Information Technology Services Sector Research Articles

The determinants of talent retention in the information technology services sector in Malaysia

This research aims to investigate the factors influencing talent retention within Malaysia's IT services sector. Specifically, it seeks to determine the impact of reward programs, career development, and work-life balance on talent retention. Conducted in a descriptive, non-contrived setting, this study employs a convenience sampling method. Self-administered online questionnaires are utilized for quantitative data collection. The research employs a correlation method to examine the association between reward programs, career development, work-life balance, and talent retention. Questionnaires, adapted from prior research, are distributed via WhatsApp and email, targeting a minimum sample size of 384. Data analysis is conducted using SPSS, a software suite designed for social science research. The study reveals that two out of the three hypotheses establish a significant relationship between rewards programs, career development, work-life balance, and the retention of talented workers in Malaysia's IT services sector. These findings suggest that attention to rewards programs and career development significantly influences talent retention in the Malaysian IT industry. The study recommends further exploration of variables that might exert a more substantial impact on talent retention within the Malaysian IT services sector. This research contributes valuable insights into the critical determinants of talent retention in Malaysia's IT services sector. The identified relationships between rewards programs, career development, and work-life balance offer practical guidance for industry professionals, informing strategies to enhance talent retention practices.

An adoption of sustainable business model: An empirical study identifying the success factors of IT service sector organizations

Being competitive has become essential to surviving in the current, rapidly evolving and highly dynamic corporate climate. Companies must streamline their operations if they want to remain competitive. Enterprise resource planning (ERP) systems that have been applied successfully give businesses better practices and procedures. The article uses past literature to illustrate a new conceptual framework considering strategic, organizational, technological and environmental aspects for the effective implementation of ERP system in the information technology (IT) service sector. The primary focus is to find out the effectiveness of ERP deployment from the users’ perspective. For this analysis, information was gathered from 152 Indian IT companies that had already installed an ERP system. Factor analysis, both exploratory factor analysis and confirmatory factor analysis, was used in the present study to find out the factors from the mentioned four perspectives. Structural equation modelling allows researchers to observe the relationships between the emerged factors. The findings suggest that end users of IT firms have recognized the value of emerging constructs for successful ERP implementation leading to sustainable firm growth, underscoring the significance of the suggested framework in their quest to become more competitive in the market.

The role of critical conjunctures in regional path creation: a study of Industry 4.0 in the Silesia region

ABSTRACT Conceptualizations of path creation proposed in recent years neglect the role of time and temporal mechanisms. This paper argues that a more comprehensive understanding of inter-path relations that incorporates both agency and relationships among temporal sequences can be achieved using the concept of critical conjuncture, which is overlooked in the contemporary path-creation literature. This paper draws on a case study of the industrial region of Upper Silesia, Poland, where a new regional trajectory is emerging as the result of the unpredicted critical conjuncture of the endogenously driven path of the information technology services sector and the exogenous foreign direct investment-based path of the automotive industry.

Incremental and radical product innovation capabilities in a quality management context: Exploring the moderating effects of control mechanisms

This paper addresses calls for understanding of the contextual conditions under which Quality Management (QM) may be effective in supporting radical and incremental innovation in a technologically dynamic sector. Particularly, formal and informal control mechanisms can play a role in such a knowledge intensive sector, where the degree of formalisation may be a constraint to explorative behaviours. This study focuses on the moderating role of support for creativity and formalisation of the innovation process as two types of control mechanisms entailing different levels of formalisation. The sample consists of 111 organisations from the information technology service sector featuring technological dynamism. The results evidence that QM is associated with incremental innovation capability, but not with radical innovation. A positive moderating role of formalisation of the innovation process was found in incremental innovation. The results indicate that these two types of innovation require different kinds of resources and enabling actions, which advises the adoption of a contingent perspective when analysing the QM–innovation link in future research. The existence and use of specified procedures are not a drawback in the innovation process within a firm. Thus, organisations should be aware that the effectiveness of QM to increase incremental innovation capability is likely to be enhanced by a formalisation of the innovation process. In contrast, for breakthrough innovation, QM was not evidenced to be a successful mechanism. The findings suggest that support for creativity is the mechanism that managers can best use to promote radical innovation.

