Industry 4.0 and the Changing Employment Relations: A Case of the Indian Information Technology Industry

Abstract

This article aims to explore the dynamics of employment relations (ER) in the Indian information technology (IT) industry in the context of an ongoing technological revolution. The study utilises the grounded theory approach to draw insights from 32 professionals including project/product managers, senior management representatives and employees from junior to mid-career level currently working in the IT industry. Findings indicate that the following four forces drive the ER in the Indian IT industry: (1) labour laws, (2) compensation and HR, (3) unions and organisations, and (4) health and workplace security. Labour laws need to be updated to suit the requirements of knowledge-based professions. Compensation and HR management styles vary widely due to the disparity and heterogeneity of work. There is scope for a non-politicised union in the industry. The health and security of IT professionals need attention. Findings suggest the changing concepts of workspaces in IT, dilution of HR in IT due to increased outsourcing and the rise of independent workers in future. This article makes theoretical and conceptual contributions to the ER literature. It captures the driving forces of ER in the Indian IT industry. The article also contributes to decent work, convergence–divergence paradigm and outsourcing in Human Resource Management.