India’s Business Process Outsourcing, or BPO, industry is facing serious challenges due to lack of skilled and educated manpower, with a majority of mid and senior management-level workers switching jobs frequently, a study has found.
The BPO-ITes sector has witnessed a high attrition rate of 65% in the past two years, giving a serious jolt to India’s prospects which was till recently the most sought after BPO destination, the Associated Chamber of Commerce and Industry of India (Assocham) said in its analysis.
Between December 2010 and April 2011, the attrition rate in the BPO industry increased to 55 percent from 40 percent during the corresponding period a year earlier.
“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 genera DS Rawat said.
IT-enabled and BPO services offered in the domains of pharmaceuticals and BFSI (Banking, Financial Services and Insurance) have registered an attrition rate of around 60 percent, while firms outsourcing retail and IT services have recorded an attrition rate of around 55 percent, the study revealed.
Auto, FMCG, manufacturing and infrastructure sectors have registered an attrition rate ranging between 45 to 50 percent.
“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 put much focus on enhancing individuals’ performance. This might hamper India’s rapid ascension on the world economic stage in the long run”, Rawat added.
Source:http://www.rttnews.com/Content/IndianNews.aspx?Id=1598731&SM=1
