HRM and firm performance: The case of the Indian IT/BPO industry
This chapter examines the contribution of human resources (HR) towards high performance work systems (HPWS) in India-based information technology (IT) and business process offshoring (IT/BPO) organisations. It aims to add to the evolving body of literature on human resources management (HRM) in India in general and into the IT/BPO sector in particular. It thus contributes to the debate about the theoretical basis of IT/BPO strategies with implications for strategic level decision-makers, and examines the extent to which transaction cost economics (TCE), human capital (HC) and the resource-based view (RBV) explanations of HR practices are evident in the analysis context. The argument developed here is that HR practices in Indian IT/BPO organisations show evidence of longer-term developmental activities appropriate for organisations that are developing, or have the potential to develop, synergistic IT/BPO relationships contributing to resource complementarities with clients. This idiosyncratic approach highlights the role of both individual employees (as units of human capital) and the broader HRM system. This chapter therefore highlights the lack of research into HPWS in Indian IT/BPO organisations, as compared to the vast body of HPWS literature and hence we propose areas for future research.
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