Indian BPO Staff Turnover Skyrockets

Annual staff turnover at India's outsourcing companies is 24%, above the country's average of 18%, with lower bonuses to blame

September 8, 2008, 7:21AM EST

Attrition rates in the country's business process outsourcing (BPO) industry are about 8 percent higher than the national average, according to a report by global consulting firm the Hay Group.

Annual staff turnover at Indian BPOs stands at 24 percent, ahead of the country's average of 16 percent.

The report blames lower and less attractive short term bonuses--worth about 4 percent of total pay for BPO workers compared to 10 percent generally.

Oscar De Mello, head of Hay Group's reward information services in India, said in a statement: "The BPO industry hires a large number of graduates who are bright and ambitious. From our analysis, the overall compensation structure design is not competitive when compared to general market practices.

"This means that BPO employees do not receive as much cash-in-hand as their peers in other industries.

"The BPO industry is a critical sector in the Indian economy, worth US$11 billion and employing more than two million people.

"If the industry is to achieve the projected US$30 billion by 2012, we have to tackle this talent attrition issue now."

The report recommends better designed and larger reward packages to help the industry hold onto staff.

The country's largest IT and business process outsourcers Infosys, Tata Consultancy Services and Wipro were recently predicted to overtake the largest western outsourcing companies in revenue by 2012.

http://www.businessweek.com/globalbiz/content/sep2008/gb2008098_954144.htm?chan=top+news_top+news+index+-+temp_global+business

24% turnover??? How the hell do they get ANYTHING done? Oh....they don't.....at least "right."

however, I am hard pressed at this time to think of how it COULD get any worse

They are getting a bonus at all! U.S. talent hasn't seen bonuses in years due to attrition of work to the outsource market. I guess they give out bonuses based on bug report counts...