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CIOs Winning Strategy
Indian CIOs understood early in the game that what they needed were not nerds but future business leaders. This understanding helped them avoid a head-on competition with Indias vibrant IT industry for talent
Atreyee Ganguly
Thursday, May 22, 2008

War of Talent, Growing Attrition, Manpower Crunch: phrases which have caught the attention of the media. It has taken HR out of the office boundaries of IT companies and into peoples living rooms and evening cocktails.

Suddenly everybody (also IT outsiders) is talking vociferously about hiring woes, and talent managementall thanks to the booming Indian IT services industry. Competition is tough. Despite being a young country, its obviously becoming a problem to satisfy the services companies insatiable appetite for more and more manpower.

But though these companies are weighed down because of the huge volumes they have to hire and train (and retain), they are able to offer very attractive salaries, big perks, glitzy work environment, globe-trotting, et al. Not to forget the lure of extensive training.

Where is the Fire?
Many CIOs become part-defensive, part-reflective when asked how they manage to attract and retain IT talent, in the face of tough competition from an industry that competes on peopleIndias vibrant IT services exports industry. After all, whether it is salary, proactive feel-good HR policies, or growth, the IT services industry offers a lot to its employees as compared to any other. Most CIOs point to the responsibility and ownership in user companies as clear differentiators.

With a tech user company, theyll be working with the business people, learning functions, processes. They will grow into becoming business leaders. Whereas the services firms offer fast growth, big salaries but they dont get the same depth, the width of experience, says Hilal Khan, head, Corporate IT, Honda Motors, who looks for a 50:50 mix of freshers and skilled-professionals for his team.

Most CIOs insist user companies offer their own brand of glamourthe glamour of being a part of the companies business decisions, and wholesome, fulfilling work.

They are not overtly worried about attrition and hiringa sure sign that their strategy is paying off. For example, Arun Gupta, CIO, Shoppers Stop, places hiring and attrition way down at a #3 or even below in his pain list.

Price is an issue and retention a pain area, but with IT now being looked upon as a business enabler rather than a cost-center, hiring is not a problem

Zoeb Adenwala, CIO, Essel Propack

There is an across the board shortage of people who want to do a good job. Long-term skill development and a career approach is at a discount across functions

Shikha Rai, director, IT, Canon India

Over the last year, we have been able to create stability within the team by offering a mix of projects and operational activities such that they do not find themselves stagnating in their current roles. With reduced attrition, and the focus on skill upgrades and enhancements, our IT team has been able to scale up to the need at hand. Coupled with tactical outsourcing, our people issues have been addressed, Gupta adds.

Guptawho, before his present assignment, was with Pfizer, a company often referred to as a CIO factory, with so many IT heads in India being its alumnirefers to tactical outsourcing, thereby hinting that the real job of an IT guy in the future may not necessarily be doing IT, but ensuring business happens through IT. Inadvertently, thanks to their exposure to the world of outsourcing, many Indian CIOs understand that going forward, they will have to outsource more and more. In such an environment, it is not knowledge of the latest technology but translating business vision to IT and managing services relationships will be key to success of an IT professional in a user organization.

In line with that, most CIOs look for fundamentally different qualities in the candidates that they look for hiring into their IT organizations from what IT firms look for.

What I look for is if the person is mentally ready to join my company, do the job I require him to do, understand the business implications. Id rather take a positive attitude and a long-term commitment, than skill-sets, says Ritu Madbhavi, VP, IT at FCB Ulka.

Khan of Honda Motors agrees. Instead of restricting the choice to a person with skill-sets he goes for people who are logical, astute, positive, and who have good selling skills, team spirit, and communication skills.

He says for a techie who passes out of college, there are two choiceseither become a user of IT or a creator of IT. S/he has to measure the merits and demerits of both, and make her or his own choice.

There are some CIOs who acknowledge that at a broader level, finding skilled IT professionals is a challenge, though it may not be a top worrying factor as of today. Says Shikha Rai, director, IT, Canon India the malaise runs deeper in that there is an across the board shortage of people who want to do a good job. Long-term skill development and a career approach is at a discount across functions.

But most CIOs say IT skills are secondary to business acumen quite unequivocally, though that will be tested only when they do not find enough people who have both!

What the user companies have managed to do is focus away from the traditional requirement of skills, skills, and more skills, and on business acumen and the ability to take responsibility. They have managed to attract a fundamentally different breed of IT professionalswhore not nerds but the future business leaders. And the strategy is paying off.

Inclusive Growth
So what seems to be winning the war of talent for the user companies is the job role they have on offer. And it is very important, as Madbhavi rightly points out, that you sell the job honestly. If you present a false picture, youll end up the loser. Considering what a huge cost losing people is to the company, when you take into account the spend on an employeetraining, HR processes, hiring costsit sure seems like very sensible advice.

The employee works closely with the business people, works on every damn thing as she puts it, and has complete ownership. Theres instant praise and problem solving, and a strong sense of belonging.

To keep employees happy you have to facilitate better HR practices within the department, and reward achievements

Pradip Lele, VP, IT, S Kumars Nationwide

An IT company can give you fast growth, big salaries but what a user company gives you is depth, width, and flavor

Hilal Khan, head, Corporate IT,
Honda Motor India

What I look for is if the person is mentally ready to join my company, do the job I require him to do, understand the business implications

Ritu Madbhavi, VP, IT, FCB Ulka

We offer them the exhilaration of being able to reap the benefits of their toil and effort by seeing how the technology solution they created has impacted the business

Arun Gupta, CIO, Shoppers Stop

What we offer is a long-term career option, and we look for commitment in return.

Its a close group, they can walk up to me anytime and share their concernspersonal or official. There is continuous mentoring and hand-holding, is the kind of atmosphere Madbhavi offers to her team. Agrees Gupta: We offer them the exhilaration of being able to reap the benefits of their toil and effort by seeing how the technology solution they created has impacted the business. Many professionals are driven by this, and their love of business and technology, in combination, is higher than other incentives offered by the services companies.

In a technology company you will be given software applications to develop, which you just go back and do, but in a user company you have a say, a complete sense of ownership. You know what is good, what will work, and you put it across, and you are heard. That itself gives tremendous satisfaction, says Madbhavi, and she knows, shes been there, having worked with TCS and NIIT.

Pradip Lele, VP, IT at S Kumars Nationwide finds that getting them (manpower) within the designations, role fitment, and package limits is a problem. He puts a lot of stress on checking personal reference, and evaluating total exposure with fitment to his requirements. He says that though tech companies do get the advantage of internal and external competition, at the user-end psychological analysis as well as personal background analysis at the interviewing stage plays a crucial role. He says to keep employees happy you have to facilitate better HR practices within the department, and reward achievements, though he feels that aspirations of candidates are much higher compared to capabilities.

Shikha Rai of Canon says hiring, retaining, salary, growthall four dimensions have their own challenge. The principle shift is the paradigm of instant gratification. All across there is a transformation where expectations from the job has overtaken the responsibility to deliver but adds that people who deliver develop a reputation and are sought after. The grass does appear greener across the fence, but walking across and exchanging notes with friends leads to similar storiespeople who have stuck around with the organization do find security that the environment provides and the gaps created on account of attrition provides a huge opportunity. Hence, yes, there are those who choose to stay and flourish.

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