JAYPEE INSTITUTE OF INFORMATION TECHNOLOGY, NOIDA A-10, SECTOR 62, NOIDA, INDIA
TABLE OF CONTENTS
S. No. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2.0 2.1 2.2 2.2.1 2.2.2 2.2.3 2.3 2.4 2.5 2.6 3.0 4. 4.1 4.2 5. 5.1 5.2 5.3 6. 6.1 6.2 6.3 6.4 Basic Introduction Need of the research Aim of the research Objectives of the study Research Methodology Significance of the Study Scope of the study Literature Review Introduction BPO: An overview Market Size of BPO in India Growth of Indian BPO Industry Attrition in BPO Employee Motivation Employee Involvement Hackman and Oldham’s Job Characteristic Model Conceptual model of the research Research Methodology Exploring the dimensions of attrition in the BPO industry Secondary Data Analysis Primary Data Analysis Exploring the dimensions of employee retention Retention Factors Regression Model of Retention Model Validation Conclusions Analogy with established theories Implications of the Study Recommendations: Developing Retention Strategy Limitations and scope for further research Topic Page No. 3 5 6 9 10 10 11 11 11 12 12 12 13 15 15 16 16 17 18 18 21 24 24 26 28 28 28 30 31 33
1.1 Basic Introduction BPO! One reads the word and myriad of well-groomed youth on calls, fast money, and phenomenal lifestyles seem to flash the mind in a jiffy. That’s just the start. One reads it again, contemplates over it, dives into the unveiled afflictions, and gives it a second thought and a completely differing depiction blazes the mind. Lopsided working hours, unimaginable attrition rate, stress and burnout exhibit its ugly side. No matter how the seesaw balances between the pros and cons, the fact remains conspicuous, loud and unchanged. BPO, Business Process Outsourcing, is the mantra of employment, the buzz of present, and the promise of future! The last decade saw an upheaval in the growth and development of the Indian economy, which was accompanied by the revolution in the technological front and a radical change in the way businesses were done. Instead of being the jack of all trades, the smart organizations have now redefined the way of working and now aim at being the master of their core business. Outsourcing the non-core processes in order to concentrate on the core ones is how the companies prefer to work now. BPO has become the obvious strategic choice of the companies looking at the visible profits of cost reduction while improving the quality of service, increasing shareholder value etc. (Shah and Sharma 2006). With the whirlpool of opportunities the Indian Business Process Outsourcing sector seems to be on a happy ride. It has emerged rapidly, and its exports have grown from $565 million in 2000 to about $7.3 billion in 2005 (Budhwar et al. 2006). With the boat steaming ahead in the global markets, India has already become the most privileged destination. Hence such an eternal inventory of opportunities simply showcases a phenomenon which is no less than the renaissance for our Indian markets. Today, India is the hottest destination for any company that wants to outsource its business processes. From a negligible size in early 2000 to a gigantic size today, the BPO sector has been growing at an unprecedented rate. In 2003, India accounted for 75 percent of the total BPO offshore delivery value that was expected to increase by 55 percent annually over the next five years (Neale 2004). According to Scholl et al. (2003), India’s revenue from BPO operations was expected to grow from approximately $1 billion in 2002 to $13.8 billion in 2007 and its share of supply was projected to be 57 percent of the offshore BPO market. According to Nasscom, the Indian IT-BPO industry (including...