Human Resource Accounting Practices in Private Sector Companies in India (With Special Reference to Infosys)

The employees are the most valuable among all the available resources in the service sector. They, like other resources of the company, possess value because as they provide future services. It would be a worthwhile exercise identifying and measuring the value of human capital. With ever-increasing knowledge and skills the economy has become more dependent on its human resources thereby making it an integral part of success. The growth of the software companies all over the world depend on its human and intellectual resources making retention and maintenance of these a primary aim of all employers. These employees are assets that appreciate in value through the skill, knowledge and experience they acquire while working in the organization. Their departure from the organization makes the business lose an essential element of intellectual capital. The loss becomes greater if such intellectual element is acquired by a rival business concern. This makes the valuation of this asset essential for the success of the company and by reporting it to the public it enhances the image of the company. The present study aims to discuss the human resource accounting system followed by private sector companies in India. In 1995–96 Infosys became the first software company to value its human resources in India in The specific objective of this paper is to critically discuss the human resource accounting practices followed by Infosys, one of the best Service and Software Company of India.