All that Glitters is not Gold: Employee Retention in Offshored Indian Information Technology Enabled Services

Abstract

Increasing offshoring of customer contact services to destinations such as India is underpinned by the availability of low cost and high quality workforce. But this competitive advantage is under threat with talent shortages, wage increases, and, most importantly, high employee attrition. Based on empirical studies and person-organization fit literature, this paper identifies and addresses some of the key issues and challenges in retaining talent in the Indian business process outsourcing sector, such as pay satisfaction, work organization, employment branding, and longer-term career advancement opportunities. It recognizes the need for multi-pronged retention strategies in a highly competitive, changing, and fast-growing part of the global services sector.

Keywords:

• information technology enabled services
• business process outsourcing
• offshoring
• India
• human resource management
• employee turnover
• employee retention

ACKNOWLEDEGMENTS

The researcher study referred to in this paper was conducted in collaboration with Associate Professor Bob Russel of Griffith University, Australia.

Notes

¹ Interview with the Senior Manager, HRD of a call center in Bangalore on 17th October, 2005.

² Interview with the General Manager, HR of a call center in Bangalore on 13th October, 2005.

³ Interview with Senior Manager, Talent Engagement and Development of a call center in Pune on 27th June, 2005.

⁴ Interview with Senior Manager, HRD of a BPO firm in Bangalore on 17th October, 2005.

⁵ Interview with Senior Manager, Talent Engagement and Development of a call center in Pune on 27th June, 2005.

⁶ Interview with the Managing Director and CEO of a BPO firm in Bangalore on 20th July, 2005.

⁷ Interview with HR Manager of a call center firm in Hyderabad on 18th October, 2005.

⁸ Interview with Senior Manager, Talent Engagement and Development of a call center in Pune on 27th June, 2005.

⁹ Interview with Senior Vice President – HR of a call center in Bangalore on 22nd July, 2005.

¹⁰ Interview with the Managing Director and CEO of a BPO firm in Bangalore on 20th July, 2005.

[34] Datamonitor, The future of contact centre outsourcing in India and the Philippines, 2005.