Exploring the dimensions of attrition in Indian BPOs

Abstract

Business process outsourcing (BPO) industry in India is progressing with an unparalleled velocity. Despite the momentous growth and brilliant future, the BPO industry has experienced high attrition rates since inception. There are many factors that lead to attrition in BPOs and much research has taken place time and again. In this study, we have made a comprehensive attempt to explore the dimensions of attrition by identifying the factors that lead to it, assessing the contribution of the factors toward attrition, and comparing the dimensions across the various demographic variables. Data have been collected from 500 BPO employees and analyzed using Statistical Package for the Social Science 17.0. Factor analysis, correlation, regression, t-test, and Duncan's mean test have been done to empirically interpret the result. The paper not only identifies the significant dimensions of attrition but also provides scope for further studies in the field of employee retention in the BPO industry.

Toward a more complete understanding of offshoring: bringing employees into the conversation

“…High turnover has emerged as a consistently problematic issue in discussions of offshore implementations, particularly in countries like India, Argentina and the Philippines, where demand for labor exceeds supply (Beerepoot & Hendriks, 2013;Das, 2012;del Bono et al, 2012). For instance, turnover rates as high as 60% have been reported in the Indian business processing outsourcing sector (Sengupta & Gupta, 2012). Firm-level turnover rates vary considerably, however, and empirical studies or theoretical models for explaining these differences have been limited (Das, 2012;Kuruvilla & Ranganathan, 2010;Thite & Russell, 2010).…”

“…Work design is incorporated into our model as one such moderator. Although research on this factor in the offshore context has been limited, work design in general has been studied extensively, and evidence suggests that the findings are generalizable to offshoring (Holman et al, 2009;Sengupta & Gupta, 2012). Hence, our discussion of work design focuses on indirect effects not previously considered in the literature.…”

“…A few studies have considered work design and its relationships with turnover in the offshored service sector (Holman, Frenkel, Sørenson, & Wood, 2009;Sengupta & Gupta, 2012). Research aimed at understanding identity conflicts in this sector has been rare (for exceptions, see Das, 2012;Das, Dharwadkar, & Brandes, 2008).…”

“…Despite these well-recognized concerns, however, academic research on their effects has been limited (Das, 2012;Sengupta & Gupta, 2012). A few studies have considered work design and its relationships with turnover in the offshored service sector (Holman, Frenkel, Sørenson, & Wood, 2009;Sengupta & Gupta, 2012).…”

“…To date, most studies have focused primarily on macro-level issues such as why organizations decide to offshore or outsource or why a venture succeeds or fails (Betts, Healy, Mir, & Vicari, 2010;Raghuram, 2006). Very little research has examined the impact of exporting work on the attitudes and behaviors of the destination employees performing it (Linder, 2011;Maertz, Wiley, LeRoute, & Campion, 2010;Sengupta & Gupta, 2012). Within the limited body of literature that has addressed the impact of offshore work arrangements on these workers, at least two central concerns have emerged.…”