Globalized competition is a reality today and the competitive intensity is increasing phenomenally in all markets which are already hyper-competitive in nature. It is now recognized that ‘human capital’ is a source of competitive advantage in many cases over and above technology and finance. In the knowledge economy of today, more than the material and capital resources, ideas and knowledge serve as valuable currency. Firms which have talented, committed and engaged employees enjoy significant advantages over their rivals. Therefore, companies spend a great deal of time and effort in building, engaging, motivating and retaining talent. An important way of accomplishing this task is by Internal Marketing. The challenge for businesses today is not just on satisfying employees and getting them to stay with the organization but to create an environment where they give discretionary effort to go above and beyond what is written in their job description. Organizations therefore have to work harder to ensure that they win the loyalty of the best employees. This empirical study explores the extent of Internal Marketing in the Information Technology Industry in Chennai.