The India’s Business Process Outsourcing sector is facing stiff competition from the likes of the Mexico, Philippines, Malaysia, China, Canada and Ireland that are posing a grave threat to the growth of India’s Business Process Outsourcing sector. The Business Process Outsourcing industry is facing serious challenge vis a vis shortage if a skilled and educated workers as the attrition rate in India’s Business Process Outsourcing sector has risen phenomenally at the rate of 55 percent with a significant visible movement in the mid and senior management levels. The Business Process sector in India has been very popular since the beginning as it has opened up plenty of the job opportunities and has totted up the huge revenue, but the awfully high attrition rate coupled with the talent crisis has plagued the sector since the very beginning.
At the top with the highest attrition rate of 65 percent during the course of the last two years as per the ASSOCHAM analysis Business Process Outsourcing Information Technologies sector has emerged at the top with the highest attrition rate of the 65 percent during the course of the last two years giving a serious jolt to India’s prospects which was till recently the most sought after the Business Process Outsourcing destination. The services offered by the Information Technology and Business Process Outsourcing in the domains of the pharma and BFSI or the Banking, Financial Services and Insurance that have registered an attrition rate of the round 60 percent in the domains of the retail and Information Technology sector an attrition rate of around 55 percent that has been recorded.
The Manufacturing and Infrastructure sectors that have registered an attrition rate ranging between 45 to 50 percent. All the relevant sectors that the services offered by the Information Technology and Business Process Outsourcing in the domain of the energy sector that has recorded an attrition rate of 45 percent. The growing trend o the job-switching in the Business Process Outsourcing industry might prove to be fatal for the survival and the growth of the India’s Business Process Outsourcing sector, the companies these days do not much focus on the enhancing individuals performance, this might hamper the India’s rapid ascension on the world economic stage in the long run. The rapid job prove to be a disadvantage of the both for the companies who pay the higher wages and those individuals performance that may hamper India’s rapid ascension on the world economic stage in the long run. The rapid job hops prove to be a disadvantage for the both of the companies who pay higher wages and those individuals who benefit from the higher wages in the short-run as the rise in the package is not keeping up with the rise in the knowledge or skill of the levels of the individuals.
REFERENCE:
http://www.outsourcingmalaysia.org.my/industry-news/-/INDIA/
