BPO companies have very different HR issues when compared to those in the brick and mortar business. 24-hour working schedules, employment of women in night shifts, higher levels of stress contribute to the already high attrition levels in the software industry. An average Indian call center employee works with a company for 11 months, where as an average UK call center employee stays in a company for three years.

With a number of companies mushrooming in BPO sector, there have been numerous reports that the margins have come down. As the clients become more familiar with the Indian off-shoring scenario and other countries also start competing for the same business, there is bound to be pressure on margins as witnessed in IT services sector.

The high attrition rates and consequent retraining costs also add to the pressure on margins. Running world class operations under such pressures present significant scaling-up challenges.

India has become the favorite destination for major players across the world to setup their BPO operations. The major problem plaguing India and obstructing its smooth transition into the next phase in the BPO industry is high attrition.

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