A Study On Employee Satisfaction in IT Industry

PROJECT REPORT
ON
A Study on Employee Satisfaction in the IT Industry
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CONTENTS
SNO. TOPIC
1 DECLARATION
2 ACKNOWLEDGEMENT
3 INTRODUCTION
4 COMPANY PROFILE
5 INDIAN IT INDUSTRY AT A GLANCE
6 INDIAN BPO INDUSTRY AT A GLANCE
7 OBJECTIVES
8 RESEARCH METHODOLOGY
9 ANALYSIS AND FINDINGS
10 LIMITATIONS
11 RECOMMENDATIONS AND CONCLUSIONS
APPENDICES
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FIGURES
Figure no. Topic Page No.
1 Structure of Sonaiya
2 Geographical Location
3 Period of working
4 Income of employees
5 Working period and monthly salary
6 Monetary and non monetary benefits
7 Satisfaction of employees in the organisation
8 Level of satisfaction
9 Preference of employees
10 opinion on work environment
11 Culture and policies
12 Preference on salary hikes
13 Teamwork & cooperation
14 Preference on training
15 Performance evaluation
16 Praise and recognition
17 Manager feedback
18 opinion on growth oppor.
19 satisfaction with perks & benefits
20 manager’s support
21 opinion on nature of work
22 opinion on work life bal. 1
23 opinion on work life bal. 2
24 opinion on accountability
25 Overall job satisfaction
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CHAPTER-1 INTRODUCTION
“People don't leave their jobs, they leave their managers."
Although committed and loyal employees are the most influential factor to becoming an
employer of choice, it's no surprise that companies and organizations face significant
challenges in developing energized and engaged workforces. However, there is plenty of
research to show that increased employee commitment and trust in leadership can positively
impact the company's bottom line. In fact, the true potential of an organization can only be
realized when the productivity level of all individuals and teams are fully aligned, committed
and energized to successfully accomplish the goals of the organization.
As a result, the goal of every company should be to improve the desire of employees to stay
in the relationship they have with the company. When companies understand and manage
employee loyalty - rather than retention specifically - they can reap benefits on both sides of
the balance sheet i.e., revenues and costs. On the revenue side of the balance sheet, loyal and
committed employees are more likely to go "above and beyond" to meet customer needs and
are highly motivated to work to the best of their ability.
On the cost side, loyal employees stay longer, resist competitive job offers, do not actively
look for other employment and recommend the company to others as a good place to work.
These four behaviors positively influence the cost side of the balance sheet.
In other words, rather than focusing only on retention (that is, trying to retain employees who
have already decided to leave), organizations should proactively recognize the benefits of
understanding, managing and improving employee satisfaction. The most successful
organizations are those that can adapt their organizational behavior to the realities of the
current work environment where success is dependent upon innovation, creativity and
flexibility.
One of the key steps to understanding and improving employee satisfaction is by

acknowledging the importance of the following factors in building loyalty and satisfaction:
 Broadly-defined responsibilities rather than narrowly-defined job functions
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 Effective and regular performance evaluations, both formally and informally
 A corporate emphasis on employee learning, development and growth
 Wide-ranging employee participation in the organization as a whole.
Typically, a combination of factors influences employees' decisions to stay at their current

job. Contributing factors include satisfying work, a sense of job security, clear opportunities
for advancement, a compelling corporate mission combined with the ability to contribute to
the organization's success, and a feeling that their skills are being effectively used and
challenged. Specifically, employees who enjoy their work identify themselves with their
employer and perceive that the company is flexible regarding work and family issues also
intend to stay with the organization.
In particular, consider the following elements of effective strategies designed to build

satisfaction and retain key employees:
 Include opportunities for personal growth and invest heavily in the professional development
of the best people in the organization.
 Provide employees with well-defined career paths (including a succession plan),

mentors and tuition reimbursement for job-related education.
 Train employees, even if it makes them more attractive to the competition. Without
seeing an opportunity on the horizon, few high potential employees will stay with a
company and allow themselves to grow stagnant.
 Acknowledge non-work priorities by recognizing and responding to employees' needs
for greater balance in their lives, since employees will develop loyalty for
organizations that respect them as individuals, not just as workers.
Definitions of Employee Satisfaction:
The term Employee Satisfaction was brought to limelight in 1935.the studies conducted prior
to 1933 by Hoppock observed that Employee Satisfaction is combination of psychological,
physiological and environment circumstances that cause a person to say “I am satisfied with
my job”.
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Some of the definitions of Employee Satisfaction:
1. Employee satisfaction is defined as “a pleasurable or positive emotional state

resulting from the appraisal of one’s job or job experience”.
2. Employee satisfaction is “a set of favorable or unfavorable feelings with which

employees view their work”.
3. Employee Satisfaction will be as “the amount of overall positive affect (or feelings)
that individuals have towards their jobs.
Need for the Study
Why Measure Employee Satisfaction
A company is only as strong and successful as its members, its employees, are. By measuring
employee satisfaction in key areas, organizations can gain the information needed to improve
employee satisfaction, retention, and productivity. However, a recent study by the Society of
Human Resource Management (SHRM) indicated that often the HR department's perceptions
of employee satisfaction versus the true measure of employee satisfaction are not always in
sync
.
Employees who aren’t satisfied with their jobs are very likely to leave. If they don’t leave
they can become a source of bad morale and do a great deal of harm in the organization. In
many cases employers without proper data will assume the wrong reasons for employee
dissatisfaction. Many bosses will automatically think that money is the top reason for leaving
a job. Wouldn’t it be better to have real data and react accordingly?
Surveying employees on a regular basis is a great way to stay in touch with the pulse of the
business. Before launching a survey though it is important to establish the ground rules
.
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Many employees will be unwilling to express their honest feelings if they think they will be
singled out. Make sure that the surveys are conducted with anonymity. Be certain to have the
support of company management all the way to the top. Employees want to know that the
leadership is behind the survey and that their response will be taken seriously.
Explain that employee comments are important to the company. State what will be done with
the results. And then live up to those statements. Employees will become doubtful of
management’s intentions if they don’t follow through.
There are many resources to assist companies in the survey process. However most human
resource managers are very capable of designing and conducting their own employee
satisfaction survey.
The need to survey is greater when one or more of the following factors are present.
Rapidly growing organization

When an organization is growing quickly, it is critical to find out how employees feel about
their jobs, the organization, and their fit and future within it.
High or growing turnover rate

While some industries have a naturally high turnover, growing turnover is a problem for any
organization. If your absolute level of turnover exceeds the industry average, you have a
problem that an employee satisfaction survey is the first step to
solving.
Excessive rumors
A strong rumor mill is symptomatic of other problems in the organization. These can include
communications, trust, and fear. Only a survey can uncover the extent to which any of these
issues exists. In a highly competitive industry, turnover minimization and productivity and
creativity maximization are keys to success. Staying in touch with employees is necessary to
facilitate continued competitiveness.
Planned or recent organizational changes, including change of leadership. Change can be
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difficult for many people. If not handled properly, productivity and profits can decline.
Highly competitive industry

In a highly competitive industry, turnover minimization and productivity and creativity
maximization are keys to success. Staying in touch with employees is necessary to facilitate
continued competitiveness.
Contemplated changes in pay and benefits

You must know what needs to be "fixed" and how much "fixing" it needs to maximize return
on invested money and people resources.
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CHAPTER-2 COMPANY PROFILE
Sonaiya Software Solutions

Corporate Profile
SONAIYA’s COMMITMENT
Sonaiya Software Solutions, today, is a new generation framework of technology innovators
to accelerate growth. In our each project, we emphasize on innovation. Our structured team
works with a methodology and knowledge to innovate and deliver excellent services.
We are committed to provide development and tech-support teams to software and high–tech
companies with the required infrastructure at a competitive rate from our State of the art
development centre based in Chennai, India. We provide a wide range of profiles including
project managers, project leads, Technical leads and Software Engineers. On the support side,
we provide Team leads, Senior, and Junior Technical support personnel on a 24 x 7 basis.
Values
Quality | Technology | Innovation | Customer Satisfaction | Win together
We aim to be the best at what we do. SONAIYA has a dream of evolving into a Global IT
Company, ensuring that the solutions being delivered include best practice in IT with the
chosen area of technology.
 We operate with complete focus to Maximize customer satisfaction.
 Develop and encourage an environment of mutual respect within company and
extending it beyond to clients.
 Encourage commitment and personal learning of workforce.
We are proud to have built our organization on the strong pillars of integrity, honesty, and
self-respect.
Vision
To build upon a reputation of being one of the most innovative IT Solution and Service
provider. We believe in doing our work in the most efficient way with robust and structured
methodology, with gradual evolution from hard-work to smart- work culture, at client’s end
also.
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Mission
To produce excellent services in the field of IT Services and Consultancy with maximum
efforts driven towards customer satisfaction.
SONAIYA delivers quality and timely solutions and services at a price that make our clients
smile. SONAIYA focuses on offshore development at our excellence centre in Chennai,
India. This allows us to scale up rapidly (leveraging on the plentiful supply of talent and thus
cutting down on execution time) at costs that are on an average 70% cheaper. An in-depth
knowledge of various technology areas enables us to provide end-to-end solutions and
services. With our 'Web of Participation', we maximize the benefits of our depth, diversity
and delivery capability, ensuring adaptability to client needs, and thus bringing out the most
innovative solutions in every business and technology domain. SONAIYA is your one stop
partner where you can outsource all your support services with complete peace of mind about
quality and reliability. Sonaiya Software Solutions’s strength lies in understanding the
client’s business processes, culture, vision and goals across the industry segments and
offering client oriented solutions which are highly reliable, creating customer comfort. Our
team is committed to provide IT Services with: Quality | Technology | Innovation
Our Services Include:
 IT Services
 Consultancy / staffing Services
 Education / Training
Sonaiya Software Solutions
IT Services Consultancy Training
Web Solutions Staffing Service Training Program

