BANGALORE, INDIA: Media outlets today are abuzz with India's unprecedented growth in the BPO segment to achieve a scale of more than USD 12 billion in revenues. Interestingly, according to Gartner while the domestic BPO market may have remained stagnant at $1.1 billion in 2010, this year it is projected to report growth of over 23 per cent.

Going by the forecast, the domestic BPO market is likely to touch $2.47 billion by 2014. This may seem a distant dream; however, industry leaders are bullish and believe that that the post-Lehman era will be very different with respect to demand and supply side factors compared to the last decade.

That said, there are several factors that are plaguing the Indian Industry. In addition to increasing competition from new markets, customer service issues there is also the problem of, talent crunch and finally employee attrition.

In fact the rather appalling findings of the Associated Chambers of Commerce and Industry of India (Assocham) on the attrition factor in India's business process outsourcing sector jumped to 55 per cent from 40 percent a year earlier, reveals that attrition is a larger problem than earlier envisaged.

So what are the factors driving employee attrition?

The study released clearly attributes attrition and high turnover rate to the irregular working hours, frequent changes in schedules and a perceived lack of long-term career growth. This challenge has increased at an inopportune time - especially when the Industry is looking at cementing its position as a preferred outsourcing destination against potential threats from countries such as Mexico, Philippines, Malaysia, China, Canada and Ireland.

Agent attrition rates vary widely, from less than ten per cent in the best-managed centers to up to more than 80 per cent in many cases - and ends up affecting an organization's customer service and responsiveness. This takes us to the unaddressed gaps in understanding within segment players on factors leading up to attrition. Contact centers operate in difficult business environments.

For example adhoc business requirements may force operation managers to frequently alter agents' schedules leading to a higher rate of employee churn and discontent. This approach also leads to lowered morale and performance.

(The views expressed in this article are that of the author and do not necessarily reflect the views or policies of CIOL)