. (2012) attempted to study the reasons for luster performance of IT by
measuring the employee service quality and comparing with other five industry by creating
perception maps of employee and employee agents. A total of 100 employee of IT industry; 100
of other five industry and 23 employee agents were involved in this study. SERVQUAL model
identified that for IT employee expectations are falling short of perceptions on Tangibility,
Reliability and Assurance dimensions. These areas need reinforcements. Attribute based maps
created with the perceptions of employee as well as of employee agents revealed that IT employee
positioning is closer and far removed from the industry leaders. But the perceptual mapof different
industry brands as a whole indicates that employers’ of perceive industry to be similar to
international. This indicated that there is a strong case for re- positioning IT by strengthening its
employee service levels, redesigning its service package and creating distinctive positioning
through communication. Hence, it is necessary to identify the reinforcements in IT settings in
Tamil Nadu.

22
Archana and Subha (2012) examined the influencing factors of employee service quality on
working environment‟ satisfaction in salary. The study also examined that which dimension has
a positive influence on service quality and which dimension has the most and least important
impact on service quality in information industry, as perceived by employees. The findings of
this study were fully based on the analysis of a sample of 270 respondents. The study analyzed the
data from employers’ results suggested that there are different factors of employee service quality
that are important according to the employee statement. The dimensionality of perceived service
quality in international was explored and three dimensions were identified. These dimensions
include technology service, digital service and back-office operations. The findings revealed that
these three dimensions were positively related to perceive employee service quality in international
and of these dimensions, employee safety are the most important dimension inin- employee
service quality. Personal working environment is the most important dimension as perceived by
employee in IT industry digital service quality. Online booking is another dimension in back-
office operations. In addition, the findings indicated that employee‟ satisfaction with different IT
companies on the basis of the employee services delivered. Hence, in future research, it is
important to note the influencing factors of employee service quality in ITindustry.

Chung et al. (2012) attempted to use the loss to investigate the relationship between service quality
and employee behavioral intentions in the cross-strait direct context. This study was conducted on
employee of different IT companies. The study results revealed that employees‟ real preferences
in service attributes in a hypothetical case of direct between Taiwan and China (Shanghai). The
structural equation model (SEM) was applied to test the conceptual model. By understanding
employeers asymmetric responses to employee service quality in a post behavioral process,
managers can gain a better understanding of how to improve their service offers to satisfy
employers. Therefore, it is significant to study the relationship between service quality and
employer post behavioural intentions in domestic IT industry settings.

Kalthom et al. (2012) measured the implication of SERVPERF model in the perspectives of
Malaysian IT employers pertaining to the performance of the IT services which will

23
give an insight towards a better understanding of their attitudes. The relative importance of the
dimensions of reliability, assurance, tangibility, empathy and responsiveness were examined along
with the employers‟ preferences. The data was collected through convenience sampling from 500
employers from Kuala Lumpur International IT industry. The results confirmed that themodel of
performance criteria is multi-dimensional; tangibles, reliability, responsiveness, assurance, and
empathy and also found significant positive interrelationships among the constructs of the
proposed framework. In this study, five-common factor measurement model was found to be valid
and reliable to be used in determining performance of the IT providers. Out of these five factors,
three factors (tangibility, reliability, assurance) resulted in strong significance. Therefore, it is
necessary to consider SERVPERF model in domestic IT industry settings.

24
 CHAPTER 4
RESEARCH
METHODOLOGY

25
Title of the Project
“Study of employee turnover of IT firms”

Statement of the Problem

Work flexibility, negotiates with employee condition, involving adjustments in thetiming,

scope and/or place of work. Work flexibility has two major characteristics, flextime
(where employees have the possibility to choose their starting and ending hours) and
flexplace (where workers are able to do their work at a location by choice other than the
regular workplace). Hill et al. (2001) argued that long work hours with unpredictable
workload is better managed by employees with work flexibility. JobSatisfaction is simply
how people feel about their jobs and different aspects of their jobs. It is the extent to which people
like (satisfaction) or dislike (dissatisfaction) their jobs (Spector, 1997a). Different scholars have
defined Job satisfaction in various ways.

Purpose of the study

The studies entitled “study of employee turnover of information technology firms” have greater
significance for Information technology firms. Through this study they come to know their
marketing strategies with comparison to their competitor. This study is also helpful for researcher
to know about the strategies adopted by these information technology firms and how these
information technology firms use these strategies in practically. Further the study is helpfulfor
future research because this is not a widely discovered subject. The study is also helpful to the
students because by this they come to know how companies use marketing strategies to solve their
real problems.

OBJECTIVES OF THE STUDY

No study is complete without setting its objectives. Main objectives of my study are as under:
➢ To study & analyzes the marketing strategies of the Information industry.
➢ To access their future plan and strategies to face the challenges of the job turnover
challenges in terms of more flexibility and better working condition of the employers.

26
➢ To know how Information industry can improve its overall performance
➢ To know the need and preferences of the employers & suggest different measures to the
companies to improve their marketing strategies.

Scope of the Study

The Present study entitled, ‘study of employee turnover of information technology firms’ is
focused on marketing strategies used by information industry to achieve their objectives. The study
will also emphasize on identifying various key factors which will be considered byinformation
companies while deciding their marketing strategies.

Research Methodology
Research in common parlance refers to a search for knowledge. One can also define research as a
scientific and systematic search for the pertinent on a specific topic. Infect, research is an art of
scientific investigation.

Nature of Research
The research is an analytical and descriptive research because the research is based on already
available facts & figures and it then involves analyzing those facts & figures.

Data collection:
Primary Data:
Primary data is a raw data, which is gathered by the researcher himself and which is not present
elsewhere. Primary data are useful for current study and as well as future studies. In order to
identify the causal variables and their nature and extent of relationship with the employeeturnover
in the Information Technology sector as well as for empirically testing a turnover model, we have
collected primary data from the IT/ ITeS employees of Kolkata, West Bengal.

• A pre-ordained questionnaire is randomly circulated among the IT/ ITeS employees working
presently in different reputed IT firms in Kolkata.

• Snowball sampling method has been used for the selection of samples.

27
Secondary Data:
Secondary data is collected from sources that have been already created for the purpose of first
time use and future uses. Data from the secondary sources for the project was internet, various
articles, journals, newspapers, and reports by the prominent personalities, magazines, books, and
the research papers prepared by the scholars and the teachers. Public records, statistics and
publications of international bodies.

