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The Top 10: 6 - IBM: Competing on People
HR has to be a competitive strategy, the Big Blue realized a few years back. The result: it has beaten all large firms who compete directly with it, barring TCS
Friday, August 31, 2007

In a fairly heterogeneous list of companies (big and small, domestic and export-oriented), it is often difficult to compare companies, even as best employers. What matters is how the companies that compete for the largest chunk of manpower stand in relation to each other. The Big Blue marches ahead of Infosys and Wipro (though still behind TCS) to challenge what Indian companies have long claimed: people management gives them a distinct advantage over non-Indian companies, when it comes to India delivery. That myth is shattered.

If you get into the details, it shatters even more myths. One such is that MNCs basically lure people by paying big money; the reality: IBM ranks at the bottom of the table when it comes to compensation. It owes its showing almost exclusively to its strong brand image, and high standards of corporate values and governance.

IBM also scores in something that Indian techies have eternally desired and will always do: better training and development. The other area where IBM scores is flexibility in working/balancing social life and diversity. IBM is #1 in the industry in terms of addressing the needs of women employees.

Pari Sadasivan,
VP, HR

High Ratings

Industry rank

Corporate governance

5

Company puts high value on integrity

6

Company conducts its business in a fair manner

7

Low Ratings

Relevance of perks and benefits

19

Adequate pay for the work done

19

Fairness of the appraisal system

20

Best Showing

Training & development opportunity

1

Company image

2

Flexibility of office hours

5

But IBM scores badly on all aspects of appraisal. Par Sadasivan, IBMs HR head attributes it to the side effects of a very rapid growth, and hopes that will change for better as the operations stabilize.

Nitty-grittys notwithstanding, IBMs performance in the BES Top 20 Survey proves one thing: the India thrust that CEO Sam Palmisano has announced is for real, and if it means competing on people, so be it. IBM has moved some of its best business managersincluding Sadasivan herselfto HR to fight it out in the Indian labor market. As Indias IT workforce is exposed more and more to global practices, they will expect the same from their employers. IBM is already scoring on future parameters (ethics, diversity, etc), while trying to adjust to Indias unique local needs (job security and training).

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