Classroom Training Program
Quality Employee Online Training Program
Software Solutions Hybrid Training Program
Quality Relationship Corporate Training
Turnkey Solutions Consultation
Strategic Partnership
Offshore development
Application Maintenance
& Support
Figure:1 Structure of Sonaiya
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IT Services
With the dedicated and adroit employees at SONAIYA, it has been adept in assisting the
growth of the nation in the field of Information Technology. SONAIYA with its vision of
quality and innovation has been successful in catering the needs of those who seek our
assistance in following areas of IT enabled services:
1. Software Solutions
2. Web Solutions
3. Application Maintenance & Support
4. Turnkey Solutions
5. Offshore development
Software Solutions
Sonaiya Software Solutions has developed a number of products and MIS applications for its
clients in this service. Our mature software development processes, combined with excellent
infrastructure have significantly increased the “on-time and on-budget” delivery of software
in the offshore mode. We use a highly effective IMPACT Methodology for offshore and
distributed software development. Our services begin from analysis, moving through
designing, development, testing and implementation to maintenance. Our applications come
in all sizes, be it a one-table database, or a massive client-server application. The creation of
complete database applications is yet another field that we specialize in.
We offer:
 Interactive Application Development
 Custom Application Development/ Maintenance
 MIS and ERP Solutions & Support
1. Interactive Application Development

Interactive Application Development Interactive Application Development (iAD) is about
harmonizing art with technology. This business division of Sonaiya Software Solutions
complements the client's requirement of online and desktop applications - be it a workgroup
solution or mailing platform.
A strong team of software professionals empowers the application development capability at
iAD, Sonaiya Software Solutions. The applications developed range from Web-stores, online
service retailing to enterprise information systems. Our competencies in Java, Android, .Net
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technologies, ASP, XML, PHP and C/C++ are demonstrated in various network-based
applications. SQL/ Oracle database engines support most of these applications.
2. Custom Application Development/ Maintenance
It is a well known fact that some of the ready-made, packaged applications have failed to
meet the requirements of the customers because of their unique needs and differing business
practices and processes. In addition, prohibitive cost of implementing a packaged application
and the maintenance thereafter becomes an unwelcome perspective.
We have experienced I.T. Consultants for Project analysis, formulation and concept planning,
right up to project management and installation. We develop customized Software that is
completely based on user’s requirement with GUI (graphical user- friendly interface) on any
of the mentioned platform / languages.
3. MIS and ERP Solutions & Support
We offer customized low cost solutions to industries based on open standards, contemporary
technologies and maintenance support. While incorporating the best of business practices, we
do take special care of the customer requirements.
ERP Solutions include the development of software in a distributed model, with some phases
of the project being conducted onsite and others being conducted offshore. Each phase is
uniquely defined and executed. After unit, and system testing the product is then sent to the
client for acceptance testing. We have satisfied customers find the solutions user friendly,
flexible, and comprehensive
Web Solutions
SONAIYA provides web solutions & services to help customer reach to a wider customer
base. The web is a new and different medium for communication and requires a different
viewpoint and skill set to use it in the most effective way. You need web consulting to get
more return on your investment in your web site. We can help you get the most effective
solution through:
 Website Development
 Web Multimedia
 Intranet Development
 Web Promotion
 E-commerce
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Application Maintenance & Support
We have years of experience in executing maintenance projects. Our team of experienced
consultants has been successfully managing maintenance projects of local clients as well as
offshore ones.
The quality of product deployment, training and support has everything to do with customer
success and satisfaction. We offer annual maintenance plans which are tailor-made as per the
client’s requirement. If required we depute technical team which works at the client site for
the system execution or support as per requirement. We also offer on-site service calls to
Customer’s facility. In such cases, our consulting charges are subject to service hour charge,
plus reasonable travel and out-of-pocket expenses.
Turnkey Solutions
Sonaiya Software Solutions takes up projects under this service for a fixed price and takes all
responsibility of execution and project management. These solutions are ideally suited for
projects that are fairly well specified and require well-defined interfacing with the client. We
have developed a number of products and MIS applications for its clients in this service.
Sonaiya Software Solutions’s mature software development processes, combined with
excellent infrastructure have significantly increased the “on-time and on budget” delivery of
software in the offshore mode. We use a highly effective IMPACT Methodology for offshore
and distributed software development.
Offshore Development
To get the best IT solutions, you don't need to be geographically near us. That's because we
offer quality offshore development centre. Our offshore software solutions in application
development and web site development guarantee cost savings without the need to
compromise on either speed or quality. Our 100% customer retention rates speaks for our
quality, swift response and cost effectiveness that has fetched us a large number of clients
from all parts of the world. These all feathers to our work make us a preferred offshore
development house.
Finished Products

• EDUSMITH – School ERP

• Temple ERP- Madipakkam Ayyappan Temple (Customized)
• Billing Invoice Software- AGC – Arabian Galvanizing Company
• Trust Administrative System – Aruppukottai Nadar Sangam
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• Clinical software – Apollo Karaikudi (Customized)
• BPO Instant Page Filling
• School – Smart Education System (Android and PHP)
• GST based Sales ERP – Tunaa Drops, Shelvaa Marketting
• Victory Industry– UAE - accounts
• Call Receiver Tracking
• Industrial Communicator – New Metal Coats
• Burglary Alarm Unit – Sivan Temple Keelasevalpatti
• Sri Lakshmi Engineering – Billing Software
On Going Projects

• Super Market
• Travel Agency
• Digital Marketer
• GPS ID Card Tracking for Schools (Android) – GOTEK
• Salesman Tracking with DRS

Research and Development

• Fabrication Design Cutter / Planner
• Cardroid
• Human Behavior Analysis
• Child / Human Tracking through ID Cards
Consultancy / Staffing Services

Staffing Services
Twenty-first century business demands agility. SONAIYA’s flexible partnership model
allows us to be responsive to your unique needs — supporting short-term or seasonal contract
requirements, providing contract-to-hire talent for project-based support with the option to
hire the contractors as permanent employees, or finding the permanent top talent your
company needs today. By listening to our clients’ business needs, we have gained a unique
perspective into how we can help.
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Quality Employee
We take the time to listen and understand your business, building quality relationships that,
combined with our access to the best talent, deliver quality employees.
Quality Relationship
But we don’t stop there. We stay connected with you to ensure our employees are meeting
your expectations and we are delivering on our promises.
Strategic Partnership
Working together, we develop a strategic partnership to provide workforce consultation to
make your staffing process more effective and evolve your business.
At Sonaiya Software Solutions, we not only provide recruitment consultancy services to our clients
but also give the applicants a perfect platform to get their dream jobs. We can help our clients to get
the suitable candidates, cultivate them and retain them. Our comprehensive recruitment and staffing
solutions as HR consultant ensure the delivery of profitable propositions for your workforce
requirements.
We have adopted the international practices and procedures that are designed to attract and hire the
best talent available in the market; thereby offering the best employee recruitment. We provide our
client companies with not only a set of candidates, but also discussion on best-fit market
availability, comparative benchmarking and a comfort knowing. Our online recruitment solutions
are the best in the market today.
Our Recruitment Process can be categorized into three phases, namely:

 Planning - Structure, Focus, Identity, Prepare
 Implementation - Contact, Motivate, Evaluate
 Closure - Select, Offer, Candidate joining
At Sonaiya Software Solutions, we follow a carefully structured recruitment and selection process,
which starts right from understanding the clients' needs and functions all the way to follow-ups with
both clients and candidates post recruitment.