Universe and Sample Size

Universe: -
The information technology companies, which are doing business in India, are so many. Some
of these are e.g., AMR Info Care Pvt. Ltd, CyberQ Consulting Pvt. Ltd., Data core India Pvt.
Ltd., Info Solutions Pvt. Ltd and Tata Consultancy Services.

Sample size
Altogether we have circulated questionnaire to 500 IT/ ITeS employees, however, after proper
scrutinizing the filled-in schedules we are able to proceed with 460 respondents presently
working in 17 different reputed IT firms in Kolkata.

Analysis Pattern
Analysis part is one of the important segments of research methodology, which leads to the
ultimate conclusion of the report and presents the real picture of the research work with the
available data in May forms. In order to process and analyze the data various types of approaches
and techniques e.g., charts and tables have been used by the researcher.

28
 CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION

29
 ANALYSIS AND INTERPRETATION

Based on existing literature, we have chosen six plausible causal factors which are assumed
to be influential for the Indian IT/ ITeS professionals to leave their jobs voluntarily. The
chosen causal factors are ‘Higher Salary’, ‘Higher Portfolio’, ‘Scope of Foreign
Assignment’, ‘Higher Company-Brand-Name’, ‘Breach of Commitment’ and ‘Others’. At
the time of survey, the respondents are asked to rank the above factors as reasons behind
leaving their job from the last preceding company. All the 420 respondents’ have given
ranks to these factors which expressed their driving force behind leaving their jobs in the
last preceding companies.

One of our implicit assumptions is that the decision of the employees depends on their attitudes
towards life and work. In order to get an idea of respondents’ attitude, respondentsare asked
to place themselves in one of the four different categories of attitude viz. ‘Highest Priority to
Work-Life’; ‘Greater Priority to Work-Life’; ‘Greater Priority to Social-Life’ and ‘Highest
Priority to Social-Life’. For the sake of simplicity IT professionals are grouped into two
categories - ‘Managerial’ and ‘Technical’, according to their professional designation. In
respect of professional category, 358 sample respondents (out of 460) are in ‘technical’
category and the remaining 102 respondents are in the ‘managerial’ category. Among the
‘technical’ category respondents, 247 are male and 11 are female. On the other hand, among
the ‘managerial’ category, 81 are male and 21 are female (see Table- 7.1).

Table 7.1: Distribution of Respondents by Professional Category and

Gender

Category Male Female Total

247 111 358

Technical 21

Managerial 22 81 21 102

Total 328 132 460

Source: Primary Survey, 2017

30
Brief Profile of Respondents’ Present IT Companies

AMR Infocare Private Limited is a non-government private company incorporated on 10th

August, 2011 and it’s headquartered is located at Patna, India. It has authorized share capital
of Rs.10,00,000. AMR-MR is a futuristic group that consistently seeks to redefine real estate
management for emerging India. AMR Infrastructures Ltd., R.C. Jewellers, KMK Fabrics Pvt.
Ltd., Arise security systems and Royal Exports are the AMR group of companies. The group's
flag- bearer company is AMR Infrastructures Ltd., doing business in the Real Estate sector.
AMR Infrastructures Limited is specialized in future forward total solution and management
of real estate and creates some of the most innovative & landmark projects with a view to
redefine industry standards as well as to take people's aspirations to much greater heights.

Tables7.2: Distribution of Sample Respondents by Company Affiliation,

Professional Category and Gender
Number of Samples
Name of Location of
Managerial Level (M) Technical Level (T) Total
Company Head Quarter
(M + T)
Male Female Total Male Female Total
(M) (T)
AMR Info care
Patna, India 4 2 6 5 1 6 12
Pvt. Ltd.

Paris, France,
Cap Gemini 6 3 9 21 10 31 40
U.K.
Cognizant
New Jersey,
Technology 4 0 4 25 19 44 48
USA
Solutions
CyberQ
New Delhi,
Consulting 1 1 2 7 3 10 12
India
Pvt. Ltd.
Datacore India Bangalore,
14 0 14 20 1 21 35
Pvt. Ltd. India
Ericson Global Stockholm,
1 0 1 1 0 1 2
India Ltd. Sweden

31
 Armonk,
IBM India Pvt.
New York, 15 3 18 42 23 65 83
Ltd
USA.
Info Solutions
Cochin, India 5 4 9 10 5 15 24
Pvt. Ltd.

32
 Singapore,
Info Tech. 6 0 6 16 0 16 22
Asia
Ixia
Calabasas,
Technologies 5 0 5 10 0 10 15
USA
Pvt. Ltd.
Mara Ison
Dubai, UAE 3 3 6 7 3 10 16
Services Ltd.
MBTechno soft
Kolkata,
Consultants 5 4 9 12 6 18 27
India
Pvt. Ltd.
Redwood
Oracle India City,
0 1 1 0 0 0 1
Private Ltd. California,
US
Price Water
London, U.K. 5 0 5 5 0 5 10
House Coopers
Tata
Mumbai,
Consultancy 15 3 18 23 17 40 58
India
Services
Mumbai,
Tech Mahindra 4 2 6 24 14 38 44
India
Xplore Tech.
Kolkata,
Services Pvt. 2 2 4 5 2 7 11
India
Ltd.
Total 95 28 123 233 104 337 460
Source: Primary Survey, 2017

Capgemini is a multinational IT company providing consultancy, technology and outsourcing

services and it’s is headquartered in Paris, France. It has more than 1,30,000 employees in 44
countries. In 2013, Capgemini is awarded three framework agreements with the German Federal
Revenue Administration’s Data Processing and Informationsverarbeitung and
Informationstechnik, ZIVIT) covering services of architecture, consultancy on Java and Oracle
based technology, software development and Business Intelligence technology software
development. In India, Capgemini is close to 30,000 people strong and services over 400 clients
globally and in the Indian market.

33
Cognizant Technology Solutions is one of the leading multinational IT/ ITeS consulting
companies of the world. It’s headquartered is in New Jersey, USA. The company’s extensive
service offerings include Cognizant Business consulting, application development and
maintenance, testing, enterprise information management, enterprise application services, IT
infrastructure and BPO services. In addition, the company helps bringing more productive and
inspired thinking to the need of the communities around the world in the field of education,
environment, employee development, health and safety.

