- Title
- Innovative HR practices: evidence from three IT software services organisations
- Creator
- Malik, Ashish
- Relation
- Business Models and People Management in the Indian IT Industry: From People to profits. p. 93-117
- Publisher
- Routledge
- Resource Type
- book chapter
- Date
- 2015
- Description
- The increasing pace of globalisation and, in particular, the offshoring of goods and services has contributed to widespread geographical dispersion and the disaggregation of a firm's production function. These changes have led to the reallocation of work activities and the development of new forms of work organisation, such as networked firm designs, offshore strategic alliances and business-to-business service relationships (Bruche, 2009; lmmelt, Govindarajan and Trimble, 2009; Mudambi, 2008). It is not surprising then to see renewed calls for reconceptualising theories of work and working, especially as the manufacturing mindset of producing tangible goods and products in local proximity is no longer fully applicable to such newer forms of work, which often involves technology-mediated co creation of intangible services across borders (Ashcraft et al., 2011). The literature on strategic human resources (HR), HR management (HRM) and work organisation highlights the importance of the integration and alignment of multiple types of internal and external fits namely, vertical (strategic), horizontal (HR practices), organisational (for example, history, culture, ownership and technology) and institutional (for example, legislation, norms, values and firm population) for achieving high firm performance (Boon, 2008; Boselie, 2010; Deephouse, 1999; Paauwe, 2004). The general argument is that the closer the fit and alignment the better will be the performance outcomes (Boon, 2008). Successful offshore information technology (IT) outsourcing firms depend significantly on the quality of HR employed. A firm that lacks any strategic initiative for developing its workforce and relies exclusively on factor markets will find it difficult to become strategically distinctive and efficient in the longer term to sustain the pervasive influence of its clients. Further, to the best of the author's knowledge, earlier research has neither dwelt upon investigating a set of innovative HRM practices in IT software services nor considered the impact of a firm's external stakeholders, including its clients, in shaping its HRM practices. This chapter, therefore, is aimed at, first, broadening our understanding of what are the key innovative HRM practices, by incorporating the influence of external stakeholders. Second, by studying the key HR practices employed by IT software services firms, one can understand why some firms invest in certain types of human capital and organisational capabilities and, thus, uncover what skills and capabilities are critical in developing better a strategic fit. This is done in the context of software services firms operating in the Indian IT industry. This chapter makes the following contributions. In terms of originality this chapter focuses on an organisational-level understanding of internal and external factors and how they interact in shaping HR practices in an unique contextual setting - India's offshore outsourcing IT services industry. In terms of its utility, the development of a novel theoretical framework for business-to-business IT outsourcing service firms is highly relevant here, to understand the influence of external factors. Finally, by uncovering IT firms' strategic choices in relation to training and HRM practices, we can unbundle the strategic dimensions of training and capability development critical in achieving a strong strategic fit. The rest of the chapter is organised as follows. First, a brief review of India's IT sector is offered. Second, a short review of the extant literature on innovative HR practices is presented. Third, a case is made for incorporating relevant theories to construct a novel theoretical framework. This is followed by the methodological and analytical strategies and discussion.
- Subject
- human resources; HR management; India; IT industry
- Identifier
- http://hdl.handle.net/1959.13/1309981
- Identifier
- uon:21968
- Identifier
- ISBN:9781138783188
- Language
- eng
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