In an earlier Outsourcing Opinions article, Outsourcing: People Matters, it was reported that the employee attrition rate in India’s business processing industry is the highest at 23.5 percent when compared to other industries.

But recent figures show that the high figure appears to have dropped down to 20 percent, and in the coming quarters, industry insiders foresee a chance for the rate to drop lower.

Given today’s uncertain economical environments, care and caution are virtuously practiced.

The closing of many financial institutions have led to the retrenchment and stalled recruitment of jobs in banking and financial services.

Those that still do have jobs work with a cloud overhead and sadly no other choice but to make the best of it.

Though there has been a slowing down of pace, hiring is still persistent. However, it is perceived that no one in their right minds would  want to be part of the “new guys” or be on probation since things are still unsteady.

Bad comes to worse, it is often the “new guys” that are always let go first.

Since employee attrition has long been a problem in the outsourcing of services industry, not only in India but in many outsourcing destinations as well, such as the extreme mobility of professionals pitting one potential employer against another for better pay and benefits.

Recently, companies have been curbing this trend by imposing recruitment processes and systems to make hiring more selective, based on what’s required and no more.

Outsourcing Solutions, Inc. – your outsourcing partner!


Tejawsi, Mini Joseph. “Infotech attrition rate slides to single digits.” 15 October 2008. Economic Times of India. Accessed 15 October 2008. Link here


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