Bangalore: First they tried bonuses. Then award programmes, and long-term planning for career. But the US financial crisis has helped Indian outsourcing firms do what they couldn’t quite do on their own: get employees to stick around.
Business process outsourcing (BPO) companies have struggled for years with a labour pool largely defined by young workers who hopped from one employer to another, and stayed with one, on average, for only 11 months. But that was before several of the world’s largest banks collapsed, the credit markets froze, and people started to worry more about whether or not they had a job than how good a job it was.
The BPO industry’s churn rate has come down below 20% in the third quarter, down from 35% in 2007, and the low 20s earlier this year.
At outsourcing firm Genpact Ltd, often considered an industry benchmark, attrition dropped from 31% last year to 24% in the first half of this year. “Is that the impact of the market around us, or the impact of the absolutely outstanding work that Piyush Mehta and his team are doing?” asks Genpact’s human resources head Piyush Mehta. “I don’t want to completely exclude what we have done, but it is mostly the market impact.”
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1 comments:
Outsourcing involves delegating some operations to an external entity, which is usually specialized in managing that operation. Outsourcing emerged on the business world as a method to focus a company’s energy and resources on some core-activities, where most of the value is created, while delegating non-core activities
to external suppliers that can execute those operations more efficiently and with reduced costs.
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