India Report: HR issues and Managing Talent in India’s Outsourcing Industry
Title
Date
No of pages
Managing Talent in India's Outsourcing Industry
NOV 2007
9
With India being touted as a haven for outsourcing, HR issues and managing talent in the industry have become focal points for BPOs and KPOs. India’s ambitious attempts to climb to the highest levels of the outsourcing value chain rely heavily on the availability of skilled and committed professionals. This report highlights some critical, but oft-ignored HR issues in outsourcing. For instance, it reveals that the biggest reason for attrition in the industry is not compensation - as many assume - but career ambiguity. Based on insights from the industry, the paper suggests proactive measures to develop talent as the Indian outsourcing industry’s strongest competitive asset.
Ever since India was anointed the unofficial outsourcing capital of the world, the spotlights have fallen on HR issues and managing talent in the country’s outsourcing industry. After all, the sustained availability of skill will be the make-or-break factor as India gallops to the higher rungs of the outsourcing value chain. This incisive Chillibreeze report delves deep to reveal some interesting and strategically significant HR aspects of outsourcing:
Manpower is the biggest challenge for outsourcing in India due to the problems thrown up by a widening demand-supply gap.
India meets only15-20% of the demand for Knowledge Process Outsourcing. By 2009, there will be a shortage of at least 3, 00,000 professional in outsourcing in India.
Attrition is a hurdle at all levels - the industry average is 35-40%, while the rate is around 20% at the higher, sophisticated end of the spectrum (managerial and technical jobs).
A surprise - the most common reason for attrition is not dissatisfaction with pay, but career ambiguity! The highly volatile nature of the outsourcing industry also prompts many employees to call it quits.
The typical applicant-to-hire conversion rate for the outsourcing industry is as low as 8% in voice-based BPOs and even lower in KPOs.
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