Attrition with Respect to BPO/KPO Industry in India
Abstract
Information Technology Enabled Service companies in India are providing services to domestic as well as offshore clients because of the availability of low cost human talent with fairly good communication skills. The growth of outsourcing industry in India is impressive and companies are providing outsourcing services in low-end as well as in lugh-end segments. However, sustaining this impressive growth is not always possible. these companies are facing continuous challenges due to heightened competition, global slowdown, scarcity of talent, attrition of employees, and many other HR and technology related issues. The trajectory of growth of outsourcing as a strategy and a significant management tool over the last decade has been noteworthy, not withstanding, the momentary hit due to the global economic meltdown. What began from manufacturing outsourcing progressed to information technology (IT) and business process outsourcing (BPO) and grew to a somewhat elite branch of outsourcing known as knowledge process outsourcing (KPO). The world business market now looks at the Asian countries for its present and future BPO activities. Creating offshore centers provide a flexible and cost-effective structure for business establishments. The large influx of BPO into Asian countries promises a very stable future for both the parties involved. India has been a favorite market for BPO, with Australia being one of the biggest markets in the Asia-Pacific region in the Asia-Pacific region, Australia has major share in the revenue generated by BPOs. However, India has been the fastest growing BPO provider in the last decade. According to Gartner estimates, India has reached 7.4 billion at the end of 2017 which is 23.2% more than 2010. By 2020 India is expected to touch 9285 billion. The same pattern goes with KPO industry which is expected to grow to $77 billion by 2014. from current $9 billion in 2011. It is no doubt, one of the toughest tasks for an HR manager in this sector to bridge the ever increasing demand and supply gap of professionals. He has to find the right kind of people who can keep pace with the unique work patterns in this industry. Adding to this is the challenge of maintaining consistency in performance and keeping the motivation levels high, despite the monotonous work. The toughest concern for an HR manager in India is, however, the high attrition rate which is approximately 30-35 percentar present. The present study investigates the HR practices in BPO/KPO industries with respect to attrition in India. The study envisages the problems of HR practitioners in BPO/KPO industry in view of the alarming rate of attrition. It also suggests the ways and means to overcome such problems by reducing the rate of attrition. This will help in increasing the stabilit among the emplovees by making them more dedicated towards their organisations.
Authors
Pragati Tiwari