You are here: Home » Companies » News
Business Standard

Attrition rate up 55% in India's BPO sector

Press Trust of India  |  New Delhi 

Attrition rate in Indian BPOs has increased to 55% in the last four months mainly due to erratic working hours and perceived lack of long-term career growth in the sector, an industry chamber study has said.

During December 2010-April 2011, the attrition rate in the business process outsourcing (BPOs) has increased to 55% from about 40% in the same period previous year, Assocham study said.

"Although the BPO sector has been popular since the beginning as it has opened up plenty of job opportunities, the high attrition rate has plagued the sector now," Assocham Secretary General DS Rawat.

Besides, the industry is facing serious challenges like shortage of skilled and educated workers, the study said.

Services offered by the IT/ITes and BPO in the domains of pharmaceuticals and financial services have registered an attrition rate of 60%; in retail and IT sectors 50%; and in automobiles, FMCG and infrastructure sectors 50% during period under the review, the study said.

"The growing trend of job-switching in the industry might prove fatal for the survival and growth of India's BPO sector," Rawat said.

At present, India's BPO industry is facing a stiff competition from countries like Mexico, Philippines, Malaysia, China, Canada and Ireland.

To establish a substantial lead over competing countries acquiring a larger market share in the global BPO sector and to remain competitive, it is important that increasing wages in the sector must reflect in rising skill levels.

"Rapid job switches amongst professionals have certainly raised the wages, but there is hardly any development of expertise amongst the employees which is significant to justify their fat pay cheques globally," Rawat said.

The rapid increase in job switching has compelled people to question India's competitiveness in the BPO industry. Thus, it is imperative that these must provide adequate training and work experience to employees, the study said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, April 14 2011. 19:23 IST
RECOMMENDED FOR YOU
.