Talent is the primary drivers of any successful organization. Talent management is an effective tool which majorly focuses on two important aspects they are talent acquisition and talent retention. Talent management becomes an essential practice of modern business organizations to achieve competitive advantage. In the present competitive and turbulent business environment Talent Management became one of the crucial challenges for the business organizations. Talent retention is vital for the organizations to achieve competitive advantage. The present research study emphasizes on talent management practices in IT and ITES sector and its impact on talent retention. The required data has been collected through the well structured questionnaire from the employees of select IT and ITES companies. The results of the research study found that there is a positive association is existed between the talent management practices and talent retention. Hence it is advised that the management of IT and ITES companies have to focus more and more on talent management practices in order to retain the top talent. Talent management practices such as competitive compensation system, work life balance, performance management system, enhanced career development opportunities and impartial treatment are essential for the workforce to continue their services for a long period of time. Hence it is advised that the top level management has to frequently update their talent management practices to suit to the ever changing needs of the human capital.

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Keywords: Talent Management, IT and ITES Sector, Talent Retention, Compensation System.