Attributing outsourcing attrition

Amidst the income and development generated by the outsourcing industry, India still sees an exodus of employees from the business process outsourcing (BPO) segment. This time it is not the usual supposed-sweatshop-condition culprits causing the outflow of people from the companies – not the night shifts, neither the work monotony, nor salary discrepancy. It is actually the lack of growth opportunities that send them sailing out the offshore doors as quickly as they eagerly walked in.

A Hill & Associates study scrutinized the challenge of keeping people in the Indian outsourcing sector. Of the 1,000 respondents, more than 50% attributed this to the lack of growth opportunities, mismatched expectations, dissatisfaction with company policies, and the never-ending quest for career fulfillment.

Surprisingly, only 39% of the respondents cited the night shifts, work monotony and lack of salary raises as major reasons to leave the company.

The survey also showed that considerations for joining the BPO sector included immersion in an international-level work environment and infrastructure – both at equal ranking among the correspondents at 36%.

This stands to correct notions that salary, incentives and lifestyle ranked as the highest reason for joining that outsourcing sector, since only 35% cited these.

The BPO sector gained most of its applicants through advertisements and manpower consultants, according to 60% of respondents. This however brings about the risk of having mismatched work expectations from the start since these advertisements aren’t accurate depictions of the job profiles.

Hill & Associate country manager, Ashish Sonal says,

"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."

Industry estimates have pegged Indian BPO contributions at 41% of the country’s GDP in 2004 – 2005. BPO players are anticipated to move up the market and desirability level with a projected 50% annual growth.

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