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Source: Times News, New York (2003)

For BPO service providers, moving up the value chain is critical, given the attrition rates in the industry, which are on an average higher in low value-added segments as compared to higher value-added segments like engineering.

In order to ensure a consistent flow of trained manpower in the future, the industry needs to work with the government to introduce courses at school and college level, which are in line with the requirements of the BPO industry. India has one of the largest pools of English-speaking graduate workforce. The challenge for the industry is not in employment but employability. The industry is also hiring professionals from outside the industry in order to meet its steady supply of manpower.

Causes for Attrition

The reasons for the high rate of attrition were due to various factors like salary, work timings and other career options. Poaching has also played a major role in acerbating the issue of attrition in the BPO industry. It will not be possible for the industry to arrive at a blanket agreement on poaching but bilateral agreements between companies are being signed. Basic norms are being put in place and code of ethics is being stressed upon by industry. Companies are being encouraged to adopt responsible behavior in order to ensure that the industry does not become a victim of its own actions. Industry needs to act aggressive but not cannibalistic.

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