“ATTRITION IN BUSINESS PROCESS OUTSOURCING

INDUSTRY IN INDIA”

(A study based on the Attrition in BPO in Indian companies)

A thesis presented in partial fulfilment of the requirements

For the award of the degree,

MBA International

DUBLIN BUSINESS SCHOOL

In association with
Liverpool John Moores University

Submitted by

Jayachander Pinnamneni
Student no: 1275731

Under the supervision of

Mr. Aidan Finnegan
 DECLARATION

I declare that, this work is based on an independent study and no part of this work has
been previously submitted for assessment, in any form, either at Dublin Business School or
any other institution.

Signed:

Date :
 ACKNOWLEDGEMENTS

I thank Mr. Allan Graham and Mr. Gary Bernie for their guidance and encouragement at the
initial stage of the research. I am indebted to my Guide, Mr. Aidan Finnegan, for his valuable
guidance provided during the course of this research.

I express my sincere gratitude to all DBS lecturers in the MBA International programme, for
providing an excellent education experience.

I express my sincere gratitude to Mr. Regan Francises managing director of Essestec Solutions
PVT, LTD. I got a whole hearted support and encouragement from the staffs and management
of this company. I express my gratitude to them also.

I would like to express my gratitude to all my friends and colleagues, who helped me during the
entire research by giving valuable information and in proof-reading.

A special thanks to my parents and relatives for their moral support encouragement and prayers
to complete this research work successfully.

Finally thanks to God for everything.

 ABSTRACT

The research attempted to study the causes that are responsible for the attrition from the
perspective of Human Resource executive in the business process outsourcing industry in
Chennai, India. It is found that the workers employed as a fresher has not given proper training
programmes and they are not able to accommodate with present working condition. In more of
the Business Process Outsourcing industry psychometric tests is not practiced through which one
can identify the flexibility of the candidate and his / her capacity to handle the situation and
monotony. So in the research process I going to take the opinion of different authors and find
solutions for this problem.

In order to make a better understanding about the key areas of the topic, a detailed literature
survey has conducted. The extensive literature review thus helped in make a good idea about the
important terminologies and the experts’ discussion on all of these subject matters.

This research is intended to explain cause of attrition and also better relationship between
management and the employees in this particular industry. For this, the researcher has selected
an Indian company which is located in Chennai, Essetech Solutions. The researcher has
formulised a strategy by combining both qualitative and quantitative analysis. For this,
researcher has selected survey with the HR manager and with the employees in the company.

According to the study the existing policies and conditions are effective enough to retain the
employees. Some more suggestions and some of the common requests of the employees are
explained in this research which will help in building confidence among employees and also a
better relationship between management and the employees.

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 CONTENTS

TITLE Page No.

CHAPTER-1 INTRODUCTION 1

STATEMENT OF PROBLEM 2

NEED AND IMPORTANCE OF THE STUDY 3

OBJECTIVES OF THE STUDY 4

PRIMARY OBJECTIVE 4

SECONDARY OBJECTIVE 4

LIMITATIONS OF THE STUDY 4

CHAPTER-2 LITERATURE REVIEW 5

A Theoretical Overview about Attrition 6

1. The Boss to Subordinate Relationship 7

2. A Study on Retention and Morale Maintenance 8

3. A Study on Inexpensive Internal Programs of Management 9

4. A study on Hiring and Retaining Happy Employees 10

5. A Study on Areas for a Quick Management Attrition 10

6. Retention through Increased Morale 11

7. A study on Factors Affecting individual’s decision to leave a job 12
8. The wave of the future 13

9. Attrition between waves in longitudinal studies in the elderly shows a 14

consistent pattern of dropout between differing studies.

10. A Survey on Employee Aspirations Up, Services Face Maximum 15

Attrition.
11. Reassess the Management process 16
12. The Work Force Attrition Crisis 19

13. Areas Requiring a Long Term Management Fix 19

14. A study on Managing Attrition level 20
15. Talent Retention by Management Control System 21
16. The reasons employees stay are not the same as why they leave 22
17. A Study On effects of high attrition rate on company 23
18. May 2008 - A study on Employees Retention Tools 24
19. Insights of attrition 26
20. Retention Strategies 27
21. A Study on effective performance management system 29
22. A Study on Benefits of Employee Engagement 30
23. - A study on acceptance of Attrition in management 31
Attrition level in BPO industry: A major challenge 34
Cost due to a person leaving 35
Training cost 36
Last sale cost 37
Advantage of outsourcing 39
Evolution of BPO in India 40
Services that are offered by the BPO industry 41
Understanding Employee Attrition 41
Motivation 42
Job dissatisfaction 43
Perceptions of Training 44

CHAPTER-3 RESEARCH METHODOLOGY 51

RESEARCH METHODOLOGY 52

FIELD OF STUDY 52

RESEARCH DESIGN 52

UNIVERSE 53

SIMPLE RANDOM SAMPLING 53

STRATIFIED RANDOM SAMPLING 53

SAMPLE SIZE 54

TOOLS OF DATA COLLECTION 54

PRETEST 55

ACTUAL COLLECTION OF DATA 55

CHAPTERIZATION 56

FINDINGS 106
CHAPTER-5 CONCLUSION AND RECOMMENDATIONS 107

CONCLUSIONS 108

SUGGESTIONS 109

BIBLIOGRAPHY 110

APENDIX 115