Human Capital Strategies of IT SMEs in India.

The IT SME sector in India makes a major contribution to the Indian economy but is quite under-researched compared to the large IT sector. SME's have challenges and opportunities that are distinct and unique. A key driver of competitive advantage in the case of IT SME firms is their human capital strategies, which is the subject matter of investigation in this paper. Our study is based on a questionnaire survey and in-depth interviews with management. We find that freedom to work independently and less bureaucracy are important in influencing employees to work in IT companies in the SME sector. Lower salary levels compared to the large firms is a constraint on hiring and retention. Rapidly changing IT technologies pose multiple challenges and opportunities for IT SME firms. [ABSTRACT FROM AUTHOR]