Organizational Change in IT industry in India -

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Human Resource Assignment Question

Consider an organisational change you have recently experienced (or are experiencing) and apply one of the models of organisational change studied in Topic 3. Explain what led to the success or failure in the implementation?

Human Resource Assignment Solution

Information Technology is well past its booming period in India and IT companies are currently witnessing their maturity stage, showing steady growth figures and income. While startups come with niche solutions, the IT giants in India strive to maintain their stronghold in the IT outsourcing market and as a result, they have to constantly look for ways and means to ensure a steady inflow of cash in the form of business, customer retention and lower attrition rate. This can be achieved in various ways, one way is a change in the organizational structure that would ensure that the company is able to utilize the full efficiency of its employees, which in turn ensures that the clients are satisfied and hence, business continues to witness a steady growth and the organization is able to retain its position in the market and perhaps, climb up in the ladder as well.

Industry Overview

Today, the IT industry in India accounts for about 67% of the total US$124-130 billion markets. The unique selling proposition of India has been the cheap workforce which is around 3-4 times cheaper than what is available in the US. The CAGR of the IT industry is 23.72% at present, which is very steady and promising at the same time. Given the current growth rate, this sector is also expected to triple its annual revenue to around US$350 by 2025. This is in line with the ‘Digital India’ campaign that the current NDA government is practicing because of which IT companies are getting business wherein they are supposed to digitalize the various government initiatives and also embark upon the task of making the public ‘pro-IT’. Another major catalyst to the IT growth story in India is the emergence of e-commerce which currently has a market size of US$ 12 billion and is expected to have a growth rate of 51%. This would tantamount to US$ 120 billion by 2020 (“India Is The Fastest Growing E-Commerce Market: Study – Times Of India”). To keep up with this overwhelming growth rate, it is necessary that IT companies maintain their competitive advantage and this is where the concept of organizational change comes into play………………..