New Delhi: Erratic working hours and perceived lack of long-term career growth has led to 55 percent increase in attrition rate of Indian BPOs in the last four months, an industry chamber study has said.
During December 2010-April 2011, the attrition rate in the business process outsourcing (BPOs) has increased to 55 percent from about 40 percent in the same period during the previous year, Assocham study said.
“Although the BPO sector has been popular since the beginning as it has opened up plenty of job opportunities, the high attrition rate has plagued the sector now,” said Assocham Secretary General, D S Rawat.
Besides, the industry is facing serious challenges like shortage of skilled and educated workers, the study said.
Services offered by the IT/ITES and BPOs in the domains of pharmaceuticals and financial services have registered an attrition rate of 60 percent; in retail and IT sectors 50 percent; and in automobiles, FMCG and infrastructure sectors 50 percent.
“The growing trend of job-switching in the industry might prove fatal for the survival and growth of India’s BPO sector,” Rawat said.
India’s BPO industry is facing a stiff competition from countries like Mexico, Philippines, Malaysia, China, Canada and Ireland.
“Rapid job switches amongst professionals have certainly raised the wages, but there is hardly any development of expertise amongst the employees which is significant to justify their fat pay cheques globally,” Rawat said.
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