In today’s globalized world, the emphasis on cost and price is forcing organizations to look at Business Process Outsourcing (BPOs) as an option to remain competitive. The Indian BPO industry has grown to the size of US$3.6 bn, recording a growth of 46% in the financial year 2003-04. Despite this growth, the BPO industry is facing many challenges like shrinking profit margins, low quality of service delivery to the end-customer, inferior information security and data confidentiality, inability to quickly achieve scale, etc. Apart from all these and the political backlash from the US, the industry is now being dogged by high attrition rate. The IT Professionals Forum of India (ITPFI), an organization in South India, has formed a forum to tackle unfair HR policies in the industry. This forum is likely to be registered under the Trade Union Act as the Center for BPO Professionals (CBPOP). This has further put the employers in a bind.

India, with its vast base of young graduates with good communication skills, right attitude and comparatively lower salary expectations, has become the BPO hub. Youngsters are happy that as soon as they complete their graduation, a job is already awaiting them. The potential employees have a great variety of choices to pick from, which increases the probability of their shifting to better jobs. The employers are a worried lot, as apart from the fact that numerous companies are targeting the same talent pool, ‘poaching’ has become commonplace. The end result is that the employers are concerned as to what they should do in order to decrease the employee turnover rate and retain their best talent.