From the beginning of summer 2008 there has been a slew of bad news in US that caused ripple effects across the globe. It all started with the housing subprime mortgage and now it trickled into the entire financial market. The US unemployment rate hits 6.1% and the industrial production fell to 1.1%, its largest decline in the past three years. The Indian IT and BPO companies get more than 60% business from US and 20% from UK, the rest comes from other European countries, Australia etc. With US already in recession and European economy edging towards recession, all these will affect the global economy.
Have you ever imagined that salary could be the most important reason for such a high attrition rate in Indian BPO sector? Yes, it is—as per the report published by BPO Special Survey, 2008 (more details), the attrition rate of business process outsourcing in India stands 7.8% higher than other industries. What is the reason behind this?