Employee engagement in service industry based on information technology is crucial for its growth. However, there is a huge attrition and loss of knowledge in ITES companies in India. This study focuses on various factors that influence employee engagement in ITES companies. The literature survey extensively searched for the factors influencing the employee engagement in the context of ITES companies. The variables are identified as Job Content, Peer Co operations, Career Growth, Performance Review and Development, Leadership Style, Mentoring and Coaching, Working Environment, Rewards and Recognition, Organizational culture and climate and Compensation. Through this study, the extent of impact of these variables on employee engagement is tested. A survey by using questionnaire is engaged for data collection. The results of data analysis using regression showed that Organisational culture and climate, peer cooperation, Job Content, Mentoring and coaching, leadership style, work environment and compensation has influence on employee engagement and varies it to a major extent. The results are discussed and implications of the study are provided.

KEYWORDS: Employee engagement, ITES companies, organisational factors, Stepwise regression