CyberQ Consulting Private Limited was founded in February, 1997 with the objective of
providing Process Improvement and Information Security Solutions in the area of IT,
Banking, Telecom, Government, FMCG products and services. Considering the strength and
their expertise on the process improvement, KPMG (the BIG 4 consulting companies in
the world) acquired the process division of CyberQ in March 2010 thereby there has been
strong in fusion in CyberQ in the areas of information security and IT consulting services.
800 IT professionals of the company are serving more 650 customers spreading across 24
countries. Data-Core (India) Private Limited is a rapidly growing global technology
consulting company, headquartered in Bangalore, India. It incorporated in 1988, belongs to
the US$ 200Million mulch-disciplinary engineering conglomerate-the DCPL-Kuljian group.
The company is specialized in IT consulting and provides services to the IT and IT-enabled
service organizations, Enterprise Software Development, SAP implementation, IT
infrastructure management, Off-shore Development, Knowledge Process Outsourcing and
Resource Augmentation Services. Company’s services include Application Consulting;
Managed Services for the Healthcare, Education, Media and Publishing industries. Data-
Core has its global delivery centers in Kolkata and Mumbai and other offices in Philadelphia,
USA; Dubai ,UEA and Singapore.

Ericsson Global India Limited has its global headquarter at Stockholm, Sweden. Ericsson
provides services to empower people, business and society. Its services include mobile and
fixed networks, multimedia solutions and telecom services which make a real difference to
people's lives across different countries of the world. Ericsson’s cloud offering delivers
distributed cloud capabilities that enable a better user experience for cloud applications

IBM India Private Limited is a sister company of International Business Machines

34
Corporation (commonly referred to as IBM). IBM is an American multinational technology and
consulting corporation, with headquarters in Armonk, New York, USA. IBM manufactures and
markets computer hardware and software and offers infrastructure, hosting and consulting
services in areas ranging from mainframe computers to nano technology. In 2012, Fortune
ranked IBM the No. 2 largest U.S. firm in terms of number of employees (435,000 worldwide,
approximately 100,000 in the US), the No. 4 largest in terms of market capitalization, the No.
9 most profitable, and the No. 19 largest firm in terms of revenue. The corporation has 12
research laboratories worldwide and, as of 2013, has held the record for most patents generated
by a company for 20 consecutive years. Notable inventions by IBM include the Automated
Teller Machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the
relational database, the Universal Product Code (UPC), the financial swap, SABRE airline
reservation system, DRAM, and Watson artificial intelligence. The company has undergone
several organisational changes since its inception, acquiring companies such as Kenexa (2012)
and SPSS (2009) and organisations such as PwC's consulting business (2002), spinning off
companies like Lexmark (1991), and selling off product lines like ThinkPad to Lenovo (2005).

Info Solutions Private Limited is one of the best Web Design & Software Development
organisation based in heart of Naraina Ring road, New Delhi, India with an aim to establish
itself among leading Global IT Solution Providers. Its objective is to deliver quality Web
Application and Software Development services while incorporating supreme value to
enterprise globally at an affordable price. The company has a skilled resources base ofSystems
Engineers in a state of the art development center in Gurgoan, India. The Company has
successfully executed several end-to-end software development projects and providing
application management services, which include application maintenance, request based
software services, products development and post release support. The Company has
successfully executed several end-to-end software development projects.

InfoTech provides leading-edge engineering solutions including product development and life-
cycle support, process, network design, optimization and data management solution to major
organisations worldwide. The company has it’s headquarter in Singapore and hasdelivery
centers in North America, Europe, Middle East and Asia pacific. It has more than 11,000
employees across 38 global locations. Info tech Enterprises is the ideal partner which

35
is a public limited company listed on the NSE/BSE stock exchanges. Its clients are Aerospace,
Consumer, Energy, Medical, Oil and Gas, Mining, Heavy Equipment, Hi-Tech, Transportation,
Telecom and Utilities and include 26 'Fortune 500' organisations.

Ixia Technologies Private Limited, headquarter in Calabasas, USA, is the leading provider
of comprehensive network test and network visibility products that enable equipment
manufacturers, service providers, enterprises, and government agencies to ensure high
performance of wired, Wi-Fi, and 3G/4G/LTE networks, devices, services, and applications in
pre-deployment labs and production networks. Ixia's worldwide support helps prevent down
time and optimizes performance. In 2013, Ixia's Het-Net Performance Validation solution has
been named the Best LTE Test & Measurement product at LTE North America Awards;
becomes the winner of the Network World Asia Information Awards’ Test and Measurement
category, and gold winner of ‘Best Security Product for Telecommunications’.

MaraIson Services Limited offers services of end-to-end solution for architecting, designing,
commissioning, and implementing enterprise wide solutions to cater to all aspects of customer
experience, operational efficiency and revenue improvements. It is a leading Pan-African IT
service company, headquartered in Dubai, UEA and providing services across 23 countries in
Africa and having employees of 23 nationalities. The company provides a complete range of
consultancy services in the areas of Data Center Consulting, Program and Project Management,
Network Consulting, Contact Center Technology Consulting and Frameworks Implementation.

MB Techno-soft Consultants Private Limited is a growing customized software development

and back-office data processing firm in West Bengal(Howrah), India. The company provides
back-office data processing service to banking industry, corporate houses and government
organisations. The company has excellent exposure in large volume data processing like admit
card, results and certificate processing, bank backend data processing, land data processing,
rehabilitation data management, payroll, PF and gratuity processing, statistical data processing,
management data processing, Finance and accounts data processing. Company’s services
include Data Processing ,Software Development ,Software Technology Support, Website
Development and Optimization, Management Consultancy,Data Conversion, Land Acquisition
Consultancy and GIS & Mapping Services.

36
Oracle India Private Limited provides the Asian subcontinent with enterprise software for
managing business data, supporting business operations, and facilitating collaboration and
application development. Company uses its database management software to store andaccess
data across numerous platforms and offers business applications for data warehousing, customer
relationship management, and supply chain management. It is an American multinational
company, headquartered in Redwood City, California, United States. Oracle

opened its first office in India in 1991, and formed its first Indian subsidiary in 1993. Oracle's
other Indian operations include the India Development Center, which is its largest research
facility outside the US. The company specializes in developing and marketing computer
hardware systems and enterprise software products - particularly its own brands of database
management system. Oracle is the second largest software by revenue, after Microsoft.

