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It is empirical research that is not just a theoretical discourse that quantifies the physical effect of the digital transformation on Human Resource Management (HRM) in the dynamic Indian IT industry. Our mixed-methods research involved using the results of a survey of 300 IT professionals combined with reports of the industry to critically consider the adoption of digital HR practices and their effectiveness. The findings greatly confirm the existence of a considerable digital divide, as the extensive adoption of Human Resource Information Systems (HRIS) has increased employee engagement, work-life balance, and overall operational effectiveness, which can be measured. Yet, during our research, we have discovered an urgent issue that we call the In-House Paradox: even though a startling proportion of firms (85 percent) use custom, in-house software to run their operations, older, customized systems tend to impede strategic scalability and restrain the implementation of sophisticated data analytics. Moreover, one of the challenges that have been singled out is the so-called Remote Management Crisis, which is marked by substantial disparities in the data management approach, as well as a recognizable decline in the level of teamwork in the hybrid working environment. To summarize, digital tools are indeed effective in increasing the Employee Value Proposition (EVP), but the IT companies are to make a strategic shift out of the outdated, legacy architectural structures and to scalable and integrated systems and develop a competent virtual leadership to gain sustainable competitive advantage.
Digital Transformation, Human Resource Management, Indian IT Industry, Employee Experience, HR Analytics.