Services:
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Permanent Staffing
Permanent staffing is attaining great importance in the human resource industrial stratagem of
every company in today’s trend. Rightly so, as an organization that isequipped with quality
and dedicated permanent staff has a greater chance of surviving and succeeding in the long
run…
Contract Staffing
Sonaiya Software Solutions involves contract-to-hire staffing module is the Made-to-order

solution wherein the companies looking for its expansion Plans can take this risk less staffing
module. Contract- to- Hire module is a safe alternative to permanent hiring.
Walk-in
A HR Professional will select one Employee from 'N' no. of. Candidates, All the Branded
companies wanted to meet their entire Targeted Crowd, which is not possible by them
usually. We help them in Gathering the entire Targeted Crowd in a Single place in a day and
to conduct the Interviews for them in huge Levels.
Turn Key Assignments
Manage the entire Recruitment needs of the Client, address hiring initiatives Providing best
sourcing strategies to stay competitive Work closely with the Hiring Manager, analyze hiring
needs, do job profiling, devise strategies and Selection procedures, forming SLAs and
maximizing joiners. Provide an exclusive dedicated team of professionals with skill expertise
coupled with a human Contact for all the hiring needs. Provide tailor made solutions to
streamline recruitment process, reduce cost per hiring, decrease joining time and enable
business focus for the clients.
Onsite Recruitment
Onsite recruitment is attaining great importance in the human resource industrial strategy of
every company in today’s trend to meet their specific requirement.
Onsite recruitment is a process of meeting your Specific bulk requirements from the targeted
area to fulfil the urge need of the client. Our straightforward and focused approach in the
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business enables us to work in close partnership with our clients; thus ensuring a full and
complete appreciation for each vacancy and person specification.
Job Fair
At SONAIYA Staffing, we connect talented people with respected companies. Every day,
leading global employers ask us to present them with talented candidates for their most in-
demand positions. SONAIYA offers them a unique access to this employment.
Opportunities, matching your skills with intriguing projects and cutting-edge technologies;
we are organizing this JOB FAIR event in colleges & universities.
Recruitment Process Outsourcing (RPO)
Recruitment Process Outsourcing (RPO) is a form of Business Process Outsourcing (BPO)

where we take care of the Entire / part of recruitment activities of our Clients…This involves
all the works of pre-recruitment process to post recruitment and Employee& Industry
Relations.
Sonaiya Software Solutions manage the entire recruiting/hiring process from job profiling
through the on-boarding of the new hire, including staff, technology, method and reporting…
Our properly managed RPO process improves our client’s time to hire, increase the quality of
the candidate pool, provide verifiable metrics, reduce cost and improve governmental
compliance.
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Figure 2- Geographical Location
INDIAN IT INDUSTRY AT A GLANCE
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The Information Technology (IT) sector is one of the fastest growing sectors in the country,
envisaging dimensions of growth and globalization, achieving new milestones over the last
decade. The growth momentum attained by the overall economy since the late 1990s to a
great extent can be owed to the IT sector, led by a liberalized policy regime with reduction in
telecommunication costs have led to spurt in investments by MNCs as well as domestic
companies in the country. Perceptible is the transformation since liberalization – India today
is the world leader in information technology and business outsourcing. Correspondingly,
the industry’s contribution to India’s GDP has gone up significantly from 1.8% in FY00 to
around 5.4% in FY07.The sector has been growing at a CAGR of 30.3% since FY04.
Indian IT companies have globally established their superiority in terms of cost advantage,
availability of skilled manpower and the quality of services. They have been enhancing their
global delivery capabilities through a combination of organic and inorganic growth
initiatives. Global giants like Microsoft, SAP, Oracle, Lenovo have already established their
captive centres in India. These companies recognise the advantage India offers and the fact
that it is among the fastest growing IT markets in the Asia-Pacific region.
Industry Structure The demand for IT across the world is witnessing a tremendous
According to NASSCOM, the size of the Indian IT industry, has been estimated to be around
US$ 47.8 bn in FY07. The Indian IT industry can be broadly divided into two markets:
domestic market and exports market. The exports market constitutes the largest segment
accounting for around 65.5% of the total revenue generated by the Indian IT industry
including hardware in FY07.
Importantly, in the exports market, IT services segment contributed highest share with
57.5% in FY07, followed by the ITeS-BPO segment with 26.8% share and the rest shared by
the software products and engineering services & R&D.The domestic IT market is broadly
classified into the following four segments: (i) IT Services, (ii) software products,
engineering and R&D services, (iii) IT-enabled Services and Business Process Outsourcing
(ITeS-BPO), and (iv) hardware. While IT Services accounted for around 34% of the total
revenue generated by the domestic market in FY07, the engineering services, R&D and
software products segments together accounted for 9.7% of the revenue. The ITeS-BPO
segment, on the other hand, contributed 6.7%. Hardware contributed major share of the
domestic market with about 49.7%. Notably, the domestic IT industry grew at a CAGR of
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25.7% during FY04-07 to touch US$ 16.5 bn.According to Manufacturer Association for
Information Technology (MAIT), the Desktop PC market (including notebooks) showed an
upward trend totaling over 6.34 mn units in FY07, registering a growth of 25.65% over the
same period last fiscal. Desktop sales accounted for more than 86.5 per cent of the total
sales, while the remaining was shared by notebook sales. This was largely due to the
buoyant mood in IT consumption which saw a significant growth in notebook sales by 97%.
MNC’s have been increasingly raising their share in Indian desktop market from 35% in
FY05 to 39% in FY07. Driven by growing domestic demand mainly in notebooks segment,
as sales of MNC brands grew by 33% and that of assembled by 22% in FY07.
The high growth in PC sales was accelerated due to increased consumption by industry
verticals such as telecom, banking and financial services, manufacturing, education, retail and
BPO/IT-enabled services as well as major e-Governance initiatives of Central and State
Governments. The domestic hardware market offers tremendous potential for hardware
companies, thus attracting plenty of domestic hardware as well as MNCs in the domestic
market. As, few MNCs in the hardware segment have been viewing India as a hub for setting
up hardware manufacturing facilities, for instance Dell. Imports of IT hardware which form a
large component of the industry are mainly from growth, in view of changes in the economic
and business environment, rapid technological innovation and wide utilisation of internet and
globalisation. The market has become more competitive and has forced corporations to take
innovating and unique ways of doing business’s. Service industry has also entered into a new
era with the growing acceptance of IT based services.
As per NASSCOM, Indian IT Services both domestic and exports market grew from
US$10.4 bn in FY04 to US$ 23.6 bn in FY07. During this period, its contribution to the total
IT industry has gone up marginally from around 48.2% to 49.4%.The project oriented IT
services contributed around 57.9% in FY07, while outsourcing IT services accounted for
around 32.8% of the total revenues of IT services segment in India.
Within the ITeS-BPO segment, Customer Interaction Services (CIS) accounted for nearly
45-46% of the total ITeS-BPO services exports while finance & accounting contributed for
roughly around 40-41%. Human resource and other high-end knowledge-based processes
account for 3% and 11% respectively.
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The Software product, Engineering services and R&D segment contributed over 13.8% of
the total IT industry in FY07. In addition to this, Indian companies offering these services,
several foreign companies (both captive and third party) are also setting up base in India to
provide these services. Overseas companies operating in sectors like high–tech,
telecommunications, automobile, aerospace, heavy machinery, construction and industrial
products are looking at off-shoring their engineering and R&D related work to India.
Few important characteristics of the Indian IT sector include:
Export intensive:Indian IT industry is predominantly export driven, with exports

contributing over 60% of its revenue since FY03.
Concentration on Low-end services: Low-end services such as customised software

services and maintenance have been the key offerings of the Indian IT companies. These
companies are now however moving up the value chain offering end-to-end solutions to
clients.
Fragmented industry: D&B’s inhouse database has identified over 8,000 companies which
operate in the IT space in India, offering a wide range of software products and services. A
large number of these companies are unorganised players.
Skewed concentration: The revenues of the top four companies, TCS, Infosys, Sonaiya and
Satyam, account for over 25% of the overall industry. This skewness is all the more
pronounced in the case of IT services.
Emerging Trends in the Indian IT Services Industry
While the global IT players are aggressively scaling up their operations in India, due to the
advantages that the Indian industry offers, the Indian IT companies are also preparing to tap
the global market. The companies are witnessing significant change with regard to their
service offerings and geographical concentration. Today, companies are expanding their
service offerings from application development and maintenance to high end services like
testing, consulting and engineering designing. The global delivery model has not only
facilitated the companies in delivering quality of work but also helped them to control costs.
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Over the years, the Indian companies have positioned themselves well to reap benefits of the
emerging scenario in the IT sector.
New Service Offerings
The Indian IT companies are expanding their service offerings to provide a complete basket
of services to their clients. These new services include IT consulting, testing, business
process management and IT infrastructure services, IT consulting, which in a way allows the
IT companies to de-risk their business from pricing pressures and enter into newer areas
which provide them higher growth and profitability.
Larger Deal Size
Indian IT companies have successfully scaled up operations and made a mark in the global
outsourcing market, evident from the large deals bagged by the Indian IT companies in the
past one year, including the TCS – AC Nielsen contract valued at US$ 1.2 bn, the Social
Security Institute of Mexico (IMSS) -TCS deal worth US$200 mn, Satyam-FIFA contract,
and the BSNL-HCL Infosystems deal valued at Rs 5.9 bn to name a few.
Growing presence of MNCs
Cost arbitrage and the availability of a large talent pool has attracted several MNCs to India.
Big players like IBM, Accenture, Google, Yahoo, Capgemini and Oracle among others have
not only increased their headcounts in India but also outperformed their global performance
in terms of revenue growth. Their Indian operations are witnessing strong growth as
compared to their global business.
Emerging Markets:
In terms of geographical contribution, the US continues to remain the key market for Indian
IT companies, accounting for 67.2% of the total IT-ITeS exports from India. However,
Europe is also emerging as an important market for the Indian IT industry, considering the
fact that the share of exports to Europe from India increased from 22.2% in FY03 to 25.1%
in FY07. Indian companies are increasingly enlarging their footprints to countries in Latin
America, Eastern Europe, and Asia Pacific region. Mergers and acquisitions has been one of
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the routes that the Indian companies have adopted to enhance their presence in European
markets.
Changing Growth Drivers:
There has been a change in the revenue composition of companies in recent years. The
revenue contribution of high-growth segments such as infrastructure management services,
package implementation, testing & consulting has been witnessing rapid growth over the last
couple of years. These, newer service lines are not only enabling Indian companies to
increase their sales by cross-selling to their existing customers, but also improve their
average billing rates and recognition of being end-to-end service providers. These segments
are experiencing high growth rates over the last couple of years. However, the Custom
Application Development and Maintenance (CADM) services continue to contribute a larger
share towards IT services segment revenue. The CADM accounted for around 39.6% to the
total IT services segment revenue of US$23.6 bn in FY07, and it witnessed a growth rate of
35.3% in the same period.
New End-users:
In terms of user industries, the BFSI and hi-tech/telecommunication industries remain the
leading verticals for the Indian IT companies. Together, these sectors accounted for around
58% of the Indian IT-ITeS exports. Though these verticals have good growth potential, other
sectors such as manufacturing, airlines and transportation, retail, healthcare, utilities, etc., are
also emerging as promising segments for the Indian IT companies. While the BFSI sector
has the potential to provide large sized contracts to the IT companies, the manufacturing
sector can provide large number of deals/assignments to the Indian players.
Issues and challenges
Indian IT industry has been witnessing several issues and challenges which may deter the
growth in future, despite the fact that demand conditions have been optimistic. Therefore,
companies must adopt best practices to address those issues in order to sustain the current
growth momentum. Several larged and mid sized companies are taking innovative measures
to address those issues, for example, in view continuous rupee appreciation against the US
23
dollar, the companies are keen to expand their business to other emerging markets like
Europe, Asia Pacific region, Middle East etc.
 Rising attrition rate: Growth and attrition rates seem to be following a similar