Price Water House Coopers (PwC) is a multinational professional services firm

headquartered in London, United Kingdom and one of its branches is at Kolkata. ‘PwC’ is the
brand name holding number of firms of Price Waterhouse Coopers International Limited
(PwCIL) in it. Found in the year 1998, Price Waterhouse Coopers is a merger between two firms
Price Waterhouse and Coopers & Lybrand with the two companies being in existence since the
early nineteenth century. Besides being one of the members of the ‘Big-4’ accountancy firms,
PwC is also the world’s largest professional services firm by revenue.Also, PwC has its
offices in about 757 cities across 154 countries and has 175,000 employees. The main clients
of PwC are Europe and North America, accounting for 81% of PwC’s annualrevenue, with
Europe alone accounting for 45%. The dominant practice of the firm, lying in auditing, accounts
for over 50% of the PwC’s revenue. Besides, PwC audits 40% of companies in the FTSE 100
Index and 45% of the Fortune 1000 energy companies. Some of the important clients of PwC
in India are Ministry of Defence, Ministry of Environment and Forest, Indian Oil Corporation
and Delhi Jal Board.

37
Tata Consultancy Services Private Limited (TCS) is ranked number one in IT/ ITeSservices
in India and becomes one of the global leaders in the world’s IT industry. TCS also occupied
top position with respect to Customer Satisfaction in Belgium. It offers a wide range of IT
services, outsourcing and business solutions. According to life sciences ITO service providers
report, on the basis of Everest Group’s PEAK (Performance-Experience-Ability- Knowledge)
Matrix assessment 2013, TCS is considered as a global leader and star performer.In 2013, AGL
(one of Australia’s leading integrated renewable energy companies) and TCS have jointly won
the SAP award of excellence for Best Run Analytics for ‘Data Intelligence Program- SAP
HANA’

Tech Mahindra provides software services, systems integration, professional services, and
specialized consulting in the telecom sector. It’s headquarter is in Mumbai, India. It provides
services like Telecom & IT Consulting, Telecom Security Consulting, BSS /OSS, Network
Technology Solutions & Services, Network Design & Engineering, Next Generation Networks,
Mobility Solutions, Consulting, Solution Integration, IMS, BSG. It is a US$ 2.7

billion company with 84,000 employees across 49 countries, helping 540 global customers
including ‘Fortune 500’ companies. Tech Mahindra is a part of the US$ 16.2 billion Mahindra
Group that employs more than 155,000 people in over 100 countries. In 2013 the company was
awarded the Champion Innovation award at the 2013 Juniper Champions Summit; wins the 7th
edition of SAP ACE Award and won the Most Engaged Business Partner Award from Telia
Sonera for driving new M2M business from scratch.

Xplore Technologies Services Private Limited is (now member of NASSCOM) a fast-

growing consultancy and Business Process Outsourcing (BPO) service provider, established
in the year 2004 in Kolkata, West Bengal. The company provides software development
services, internet marketing, web design and development services and customer care &
technical support to internet service and telecom service providers to both national and
international clients (USA, Canada, UK, Ireland and Australia). The company was funded by
Kishor Saraogi and Pankaj Dhanuka (Directors) and presently led by a highly capable
management team spearheaded by Nalin Tikkoo (President). The company develops and
delivers end-to-end BPO solutions that help its global clients to streamline and optimize their
business process, cut down costs and increase revenue earnings. Fusion BPO Services

38
Ltd and O’Currance Inc. are two of its subsidiaries which are well known brands in Concract
Centre and Direct- Resource Marketing services in the US and Canada, India, Philippines.

Descriptive Statistics

Present study is principally based on information collected by means of primary survey from
460 IT/ITeS employees working presently in 17 different IT companies in Kolkata, West
Bengal. Among 460 sample respondents 328 are male and 132 are female. 248 respondents,
i.e. more than half of the respondents are found to be in the ‘30-40’ age group (mean age 33.9).
Remaining 188 respondents are in the ‘less than 30’ age group (mean age 27.1) and 24
respondents are in the ‘above 40’ age group (mean age 43.6).

39
Table 7.3: Distribution of Respondents by Company Affiliation and Gender
Sl Name of Company Male Female Total
No.
1 AMR Info care Pvt. Ltd. (AMR) 9 3 12

2 Cap Gemini (CG) 27 13 40

3 Cognizant Technology Solutions 29 19 48

4 CyberQ Consulting Pvt. Ltd. 8 4 12

5 Datacore India Pvt. Ltd. 34 1 35

6 Ericson Global India Ltd. 2 0 2

7 IBM India Pvt. Ltd 57 26 83

8 Info Solutions Pvt. Ltd. 15 9 24

9 Infotech 22 0 22

10 IXIA Technologies Pvt. Ltd. 15 0 15

11 Mara Ison Services Ltd. 10 6 16

12 MB Technosoft Consultants Pvt. Ltd. 17 10 27

13 Oracle India Private Ltd. 0 1 1

14 Price Water House Coopers 10 0 10

15 Tata Consultancy Services 38 20 58

16 Tech Mahindra 28 16 44

17 Xplore Tech Services Pvt. Ltd. 7 4 11

Total 328 132 460

Source: Primary Survey, 2017

40
Table 7.4: Descriptive Statistics of Sample Respondents
Age Group
Characteristics Total
of Sample
Respondents Less than 30 30-40 Above 40

No. x̄ a No. x̄ a No x̄ a No. x̄ a

A. Gender

Male Female 119 27.0 1.6 188 34.1 3.3 21 43.8 2.5 328 32.2 5.3
Total 69 27.4 1.7 60 33.4 3.2 3 42.0 1.0 132 30.5 4.2
188 27.1 1.6 248 33.9 3.3 24 43.6 2.4 460 31.6 5.7

B. Experience

in IT (in yrs):

Less than 1yr. 5 0.4 0.2 0 0.0 0.0 0 0 0 5 0.4 0.2

1-5 years 144 2.8 1.4 32 4.7 1.0 0 0 0 176 3.1 1.5
6-10 years 38 6.7 1.0 124 7.7 1.4 1 10 0 163 7.5 1.4
Above 10 yrs. 1 29.0 0.0 92 12.8 1.9 23 18.2 2.9 116 14.0 3.3
Total 188 3.7 2.1 248 9.2 2.7 24 17.9 3.3 460 7.4 4.4

