We examined the impact of adoption of information technology on human capital performance of MSEs in India. A sample of 500 respondent firms from north states of Punjab, Haryana and Himachal Pradesh has been collected from health care services and hospitality sector. To reach the target population judgmental sampling technique has been used. Multiple regression technique and descriptive statistics have been applied to analyse the results. The study found that information technology has positive impact on the work experience and overall employee productivity. So, it is concluded that investment in information technology significantly affects the human capital performance of firms. So, our findings recommended that micro and small firms should invest more and more in human capital to enhances entrepreneurial performance. It also helps in sustainability of business with optimum profits.