Complacency Leading to Reduced Competitive Intensity in the Indian Information Technology Services Sector Resulting in Diminished Market Opportunity

Indian Information Technology (IT) services sector today commands a huge share of worldwide IT sourcing spend. India stays to be a driving force for worldwide sourcing growth despite rising de-globalization moves across Western economies, challenges posed by East European nations, Russia, China and East Asia. A pertinent question that comes up is how will India take on the rivalry, while the Indian IT services sector seems to be content and complacent. One can see that the hunger for growth which we saw in the late 1990s and the decade of 2000s is fast eroding. India’s incentive to the world market was its economies of scale and cost advantage; however, the disruption created by the extant outsourcing or offshoring business model is fast receding. The Indian IT Services players turned complacent while competing as disruption and differentiation gave them a unique advantage and value proposition. This article builds on various articles in this domain while analysing how complacency affects competitive intensity, in turn resulting in a reduced intensity in market growth opportunity. This article endeavours to evaluate whether Indian IT services sector is trapped in its self-projected image leading to Narcissus effect.

Geographical Proximity Paradox Revisited: The Case of IT Service SMEs in Poland

Knowledge flow is among the most crucial social processes triggering innovation and regional development. Intercompany knowledge flow among Polish information technology (IT) service small- and medium-sized enterprises (SMEs) is studied in this paper. The main aim is to identify market and technological knowledge flow channels and their spatial scales. Based on information derived from computer-assisted telephone interviews (CATIs), in-depth interviews (IDIs) and data analysis (correspondence analysis and comparative study of spatial structures of knowledge flows), the geographical proximity paradox is tested. It is argued there is a need to move beyond the local buzz–global pipeline dichotomy. Knowledge is acquired at various spatial scales, which enhances the sustainability of the knowledge acquisition process and makes companies, regions and cities more resilient. The multiscalarity of knowledge flows is the most remarkable in the case of private contacts with colleagues from schools or previous workplaces. Spatially diversified study and job experiences of entrepreneurs goes along with return migration. In earlier Central and Eastern European studies, knowledge flow was often defined by the dominance of national (domestic) flow over weak global interactions. Trade relations, especially those occurring on an international scale, represent the most important channel of market and technological knowledge flow for the surveyed companies. The second most important channel is the employment of specialists, which is by far the most frequent and most important on an interregional scale. Due to the small size of surveyed companies, foreign specialists are used least frequently. Instead of using regional business events as a vehicle for knowledge flow, representatives of the IT service sector prefer to attend domestic meetings. In the case of Polish IT service SMEs, the paradox of geographical proximity is better described by the dominance of national over global knowledge flow.

Challenges and Opportunities for Improving Growth in the Information Technology Services Sector in Romania

Challenges and Opportunities for Improving Growth in the Information Technology Services Sector in Romania

Innovation, knowledge and relations – on the role of clusters for firms’ innovativeness

ABSTRACTFor more than two decades, theories on regional clusters have inspired economic and structural policies at the European, national and regional levels. Based on the assumption that clusters generate innovation, policy-makers at all levels of governance have adopted instruments and mechanisms to stimulate, resource and sustain clusters. Despite the considerable attention paid to the clustering phenomenon, empirical evidence on to what extent firms’ innovation activities benefit from operating in clusters is scarce and inconclusive. This paper contributes to the micro-foundation of clustering effects by examining the characteristics and activities of cluster firms in relation to their innovativeness. Bridging innovation, management and cluster theories, it is argued that structural and relational embeddedness, relational capital and absorptive capacity influence clustered firms' innovativeness. Partial least-squares structural equation modelling of data from 104 firms in two software and information technology service sector clusters reveals that firms’ structural embeddedness (i.e. frequency of interactions) in clusters and external networks facilitates innovation cooperation. Firms’ absorptive capacity reinforces this positive effect of cluster-internal interactions on innovation cooperation. Results also suggest a substitution effect of trust as relational control mechanisms for formal control mechanisms within the cluster. However, the study finds no significant impact of firms’ innovation cooperation within the cluster (i.e. relational embeddedness) on their innovation success.

