Attrition rate in BPO Sector
Introduction
The term BPO (business process outsourcing) refers to outsourcing in all fields. Services offered by BPO companies are customer support, technical support, telemarketing, data processing etc. In face of stiff competition from other locations, India retains its position as the world’s leading global sourcing destination for IT- BPO services with a share of 58% in 2011. For the BPO sector that employs one million people, the attrition rate has risen drastically to 55%. According to the study, the BPO-ITES sector has emerged as having the highest attrition rate of 65% during the last two years, giving a serious jolt to India’s prospects as the most sought-after BPO destination in the world. The high percentage of females in the workforce (constituting 30-35% of the total), adds to the higher attrition rate.
In 2010, the Philippines surpassed India as the largest business process outsourcing industry in the world. After growing 20 per cent in 2012, the BPO industry of the Philippines is estimated to gross revenue of upwards to $25 billion by 2016. By these estimates, the Philippines' BPO industry will account for approximately 10 per cent of the nation's GDP
India's position as the dominant destination for BPO activities could be compromised soon enough due to the very high levels of attrition that the industry has seen over the past few months, an apex industry association has claimed in a recent report.
The Assocham report believes that the $14.7 billion industry is in dire straits due to the fact that the Indian youth no more perceive the BPO industry as a career option for the future that guarantees stability at work and consistent growth.
Attrition can be defined as “a reduction in number of employees through retirement, resignation or death”. The calculate attrition rate of a company there is no standard formula because of certain factors as:
* The employee base change each month
* In some cases...