trajectory for most Indian software service companies. With a McKinsey report
stating that India will need an additional 1 mn employees to join the IT-BPO
workforce by 2010 in order to maintain its current market share, the attrition
phenomenon has come into the limelight. Managing attrition in the IT industry holds
significant importance because skilled professionals form the crux of this knowledge-
intensive industry. Apart from the loss of skill sets, the cost of recruitment and
training is a huge investment for most IT firms. Consequently, as most major players
have realised, attrition affects the quality of service, leading to greater expenditure on
training and development, thereby affecting the overall performance, including
improving utilisation rates of the company.
Major players in the Indian software industry — Tata Consultancy Services (TCS),
Infosys Technologies, Sonaiya, and Satyam Computers — are currently witnessing
high attrition rates. TCS reported an attrition rate of 11.5% — up from 10.6% a year
ago; the attrition rate at Infosys was 13.7% in FY07 — higher than 11.2% recorded in
FY06; the attrition rate at Satyam declined from 19.2% in FY06 to 15.7% in FY07;
whereas the rate at Sonaiya witnessed a surge to 17.4% as against 14.6% during the
previous fiscal, in its global IT services and product business.
 Rupee appreciation: The rupee gained almost 12.5% against the US dollar in mid-
October, 2007 vis-à-vis the same period in the previous year, denting the earnings of
the IT industry (the industry earns its highest revenue from the US). On October 17,
2007, the rupee surged to 39.68 against the US dollar — its highest rate in 9 years.
Importantly, during January–October 2007, the rupee appreciated at more than
10.6% against the US dollar. For software firms whose expenses are mostly in the
local currency, the rupee appreciation reduces the rupee equivalent of every dollar
they earn overseas, thus affecting their margins to a great extent. Margins have
already begun to face the effects of the rupee appreciation and most Indian IT players
are forced to adopt forward-trading to help mitigate losses. Apart from losing out on
margins, Indian IT companies might lose the competitive edge over international
24
firms if the trend continues for long. For example, China is holding its currency
steady, offering stability, which might turn out to a distinguishing factor for survival
in the long run.
Emerging new territories: According to an IDC study, three Indian cities rank at the top in
the Global Delivery Index today in the top 10 off-shore destinations of Bangalore, Manila,
New Delhi, Mumbai, Dalian, Shanghai, Beijing, Sydney, Brisbane & Auckland in the Asia-
Pacific region. However, the Indian IT industry is gradually facing stiff competition
emerging from new territories like China, Malaysia, Philippines and Mexico. The study also
states that although Mumbai & Bangalore may be favourite off-shoring destinations as of
today, Chinese commercial hubs like Beijing & Shanghai are set to overtake Indian cities by
2011. A similar competitor would be Malaysia having a stable socio-economic environment,
excellent infrastructure, low attrition rates, & skilled talent pool as key advantages.
Emerging Markets:
In terms of geographical contribution, the US continues to remain the key market for Indian
IT companies, accounting for 67.2% of the total IT-ITeS exports from India. However,
Europe is also emerging as an important market for the Indian IT industry, considering the
fact that the share of exports to Europe from India increased from 22.2% in FY03 to 25.1% in
FY07. Indian companies are increasingly enlarging their footprints to countries in Latin
America, Eastern Europe, and Asia Pacific region. Mergers and acquisitions has been one of
the routes that the Indian companies have adopted to enhance their presence in European
markets manufacturing, airlines and transportation, retail, healthcare, utilities, etc., are also
emerging as promising segments for the Indian IT companies. While the BFSI sector has the
potential to provide large sized contracts to the IT companies, the manufacturing sector can
provide large number of deals/assignments to the Indian players.
25
INDIAN BPO INDUSTRY AT A GLANCE
In India, Business Process Outsourcing (BPO) is the fastest growing segment of the ITES
(Information Technology Enabled Services) industry. Factors such as economy of scale,
business risk mitigation, cost advantage, utilization improvement and superior competency
have all lead to the growth of the Indian BPO industry. Business process outsourcing in India,
which started around the mid-90s, has now grown by leaps and bounds.
India is now the world's favored market for BPO companies, among other competitors, such
as, Australia, China, Philippines and Ireland. The BPO boom in India is credited to cheap
labor costs and India's huge talent pool of skilled, English-speaking professionals. Research
by the National Association of Software Services and Companies (NASSCOM) has revealed
that quality orientation among leading BPO companies, 24/7 services, India's unique
geographic location and the investor friendly tax structure in India have all made the BPO
industry in India very popular.
What is Business process outsourcing?

The term Business Process Outsourcing or BPO as it is popularly known, refers to
outsourcing in all fields. A BPO service provider usually administers and manages a
particular business process for another company. BPOs either use new technology or apply an
existing technology in a new way to improve a particular business process. India is currently
the number one destination for business process outsourcing, as most companies in the US
and UK outsource IT-related business processes to Indian service providers.
Services offered by Indian BPO companies

Indian BPO companies offer varied services, such as, customer support, technical
support, telemarketing,insurance processing, data processing, forms
processing, bookkeeping and internet / online / web research.
 Customer support services: 24/7 inbound / outbound call center services that

address customer queries and concerns through phone, email and live chat.
26
 Technical support services: Installation, product support, running support,
troubleshooting, usage support and problem resolution for computer software,
hardware, peripherals and internet infrastructure.
 Telemarketing services: Interacting with potential customers and creating
interest for the customer's services/ products. Up-selling, promoting and cross selling
to existing customers and completing online sales processes.
 IT help desk services: Level 1 and 2 multi-channel support, system problem
resolutions, technical problem resolution, office productivity tools support, answering
product usage queries and performing remote diagnostics.
 Insurance processing: New business acquisition and promotion, claims
processing, policy maintenance and policy management.
 Data entry and data processing: Data entry from paper, books, images, e-
books, yellow pages, web sites, business cards, printed documents, software
applications, receipts, bills, catalogs and mailing lists.
 Data conversion services: Data conversion for databases, word processors,
spreadsheets and software applications. Data conversion of raw data into PDF,
HTML, Word or Acrobat formats.
 Bookkeeping and accounting services: Maintenance of the customer's general
ledger, accounts receivables, accounts payables, financial statements, bank
reconciliations and assets / equipment ledgers.
 Form processing services: Online form processing, payroll processing, medical
billing, insurance claim forms processing and medical forms processing.
 Online research: Internet search, product research, market research, surveys,
analysis, web research and mailing list research.
Interesting facts about the Indian BPO industry

 The BPO sector in India is estimated to have reached a 54 per cent growth in revenue
 The demand for Indian BPO services has been growing at an annual growth rate of
50%
27
 The BPO industry in India has provided jobs for over 74,400 Indians. This number is
continuing to grow on a yearly basis. The Indian BPO sector is soon to employ over 1.1
million Indians
 70% of India's BPO industry's revenue is from contact centers, 20% from data entry
work and the remaining 10% from information technology related work
 Indian BPOs handle 56% of the world's business process outsourcing
The top fifteen BPO companies in India

