BANGALORE: "Lack of clearly-defined career growth opportunities and the desire to pursue higher education are two important reasons behind an employee's decision to quit a Business Processes Outsourcing (BPO) company. "

This assertion by Jeremy B. Williams, Associate Professor (E-Learning) of Universitas 21 Global, was a key observation on the Indian BPO sector's attrition rate, which stood in the 25 to 35 per cent range by conservative estimates.

Mr. Williams told The Hindu here on Tuesday: "So long as Indian attrition rates remain comparatively higher than their main competitors in the Asia-Pacific, this presents a threat to the sustainability of India's `number one ranking' as the prime destination for the outsourcing of business process."

Low retention rate

He said India has one of the lowest retention rates. Highly demanding, stressful employment exacerbated by night shift work; the lack of clearly defined career growth opportunities; mismatch of aptitudes and expectations between employer and employees; competitive pressure in the industry resulting in heavy inter-firm "poaching," and the desire to pursue higher education or alternative occupations were the reasons listed by industry professionals, he said.

Some employees, Mr. Williams said, left within three to six months of joining the industry simply because they found the job too demanding and could not cope with the late night work. Others left to study further or to pursue a different career. "The remaining two-thirds leave for alternative jobs within the industry. The large part of the attrition, therefore, is a churning of the existing market."

Education programmes

On company-sponsored higher education programmes, Mr. Williams felt the firms could be made the "destination of choice" for bright, innovative thought leaders. Companies in transformation require "leaders" who are personally in transformation.

"The provision of higher education opportunities on the part of the company can assist its employees in making this transformation. In doing so, they increase the likelihood of securing the `head and heart' of the employee and a shared sense of mission," he said.

With the development and increasing acceptability of e-learning and a natural predisposition for the use of the various Information and Communication Technologies by BPO firms, he said e-learning had emerged as an attractive proposition.

Higher-end, analytic business processes ("developed country work," as he put it) required highly educated manpower, mostly MBAs, accountants or engineers.

Companies operating in this space, Mr. Williams said, had the lowest attrition rates. But for Indian BPO firms to get into the higher-end Knowledge Process Outsourcing (KPO), they had to demonstrate a wide range of skills in both vertical and functional areas.

Strategic approach

Indian BPOs should take a strategic approach to HR and Indian IT professionals, Mr. Williams said. They have to acquire generic skills such as written and oral communication, the ability to work in teams and cross-cultural understanding.

BPO firms aspiring to move up to the KPO levels had to offer appropriate in-house programmes or outsource the training of their employees in these areas.

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