Large-scale attrition has always dogged the ITES and Business Process Outsourcing (BPO) sector, but economic slowdown has forced employees to rethink moving to greener pastures in the corporate world as attrition rates have come down to 15-20 per cent as against 55-60 per cent during the corresponding period last year.
Industry body, the Associated Chambers of Commerce and Industry of India (ASSOCHAM), in their report on the IT, ITES and BPO sector has stated that there has been a fall of nearly 45-50 per cent from January to June 2012.
“An uncertain global economic environment together with cross-currency fluctuation has compelled employees to adopt a wait-and-watch policy, leading to a decline in the attrition levels in the IT-BPO sector, which has been grappling with a talent crunch due to a shortage of competent managers at the middle and senior management level for quite sometime,” said secretary general of the trade body D S Rawat, calling it a blessing in disguise.
Furthermore, he said that the global economic turmoil has led to a fall in hiring activities and a high employee retention rate was a common feature.
Sharing the methodology of the report, the trade body said they interacted with about 300 job consultants, recruitment professionals, HR specialists, industrial psychologists and administration officials at various companies in the domain of IT, ITES and BPO at six centres —Bangalore, Chennai, Hyderabad, Gurgaon, Noida and Pune to ascertain the extent of movement in the job market.
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