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Outsourcing staff attrition
BS Corporate Bureau in New Delhi | March 17, 2005 10:19 IST
It is not night shifts, monotony of work and quest for salary jumps, which are leading to an exodus of employees from the business process outsourcing segment. Instead, it is the lack of growth avenue that is driving more people out of organisations.
According to a Hill & Associates study on the challenges of retention in the Indian outsourcing sector, more than 50 per cent of the 1,000 respondents attributed their exits to lack of growth avenues, expectation mismatches, dissatisfaction with company policies and quest for a better job content.
Night shifts, monotony of work and salary hikes were cited as major reasons by only 39 per cent of the respondents.
The survey also indicated that being part of an international work environment and infrastructure are equally important factors for joining the outsourcing sector.
Nearly 36 per cent respondents attribute international-level work environment and infrastructure as reasons for joining the BPO sector.
This contradicts the widely held perception as only 35 per cent respondents said that salary, incentives and lifestyle were the dominant reasons for entering the sector.
About 60 per cent of the respondents pointed out that the BPO sector attracted applicants largely through advertisements and manpower consultants.
This way, the sector exposes itself to the risk of mismatched expectations right at the beginning as the advertisements do not accurately project the job profile to those aspiring to join the outsourcing industry.
Ashish Sonal, country manager, Hill & Associates said, "Attrition not only pushes up costs incurred on the training of employees but also affects productivity along with the ideal level of 'knowledge maturity' of the organisation and the employees. The sector needs to employ a higher degree of due diligence at the hiring stage."
According to industry estimates, the BPO sector in India contributed 4.1 per cent to the country's GDP in 2004-05. With a projection of 50 per cent annual growth, the BPO players are likely to move up the value chain for better price realisation.
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