NASSCOM recently conducted a survey and evaluated the leading BPO service providers
across India. The top fifteen business process outsourcing companies in India are:
 WNS Group
 Sonaiya Spectramind
 Daksh e-Services
 Convergys
 HCL Technologiess
 Zenta
 First Source
 MphasiS
 EXL
 Tracmail
 GTL
 vCustomer
 HTMT
 24/7 Customer
 Sutherland Technologies
28
OBJECTIVES
The first step of any research project is to define the problem that is to be answered by
the research project itself. This is the most important part of the research process, as it
provides a focus and direction for the project and identifies the specific information the
reader is looking at in the project.
Actually, research objectives enable the reader to understand exactly what the project
is attempting to achieve. If the definition of problem is unclear and objectives are poorly
defined, the result could be waste of time, money, energy and resources. In short, research
objective is a pre-requisite for any research project.
There should be a clear-cut definition of research objectives. Our project, therefore, is
not an exception. Our research project-A study on the satisfaction level of employees
working in BPOs and Call Centers in SONAIYA ., has certain specific and general
objectives which mainly consist of primary objectives and secondary objectives.
They are as follows:
Primary Objectives:
 To measure the employees’ job satisfaction level working in BPOs and call centers in
SONAIYA .
 To identify the factors that influence job satisfaction level of employees working in
BPOs and call centers
Secondary Objectives:
 To identify the obstacles faced by them in their job environment
To assess the Policies and Procedures that will have an impact on employee’s job satisfaction
29
Chapter 3: RESEARCH METHODOLOGY
The first step of any research project is to define the problem that is to be answered by
the research project itself. This is the most important part of the research process, as it
provides a focus and direction for the project and identifies the specific information the
reader is looking at in the project.
Actually, research objectives enable the reader to understand exactly what the project
is attempting to achieve. If the definition of problem is unclear and objectives are poorly
defined, the result could be waste of time, money, energy and resources. In short, research
objective is a pre-requisite for any research project.
There should be a clear-cut definition of research objectives. Our project, therefore, is
not an exception. Our research project-A study on the satisfaction level of employees
working in BPOs and Call Centers in SONAIYA ., has certain specific and general
objectives which mainly consist of primary objectives and secondary objectives.
They are as follows:
Primary Objectives:
 To measure the employees’ job satisfaction level working in BPOs and call centers in
SONAIYA .
 To identify the factors that influence job satisfaction level of employees working in
BPOs and call centers
Secondary Objectives:
 To identify the obstacles faced by them in their job environment
To assess the Policies and Procedures that will have an impact on employee’s job
satisfaction purpose. These interviews were based on a structured questionnaire that has been
put up in the appendix in this report.
The process of cross checking was also used to ensure the authenticity of the data and
validation of the interviews both formal as well as informal one. Every attempt was made to
ensure that their response do not get influence by their management and environment.
30
The process, we follow, in making the project is as follows:
Problem Defining (Objectives), Data collection, Research design, Data collection,

Data analysis and Presentation the results.
We have used the Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin
(1969) which measures one’s satisfaction in five facets: pay, promotions and promotion
opportunities, coworkers, supervision, and the work itself.
 The work itself-responsibility, interest, and growth.

 Quality of supervision - technical help and social support.
 Relationships with co-workers - social harmony and respect.
 Promotion opportunities-chances for further advancement
Types of data analysis used:
In order to properly analyze the data, there would be two types of data analysis in this
project. They are as follows:
1. Qualitative data analysis – through Findings, Analysis and explanation

2. Quantitative data analysis – through charts, schedules, figures, and structures
Sample size: How many employees were surveyed
At the planning stage of a statistical investigation part, the question of sample size is very
critical. If the sample size is large, there could be a waste of money, energy and resources,
and if it is small, it doesn’t make any sense of practical use in making good decisions. So, the
sample should be taken in such a way that it can bring fair, accurate level of accuracy and
unbiased results.
31
The objective of taking sample was to obtain desirable level of accuracy and confidence with
minimum of cost, time, and energy.
A random sample size of 400 employees and 10 H.R.offcials were taken for the survey
purpose. H.R. official survey was needed to verify the response received from the employees.
DATA COLLECTION:
Data gathering is a very important part of the research project process. It is through data, with
the help of which we would be able to analyze the problem in terms of facts and figures.
Actually, the reliability of research decisions depends on the quality of data gathered. By
taking this concept into consideration, the data can be classified into primary data and
secondary data. We have used both the types of data, as far as our project is concerned.
Secondary Data:
These are those data which are collected from the various sources which have been
already created for the purpose of first time use and future use.
We have used the following secondary data in our project:
 Internet
 Journals
 Magazines
 Publications, Articles and Research Papers done before
 From various Organizations
Research instrument:
The researcher has used a structured questionnaire as a research instrument tool for which
consists of open ended questions, multiple choice nd dichotomous questions in order to get
data. Thus, questionnaire is the data collection instrument used in the study. All the
questions in the questionnaire are organised in such a way that elicit all the relevant
information that is needed for the study.
32
CHAPTER-4: ANALYSIS AND FINDINGS
QUESTION-1
PERIOD OF WORKING IN THE ORGANISATION:
Period < 1 year 1-2 years 2-5 years >5years Total
Respondent 216 130 36 18 400
Percentage 54 32.5 9 4.5 100
Chart showing the Period of Working

60
54
50
40
pe rcentage
32.5
30
20
9
10
4.5
0
<1 year 1-2 years 2-5 years >5 years
period
Figure 3- Period of working
Findings:
 From the above information, we can find that out of total sample of 400 respondents
almost 54% of them are working in the organization for a less than 1 year.
 Almost 32.5% of them working between 1 to 2 years in the organization while 9% of
them were working between 2 to 5 years.
 The most experienced employees were less; they were about 4.5% who have worked
for more than 5 years.
Analysis:
33
 As more than 50%(54%), as a total, of employees working in the various
organization are working for less than one year, It clearly indicates the sign of
high attrition rate(the rate at which employees leave the organizations) in BPOs
and Call centers
 If we analyze the whole chart more closely, we find that more than 85% of
employees have been in the organizations for less than 2 years which reveals that
employees like to change their jobs very frequently, may be because of lack of
motivation or satisfaction purposes
 The concrete reasons for this would be dug out in the following questions and
their results
QUESTION-2
MONTHLY INCOME:
Income 3000-6000 6000-9000 9000-12000 >12000 Total
Respondent 196 148 32 24 400
Percentage 49 37 8 6 100
Chart showing Income of the Employee

60
49
50
p e r ce n t a g e
40 37
30
20
10 8
6
0
3000-6000 6000-9000 9000-12000 >12000
Income(in Rs.)
Figure 4- Income of employees

Findings:
34
 Out of total respondents, 49% respondents fall under the category of
monthly income of around Rs. 3000 to 6000 while 37% of them are getting
around Rs. 6000 to 9000.
 Where at the other side the employees who were getting salary of Rs. 9000
to 12000, were only 8% while there were only 6% employees who were
getting salary above Rs. 12000.
Analysis:
 Nearly half (50%) of the employees work in the call centre fall under the
category of Rs.300-6000. It may be due to poor financial conditions and
also, the education level doesn’t matter in other job
 As the attrition rate is high in this industry, it also result in lower initial
salary for the employees, because employees will have to accept the salary
which ranges mainly from 3000 to 6000 Rupees in Sonaiya
 37% of employees falls under the category of salary income of Rs. 6000-
9000 which can be said to be a standard in this industry but the percentage
of which is very low, leading to the conclusion, exploitation of candidates
 Nearly 15% of employees receive their salary in 5 digits which mainly of
the employees working for more than 4-5 years, an experienced one
A glance at how Working period and Salary goes?
Analysis:
 The chart was thought out to reflect employees working period and their
monthly payment
 This chart shows that how employees seniority and pay scale are related-As
employee gets senior in the organization, his/her salary increases
 The most surprising result, we find is that nearly 50% of employees fall under
the very first category of less than 1 year getting a monthly salary of Rs.3000-
6000
35
 This shows high attrition rate(the rate at which employees leave the organizations)
and exploitation of candidates
>5 year - 2 1 18
Total 196 148 32 400
 It also reveals that, in Sonaiya, only 16% of employees receive their salary in
between 9000 and above falling under a seniority of more than 2-3 years
spending in the organization
250
3
12
200 26
150 >12000
4 9000-12000
9
6000-9000
100 175 3000-6000
102
50 2
10
18 15
12
0
<1 year 1-2 year 2-5 year >5 year
Table showing working period and Monthly Salary of employees
Figure 5- Working period and monthly salary
36
QUESTION-3
WHETHER MONETARY AND NON-MONETARY BENEFITS MOTIVTE AND
AFFECT EMPLOYEES SATISFACTION LEVELOR NOT:
Options YES NO Total
Respondent 348 52 400
Percentage 87 13 100
CHART SHOWING MONETARY AND NON-MONETARY BENEFITS MOTIVTE AND

AFFECT EMPLOYEES OR NOT
no
13%
yes
87%
Figure 6-Monetary and non monetary benefits

Finding:
 From the above information, we can find that 87% employees say that
these kind of monetary and non-monetary benefits motivate and affect
them.
 The rest 13% said that they are not affected by these kind of monetary and
non-monetary benefits
Analysis:
 The question was purposed to identify whether is there any impact on
motivation level of employees by these monetary and non monetary
benefits
37
 As the chart indicates that 87% of employees responded positively
meaning there is a significant correlation between employee satisfaction
and monetary and non monetary benefits
 This also leads to conclusion that system of incentives, rewards and
motivational concepts in the organizations matter to maintain the
motivation level of employees
 Significant(80%) amount of employee have responded positively which
indirectly tells us that satisfaction level of employees is impacted, but as
the analysis of above question revealed that only 30% non monetary
benefits are provided to the employees where as significantly lower
amount of monetary benefits in the form bonus(49%) and overtime are
provided to the employees.
QUESTION-4
SATISFIED WITH WORKING IN THE ORGANISATION OR NOT:
Options Yes No Total
Percentage 95 5 100
CHART SHOWING THAT THE EMPLOYEES ARE SATISFIED WITH WORKING IN

