IT sector being a knowledge-based industry, a high intellectual capital lends competitive advantage to a firm. With a global explosion in market-opportunities in the IT sector, the shortage of manpower both in numbers and skills is a prime challenge for HR professionals. The related issues are varied indeed: recruitment of world-class workforce and their retention, compensation and career planning, technological obsolescence and employee turnover.
The need of Technological organizations for people and people for organizations will be more difficult to satisfy in the today’s competitive business environment. Organization’s competitive advantage could be generated from human resources (HR) and organization performance is influenced by a set of effective HRM practices.