C. No. of

company

change:

0 change 27 - - 10 - - 3 - - 40 0 0

1 change 38 - - 43 - - 6 - - 87 0 0
2 changes 41 - - 73 - - 5 - - 119 0 0
3 or more 82 3.4 1.0 122 3.5 1.0 10 3.6 1.1 214 3.5 1
changes

188 3.4 1.0 248 3.5 1.0 24 3.6 1.1 460 3.5 21.4
Total

Source: Primary Survey, 2017

Note: x̄ = mean; a = Standard deviation and No. = Number of respondents

41
Respondents’ experience in IT is a very important parameter for justifying any study on IT
employee turnover. Experience in IT of the sample respondents varies from less than one year
to twenty two years. Only 5 respondents of ‘less than 30’ age group are found as new comers
in the IT sector having less than one year experience. 176 respondents have 1-5 years of IT
experience of whom 144 respondents are in ‘less than 30’ age group and 32 are in ‘30-40’ age
group. 162 respondents have 6-10 years of experience in IT profession and most of them are
in the ‘30-40’ age group. Among the sampled respondents, 166 respondents have more than ten
years of experience in the IT sector of whom 92 are in the ‘30-40’ the group and 23 are in the
‘above 40’ age group.

Present study is aimed at unveiling the reasons behind employees’ change of jobs from one
company to another. Therefore, the number of job changes by the respondents and the causes
behind thereof becomes the main query. In this respect 40 respondents have reported no changes
in their career till the date of survey, among them 27 are in ‘less than 30’ age group and 10 are
in the ‘30-40’ age group. Surprisingly, 3 respondents are found in the ‘above40’ age group
who have not changed their first company.

Out of the remaining 420 respondents who have changed their jobs, 87 employees have
changed one, 119 have changed two and 214 have changed three or more jobs during their
career. Again, out of the 214 respondents who have changed three or more jobs, 122
respondents, i.e. more than fifty per cent of them are in the ‘30-40’ age group .
The method of data collection, sample size, nature of the collected data and a descriptive
statistics of these are presented above. Various statistical tools have been used to analyse the
collected information. The findings of the empirical analyses are presented in the following
chapter-8.

42
43
Ques 1. Why do employers prefer the above chosen IT services? The responses of
travelers are below: -

Factors No of Employers % of Responses

Timing and punctuality 16 16%
Image 24 24%
Price 60 60%
Total 100 100%

Chart
120
100
80
Axis

60
40
20
0 Timing and
Image Price Total
punctuality
No of 16 24 60 100
employers
% of Responses 16% 24% 60% 100%

Interpretation
There are different options due to which people prefer one IT service. In accordance to the survey
employers prefer different IT services. The first option i.e., “Timing & Punctuality”. There are 16
employers who feel that choose IT have good timing & punctuality. That’s why they prefer chosen
IT. 24 employers think that the chosen IT have a good image in the mind of employers. There are
60 employers who think that price is important factor for choosing IT.

44
Ques 2. Which IT have provided more service satisfaction? The responses of employers are
below on some factors.

Factors Performance Total

Info tech. IBM
Working 65 35 100
environment
Medical Service 60 40 100
Working 70 30 100
Comfort
Manager 40 60 100
Behavior
Safety and 42 58 100
Security

Chart
80
60
Axis

40
20

Working
medical working manager Safety and
environme
Service Comfort behavior Security
nt
Info tech 65 60 70 40 42
IBM 35 40 30 60 58
Total 100 100 100 100 100

Interpretation
Pie chart show that 65 employers are fully satisfied from the working environment of Info tech because
its route are point to point, regional route, and Infotech does not wait of other IT . Info tech also good
in working comfort because it provides good safety and security.

45
Ques 3. If a given a choice between Info tech & IBM which, would you prefer?

Airways Co. No. of Employer Responses % of Responses

Info tech. 30 30%
IBM 70 70%
Total 100 100%

Chart

80
60
Axis

40
20

IBM
Info tech. Total

No.ofEmployers
30 70 100
Responses
% of Responses 30% 70% 100%

Interpretation
In accordance to the survey, first one is Info tech and second one is IBM. I have taken
100 employers to analysis this project and collected responses of employer through personal
interview and questionnaire. Some employers prefer Info tech. and some prefer IBM. I have
presented the data in graphic form. Then employers give responses like this. Out of 100, only 30%
employers prefer info tech and 70% travelers prefer IBM.

46
Ques 4. why do employers choose the above IT. The Factors are as follows: -

Traveler’s Response
Factors Employers Employers Total
Responses Responses
(Info tech.) (IBM)

Better quality of service 55 45 100

Better salary 42 58 100

Performance appreciation 73 27 100

Chart

80
60
Axis

40
20

Better quality Better salary Performance

of service appreciation
Employers Responses 55 42 73
Employers Responses 45 58 27
Total 100 100 100

Interpretation
There are some reasons that why employers prefer the it. There are 55 employers they prefer Info
tech because they think that the chosen IT provides a better quality of services.
And only 45 employers are preferring IBM for quality service There are 42 travelers they prefer
Info tech. and 58 travelers like IBM because they think that the chosen IT give better salary 73
prefer Info tech and 27 employers prefer IBM for performance appreciation.

47
Ques 5. Which airlines according to you have the most extensive, informative and attractive
advertising campaign.

Airways Co. No. of Employers Responses % of Responses

Info tech 80 80%
IBM 20 20%
Total 100 100%

Chart
120
100
80

60
Axis

40

20

IBM
Info tech. Total

80 20 100
Responses

Interpretation
In accordance to the survey, first one is Info tech .and second one is IBM. I have taken
to analysis this project and collected responses of employer through personal interview and
questionnaire. Some travelers prefer Info tech. and some prefer IBM. I have presented the data in
graphic form. Then employers give responses like this. Out of 100, only 20% travelers say that
IBM do not have attractive advertising campaign and 80% employers says that Info tech .have
attractive working environment.

