The Effect of Adopting Human Capital Analytics Practices on the Competitive Advantage of Indian Organizations

Abstract

This study aims to find the factors affecting Human Capital Analytics (HCA) adoption and to analyze its impact on the competitive advantage of information technology organizations in India.The information technology sector comprises companies that are known for innovation and knowledge-based creation. Right from the creation of computers in the 1940s to the creation of the internet, e-commerce, mobile commerce, artificial intelligence, and machine learning in the present millennium (2000-2023), information technology companies have created hardware, software, applications, systems, products, and services that have increased productivity, efficiency and accuracy in the workplace and made life easier and more comfortable for humankind. IT companies in India are facing talent shortages and high levels of attrition rates. It is becoming increasingly difficult to acquire talented human resources and retain them, despite providing them with high remuneration packages and workplace incentives. The HR department must take a scientific approach and understand the need, motivation, and satisfaction of each employee in an individualized manner instead of generalizing the issues. This is the context in which the need for the deployment of human capital analytics (HCA) in IT companies in India has arisen. HCA helps the HR department of IT companies to identify the metrics to be measured, collect both quantitative and qualitative data, and create strategic interventions with the insights obtained from data analytics. With these valuable observations, inferences, and insights, it was inferred that the HCA implementation in IT organizations needs a deeper analysis and understanding in order to put forth recommendations on how to make the implementation process more effective and streamlined.