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HR Management | Managing Attrition in BPO Industry

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Managing Attrition in BPO Industry

- by Srinath Raj Kasi *

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Recruitment: Leading BPO companies report a recruitment rate around 5 per cent. This means that out of every 100 people who apply for a job, only five get selected. This ensures that the BPO workers are really the best amongst the crop of graduates that leave colleges every year.

We have an industry that is recruiting the best people at the entry level from a very wide spectrum of colleges, placing them in a world-class work environment, training them to very high standards and putting them to work for some of the most demanding customers in the world.

The Indian BPO Industry - The Year 2015

The Indian BPO industry has been an enormous success. It will grow at a compounded annual rate of 50 per cent and will employ 6.5 million people. If we include people who started life in the BPO industry and have moved on to do other things (assuming an annual attrition rate of 30 per cent for the BPO industry as a whole), another 6 million people can be accounted for in the industry.

There will be over an estimated 12 million individuals in India who have worked in the BPO industry, i.e., have been through the rigorous recruitment tests, extensive training, are accustomed to working in a very high-quality environment, don't consider air-conditioning a luxury, have a very strong work ethic and expect similar professionalism from their colleagues as a matter of course, are used to satisfying very demanding customers, and delivering quality that is second to none in the world. These will be the Indians who have acquired global skills without having to migrate to the West.

Present Statistical Estimates

The size of the Indian BPO market is likely to be around $9-12 billion by 2006 and will employ around 400,000 people (Source: ICRA Report on Indian BPO Industry). The employment in outsourcing based services sector in India is as shown below: -

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* Contributed by -
Srinath Raj Kasi,
PGDIM XI,
NITIE, Mumbai.


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