Bpo Attrition- the Problem and Its Solution

Topics: Business process outsourcing, Outsourcing, Business process Pages: 5 (1510 words) Published: August 24, 2010
Human Resources In Indian Business Process Outsourcing Organizations- Attrition. Is there any solution?
Business Process Outsourcing (BPO) is likely to be the next big thing for services in this decade. The industry is very diverse, with several sub-segments, each displaying its own unique characteristics. The BPO players need to be excellent in every facet of operations as the market is highly competitive at every level and re-defining itself every day. Being a People-Centric industry what are the people issues that, the HR will have to handle? What are the challenges faced by HR in dealing with them? HI Before this, one needs to gain an understanding about BPO's and what businesses are Indian companies doing in this segment? BPO is based on the premise that whatever competencies are not very important for an organization  (not their core competencies); outsource or ask somebody else who is adept at doing it, to do it for the organization. In this way the organization can concentrate on its core competencies and not worry about on trivial issues, which are not strategic in nature. But these days we even find organizations outsourcing their core competencies or the core business aspects to BPO's to gain the advantage of cost cutting and quality issues. Typically, BPO would include call centers, problem solving in insurance sector to other sophisticated activities like research and other back office dealings. India has the advantage of low cost, highly qualified English speaking labour, thus most of the BPO ventures in India are call centers, although of late, companies are entering into high-end areas like research. But for sometime at least we can assume that most of the companies would be doing the call center kind of business. Most of these kinds of jobs get done in the night in India to account for the 12-hour time lag between US and India. Over a period of time the biological rhythm of the employee changes, causing various kind of disorders like indigestion, fatigue, headaches etc. so the health of the employee is a major concern for the HR, more so because most of them are graduates in their early twenties. In addition the jobs are monotonous, often nerve wracking. So it is a challenge for HR to adequately rotate the jobs of employees and provide them with enough time to refresh, so that they are able to deliver service of highest quality. Although many companies are targeting fresh graduates, they are not able to retain them. Attrition continues to be high 35%. HR has to ensure that a proper career path is chalked out so that graduates increasingly see this area as a potential career for them. Clients in US, UK and other European Countries are very quality conscious and as increasingly complex jobs get outsourced, it becomes important that HR ensures right quality people are selected and the right quality of training is provided to them. This ensures that later they do not face embarrassing time from their clients. There has been enormous requirement in this sector for manpower and huge salaries are up for taking. The times are good for this industry, but one has to keep in mind that this industry is still in its way to figure out in the growth stage. One cannot predict the future so easily and the sour experience of software companies is still fresh in minds. So a little bit of caution is to be exercised in this matter and proper trends have to be forecast by the HR to ensure that they do not go the software way when ultimately the industry stabilizes. Attrition … A major problem rocking the Industry.

Some Facts to Ponder about…
* 95% companies in the industry have Attrition problems * The small-sized and medium-sized companies loose more people * Turnover rates are as high as 30% in some reputed BPO's and over all around 35% in the Industry. * Employees move to smaller companies for exciting opportunities and greater identity and move to large companies for defined roles, clearer career...
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