Attrition in Voice-Based BPOs in India high at 60%

Kirti Saboo
Associate Consultant,
BPO Advisory services, Zinnov

The attrition in voice-based BPOs in India is as high as 60% and perhaps more for some industry players. In fact even top 10 BPO vendors have an attrition rate in the range on 30-40%. This reflects the sheer enormity of the problem.

However, the Nasscom Strategic Review 2005, puts the attrition rate at 25-40%. The lower rate could be due to the presence of KPO outfits and captive BPO units that have lower attrition rates, bringing own the overall attrition rate for the industry. Call centre or voice-based business still constitutes the majority of the business in India.

A research study on BPOs that was done by the HayGroup in the NCR region shows that the cost of attrition to a company is 70% of an employee’s annual salary, or 27% of the company’s operating expenses.

Drivers of High Attrition Rate

HR Challenges
BPO looked at as a stop-gap arrangement by youngsters
Career path not well defined and not strong
Lifestyle issues
Lack of bonding with peers and the organization
Perception based problem
Unorganized BPO labor market

Recommendations to Tackle the Problem

HR measures
Better rewards (non-monetary)
Bonding programmes
Learning and Education Programs for employees
Better Work Culture
Flexible working hours
Well defined and stronger career path
Introducing diverse work force
Public-private partnerships to organize the BPO labor market in terms to orientation, training, etc.

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