Subject category:
Human Resource Management / Organisational Behaviour
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Topics:
BPO (business process outsourcing); Recruitment and training; Attrition rate; Compensation, bonus, incentives; Career plan and growth; Job rotation and enrichment; Promotion and motivation; Higher education; Employee turnover; Employee retention initiatives; Human resource management (HRM); Pay package, employee compensation; HCL Technologies, GTL, Tracmail, Vertex India; Wipro Spectramind, Progeon, Daksh; Psychometric tests
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https://casecent.re/p/20212
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Abstract
The Indian BPO (business process outsourcing) industry faced an attrition rate of 30% to 40%, costing the industry Rs 300 crore in recruitment and training. Added to these were the costs for failed service levels. The total loss due to attrition was estimated to be 25% of the annual revenue. A synergy between incentives, higher education programmes, career growth programmes, selection of right person for the right job and changes in the organisation environment helped organisations in bringing the attrition rate under their control to some extent. But all these efforts had cost implications. The high costs involved in employees'' retention was eroding the cost competitiveness of Indian BPO companies. The case study helps in understanding the efficiency of the measures undertaken to curtail employee attrition in the Indian BPO industry.
About
Abstract
The Indian BPO (business process outsourcing) industry faced an attrition rate of 30% to 40%, costing the industry Rs 300 crore in recruitment and training. Added to these were the costs for failed service levels. The total loss due to attrition was estimated to be 25% of the annual revenue. A synergy between incentives, higher education programmes, career growth programmes, selection of right person for the right job and changes in the organisation environment helped organisations in bringing the attrition rate under their control to some extent. But all these efforts had cost implications. The high costs involved in employees'' retention was eroding the cost competitiveness of Indian BPO companies. The case study helps in understanding the efficiency of the measures undertaken to curtail employee attrition in the Indian BPO industry.