Work Satisfaction and loyalty important attributes for employee retention. The paper investigates the factors that would affect satisfaction and loyalty amongst the employees in ITES industry. Review of literature highlighted the factors. Based on this a structured questionnaire was designed and administered to 230 respondents. KMO and Bartlet’s test highlighted the adequacy of sample size. Factor analysis was carried out to find out the important factors. The results revealed that training and development, organizational culture, career prospects, rewards and recognition played a very important role in determining Work Satisfaction and employee Loyalty to the organization.