48
Ques 6. Do you feel IBM airlines need to improve any particular field? If yes, in which?

Factors No of Employer % of Responses

Image 20 20%
Punctuality 18 18%
Network 24 24%
Quality of service 18 18%
Salary package 20 20%
Total 100 100%

Chart
120
100
80

60
Axis

40

20

Quality
Punctua Network Salary
Image of Total
lity package
service
No of 20 18 24 18 20 100

Interpretation
20% people think that it should improve their image in the mind of employer. And 18% people
think that they should improve their punctuality. In addition, 24% people think that they should
improve their network in the country.18% people think that it should improve their services which
they provide to their employer. 20% people think that they have a low salary.

49
Ques 7. Do you feel Info tech need to improve n any particular field? If yes, in which?

Options No of Traveler % of Responses

Image 40 40%
Punctuality 20 20%
Network 14 14%
Quality of service 20 20%
Salary package 6 6%
Total 100 100%

Chart

80
60
Axis

40
20
0
Quality
Punctua Networ Salary Total
Image of
lity k package
service
No of Traveler 40 20 14 20 6 100
% of Responses 40% 20% 14% 20% 6% 100%

Interpretation
In accordance to the survey, 40% people think that it should improve their image in the mind of
employer. In addition, 20% people think that they should improve their punctuality. In addition,
14% people think that they should improve their network in the country. 20% people think that it
should improve their services, which they provide to their employer. In addition, 6% people think
that they have a low salary.

50
 CHAPTER 6
FINDINGS AND
LIMITATIONS

51
 FINDINGS

In order to provide clear and in-depth analyses of employees’ turnover phenomenon (i.e., the
turnover intent and the actual turnover) we have collected primary data from the employees
working in different IT/ITeS companies. The empirical analyses are carried out in three parts
–the first part dealt with the general perception of all the 460 respondents regarding their ‘Scope
of Revealing Skill’ (SRS), ‘Professional Attitude’ (PA), ‘Locational Advantage’ (LA),
‘Experience in IT’ (ExIT) etc. and their propensity to change organisation. The second part is
dealt with the actual reasons of leaving jobs for the 420 respondents who have changed at least
one company before the time of survey. In the third part we dealt with 214 respondents who
have changed three or more companies before the time of survey. The empirical findings and
the relevant discussions are carried out below in different sections.

Analyses based on 460 Respondents

Out of the total respondents, 420 sample respondents have changed one or more jobs but the
remaining 40 respondents were on their first job at the time of the survey. In order to judge the
intrinsic factors behind employee’s propensity to leave organisation we put forward some
endogenous factors [e.g. ‘Scope of Revealing Skill’ (SRS), ‘Professional Attitude’ (PA),
‘Locational Advantage’ (LA), ‘Experience in IT’ (ExIT), ‘Financial Reason to Change
Company’ (FRCC), Higher Degree of Independence (autonomy23) leads to GreaterAttachment’
(HIGA)] before 460 respondents to reveal their plausible reasons by their response. We first
compute a correlation matrix among the endogenous factors to explore the relationship of these
factors with the ‘Number of Changes’ (No._Changes) made by each respondent and also the
inter correlation between factors. Most of these endogenous factors are appeared to be highly
significantly correlated with ‘No._Changes’ (see Table 8.1.1) but inter factors correlations are
found very insignificant. After confirming that there is no multi colinearity among endogenous
factors, we fit a linear regression with ‘number of changes’ as dependent variable (Y) and SRS,
PA, LA, ExIT, FRCC, HIGA as explanatory variables [i.e. Y (No._Changes) = f (SRS, PA, LA,
ExIT, FRCC, HIGA)]. The results of the regression analysis are presented in Table 8.1.2 below.

52
Table-8.1.1: Pearson Correlations matrix ( n =460)
Variables No._Changes SRS PA LA ExIT FRCC HIGA

No._changes 1
SRS - .098* 1
*
PA -.326 .076 1
LA .131** .061 - .005 1
**
ExIT .128 .028 .012 - .055 1
**
FRCC -.108 .063 -.003 .065 - .013 1
HIGA .127** .014 -.067 .008 .040 .020 1

It has already been evident from the above matrix that the independent variables are
highly correlated with the dependent variables and is also reflected in the regression
equation where all the predictor variables are significantly related to the predicted
variable. It appears that the employee’s propensity to change company is negatively
related with PA, FRCC and SRS which imply that employees’ high professional
attitudes combined with decent financial package and the scope of revealing skills in
the company will reduce employees’ propensity to leave organisation. On the other
hand, higher ExIT (IT experience) with the attraction of LA (locational advantage) and
HIGA (Higher degree of Independence leads to Greater Attachment) increase the
propensity to change a company. The reason behind this may be that aging generates
a sense of responsibility and gradually commitment develops in mind and such frame
of mind always searches for a place of work in a better location to avoid non-
professional problems with greater freedom of work to show their work efficiency and
commitment.

It is also revealed from the empirical observation that employees in the ‘Above 40’ age group
have given priority reasons for their leaving jobs more on factors other than salary andmost of
them are found belong to HPSL category. One may argue that the financial needs of most of
the ‘Above 40’ age group of employees are satisfied and now they want to satisfy their other
needs. This kind of motivational behaviours can be explained by Maslow’s (1943) needs
hierarchy theory (i.e. physiological needs, safety and security needs, social needs,
53
esteem needs and self- actualization needs) and Herzberg’s (1959) two-factor theory (because
Herzberg’s hygiene factors roughly correspond to Maslow’s physiological, safety and security,
social needs and his motivators are roughly equivalent to Maslow’s esteem and self-
actualisation needs). Most of the ‘Above 40’ age group of employees might be in a state where
they want to satisfy their higher order needs.

When the employees are classified into HPWL and HPSL categories with their respective
three age groups then also depicts similar pattern of quitting behaviour where younger IT
employees give more importance to financial factors but the degree of importance shifts
to other factors with the aging of the employees. In this connection we argue that young IT
employees are quick changer of jobs because they are expected to be comparatively less
bounded by social compulsions and for that reason they are more vibrant and more prone to
accept challenges in life as well as in their professional career than their older counter part.
This distinctive feature of young IT employees may be described as over enthusiasm to
reach the top of the professional-ladder at the shortest possible time (Guha, 2014).

We have presented above our findings which depict gender and age specific causes behind
the IT professionals’ leaving an organisation. These findings encourage us to develop some
kind of theoretical frame work. At the same time it also becomes necessary to unveil the nature
and extent of our causal factors towards explaining the turnover behaviour.

