High Attrition Rates – Not Exactly A Problem For The Business Process Outsourcing Industry

With attrition rates varying between 25% to 30% in any given year, the business process outsourcing industry may well be the leader in that context. But does it actually affect the industry in an adverse manner? Well, most people would certainly like to believe so probably because they fail to see the silver lining. Far from being an impediment, the high attrition rates are actually a good sign because they reflect the dynamism of the industry. If the industry did not have high attrition rates, it would have implied that stagnation is creeping in the industry and that there are not much opportunities left for further growth and development.

Fortunately however, and also because of the hard work put in by the industry, stagnation has not occurred. The Indian BPO industry continues to grow at a phenomenal rate, expected to reach a staggering $50 Billion worth of business by the year 2012, from the current $11 Billion. These figures are enough to prove that the high attrition rates are nothing but a specific characteristic of the BPO industry, just like other industries have their own. As such, business process outsourcing firms need to concentrate more on delivering quality and passing on the cost-benefits rather than wasting precious time and effort on controlling the inevitable – high attrition rates.