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India's IT Industry

For more than a decade now, India’s IT sector has witnessed steady growth in revenues and employment. The sector can be classified under three broad categories: IT hardware manufacturing (ITHM), IT software services (ITSS), and IT-enabled services (ITeS), which also includes BPO services. As noted above, literature is concentrated more on the ITeS/ BPO sector, namely the call centres, and limited research has been undertaken on other sectors that make up the IT sector of India.

The greatest area of growth in the context of the Indian economy is with regard to the BPO industry, which was worth $ 100 billion in 2013, and predicted plan to grow to $ 300 billion by 2020 (Economic Times, 2013). In 2012, it was estimated to have contributed 7.5 % to India’s GDP and was directly employing close to 2.2 million people (NASSCOM, 2012; Laleman, Pereira, & Malik, 2015). Further, in 2012, the overall Indian IT/BPO aggregate revenues exceeded USD 100 billion, with exports in 2014 expected to cross USD 84-87 billion (NASSCOM, 2014).

Further, as improvements at a national level can be achieved by making appropriate investments in training at a firm level (Cappelli, 1995; Porter et al., 2004; Pereira & Malik, 2015), it is important for policymakers and businesses to understand the interrelationships that exist between various explanatory factors and how they influence the nature and extent of human capital formation and innovation, especially in the light of recent policy-level national HRD interventions by the Government of India for its IT sector.

Using existing frameworks from the literature on enterprise training (Hayton et al., 1996; Smith & Hayton, 1999; Ridoutt et al., 2002; Smith et al., 2002; Pereira & Malik, 2015) and Dubin’s (1978) theory-building method, this chapter will attempt to theorise the factors that influence the provision of enterprise training typical to enterprises in the IT sector of India.

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