THE ORGANISATION OR NOT.
NO
5%
YES
95%
Figure 7- Satisfaction of employees in the organisation
Finding:
 Almost 95% of the total employees said that they are more or less satisfied
with working in the organization
38
 The rest 5% of the employee said that they are not at all satisfied with working
in the organization.
Analysis:
 As many as 95% of employees responded positively saying that they are
happy working in the organization and are more or less satisfied
 Only a very small parentage of employees replied negatively who might be
having some or the other problems relating to monetary aspects or the
environment concerns which may be dug out and their resistance should be
identified to make them satisfied
 To dig out the level of satisfaction, we asked further question which reveals
the more insight about their satisfaction level
QUESTION-5
LEVEL OF SATISFACTION:
Level of satisfaction Low Average High Total
Respondent 30 226 124 380
Percentage 8 59 33 100
CHART SHOWING THE LEVEL OF SATISFACTION

70
59
60
50
PERCEN TA GE
40
33
30
20
10 8
0
low average high
LEVEL OF SATISFACTION
Figure 8- Level of satisfaction
Finding:
39
 Asking about their satisfaction level, 59% said that they are not much satisfied
with the organization, it can be said that their satisfaction level is average
 Almost 33% said that they are highly satisfied with the organization
 While the remaining 8% were least satisfied
Analysis:
 The question was purposed to identify the level of satisfaction of employees
who are satisfied(from among 380 employees)
 As far as satisfaction is concerned, as the above question revealed that 95% of
employees are satisfied working within the organizations but when asked
actually about the level of satisfaction, it reveals that majority(nearly 60% of
employees) of them are satisfied on average basis
 Only 3% of employees say that the satisfaction level of them is very low
inferring that they are least satisfied, not up to the level it should be
 Those who are highly satisfied belongs to 33%, which doesn’t have any issue
regarding their satisfaction working in the organizations
40
QUESTION-6
WHETHER THE COMPANY IS VERY OPEN TO IDEAS AND SUGGESTIONS
GIVEN BY EMPLOYEES:
Options Strongly Agree Disagree Strongly Total
agree disagree
Respondent 212 172 16 0 400
Chart showing the preference of the employee

60
53
50
43
PERCEN TA GE
40
30
20
10
4
0
0
strongly agree agree disagree strongly disagree
PREFERENCE OF THE EMPLOYEES
Figure 9- Preference of the employees
Finding:
 Out of the total, almost 53% of the employees have strongly agreed with the
fact that the company is very open to ideas and suggestions given by the
employees
 43% are agreeing with this, but not to the level it should be
 There were only 4% who were disagreeing, and nobody falls under the
category of “strongly Disagree”
Analysis:
 The chart shows that out of 100%, more than half 53% are strongly agree that
the company is very open to ideas and suggestions given by employees
meaning caring for employees suggestions and their recommendations
41
 They believe that company approaches very friendly to the employee’s
suggestions and their ideas and actually implement it in the organization, if it
is concrete in nature
 If all and all we see, nearly 95% of employees reported favorably that their
company believes in open-door policies and wants their employees to
participate in the organization
QUESTION-7
WHETHER THE CULTURE OF THE COMPANY IS SUCH THAT IT CREATES
WORK ENVIRONMENT:
Options Positive Negative Stressful Very bad Total
Respondent 316 50 28 6 400
Percentage 79 12.5 7 1.5 100
Chart showing the preference of the employee

90
79
80
70
P ERC EN TA G E
60
50
40
30
20
12.5
10 7
1.5
0
positive negative stressful veery bad
PREFERENCE OF THE EMPLOYEE
Figure 10- Employee opinion on the work environment
Finding:
 Out of the total employees 79% said that there is a positive environment in the
organization 12.5% said that there is a negative environment
 Almost 7% said that the environment of the company is very stressful in the
company and almost 1.5% said that it is very bad
42
Analysis:
 As the chart indicates, majority of employees(nearly 80%) are agree that the
environment within which they work is positive and makes them to work and
leads to their motivation and satisfaction in the organizations
 The employee who replied to “Negative” is nearly 13%, which makes us to
infer that the factors that creates negative environment prevail in the
organization
 7% of employees came up with the opinion that the environment in the
organization is such that it creates stress within them, may be because of the
pressure and the load of the work, call handling or the travelling stress or the
way they interact with their subordinates and colleagues
A glance at employees culture and company’s policies regarding

their openness of ideas and suggestions:
Figure 11- Employee culture and

Percenatge
Percentageof ofemployees
employeesresponding
repondingtotoopenness
the question
of ideas
thatandculture
suggestions
of the company’s policies
given
company
by employees
is such that it creates work environment…
Analysis:
 This link is given to

7% 2% Strongly agree identify how employees
4% Agree
13% culture (their attitudes,
Disagree
Positive Strongly
Negative
agree beliefs, the way of
43% 53% working and life-style etc.)
Stressful Very bad
respond to companies
79% policy and programs
 This shows that
employees culture which
creates positive
environment (79%) happily respond to the companies policies and
programs (53%)
43
 The chart also show that there is some relationship between employees culture
and the success of companies policies and programs
 The least 1.5% saying that the culture is such that it creates very bad
environment also links to the strongly disagreement to 0%
QUESTION-8
WHETHER SATISFIED WITH THE KIND OF SALARY HIKES THE EMPLOYEE
GET OR NOT:
Option Highly satisfied dissatisfied Highly Total
satisfied dissatisfied
Respondent 98 256 34 12 400
Percentage 24.5 64 8.5 3 100
Chart showing the preference of the employee regarding salary hikes

70
64
60
50
P ERC EN TA G E
40
30
24.5
20
10 8.5
3
0
highly satisfied saatisfied dissatisfied highly dissatisfied
PREFERENCE OF THE EMPLOYEE
Figure 12- Employee preference on salary hikes
Finding:
 Out of the total employees 64% employees are satisfied with the salary hike
they get
 While, 24.5% are highly satisfied
44
 On the other hand 8.5% were dissatisfied with their salary hikes and almost
3% were highly dissatisfied
Analysis:
 The question was purposed to identify weather the salary hike employees
receive, make them satisfied or dissatisfied. Also different scales have been
used to dig out more about the exact preference of the employees
 As the chart indicates, the kind of salary hike the employees get make the
above classes of employees, amongst them the highest falls under the category
of “Satisfied”
 Only 3% of employees are highly dissatisfied and nearly 9% of employees
think that the salary hike they receive in an organization makes them
dissatisfied
QUESTION-9
THERE IS A STRONG FEELING OF TEAMWORK AND COOPERATION IN THE
ORGANISATION:
agree disagree
Respondent 202 176 16 6 400
Percentage 50.5 44 4 1.5 100
45
Chart showing the preference of employees regarding teamwork and
cooperation
60
50.5
50
44
P ERC EN TA GE
40
30
20
10 6
4
0
PREFERENCE OF EMPLOYEE
Figure 13- Employee preference on teamwork and cooperation
Finding:
 Out of the total employees, 50.5% replied that there is a strong feeling of
teamwork and cooperation in the organization
 44% are only agreeing with this fact
 On the other hand the remaining was disagreeing with this fact, out of which
6% are strongly disagreeing with this fact
Analysis:
 The question was purposed to identify the opinions of employees about the
sentence written above
 As nearly 51% of employees replied very strongly that they see a strong
cooperation and teamwork in the organization leading there by strong
interpersonal relations amongst employees and a feeling of team work
 As regards those employee who somehow believe that they agree with the fact
about the cooperation and teamwork in the organization, is also nearly the half
one (45%). They think that it is a fact, but it is not up to the mark
QUESTION-10
46
WHETHER EMLOYEES RECEIVE THE PROPER TRAINING WHEN EMPLOYEE
NEEDS TO DO THEIR JOB WELL:
agree disagree
Respondent 240 128 20 12 400
Chart showing the preference of employee regarding training to do their

job well
70
60
60
50
PERCEN TA GE
40
32
30
20
10 5 3
0
PREFERENCE
Figure 14- Employee preference on training
Finding:
 Almost 60% of the total employees are strongly agree that they get the proper
training when they need to do their job well
 While 32% are agreeing to this fact
 The remaining 8% are not agreeing to this fact, out of which 5% is disagree
and 3% is strongly disagree
Analysis:
 Training is the base for working in the organization
 We found that most of the employees responded that they are being given the
training by their organization whenever it is needed
 This shows that the employees can work easily and safely because they are
provided with the training
47
QUESTION-11
EMPLOYEE PERFORMANCE EVALUATIONS ARE FAIR AND ENOUGH:
Option Yes No Total
Percentage 87.5 12.5 100
chart showing the employee performance evaluations are fair enough or

not
no
13%
yes
88%
Figure 15- Employee opinion on performance evaluation

Finding:
 When it came to evaluation and performance appraisal, almost 87% of the
total employees said that their performance evaluations are being done fair
 The remaining 13% were of the opposite opinion
Analysis:
 The question was inserted to identify the relationship between employees’
agreement and the system of performance evaluation being done in the
organization
 We think that if employee perceive that they are evaluated on a fairly basis
implying without any bias and partiality, their satisfaction from the job would
be higher than the case opposite to this argument
 As 87% of employees believe that the system of performance appraisal is fair,
we could consider this as one of the factor contributing to increase in the
employee’s satisfaction
 The rest 13% are of the negative opinion that the performance evaluation
being done in their organization is not fair and should improve upon
48
QUESTION-12
SUPERVISIOR GIVES THEM PRAISE AND RECOGNITION WHEN THEY DO A
GOOD JOB:
Option Yes No Total
no
15%
yes
85%
Figure 16- Employee opinion on supervisor praise and recognition
Finding:
 Out of the total employees, 85% of them answered that their supervisors give
them praise and recognition when they do a good job
 The remaining 15% said that there is no such kind of treatment is done
Analysis:
 The objective of this question was to find out weather employee are agree on
this statement or not because we believe that employees satisfaction and
motivation level largely depend upon this interpersonal behavior with their
supervisors and subordinates
 As many as 85% of the employee agree that their supervisors give them praise
and reward whenever they do some good job, which implies that employees
feel motivated and get satisfied in this issue
49
 Only a very small percentage of employees replied that their supervisors and
immediate bosses do not recognize their work, howsoever good it is
 These mindset employees must be changed by implementing a good
interpersonal behavior and some good change training programs
QUESTION-13
RECEIVE USEFUL AND VALUABLE FEEDBACK FROM MANAGER:
Option Yes No Total
chart showing the employee receive useful feedback from manager or not
no
21%
yes
79%
Figure 17- Employee opinion on manager feedback