Making it happen: How managerial actions enable project-based ambidexterity

The literature on ambidexterity is dominated by theoretical development and does not fully explain how ambidexterity is enacted. There is limited focus on the managerial actions in day-to-day operations that enable this important phenomenon. We posit that projects offer an ideal context to investigate the actions that enable ambidexterity since they necessarily combine planning and control (exploitation) with some degree of novelty (exploration). Using extensive data from eight project-based case studies in the Information Technology services sector, we ask the research question, How is project-based ambidexterity enabled? Within this context, we identify two different types of project-based ambidexterity ( distributed and point ambidexterity) and five managerial actions ( buffering, gap-filling, integration, role-expansion and tone-setting) that enable ambidexterity. We investigate the underlying resource utilisation in terms of intellectual capital (namely, human, social and project capital) and show the complexity of their interplay in achieving ambidexterity. Finally, we develop a model that brings these concepts together and identify how the ‘integration’ function is central to, and interwoven with, the other actions.

Quality of Work Life Metrics as a Predictor of Job Satisfaction and Organizational Commitment: A Study with Special Reference to Information Technology Industry

Information Technology (IT) industry in India is playing a very important role in putting India on the global map. This industry has become one of the most significant growth catalysts for the Indian economy. Indian firms, across all other sectors, largely depend on the IT service providers to make their business processes efficient. NASSCOM expects the IT services sector in India to grow by 13-14 per cent in 2013-14 and to touch US$ 225 billion by 2020. The major strength of IT industry lies in its human resources. Human resources play a pivotal role in the success of the IT industry. Today’s IT industry concentrates on its so called intellectual capital for enhancing its growth. They make the employees committed and satisfied through providing a satisfactory quality of work life. QWL in IT industry influences job satisfaction and organizational commitment to a greater extent as compared to other industry. DOI: 10.5901/mjss.2015.v6n3s2p170

Indian Information Technology Services Sector and the Domestic User Industry An Uneasy Partnership?

India has grown to be a powerhouse in providing Information Technology (IT) Services to myriad clients all over the world. This sector has shown that it has what it takes to move beyond pure cost arbitrage and up the value chain. Despite the successes of this sector and its prowess in providing world-class solutions, there is empirical evidence which suggests that the domestic user industry remains woefully underserved for its IT requirements. This study theorises that this is due to the tax-break based incentives provided to the Information Technology Service providers, which have resulted in an environment where servicing the domestic IT users, especially the Micro and Small Scale Enterprises, becomes non-remunerative.Therefore, domestic industry’s use of Information Technology happens without any government aid or incentive. On the contrary, current government policies result in a number of missed opportunities, rendering Indian businesses uncompetitive. In this paper, we analyse the impact of export oriented tax incentives on the domestic sector and attempt to identify a few policy mechanisms that could obviate their negative effect.

Information Technology Services: A Key Knowledge-Intensive Business Service Industry in Hong Kong SAR, China

As the global economy focuses increasingly on Asia, Hong Kong’s role as an intermediary between China and the rest of the world merits investigation. In view of the increasing importance of knowledge-based business services and Hong Kong’s recent drive to promote innovation and high-tech services, economists and policy makers must understand Hong Kong’s capacity to support economic development in the Asian region. Following a theoretically informed discussion of the role of information technology (IT) services within the broader category of knowledge-intensive business services (KIBS), Hong Kong’s IT services sector is described and analysed to determine its potential for supporting an innovative local services environment and to identify the key opportunities and challenges involved in further developing the sector. In-depth interviews of important actors in the IT services sector in Hong Kong and case studies of firms that have leveraged IT services supplement our analysis of data on IT service production and usage. IT services represents an opportunity through which Hong Kong can use targeted policy to drive growth and expand and deepen economic relations with Mainland China.

Managing Indian IT professionals for global competitiveness: the role of human resource practices in developing knowledge and learning capabilities for innovation

Little is known about how human resource practices contribute towards the competitiveness of people based-knowledge intensive organisations in developing countries. This paper examines the role of human resource practices in developing knowledge and learning capabilities for innovation in the Indian information technology services sector. The study draws from the experience of a sample of 11 of the largest information technology service providers (ITSPs) in India and is based on in-depth interviews. The main finding suggests that the talent management architecture of ITSPs that comprises human resource practices and the development of knowledge and learning capabilities is the main drivers of innovation. A conceptual framework showing the link between human resource practices, knowledge and learning capabilities and innovation of ITSPs is developed followed by the limitations of the study and avenues for future research.

