The modern economy being a knowledge driven economy requires different kind of human resources to manage the modern production function. In the earlier years when the manufacturing dominated the productive activity, human resources required were mainly in the form to technocrats to operate the machines. But in the new millennium the production function, due to advent of a new technology, (Information Technology) requires a new kind of expertise driven by knowledge capital. Management of this kind of human resource requires a different kind of strategy. This article is essentially a probe into such a strategy. The most cost effective knowledge driven human capital of India has provided the cutting edge competitive advantage to Indian IT industry in the global arena. Next to the location advantage that India has, the factor for the country's immense success in the overseas markets is its abundant & cost effective human capital which is one of the key asset that has kept India sustain its edge in the IRES sector (Arundhuti Dasgupta, 2002). Therefore the Human Resource, (HR) professionals all over the world are frantically trying to adopt effective strategies to retain the human capital and to reduce the attrition rate.
The objective of this paper is to understand the retention strategies adopted by various IT industries and to suggest new strategies that these companies can adopt to get a better solution to this nagging problem.
