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Human capital has become an important resource on which the information technology-enabled services (ITeS) has been relying upon. The ITeS segment includes units like call centres, medical transcription, medical billing and coding, back-office operations, revenue claims processing, legal databases, content development, payroll services, logistics management, human resource (HR) services, geographical information system (GIS), web-related services, and so on have to formulate certain strategies to retain the human resource in their organizations. The rapid changes in technology and internet-related activities has made the ITeS sector more advanced and competitive. The technological evolution such as cloud storage, big data, the Internet of things, artificial intelligence and various other platforms have helped organizations to tackle the market challenges and managing various products and services. This helps in updating the product or services offered by the enterprises and enhance customer satisfaction (Clexab, 2019).
The ITeS segment is playing a substantial role in sprouting the economic reforms as the provider of human resource and various processes. The Indian ITeS segment slowly started making a terrifying global presence. This segment has changed its status by the integration of both horizontal and vertical value chain process. The outsourcing segment flourished and made its mark in the global IT-enabled services sector based on viable price with specified quality of service of the organizations in process transfer and human capital (ICSI, 2018). The research and market report for 2018-20 stated that globalization has caused labour arbitrage shifting the business operations to less expensive locations. Labour arbitrage is viewed as one of the potential benefits of business and knowledge process outsourcing segments. The organizations incorporating outsourcing policies need not necessarily invest in resources or fear managing their available resources (RandM, 2018). Despite their trials, the ITeS can retain the employees and the rate is still very high in this sector.
The ministry of information technology has recognized the ITeS segment as a distinct part of the IT industry. The revenue generated by the Indian IT-ITeS segment collectively is USD 141 billion in the year 2016-17 and has grown to USD 151 billion for the year 2017-18, with an approximate growth rate of 7 per cent. During the year 2017-18, the ITeS sector was a moderate performer by contributing USD 28.4 billion to the Indian economy. The growth rate was 9.2 per cent over the previous year and the cumulative annual growth rate was 9.19 per cent for the last five years. The total direct employment in the IT/ITeS sector was around 1,05,000 employees and reached 3.96 million during the year 2017-18 and is anticipated to grow by about 4 per cent which is a substantial achievement for the segment (Meity, 2018).
The organizations are facing certain difficulties such as recruiting experienced and skilled employees, motivating the employees, increasing their morale, and making them contribute towards the organization. Organizations have been trying to apply certain strategies to retain the employees in the organization. The competitive environment is driving the global market and trust in the process providing cost savings, a flexible work environment and increased operational performance (PWC, 2005). The retention activities are the business activities designed for increasing employee’s commitment towards the organization by providing them numerous opportunities for excelling and grow by outperforming other employees (Bogdanowicz & Bailey, 2002). Employee retention is influenced by the demand for experienced individuals particularly at the supervisory level making the management provide incentives and salary increments to attract efficient and rebel employees leaving organizations. The companies are focusing on the employees who can perform under high pressure and stressful working environment (Patro, 2020). With the effect of uncertain conditions, most of the employees try to leave one organization and serve other organizations after investing in the recruitment and training process (Taylor & Bain, 2005).