The Evaluation of Innovation in the IT Service Sector: Methodological and Empirical Aspects

Purpose — Nowadays services are comprehended as the key factor for economic activity, growth and employment. Developed economies are service-dominated though little is known about the innovation details in the service sector and this study field has been neglected for a while. The innovation in service sector activities needs to be thoroughly evaluated because innovation is an interconnected process and cannot be defined using one or few indicators. IT services are an integral part of contemporary life, particularly for business. It can be introduced and implemented in all fields, especially when the world is becoming more multidimensional. Innovation performance in the IT sector has been under-researched, despite the fact that IT service sector plays the innovation disseminator role in other sectors by appliance of IT products. Design/methodology/approach — Based on scientific literature and methodological aspects analyses, an empirical research methodology was designed and the qualitative research on innovation in information technology service sector was accomplished. Findings — The article presents methodological aspects of innovation evaluation in service sector and empirical aspects on innovation implementation and development in the IT service companies in Lithuania. Research limitations/implications — For more comprehensive understanding of innovation in service sector, especially in IT services, the theory of service innovation is necessary. Deeper understanding and perspectives on how innovation benefits the information technology sector should be revealed in further researches and the multi-country analysis is needed. Practical implications — The finding of the paper can be used to improve the development of innovation in information technology service companies and create a model for more exhaustive multi-country empirical researches. Originality/value — The impact of innovation and its development in information technology service sector has not been analyzed thoroughly in previous researches. Article Type — research paper.

A Comparative Assessment of the Information Technology Services Sector in India and China

The purpose of this paper is to assess the nature of competition in the information technology (IT) services sector between India and China. Using primary and secondary data sources, we compare and contrast the strengths and weaknesses of the IT services sector in the two countries along the main dimensions of Porter's competitive advantage model. The principal findings indicate that the IT services sectors in the two countries are distinctively different, have developed along different paths and are highly complementary to each other. China has a well-established hardware sector and its IT services sector focuses mostly on servicing its domestic market. India's IT services sector is predominantly export orientated with focus on the US and Western European markets. Contrary to popular beliefs, given the complementary characteristics of the IT services sectors in India and China, it is unlikely for the two countries to compete against each other in the near future and greater strategic co-operation between IT service providers in the two countries is a more likely outcome.

Does the UK have a ‘comparative institutional advantage’ that is supportive of the IT services sector?

This paper applies a ‘sector-in-country’ approach to examine the institutional conditions associated with the recent expansion of the information technology services sector in the UK. The findings reveal both synergies and tensions between the business and employment conditions of the sector and the wider institutional characteristics of the UK employment model.

Knowledge retention in the IT service industry

PurposeThe purpose of this paper is to develop and evaluate an effective employee retention plan for information technology (IT) service organizations as part of a knowledge management (KM) strategy.Design/methodology/approachThe employee retention plan is evaluated at three IT multi‐national companies which are providing global IT services with successful knowledge management systems (KMS) in place. Semi‐structured telephone interviews were conducted with senior managers and team leaders of three companies. The data collected is used for studying attrition and retention and its impact on KM.FindingsThe paper provides evidence of various strategic, technological, and local issues influencing the success of retention and its benefit to KM programs in global IT service companies. Organizations adapt attrition control measures for long‐term benefit. These measures help in effective KM, serving the client at lower cost with consistent service levels.Research limitations/implicationsInterviews are limited to three large companies in the IT services sector in the Bangalore (India) region. Future in depth studies would benefit from a larger and more diverse sample. It is suggested that IT service organizations develop and practice effective employee retention plans along with effective KMS.Practical implicationsTo provide clear benchmarks for developing employee retention capabilities, an employee retention plan for IT services is proposed. The employee retention plan is discussed from a consistent delivery perspective and in view of effective KM practice.Originality/valueThe paper conducts an evaluation of the retention measures and provides a roadmap for future research endeavors.

Services, innovation and the new economy

Several distinctive stylized facts form the new economy, an information technology service sector organized in network forms of organization, an inflation rate below its fundamentals, an increase in stock market volatility, high rates of economic growth, but apart from a small information technology manufacturing sector low productivity rates. This paper presents a model where the innovation of new service varieties can explain all of these facts. First, productivity gains are no longer realized within but between firms, as the increase in variety increases value-added per employee. Whilst service innovators, such as the information technology manufacturers, get ever more productive, individual service firms will exhibit low productivity. It is this unmeasured sectoral productivity gain, which is the key element in understanding the intrinsic inertia in the price index. Finally, the paper shows that variety in the service sector enables service providers to realize rents, where fluctuations of these rents are the basis of more than proportional changes in the firms' stock market value.