Finding:
 Out of the total employees, 79% said that they receive useful and valuable
feedback from the managers regularly
 While 21% of them replied that they do not get such kind of feedback from the
manager
Analysis:
 The question was purposed to identify the extension of feedback and reply
given by the managers and also weather any communication gap exists in any
organization and if it exists what percentage
50
 It reveals that nearly 80% of employees believe that their managers and
supervisors give the feedback and the kind of help whenever they need it
 It is observed that there is a significant correlation between the manger’s
involvement and the level on satisfaction and motivation of employees.
However, we also agree that if managers gives any wrong or misleading
feedback, then employees get dissatisfied
 The rest 21% of them said that they do not receive any constructive feedback
which we think is against to the morale boosting and satisfaction to the
employees
51
QUESTION-14
WHETHER ADEQUATE OPPORTUNITIES FOR PROFESSIONAL GROWTH IN
ORGANISATION OR NOT:
Option Yes No Total
no
25%
yes
76%
Figure 18- Employee opinion on growth opportunities

Finding:
 Out of the total employees 75.5% said that there are adequate opportunities
available for their professional growth in the organization but 24.5% denied to
accept the above statement
Analysis:
 This question basically tries to find out the employees growth weather exists
in the organization or not from the view point of employees, because if they
perceive that there are ample opportunities within organization, they would
feel motivated and be overall satisfied by working with the organization
 As nearly 75% of them replied that they have adequate opportunities in the
organization there by meaning that they are happy working with the
organization and expect organization to contribute in them
 The rest 25% denied to accept the statement as they feel that they don’t have
any opportunities that is there in the organization
QUESTION-15
52
SATISFIED WITH THE PERKS AND BENEFITS AVAILABLE:
Option Yes No Total
no
27%
yes
74%
Figure 19- Employee satisfaction with perks and benefits available

Finding:
 Almost 73.5% were satisfied with the perks and the benefits they get while the
remaining were not satisfied
Analysis:
 The purpose of this question was to reveal the satisfaction from perks and
other benefits available to them and the extent of agreement to the above
stated statement
 As more than 70%(73%) of the employees believe that they are not satisfied
with the kind of perks and benefits they get
 We agree on the fact that sufficient amount of benefits and a satisfied pay
make the employees feel satisfied and motivated to work
 As only 27% of employee agree on this statement meaning they are only least
satisfied with the kind of perks and other benefits they get from the
organization
53
QUESTION-16
MANAGER ENCOURAGE AND SUPPORT THEIR DEVELOPMENT:
Option Yes No Total
no
20%
yes
80%
Figure 20- Employee opinion on manager’s support

Finding:
 Almost 80% of the total surveyed employees said that they are being
encouraged and supported by their managers
 while 20% said that they do not get this kind of encouragement and support
from their managers
Analysis:
 This question was an attempt to identify the support and encouragement
derived from the management team and the mangers of the organization
 As 80% of employees think that they are being encouraged by their managers
and their managers extend the support whenever they need it
 Those who agree on this statement may be termed as satisfied because they
perceive there is some persons who care form them in the organization
 Those who replied to “No” is only 20% which think that they do not get this
kind of encouragement and support from their managers
QUESTION-17
54
EMPLOYEE’S WORK IS CHALLENGING, STIMULATING AND REWARDING:
Option Yes No Total
no
23%
yes
78%
Figure 21- Employee opinion on nature of the work

Finding:
 Almost 77.5% employees accept that their work is challenging, stimulating
and rewarding while 22.5% employees don’t think so
Analysis:
 This question was purposed to identify weather employees work is
challenging, stimulating and rewarding or not, because we think that if they
believe so, they are satisfied working in the organization
 This is because if they are disagree to this statement, then it will lead to
demotivation and dissatisfaction
 As this question reveals more than 75%(78%) of them believe that their work
is challenging, stimulating and rewarding there by meaning they are people
who like to work which is of concern with this three area
 Only 23% of them replied that they don’t think their work is rewarding,
stimulating and challenging
QUESTION-18
55
THE ENVIRONMENT IN THE ORGANISATION SUPPORTS A BALANCE
BETWEEN WORK AND PERSONAL LIFE:
Option Yes No Total
no
27%
yes
73%
Figure 22- Employee opinion on work life balance 1

Finding:
 While asking about the question whether the environment in the organization
supports a balance between work and personal life, 73% said yes and 27% said no
Analysis:
 This question was aimed at identifying the extent of support to personal life the
organization gives to the employees, because in the industry like BPOs and Call
centers, work timings and the way employees have to handle their duty is we think
very awkward and stressful respectively
 The feedback of the employees reveals that employees to 73% agreed that they are
able to handle their work life e with the personal life
 Those who denied to accept the statement were also not minor, was nearly 30% in
which majorly comprising of female employees working in this industry
56
QUESTION-19
ABLE TO SATISFY BOTH JOB AND FAMILY RESPONSIBILITY:
Option Yes No Total
no
31%
yes
70%
Figure 23- Employee opinion on work life balance 2

Finding:
 Out of the total employees 69.5% replied that they are able to satisfy both job
and family responsibilities
 On the other hand 30.5% said that they are not able to do so
Analysis:
 This question was kept to identify weather an employee is able to fulfill their
job and family responsibility, because we think that the kind of salary a BPO
employee get in Sonaiya , and the kind of job they have to handle and the
timings as well as the environment in which they are allowed to work are very
crucial issues for an employee working in this industry
 As it reveals that nearly 70% of employee agree to the statement, they can be
termed as happy and a satisfied one because they are actually able to handle
their personal life with work life
 The rest who are not able to satisfy the above issues may have certain
problems like low salary, work timings, environment within which they work
etc.
57
QUESTION-20
PEOPLE ARE HELD ACCOUNTABLE FOR THE QUALITY OF WORK THEY
PRODUCE:
Option Yes No Total
no
19%
yes
81%
Figure 24- Employee opinion on accountability

Finding:
 81% of the total employees said that they are held accountable for the quality
of work they produce
 While the remaining 19% said that they do not get such kind of credits
Analysis:
 The purpose for asking this question is to know whether the top management
values their employees or not.
 Almost 81% of the total employees said that they are held accountable for the
quality of work they perform which means that they are being valued by the
top management, that directly boost their motivation level resulting into better
efforts in the organization and high satisfaction level.
 The rest said that they are not held accountable for the quality of work they
perform which means that the organization’s atmosphere may be biased. This
kind of situation demotivates the employees; the organization needs to take
corrective measures for it.
58
QUESTION-21
SATISFIED WITH OVERALL JOB SECURITY OR NOT:
Option Yes No Total
no
28%
yes
72%
Figure 25- Overall job satisfaction

Finding:
 While asking whether they are satisfied with overall job security or not, 72%
said “Yes” and the rest 28% said “No”
Analysis:
 This question was identified to know whether employee feel safe about their
job security or not because we think that there is a significant relationship
between employees overall job security and their motivation cum satisfaction
level
 This question is of a great relevance because in the industry like BPO and call
centers, employees attrition rate is one of the major issues
 As more than 70%(72%) of employees believe that they are satisfied with their
overall job security and can work in the organization without any fear of
retrenchment, lay-off or attrition from the organization, in case of extreme
conditions
 28% of them replied to “No” which shows that they are not satisfied with their
overall job security because of lack of performance or contract period etc.
59
Chapter 5: LIMITATIONS
 The survey is subjected to the bias and prejudices of the respondents. Hence 100%
accuracy cant be assured.
 The researcher was carried out in a short span of time, where in the researcher
could not widen the study.
 The study could not be generalised due to the fact that researcher adapted personal
interview method.
 Responses to open ended questions were not been given as the employees were
reluctant in giving responses due, to which we could not decipher the exact opinion
of the employees for most of the questions.
 Incidents happening at the time of the survey have affected it.
 Employees thought that the questionnaire was too big and too specific.
CHAPTER-6: RECOMMENDATIONS & CONCLUSIONS
60
The research was aimed at identifying the factors that influence the satisfaction level of
employees working in BPOs and Call centers. We, as a group hereby would like to conclude
our research by saying that employee satisfaction is not the result of only one or two factor.
But it is sourced from various factors like working environment within which they work,
relations with their colleagues, supervisors, bosses, and rest of the employees, their
expectation when they join the organization and the realization of the same and many more
what we have highlighted in our project).
It’s a result of these factors mentioned above that plays major role in determination of the
satisfaction level of employee. Employee is motivated and get satisfied not because only what
they perceive and what they realize after joining, but it is their belief, values and the way of
working along with their attitude towards organization and work that we think, put major
emphasis in determining the satisfaction level of employees. Though it is agreed that a very
modern, educated, youth oriented and sophisticated industry like BPOs and Call centers,
employees tend to believe what they think is more rewarding and shining for them, is
appropriate and a growth fuelling for them. We think employees are what they think and
believe in, beyond a point.We here do believe that satisfaction level of employees is going up
in this industry, but challenges remain at the same level. Organizations and HR team will
have to work hard to convert a dissatisfied or less dissatisfied employee into a more satisfied,
motivated and a result oriented employee. Satisfaction level of employees can be increased
by taking into account various stets and programs along with concrete policies, this major
problems of this kind, we think, can be lowered down. Also recommendation of ours can be a
great help to this industry.
To boost the morale and satisfaction of employees, we recommend…
Expectations of candidates should match with actual realization after