54
 LIMITATIONS OF THE STUDY

• Companies don’t disclose their personal information to any outsiders. This was a major
hindrance towards the completion of this project.

• Long waiting hours at the agencies concerned, has gone into collecting relevant information
presented.

• It is easier to gear out information from personnel involved in companies, if they are known
personally. Else, people take little interest in a person wanting to speak to them.

55
 CHAPTER 7
SUGGESTION AND
CONCLUSIONS

56
 SUGGESTIONS

The research study and the analysis of the various aspects tapped lead to the following

recommendation:

1. Compensation structure of the IT professionals may be designed by giving higher weightage to

salary by virtue of a composite function of qualification, talent, skill, performance and experiences
as well as keeping a little bit higher salary than the existing industry rates to the high valued
employees.

2. The quantum of non-salary compensations in the form of perks and other benefits should also
been provided to the employees according to portfolio and performance of the employees.
3. Promotional avenues, skill revealing opportunities and rewards for better performance may
encourage employees to do work with enthusiasm.

4. Above all, a familial relationship among the employees of the organisation where each employee
feels proud of to be associated with the organisation and his or her colleagues whichin turn
would create some kind of fellow feeling and commitment should be generated in the
organisation.

5. Highly skilled and talented employees are indispensible for achieving competitive advantages and
are considered as assets to an organisation. Therefore, any loss of this resource undoubtedly would
be a great cost to the organisation. But employee turnover need not always have a negative impact
on organisational performance.

6. When the poor performing employees quit an organisation or are replaced by skilled and talented
employees then such employee turnover would obviously have a positive impact on the
organisational performance towards achieving competitive advantage.

7. Employee turnover is, however, undesirable when the organisation is losing potential, skilled,
talented and experienced employees. This study is mainly concerned with this undesirable
employee turnover and tries to unveil the plausible causal factors i.e. the factors influencing an

57
 IT professional to leave an organisation.

8. For this purpose six plausible factors (‘Higher Salary’, ‘Higher Portfolio’, ‘Higher Company-
Brand-Name’, ‘Breach of Commitment’, ‘Scope of Foreign Assignment’ and ‘Others’) aresighted
which are very much pertinent, especifically for the IT/ ITeS profession. The empirical evidences
are based on primary data collected through field survey. A model has developed to
explain the nature and extent of causal factors affecting employees’ propensity to change
companies and tested the model empirically with the collected primary data.

9. It is revealed from the empirical findings and employee turnover model that the attraction of
‘Higher Salary’ appears to be the top priority reason of the IT professionals, irrespective of gender
and age for leaving an organisation. In order of importance, next to ‘Higher Salary’, attraction of
‘Higher Portfolio’ followed by ‘Higher Company-Brand-Name’ is chronologically appeared as
reasons for the respondents to leave one organisation for another.

10. It is to be noted here that all of these three prime causal factors are in the array of exogenous pull
factors. Although priority of ‘Higher Salary’ occupies the top position uniformly for all IT
employees but between ‘Higher Portfolio, and ‘Higher Company-Brand-Name’, the female
employees have given more priority to ‘Higher Portfolio’ than ‘Higher Company-Brand-Name’
and the male employees are significantly more attracted by the ‘Higher Company-Brand-Name’.

11. These differences of assigned importance to the attractive pull factors by the male and female
employees may imply that the female employees are more concerned about self-esteem
(empowerment) in their professional hierarchy than their male counterpart. On the other hand,
male IT professionals are found to be more concerned with their social prestige attached to the
higher company-brand-name.

12. Research in psychology and organisational behaviour, specially the content theories; focus on the
needs, wants and desires of people which are the main impetus for motivational behaviours.

13. It appeared that among the employees who have already changed 3 or more companies,
irrespective of age groups, HPWL category of employees have given highest priority (78.2 per

58
 cent)

14. Our findings also revealed that the younger IT professionals (i.e. employees in the ‘Below 30’
and ’30-40’ age groups) are in a stage of their life where they are in needs of higher achievement
and the elder professionals are in needs of higher power and affiliation. Thus, the findings may
provide an important intrinsic parameter in studying employee turnover.

59
CONCLUSIONS

60
 CONCLUSIONS

In lieu of a conclusion it is to be noted that a multivariate and multi- dimensional analysis along
with turnover costs analysis may provide more insights of employee turnover (both turnover intent
and actual turnover), specifically IT employee turnover. In fact, the crux of the problem lies in the
estimation of intangible intellectual capabilities of human beings and once it could be done then
employees can be provided with proper monetary and non- monetary benefits in accordance with
employees’ skill and capabilities. Our future research agenda therefore is to capture this issue.
This kind of examination, however, requires specification and analysis of the cost and
consequences of employee turnover i.e. utility analysis of employee turnover. Such an analysis is
absent in our study and that may be considered as a limitation of the study. Further research on
IT employee turnover may include these costs and consequences aspects of employee turnover.
Combating employee turnover where employees are leaving companies due to familial reasons or
personal health reason are appeared to be very difficult, if not impossible. However, attractionof
‘Higher Salary’ appears to be the prime reason behind most of the IT professionals’ leaving a
company. It would be obvious that the major polices are to be salary or pay oriented.
Regarding policy issues we observed that two approaches are currently in practice among IT
companies to combat turnover of potential and productive employees. One is recruiting and
retaining qualified personal and the other is restructuring tasks so that they require fewerpersonnel.
Recruiting and retaining valuable IT workers have included increasing pay (James, 2000) and
offering perks and non-salary compensation such as company outings, lunches, out-of- town
conferences and bonus for performance (Fryer, 1999) with the expectation that these perks
increase job satisfaction and reduce employee turnover. However, the effectiveness of these
measures is inquestion (Cappelli, 2000).
Therefore, the problem of productive IT employee turnover in an information-intensive
environment should require better understanding of the IT employees’ attitude towards life and
work which are directly related to their reasons for leaving a company.

