High attrition rate causes talent crisis in BPO industry
India’s BPO industry, which is the backbone of this Millennium City, is facing serious crisis due to lack of skilled manpower, with a majority of mid and senior-level workers switching jobs frequently, a study has found. HT reports.india Updated: Apr 15, 2011 00:57 IST
India’s BPO industry, which is the backbone of this Millennium City, is facing serious crisis due to lack of skilled manpower, with a majority of mid and senior-level workers switching jobs frequently, a study has found.
The Business Process Outsourcing (BPO) sector has witnessed a high attrition rate of 65% in the last two years, giving a massive jolt to the prospect of the country, the Associated Chamber of Commerce and Industry of India (Assocham) said in its analysis.
India has been the most sought-after destination in the world till recently, with a large number of multi-national firms outsourcing businesses in Gurgaon and other parts of the national capital region.
“Although, the BPO sector in India has been very popular since the beginning as it has opened up plenty of job opportunities and has totted up huge revenue, but the awfully high attrition rate coupled with talent crisis has plagued the sector since the very beginning,” Assocham secretary general DS Rawat said.
IT-enabled services offered in sectors like pharmaceuticals and BFSI (Banking, Financial Services and Insurance) have registered an attrition rate of around 60%. While firms outsourcing retail and IT businesses have recorded an attrition rate of around 55%, the Assocham said.
“The growing trend of job-switching might prove to be fatal for the survival and growth of India's BPO sector. Companies these days do not focus much on enhancing an individual’s performance. This might hamper India's rapid ascension in the long run,” Rawat said.