India’s BPO In Trouble


BPOs in India could be heading for some trouble due to high labour attrition, poor infrastructure and lack of data protection laws. The big question before India is to retain the manpower in order to deliver quality and value. Analysts are of the opinion that in Indian BPOs the outsourcing labour attrition rates vary between 20 and 40 percent in some companies while at top firms it averages at least 15 percent.

BPOs in India are in a situation where customer expectations are going up and thus, they have to invest in people to make this industry successful. As the Indian BPO industry faces a tough challenge in attracting quality manpower, a public-private partnership was the only solution left in such a situation. India churns out two million graduates annually and only five percent of them are employable by the BPO industry. Of the rest, 15 percent to 20 percent are trainable people and recruitable and 80 percent are not even trainable.

The Indian BPO industry also needs to create an atmosphere in which foreign firms should be confident that their privacy would be respected.

Jesmine