61
APPENDIX

62
 QUESTIONNAIRE

Survey on Employee Turnover of Information Technology Firms

[I] Respondent’s identification:

1) Name: 2) Age

3) Gender: M / F 4) Marital Status: Married/Unmarried/Others

5) Highest Academic Qualification: 6) Technical Qualification:

7) Name of the present Organization: 8) Designation:

[II] Job-related Information:

A) General Information:

• Average working hours per day:

• Holiday(s) per week ...................... day(s)

• Other leave facilities per annum [in day(s)]:

• Earned leave: …… Sick leave: …… Casual leave: …... Others: ………

• In general, do you have any night shift duty? Yes No

• If ‘Yes’ then

a) Is it mandatory? Yes No

b) Last year, how many days (on an average) in a month did you have to do night shift duty?
…………
B) Pay, perquisites and other benefits related Information:

State your opinion about the following benefits, if provided by your present company:

a) Medical benefits:

(i) Not provided (ii) Very little amount (iii) Just enough (iv) Good enough (v) Full coverage

b) Paid vacations:
(i)Not provided (ii) Very little amount (iii) Just enough (iv) Good enough (v) Full coverage

c) Cars for personal use:

(i) Not provided (ii) Very little amount (iii) Just enough (iv) Good enough (v) Full coverage

C) House Rent Allowance:

(i)Not provided (ii) Very little amount (iii) Just enough (iv) Good enough (v) Full coverage

D) Health Insurance:
(i) Not provided (ii) Very little amount (iii) Just enough (iv) Good enough (v) Full coverage

E) Children’s Education Allowance:

(i) Not provided (ii) Very little amount (iii) Just enough (iv) Good enough (v) Full coverage

F) Other Benefits:

i) Postretirement benefits Yes No

ii) Child Care Leave

(In addition to mandatory maternity/paternity) Yes No

iii) Travelling Allowance Yes No

iv) Interest Free Personal Loan Yes No

 v) Home Loan (Deductible from salary) Yes No

G) Promotion related Information

(a) What extent of promotional opportunities are there in your organisation?

(i) Not at all (ii) Very little extent (iii) Average (iv) High (v) Very high

(b) Is your promotion related to your performance? Yes No

1

(c) Does the organisation have a standardized and objective performance system?

(i) Not at all (ii) Not significant (iii) Moderate (iv) Adequate (v) High

H) Working conditions related information:

1) What is your opinion about the location of your work place ?

i) Highly Inconvenient(ii) Inconvenient(iii) Moderately convenient(iv) Convenient(v) Highly Convenient

2) Do you think your job is secured?

(i)Not secured (ii)Almost secured (iii) Fully secured

3) How flexible is your work schedule?

i) Not at all (ii) Little flexible (iii) Moderately Flexible (iv) Flexible (v) Highly Flexible

4) Your relationship with your

a)Co-workers are: (i) Non-cooperative(ii) Cordial(iii) Cooperative (iv) Informal(v) Very
friendlyb)Supervisor is: (i) Non-cooperative(ii) Cordial (iii) Cooperative(iv) Informal(v) Very
friendly c)Subordinate(s): (i) Non-cooperative(ii) Cor

(I) Training opportunity and application of skills related Information:

(a) State the opportunities available in the organisation to reveal your
• Skills:
(i)Not at all (ii) Rare (iii) Moderate (iv) High (v) Very High
• Talent:
(i)Not at all (ii) Rare (iii) Moderate (iv) High (v) Very High
• Competencies:
(i)Not at all (ii) Rare (iii) Moderate (iv) High (v) Very High
(b) Does the organisation provide training to its employees at your level?

Yes No

(c) Does the organisation provide training to its employees at your senior level?

Yes No

(d) Is there any opportunity(s) in your organisation (like, foreign training/assignment, lien for
further study etc.) for upgrading your existing skills or acquiring new skills?
(i)None (ii) Rarely (iii) Standard (iv) High(v) Very high

(J) Work attitude related information:

(a) Do you think your salary matches your skills? Yes No

If ‘No’ then
(b) Is there any possibility in this organisation for the said matching in future?

Yes No

(c) Do you feel your job is monotonous? Yes No

If ‘Yes’ then
(d) Do you think that higher degree of independence leads to greater commitment/ attachment
the organisation? Yes No
If ‘No’ then

(e) According to you what kind of work environment generates greater attachment to the
organisation………………………………

(I) Job-Profile and related information:

Year of first joining the IT sector: ………….

Have you continued to work in the IT sector since then? Yes No
How many IT companies (including this one) have you worked for, since joining this

sector? ……

(a) Profile of last three IT companies: (excluding present one):

Job-Profile of the Respondent

Name of the last Year of Year of Years of service bond (if Did the Was there any
three companies joining leaving any) at the time of company service bondage (in
joining provide any years) attached to
training
training as stated in
(Yes/ No)
col. (4)

(1) (2) (3) (4) (5) (6)

(b) Prime reason(s) of leaving one company and/or selection criteria of joining the next:

Company Reasons Ranks of Scores

reasons Most Moderately Important Least Not
1= Highest Important Important Important Applicable
rank
(1) (2) (3) (4) (5) (6) (7) (8)
Higher
Salary
Higher
1 Portfolio
Scope of
Foreign
Assignment
Higher
Company-
Brand-Name
Breach of
Commitment
Other
reason(s)

Higher
Salary
2
 Higher
Portfol
io
Scope of
Foreig
n
Assign
ment
Higher
Company-
Brand-Name
Breach of
Commitment
Other
reason(s)

Higher salary

3
Higher
portfolio
Scope of
Foreign
Assignment
Higher
Company-
Brand-Name
Breach of
Commitment
Other
reason(s)
(J) Entry-Exit decisive factors related information:

Comment on the factors of the following components which according to you might become a
reason for an employee to continue with an organisation

(a) Organisational Component:

o Lucrative pay package:

(i) Most Important (ii) Moderately Important (iii) Important (iv) Least Important

(v) Not Important

o Promotional opportunities:
(i)Most Important (ii) Moderately Important (iii) Important (iv) Least Important
(v)Not Important
o Fairness of reward:
(i) Most Important (ii) Moderately Important (iii) Important (iv) Least Important

(v) Not Important

oPerquisites:
(i)Most Important (ii) Moderately Important (iii) Important (iv) Least Important

(v) Not Important

o Better scope of revealing own skill or talent:
(ii)Most Important (ii) Moderately Important (iii) Important (iv) Least Important

(v) Not Important

o
oFlexible work schedule:
(i)Most Important (ii) Moderately Important (iii) Important (iv) Least Important

(v) Not Important

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