Employee retention becomes a key challenge for IT and BPO firms in India, as the industry faces large-scale employee attrition especially in key positions within the organization.
Fidelity National Financial India Country Head Sameer Dhanarajani said "the macro effect is balanced by one company losing its critical staff to another and a company getting critical resources in return." The challenge is to keep them aligned to the organization. Moreover, a new employee, regardless of his or her place in the corporate ladder, comes with hiring, training, and maintenance costs. "There has been an increased investment to retain the right talent and to keep the customer operations smooth,” Dhanarajani said.
He added that there has been an increase in demand for outsourcing as companies recover from the financial turmoil, cost of operations, and rising unemployment rates. While India remains the top location of choice, other outsourcing destinations such as the Philippines, China, and Vietnam pose a threat.