The Indian BPO (business process outsourcing) industry has been grappling with the problem of high attrition rates for some time now. According to a recent study by a talent search firm, attrition rates are as high as 30-40 % at the entry level. A significant number of managerial level staff are also hopping jobs.

To check this phenomenon, BPO firms are resorting to various strategies. These range from offering housing schemes, low rate loans, pick and drop services and attractive catering to employees. Some are even encouraging spouses to work in the same organisation, while others are recruiting housewives and senior citizens. In some cases, firms are even signing anti-poaching agreements to retain people.

For example:

• Noida-based BPO firm EXL Services has taken 125 flats in Noida, where for a nominal rent, it houses young staffers.
• Wipro Spectramind has tied up with BITS, Pilani, and the Symbiosis Institute of Management to provide distance learning programmes for employees.
• Computer Sciences Corporation gives its employees a six-month sabbatical to work with an NGO of their choice.
• ICICI OneSource, the Bangalore-based BPO, for instance, is giving scholarships of up to Rs 50,000 to employees who want to enroll in distance learning programmes.
• Chennai-based Cognizant Technologies, is offering “multiple career paths” to its employees, i.e., allowing them to chose among different career options like project management, technical work or business development.

According to the study, the local BPO industry is likely to follow the trend in US call centers, where attrition rates are as high as 50-80 %. In fact, in several cases, the entire staff of a company is known to change within a year. Though the current environment presents enough opportunities for people with relevant skill sets and enough manpower for an organisation to choose from, the huge employee turnover affects companies both in terms of time and money.

To check this phenomenon, companies will have to provide their staff with a complete package, which is a synergy between money, environment, training, convenience, security, challenge and a number of other factors.

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According to a recent study by Associated Chambers of Commerce and Industry of India (Assocham), Maharashtra has re-established its supremacy in attracting the largest number of foreign investment collaboration proposals as well as the foreign direct investment approvals from the overseas business since July 1991. Maharashtra's track record in securing foreign investment collaboration proposals and FDI approvals has been four times higher than other economically leading states.

The study which is based on the information collected from the latest available official records of the government suggests that the overseas business showed maximum interest in parking its investment proposals in Maharashtra, for which the government approved investment proposals numbering 4663, beginning August 1991 to November 2003. These investment proposals roughly involve the foreign direct investment of $ 1.1 bn. Whereas, the foreign investment proposals cleared for the economically advanced states of Gujarat, Andhra Pradesh, Haryana and others by the government has been less than 1200 in number. The number of foreign direct investment proposals approved for the states of Delhi, Karnataka and Tamil Nadu were little over half of Maharashtra’s share during the period. The reason attributed for Maharashtra attracting the highest number of foreign investment proposals during the last 13 years include the overall industrial climate of the industry, which has been conducive to overseas investment.