joining the organization:
We would like to recommend that most of the employees expect that the organization
will give them good salary; there will be a good working environment and all working
facilities and training necessary for the work to be done by them. So, the organization
must provide employees with all these facilities and training so that the employees
can work smoothly and efficiently. For this we recommend:
61
 Give promotion,praise,recognition and awards to those employees who
done really good work at the job
 Provide insurance to all employees for the security purpose
 Simplify the goals, mission and vision of the organization to the

employee so that employees can help the organization to achieve their
of organizational goal
Timings of working:
In our research, we find that there is no fix timing of the shifts to a particular
employee. It means that the shift timings change every fortnight or every week. This
kind of changes in time really becomes difficult for the employees to adjust their
routine schedule every fortnight or every week. So, recommend that there should be
fix timing of shifts to the employees for working. Also, interchange the role of the
employee like inbound call representative to outbound call representative to reduce
the stress and timings adjustments
Holidays and Leave issues:

There is a major issue with the organization that they do not provide employees with
sufficient holidays thereby meaning if an employee is putting a leave for a valid
reason, the organization will not grant for it or it will cut that holiday from the salary.
This kind of behavior of the organization demotivates the employees and we all know
that if employees are not satisfied with the organization, they will leave the
organization and in this manner the attrition rate will be high. We are not saying that
the organization should give the leave whenever employee wants but there must be
valid reasons to give the leave.
Facilities and services- An Issue affecting cost as well as Satisfaction and

Motivation of Employees:
As, we agree that this issue affects budget of the company also but we find that some
of the organizations provide with travelling allowances and only few are providing
travelling facilities and the rest do not provide with such kind of facilities. We
recommend that if an organization is not providing with travelling facilities, they must
give travelling allowances and vice-versa. Also, because most of the employees come
62
from different areas and almost 20% to 25% of their salaries go in the travelling
expenses, travelling allowance must be provided with. Those should be provided with
meals or light snacks who work almost for 9 to 10 hours in the organization.
How to tackle the problems of Stressful and Negative environment?

We find that in some organization there prevails environment like negative and
stressful which really demotivates and dissatisfies employees. To tackle this
problems, we recommend:
 To reduce the stress, the company should interchange the shifts from
day to night and night to day
 Travel timing creates lots of stress at the work so the company should
hire the employee within the nearest area otherwise they should
provide travelling service
 Define organizational structure very well so that every employee can
understand their responsibility and the problems of negative
environment can be removed by interpersonal behavior
 Have some recreational canteen facility(Like motif provides), Seasonal
celebrations, and picnic or stress removing activities
 Give transport facility to the employee to reduce the stress at work
Look at these relationships-more than a hint…

There is a direct relationship between the culture and environment of the organization
and team work. There must be positive and encouraging culture in the organization so
that the employees can work in the team work which ultimately leads in the efficient
working in the organization. We all know that employees come from different
backgrounds of the society so they must work as a team feeling to diminish industrial
disputes and the organization must support this kind of efforts. Also, there is a
relationship between employees satisfaction with the kind of monetary and non
monetary benefits they get, that should also be looked upon.
63
Regular evaluation and performance appraisal- to tackle the problems
of average satisfaction
Majority of the employees fall under the category of average satisfaction in the rating
scale. So the company should be aware about the kind of other problems or challenges
which are still remaining to the employee and in the organization as a whole.
Companies should conduct survey system and get the proper feedback about the
problems and other opinions. Informal interaction and interviews can be a great help.
Suggestion boxes and employees feedback system should be implemented
Some general recommendation and best practices followed by the

organizations in this industry:
 Recruiting and hiring…it all starts with this
 Provide a Career / ‘Skill’ Path
 Employee Development and Training
 Strong Supervisors / Good Coaching
 Work Environment / Company Culture
 Rewarding work / empowering employees.
 Recognition (first) and Reward (second)
 Strengthen work environment
 Treat employees as an important part of the organization
 Encourage participation in various planning and decision-making
 Empower employees and ensure job security
 Provide legitimate feedback, genuinely listen to staff concerns and make their
interests a management priority
64
APPENDICES
QUESTIONNARE
65
Q.1 How long have you worked for in this organization
Less than one year 
Between 1-2 years 
Between 2-5 years 
More than five years 
Q.2 Monthly income

3000-6000 
6000-9000 
9000-12000 
More than 12000 
Q.3 Level of satisfaction

Low 
Average 
High 
Q.4 Whether the company is open to ideas and suggestions given by
employees
Strongly agree 
Agree 
Disagree 
Strongly disagree 
Q.5 Whether the culture of the company is such that it creates work
environment
Positive 
Negative 
66
Stressful 
Very bad 
Q.6 Whether satisfied with the kind of salary hikes the employees get
Highly satisfied 
Satisfied 
Dissatisfied 
Highly dissatisfied 
Q.7 Whether there is a strong feeling of teamwork and cooperation in the

organization
Highly satisfied 
Satisfied 
Dissatisfied 
Highly dissatisfied 
Q.8 Satisfied with working in the organization

Yes 
No 
Q.9 Whether monetary and non monetary benefits motivate and affect employee
satisfaction level or not
Yes 
No 
Q.10 whether adequate opportunities for professional growth in the organization
or not
Yes 
No 
Q.11 Satisfied with the perks and benefits available
67
Yes 
No 
Q.12 Managers encourage and support their development

Yes 
No 
Q.13 Employees work is challenging, stimulating and rewarding

Yes 
No 
Q.14 Environment in the organization supports a balance between work and

personal life
Yes 
No 
Q.15 Able to satisfy both job and family responsibilities
Yes 
No

Q.16 People are held accountable for the quality of work
Yes 
No 
Q.17 Employee performance evaluations are fair and enough

Yes 
No 
Q.18 Receive useful and valuable feedback from their managers

Yes 
68
No 
Q.19 Supervisor gives them praise and recognition when they do a good job
Yes 
No 
BIBLOGRAPHY
 www.wikipedia.org
 www.Sonaiya.org
 www.custominsight.com
 www.forbes.com
69

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PROJECT REPORT

A Study on Employee Satisfaction in the IT Industry

5 INDIAN IT INDUSTRY AT A GLANCE

6 INDIAN BPO INDUSTRY AT A GLANCE

9 ANALYSIS AND FINDINGS

11 RECOMMENDATIONS AND CONCLUSIONS

“People don't leave their jobs, they leave their managers."

One of the key steps to understanding and improving employee satisfaction is by

 Broadly-defined responsibilities rather than narrowly-defined job functions

Typically, a combination of factors influences employees' decisions to stay at their current

In particular, consider the following elements of effective strategies designed to build

 Provide employees with well-defined career paths (including a succession plan),

Definitions of Employee Satisfaction:

1. Employee satisfaction is defined as “a pleasurable or positive emotional state

2. Employee satisfaction is “a set of favorable or unfavorable feelings with which

Need for the Study

Why Measure Employee Satisfaction

Rapidly growing organization

High or growing turnover rate

Highly competitive industry

Contemplated changes in pay and benefits

Sonaiya Software Solutions

Sonaiya Software Solutions

IT Services Consultancy Training

Web Solutions Staffing Service Training Program

Figure:1 Structure of Sonaiya

1. Interactive Application Development

• EDUSMITH – School ERP

Research and Development

• Human Behavior Analysis

• Child / Human Tracking through ID Cards

Consultancy / Staffing Services

Our Recruitment Process can be categorized into three phases, namely:

Sonaiya Software Solutions involves contract-to-hire staffing module is the Made-to-order

Turn Key Assignments

Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing (RPO) is a form of Business Process Outsourcing (BPO)

INDIAN IT INDUSTRY AT A GLANCE

Few important characteristics of the Indian IT sector include:

Export intensive:Indian IT industry is predominantly export driven, with exports

Concentration on Low-end services: Low-end services such as customised software

Emerging Trends in the Indian IT Services Industry

New Service Offerings

Larger Deal Size

Growing presence of MNCs

Changing Growth Drivers:

Issues and challenges

 Rising attrition rate: Growth and attrition rates seem to be following a similar

What is Business process outsourcing?

Services offered by Indian BPO companies

 Customer support services: 24/7 inbound / outbound call center services that

Interesting facts about the Indian BPO industry

 Indian BPOs handle 56% of the world's business process outsourcing

The top fifteen BPO companies in India

Problem Defining (Objectives), Data collection, Research design, Data collection,

 The work itself-responsibility, interest, and growth.

Types of data analysis used:

1. Qualitative data analysis – through Findings, Analysis and explanation