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Journal of Social Welfare and Management

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Managing Attrition: The Real Problem Behind the Growth of Business Process Outsourcing (BPO) Companies

K. Chandrasekar , K. Chandrasekar

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Journal of Social Welfare and Management 3(1-2):p 27-35, January - June 2011. | DOI:

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Abstract

Human Resource is considered to be the most valuable asset in an Organization. It continues to play, even in the computer age, when everybody feels that men have a little role to play. It is true that computer, to some extent, does play a role, but programming and feeding such programme require manual operations. In other words, the application of manpower has no substitute and therefore, it has a continuous role to play. The main problem against the manpower development is attrition. The rate of attrition is increasing every day so that production and profit decrease. Noteworthy is the continuously growing rate of attrition among the IT, ITES and other Software based companies. This has made the companies to take up research studies based on their employees, especially to identify the factors of attrition. This research on the attrition analysis helps to know about the employees’ attitude towards the company and the work, also highlighting various other direct and indirect effects of attrition on production, cost, discipline and efficiency in the industry. The reasons influencing the attrition such as low satisfaction level in salary, practices followed by local players, relationship with immediate boss, work stress, etc. were found to be common among most of the IT companies. This research discusses the remedial measures and those recommendations that can be considered by the companies positively to reduce attrition in the days to come.

Keywords: IT/ITES, Attrition rate, Attrition costs, Innovative ways

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