India BPO industry suffers 55% attrition

NEW DELHI, April 14, 2011 (AFP) – The attrition rate in India’s business process outsourcing sector jumped to 55 percent from a year earlier, dealing a potentially fatal blow to the flagship industry, a study said on Thursday. India recently lost its crown to the Philippines as the call centre capital of the world. But India continues to lead the overall global outsourcing market, increasing its share to 55 percent in 2010, up from 51 percent the previous year. The study released by the Associated Chambers of Commerce and Industry of India (Assocham) blamed the high turnover rate on bad working hours and a perceived lack of long-term career growth.

Between December 2010 and April 2011, the attrition rate in the BPO industry increased to 55 percent from 40 percent during the same period a year earlier, Assocham said.

“Although the BPO sector has been popular since the beginning, as it has opened up plenty of job opportunities, the high attrition rate is plaguing the sector now,” Assocham secretary general D.S. Rawat.

The sector is also facing serious challenges such as a shortage of skilled workers, the study said.

US and other foreign firms, drawn by India’s English-speaking workforce and lower costs t